Saturday, September 19, 2009

Costs of Merchant Vessel Security

With shipping companies facing increasingly tighter profit margins, along with an increased risk transiting hostile waters, ISSG understands that inflated security costs can cause shipping companies to fore go risk mitigation to stay profitable. This is caused by a lack of understanding on the part of security companies, on how the shipping industry operates. ISSG understands that it is crucial to reduce the impact of security costs so that you can remain profitable, and stay competitive on carriage contract bids.

ISSG Holdings understands that shipping companies do not always have long advance notice of their upcoming transits, and routes can be unpredictable. This, combined with the ever-expanding piracy threat areas can create a unique challenge in arranging affordable comprehensive security for their assets. By developing the proper working relationships with shipping companies, gives us the flexibility to adapt to your needs in a constantly changing environment.

Some security companies have actually chastised us for offering what they consider "low ball" rates for security during transits. I have to say that like any business, we offer our rates according to our costs and the profit margin that we expect to gain. This is not a low ball situation, this is reality in today's times of market need.

If a security company is charging more than the market will bear, then the shipping company will fore go the security to maintain their bottom line. If the security company can understand the needs of the shipping company, they either offer their services at a rate that can be affordable, or stay out of the picture. The complaints about our costs should not enter your mind as i do not even know your costs. I can not be low balling mine if I am calculating my costs realistically, without even knowing yours.

This is not the time to take advantage of shipping companies due to piracy. This is the time to provide a service to shipping companies that is of best value and best service at costs that can be afforded.

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