Vessel Position System

Essay by slothdickUniversity, Master'sA, April 2005

download word file, 10 pages 5.0

Part 2

Vessel Position System

2.1 Introductions

As we all know shipping companies provide a similar service and it is difficult to discern between them. The prices charged depend mostly on conference agreements, alliances, etc. shipping companies tend to earn low returns on capital invested so it is difficult to strive for a cost leadership strategy, and in turn they should go for a differentiation strategy. However, shipping companies want to acquire and keep more customers, who does not? The goal should be to create customer loyalty and what a better way than providing a more reliable and convenient service, as the subject is container tracking and tracing a way to achieve this differentiation will be to provide the customer with good information flows by means of e-Business where the customer is encouraged to look, read, sample and interact in the system.

Vessel tracking and tracing is becoming more and more important, due to the fact that it allows transport service providers flexibility and to be more efficient in order to satisfy their customers needs.

The objective of studying the vessel position system is to understand that how to improving the performance of shipping company by the art-of-the-state. In consequence, shipping company will be able to provide the most cost-efficient service to the customers in marine market in association with strong controllability and great flexibility.

2.2 Main Functions of Vessel Position System

From the impact of shipping company, the vessel position system must be concerned four type's functions:

2.2.1 Efficiency

A shipping company must make money to survive. Without effective and efficient processes, too much time and therefore money can be wasted, dribbling away the already all too slim profit margins. Efficiency can be improved only when the management can compare performance to an established base line standard. Ship operators...