FEATURE NAME

DANGEROUS WATERSWHAT TO CONSIDER REGARDING

A DUTY OF CARE POLICY

RICH DATA, RICH REWARDSFUTURE ANALYTICS

CASE STUDY: PROCURING GLOBAL TRAVEL MANAGEMENT

Shipping OutlookEfficient business

processes offer long term savings

Welcome to a special edition of ATPI’s Shipping Outlook which has been produced to offer insights and advice for buyers and procurement professionals within the shipping industry.

It’s certainly a turbulent time for the shipping industry. The period since the recession of 2008 has been characterised by increasing costs, overcapacity and a lack of liquidity. Unfortunately, it seems that this trend is likely to continue for the next 12-18 months, intensified by current market conditions including Britain’s decision to leave the EU, the slowdown in China and recessions in natural resource economies such as Brazil and Russia.

Ship operators anticipate that operating costs including crew wages, hull and machinery insurance, dry-docking, repairs and maintenance will rise so ATPI remain committed to supporting and improving our client’s business processes by driving efficiencies and savings throughout their travel programmes.

As a specialist travel management company, which has been in business for 40 years, we are globally focused on delivering value driven, business critical and related solutions for the Shipping, Offshore and Resources industries. We work in partnership to increase efficiencies, ensure cost savings through the process and working as a seamless extension of our client’s own operations. Offering unparalleled value, service and innovative technology, we strive to meet the evolving, unique and individual challenges of our clients.

Travel is typically a significant controllable cost and optimising this spend globally, whilst ensuring mission critical travel and duty of care, is always a challenge. In this edition, we discuss the current state of play and specific areas of your travel programme that we suggest you evaluate. Some recommendations are standard elements that all travel managers and procurement teams recommend, but some ideas may be new to you and are really at the forefront of travel management for the shipping industry.

We’ve included some recommendations for best practice when it comes to reviewing your Duty of Care policies within your travel management programme and we hope they provide ideas which contribute towards an actionable plan.

This edition also features links to a number of case studies – real-life examples of challenges your industry peers face and how we’ve worked together to overcome these. I hope you find these articles thought-provoking; do get in touch with myself or a member of the team if you have any questions or would like to discuss your current travel management challenges.

Gary Pearce Chief Commercial Officer, ATPI

Email: gary.pearce@atpi.com

Welcome to Shipping Outlook

ContentsShipping Challenge 4The continuing challenges for the industry and the how a specialist travel management company’s expertise can help steer through these challenging times.

Making Sense of Airfares 6

Case Study 8Procuring Global Travel Management for Wilhelmsen Ship Management.

Systems Integration 10

Rich Data – Rich Rewards 12Any Travel Manager will stress how good data is at the heart of any well managed travel programme. The insight that rich data provides can arm the buyer with ammunition on what elements could be better managed.

Efficient Business Processes 14Offer Long Term Savings

Dangerous Waters 16

Meet The Team 18

ATPI Corporate Events 19

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Despite the fact that 90% of international trade is transported by ship it’s been another tough year for the global shipping market with excess supply and a decline in freight rates to an all-time low.

“To remain competitive, a company must focus on improving asset utilisation as well as reducing costs and improving

margins. Consolidation represents a way that a company can achieve both of those objectives,” says Nikos Gazelidis.

“Shipping’s chronic malaise has been best described by leading shipping services provider Clarkson’s in six words: “Too many ships, too little trade” and despite a relatively steady year-on-year world trade growth of 3%, shipping has been in recession since

2008, primarily due to extensive vessel oversupply. The industry is geared towards “auto-correction” for long-term survival and growth, through strategic alliances, M&As and other types of consolidation.”

“Whenever alliances and mergers are not possible slot sharing is a way to improve service without adding capacity. Some alliances have even afforded shipping companies the ability to reduce capacity by selling ships, terminals or other infrastructure. Improving capacity utilisation gives companies a lower unit cost of providing the service, as fixed costs, including capital costs, are spread over more revenue units.”

“However, the eight-year downturn of the shipping industry has seen many maritime

ATPI Griffinstone’s Nikos Gazelidis, Global Head of Shipping Sales and Pippa Ganderton, Director International Network and Account Management Strategy explain the continuing challenges for the industry and the how a specialist travel management company’s expertise can help steer through these challenging times.

