Page 46: of Maritime Logistics Professional Magazine (Q1 2011)

Maritime Risk

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46 Maritime Professional 1Q 2011 information system is continually updated – weekly and daily – to capture new sources and automatically update that which they already possessed.

RightShip personnel don’t necessarily have to go out looking for it. The hard part is ensuring information coming in is accurate and correcting the data, if need be. Norman cautions, “This comes with responsibility. The system is deal- ing with a lot of variables.”

The quest to improve the process is aptly demonstrated in the increasingly sophisticated nature of the RightShip algorithm. A new feature of the soft- ware allows technical personnel to rate a vessel by using filters to compare owner to owner, flag to flag, to its rep- resentative class of ship, classification society, type of service and the vessel to the entire fleet within its owner pool.

Norman explains, “This allows us to drill down to sort out the problem against what you are trying to use the vessel for and, more importantly, the client’s risk tolerance.”

THE HUMAN ELEMENT

The RightShip vetting method effec- tively eliminates the chance of a 4:30

Friday afternoon decision being differ- ent from the Monday decision. Norman explains, “By applying data in a uni- form standard as opposed to a subjec- tive human interpretation, the client can make a commercial decision based on that systematic approach.” That’s not to say that there isn’t room for analysis within each piece of RightShip vetting advice. There is.

Lots of 2-star vessels get approved.

For example, a vessel otherwise having an excellent rating except for a port state deficiency might end up with a “2” but that deficiency might not disqualify the vessel. Norman explains further, “To a certain extent, vetting involves changing behavior; the carrot and the stick. Downgrading the vessel until it repairs the deficiency incentivizes the owner to do better.” On the other hand, it may have to go through a manual vet- ting process, each and every time. He adds, “That can delay a vessel from get- ting approved and that delay comes with risk for all parties.”

Norman runs a pragmatic shop. That savvy runs the full gamut of avoiding blanket decisions based on stovepiped data. “That discussion usually revolves

SHIP VETTING

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Maritime Logistics Professional magazine is published six times annually.