ISSA Backs Managers Call For Owner Transparency Over Late Payments

The head of the trade body representing the world’s ship suppliers and chandlers has supported calls by InterManager President Roberto Giorgi for ship owners to be more upfront and transparent with their managers and suppliers when it comes to settling bills.

He will be seeking a meeting with the world ship managers’ body to look at ways both organisations can work together to ensure that cash flow problems can be minimised. Jens Olsen, President of the International Shipsuppliers & Services Association (ISSA), said ship managers and ship suppliers “find themselves in the same boat” when it comes to dealing with ship owners’ cash flow problems. Owners should be more upfront with their suppliers if they are experiencing problems as late payment can have disastrous effects on suppliers’ own cash flow and ability to supply ships in the world’s major ports, he warned.

Late payment, and in some cases the non?payment of ship supply invoices, is a growing concern for ship chandlers in the world’s ports and has been a focus of attention for the new Presidency of the International Ship Suppliers and Services Association (ISSA).

“This causes us further concern now we are in the midst of the global downturn and the slump in shipping movements. We are working as an Association to help our members by showing owners the impact their slow paying has on the ability of companies to continue to supply them. Other innovative ideas are under active consideration to get around this problem but it remains our principal cause of concern on behalf of our members,” Mr. Olsen stressed.

“Ship managers and ship suppliers are in the same boat when it comes to relying on efficient cash flow. It is crucially important that ship owners are more open and transparent when they experience cash flow problems because only then can we try and resolve the situation,” he added.

ISSA is always encouraging ship owners and managers to look upon their ship suppliers as partners without whom their vessels simply could not operate.

The problem of the financial crisis and its effects on the shipping industry will be at the centre of the debate at next week’s International Shipsuppliers & Services Association (ISSA) Convention in Istanbul.

ISSA is the international trade association for the world’s ship supply sector with a membership of nearly 2,000 ship suppliers throughout the world. It has 43 national associations of ship suppliers as full ISSA members and associate members in 52 other countries where no national association exists. Quality operation is an essential prerequisite to ISSA membership and as a result, ISSA members have to undergo a rigorous vetting procedure before gaining admittance. Our members and the goods and services they offer can be found in every major port in the world. The Association was formed in 1955 and celebrated its Golden Jubilee in 2005 of half a century of service to the maritime industry.