BATTENING DOWN THE HATCHES

SHIPPING CHALLENGE

businesses using Chapter 11 or Chapter 15 of the US Bankruptcy Code.

The example of Hanjin’s demise in August 2016, constantly reminds us that it is difficult to successfully respond to a prolonged downturn and a constantly changing environment.”

Increasing Demand“But not everything is doom and gloom. Analysts expect 2017 and 2018 to be better than 2016 due to increased demand for iron ore from China. At the same time, scrapping has increased and newbuilding orders have decreased, which is expected to reduce oversupply and therefore bring balance between supply and demand which will hopefully see increased charter rates. “Until we reach there, there is a huge pressure to reduce OPEX, as the whole shipping sector, after a long cycle of downturn, operates at a loss, since late last year,” continues Nikos.

With these tough conditions, it’s more important than ever to have a travel management company (TMC) on board who has an in-depth understanding of the shipping industry and the challenges facing the market. ATPI has commercial and operational expertise in many locations focused on the shipping industry. “It’s all about having the right presence in the right place, be that commercial and consultative or operational expertise”, says Pippa Ganderton.

“Where we do not have a presence of our own in a location of importance to the sector, ATPI appoints network partners. These are carefully selected local organisations that complement our organisation, share the same vision, and as far as possible work on our global platform to deliver an extended seamless service to our clients that appreciate and need a bespoke service.”

The significance of having ATPI’s network geographically aligned with global shipping and energy hub locations cannot be underestimated explains Pippa. “By being aligned with these hubs ATPI is able to support clients, not only in their core corporate decision-making centres but also in their key crewing centres where crewing/HR managers are responsible for the travel logistics of high volumes of seafarers. In many locations complex requirements around visa, medical and training certification may prevail that our local experts will be familiar with. In the fast moving, hectic world of logistics, our clients value the support ATPI lends as an extended arm to their own operations, often including on-site consultants for large client organisations.” Outsourcing Solutions“In addition, challenges in the international economic and geopolitical environment and the increasing globalisation trend create a stricter and more competitive market. Apart from reducing OPEX, shipping companies can achieve further synergies through commercial alliances such as vessel pools and operational consolidation i.e. BPO (Business Process Outsourcing) to ship managers in order to survive and stay afloat.”

“BPO initiatives are well-known to the shipping industry. Attracted by experience and economies of scale, ship managers are being entrusted with ship owners’ assets in exchange for an improved return on their investment.

As the need for focus on core business is becoming more apparent, shipping companies contemplate outsourcing of whole departments, functions and even processes.”

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Pippa GandertonDirector International Network & Account Management Strategy

Nikos GazelidisHead of Shipping Sales

ATPI has commercial and operational expertise in many locations focused on the shipping industry and are able to undertake the management of cost and logistics of the whole crew change cycle. “ATPI Door to Deck™ is the ideal one-stop-shop outsourcing solution for crew travel, which incorporates full responsibility of execution of crew movement from home to vessel and coordination with all relevant parties.” Looking Ahead “Since European nations commenced to seek alternatives to Russian oil and gas, US LNG and shale gas has become the most popular solution against the gas monopoly in Europe. In addition, US oil product exports are expected to further grow towards Europe and are the most important factors that will transform the future LNG/LPG products market,” says Nikos.

“At the same time, feeder vessels are expected to be the subject of the next major ordering bout, as ageing feeder vessels in the fleet will need replacing.”

“Renewable energy is becoming more important to people, industry and governments because they are not depleted and at the same time are becoming less expensive with softer environmental impact and help countries to become more energy independent since projects are usually located close to where the energy will be consumed. This will definitely have an effect on shipping,” concludes Nikos.

“As the need for focus on core business is becoming more apparent, shipping companies contemplate outsourcing of whole departments, functions and even processes.”

For an overview of our office locations please see page 19.

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If your income is all in US Dollars and your expenses are all in US Dollars, then the effect of political influences on the value of other currencies is kind of irrelevant. Not many people are in that single currency bubble however and most businesses need to take currency fluctuation into account when making decisions.

What’s the price of oil, and therefore of aviation fuel? Oil seems stuck at around $55 per barrel, less than half the peak cost from a year or two back. Aviation fuel purchasing at the airline level is directly related to the price of crude, so it’s fair to expect that a steady, and relatively cheap oil price, will mean static air fares. Currencies pegged to the Dollar are fine, but the depreciation of the pound means that the cost of fuel has effectively risen by around 20%. As a major player in the marine fares market, one would expect this to have an impact on British Airways (part of the IAG multi-airline business of course). Longer term, external oil market analysts expect a rising price environment for crude oil and jet fuel for the rest of 2017 and 2018 as a whole.

This is mainly attributable to declining production and demand growth, which should lead to a reduction in stocks. There is a risk that external factors such as lack of OPEC discipline, exorbitant increases in US oil production, or economic slump in demand will keep the oil price at the same or even lower level. Final investment decisions in many already discovered oil fields are being put off as oil & gas exploration and production companies remain nervous.

Meantime lighter, more fuel-efficient aircraft such as the Boeing 787 and Airbus 350 are re-equipping the fleets of some carriers, resulting in lower cost per mile, these aircraft operate mainly on long-haul routes although the latest generation Embraer 190 ‘E2’ series narrow body medium range jet claims between 16% and 24% lower fuel burn as well as lower maintenance costs. Aircraft manufacturers are coining sci-fi terminology, with NEO and NEXT GEN appearing after traditional model names. At the front end of the cabin, probably uncharted territory as far as most marine travellers are concerned, carriers may believe that they can charge a premium for use of these state of the art

MAKING SENSEOF AIRFARESPost-Brexit the value of the GB Pound has dropped significantly against virtually all other currencies. Will this affect the specialist airfares offered via a small number of marine specialist Travel Management Companies to the global shipping business? If only one or two factors had to be taken into account this might be an easy calculation to make, however, many factors do come into play. ATPI’s global head of specialist fare sourcing Gary Hance details the intricacies of airline pricing and tries to make sense of the various factors involved.

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GLOBAL FARE SOURCING

aircraft with their fancy seats (and even suites with showers), but will the lower overall operating costs mean some fare reductions at the back end where travel policy dictates most seafarers will be found?

New planes need to fly somewhere unless of course they simply replace existing assets. Most airlines are ambitious and continue to expand, particularly those hub airlines with a big requirement for feeder traffic. Lufthansa, for example, expects an increase in capacity of 4 -5 % to marine and energy destinations, obviously driven by their Frankfurt hub. In the Indian sub-continent and to Asia, this is expected to be even higher.

The well-documented trouble of the shipping and offshore industries over the last few years has resulted in other interesting dynamics in the airfare market. In the offshore side, a number of companies previously offered their travellers higher yielding Economy fares which the staff could easily upgrade to Business Class by using their frequent flyer mileage programmes. Good old boys commuting 28/28 from the southern USA to Brazil regularly seemed to find themselves sitting near the pilot. Not so now with a surplus of available staff, the standard travel policy has moved to the cheapest ticket on the day. That applies to the seafarer too, and in fact, the specialist marine fares offered by many global carriers are actually not the cheapest price in the market, so that’s the second change in dynamic that we’ve seen. Rather than purchase the relatively flexible, two-piece baggage allowance ticket that is usually offered in the contract marine fare, many companies are now buying cheaper, more restrictive tickets that are often non-refundable and offer limited baggage allowance. If your crew rotations and arrivals are usually reliable, these cheaper tickets do provide some savings, although it won’t take long for non-refunded tickets to rack up the costs if schedules change unexpectedly. Again citing comments from

Lufthansa, they consider Marine and Offshore business to provide a constant stream of non-seasonal late booked revenue at stable yield compared to other niche markets or products.

Unbundling airfaresCarrying on from the previous theme, many airlines have turned to ancillary income over the last few years as the saviour of their businesses. Some estimates say that USD 60 billion will be generated in ancillary sales in 2017. Yes, that is billion… Stuff that used to be free is now seen as a chargeable asset – so pre-allocation of seats, checked in baggage and so on attracts a fee. This has had limited impact on the marine and offshore airfare market so far, although of course as discussed in the previous paragraph, if companies decide to purchase the cheapest fare on the day, it may well be a no-bag fare where the traveller has to pay at the desk or in advance on a website for their checked bag. With the unreliability of web access in most seafaring environments that could be a discussion at the airport check-in desk, where there’s normally a surcharge applied when a bag is checked in. Unbundling of the elements that constitute the cost of an air ticket is rife, the US domestic carriers have had spectacular success in separating out the cost for luggage, for pre-allocated seats, and

are experimenting with other chargeable add-ons, priority boarding, overhead locker space, meals and Wi-Fi are a few examples. Potentially these income streams could result in more aggressive pricing for the actual airfare element, with the expectation that the carrier will recoup more upside from the ancillary sales. If these items are purchased at the desk and not via the agent how will manning agents and ship owners deal with the expense claims from travellers and loss of visibility of the total cost of the trip? While it’s not unreasonable to expect a traveller to pay on the flight for food and drink, should they cover the checked bag and the pre-allocated seat?

Of course, competitive pressure has an influence, the impact of new carriers on existing mature routes can bring price wars which benefit the traveller albeit not always in the long term as predatory pricing can be short term to remove a competitor followed by increased fares. Airlines can often see marine fares as a high yield business and particularly the Gulf carriers with massive networks funnelling through a few strategic hubs need seafarers to fill their planes. So pricing for these people will often reflect their new routes as they try to become established. High volume sellers of air tickets in the shipping industry will often visit trade shows and indeed turn up at the door of the ship owner trying to sell their wares. While they usually have very attractive lead in prices the way that the carriers manage inventory and the competing pressures from different profit centres around each airline mean that it’s virtually impossible to predict airfares in most markets.

“USD 60 Billion will be generated in ancillary sales in 2017. Stuff that used to be free is now chargeable.”

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Wilhelmsen Ship Management (WSM) is one of the world’s largest providers of third-party ship management services. It is a division of Wilhelmsen Maritime Services, which combines WSM’s ship management services with port services, logistics, marine equipment and products to offer efficient solutions to the global maritime industry. With approximately 10,900 seafarers, WSM manages more than 160 commercial vessels, including RoRos, container ships, bulk carriers, car carriers, seismic ships, LNG, LPG, product tankers, offshore supply ships, passenger vessels and specialised vessels.

The Challenge The provision of travel services had no formal agreement globally and a number of different travel management companies were used throughout the WSM entities. Based on the significant total spend associated with travel services, as well as the importance of travel as a requirement, importance of timeliness, and various other characteristics, WSM made a decision to approach a tender from a global strategic perspective. Travel is a significant part of WSM’s business, and the company

was looking to improve travel efficiencies, utilise their global buying power and benefit from consolidated management information. As a result, WSM made the decision to go out to tender – with the objective to formalise a long-term global framework agreement with one, exclusive travel management provider. A WSM Contract Management Committee (CMC), comprising various stakeholders, was created to manage and facilitate the strategic tendering and sourcing process. Using transparent weighted criteria for both pricing and non-pricing factors, CMC

reviewed and discussed each aspect of submissions, including pricing offers, added value discounts, rebates and other savings initiatives offered by each bidder. CMC then shortlisted three companies, with a request to present their proposal to the CMC for final evaluation and assessment.

The Solution The results of the final evaluation indicated that ATPI Griffinstone provided WSM with the best overall cost efficient solution and the greatest “value for money”. Our standard operating process and transparent booking

PROCURING GLOBAL TRAVEL MANAGEMENT

CASE STUDY:

For Wilhelmsen Ship Management

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CASE STUDY

of tickets using our advanced booking system provided WSM with a seafarers discount fare by using the global fare brokerage process. The global fare brokerage process, therefore, gave WSM access to the widest range of seat availability for marine and offshore fares. On winning the account, the first stage was to understand not just WSM’s travel programme but the wider business – where potentially both direct and indirect travel savings could be achieved. Our solution to consolidate all travel globally provided WSM Regional Offices with greater control, transparency, analysis and visibility on marine and offshore crew travel expenditures, policies, and tools on a global level thus reducing costs and improving operational process for greater travel efficiencies.

The Result Global consolidation through one global framework with ATPI Griffinstone streamlining WSM’s processes to become leaner and more efficient – this resulted in the following benefits:

• Improved travel programme management based on consolidated MI

• Reduced travel expenditures through ATPI Griffinstone’s global fare brokerage process

• An improved, consistent service globally • Increased travel security and duty of care • Improved account visibility, transparency and

invoice management

With global visibility of worldwide travel spend and programme data, consolidation through an exclusive business partner for the future has empowered the WSM Marine Personnel

“WSM has achieved a highly successful commercial result from this WSM competitive tender process

which ultimately satisfies our business needs. WSM have also ensured that the final agreement with

ATPI Griffinstone is aligned to our crewing personnel travel and ongoing procurement strategies.”

Espen Sending, Vice President Marine Personnel

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Department to make smarter, more strategic decisions on the operating framework of the marine and offshore crew travel programme. With aligned travel policies and procedures across the regions, a significant decrease in travel expenditures has resulted from this cost effective agreement, as the company’s entire marine and offshore crew travel spend has been leveraged to also include other value added services such as preferred air, hotel and car suppliers.

SYSTEMS INTEGRATIONPROCESS EFFICIENCIES THROUGH WORKFLOW MANAGEMENT AND THE BENEFITS IT CAN BRING

Time is money for any company but for those managing large global crew movements and multiple manning agencies, there are huge cost implications of becoming swamped in a quagmire of visa applications, passport checks, crew travel logistics and ever-changing hotel and flight bookings.

SYSTEMS INTEGRATION

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Add to this the challenge of trying to align disparate data from multiple sources and it’s a labour-intensive exercise, particularly if the system is a manual Excel sheet.

These are daily challenges for many businesses, but especially in the shipping, offshore and mining industries, and of course data alignment is more urgent because of the greater need to manage costs amid the recent decline in global oil prices.

Cognisant of this, ATPI has developed ATPI CrewLinkTM a workflow management platform that will provide full end-to-end integration of all travel data from multiple points. It will take an HR feed from different locations, another from Accounts Payable, one from travel booking systems and profile tools in use across the world, then aggregate the data to give a consolidated view in one single system.

Global CollaborationATPI CrewLinkTM will mark the end of emailing files to different people, duplicate work and human errors around the world as the system can be worked on by several people simultaneously. Resulting in global collaboration and increased operational efficiency.

It has been designed with co-operation from a number of clients in the international shipping and energy sectors, so is bespoke for their needs. After undergoing a thorough testing process, ATPI CrewLinkTM is now live and will roll out globally over the coming months.

“We have various customers using ATPI CrewLinkTM and they have noticed a reductionin administration time and improved control on travel costs. This has managed to free up the time of their HR Manager and Travel Manager,” explains Ali Hussain, Head of Group Strategy at ATPI. “It means our clients can concentrate on their core competency, which is hiring and retaining their employees.”

ATPI client Hoegh Autoliners has seen multiple benefits of utilising a direct systems interface, which has resulted in reducing average booking time by half, from six minutes to just three minutes, per passenger.

Of course, these benefits multiplies when dealing with teams of people travelling together, as the time spent on processing the booking is still around three minutes, which can lead to fewer staff costs and less risk of human error.

FlexibleATPI CrewLinkTM is a web-based platform, which will manage travel policy and can beplugged into third-party elements such as helicopter manifests, medical and securityproviders, expense management and training schedules between crew rotations, for example. “We believe that we’re the only TMC offering this solution in the market today, as the leading specialist in travel for shipping and energy companies,” said Pieter Rieder, Global Head of Energy Sales.

The benefits are clear: a better handle on where all travellers are so more robust safetyand security, and a reduction in processing costs by around 30% on average, as thesystem strips out duplicated costs in multiple locations. “It’s a more efficient use of peopleresources,” sums up Rieder.

It also provides greater transparency over the end-to-end journey which has far-reaching ramifications with other elements of the supply chain, and therefore costs. While airfares can account for a chunk of the travel budget, ground transportation can be asizeable and often hidden cost. For example, rather than swallow the cost of a single taxibooking from home to the airport, greater visibility of where travellers are could provide an opportunity to book a minivan for a group taking the same journey.

“Companies are often paying a fortune on ground transportation so our technology will allow for better planning,” says Rieder. Typically flight bookings can be changed up

to five times, so once again, the single entity view can highlight when to book air tickets at an optimum time to access special marine and offshore fares.

Having said that, such specialist airfares are not always the cheapest so ATPI CrewLinkTM

checks up to five different options, and keeps doing so until one day before departure. “Oursystems have instant access to an extensive range of fares via our global network and in some instances, a round trip ‘public fare’ can offer better value,” says Rieder.

Alerts and MoreATPI CrewLinkTM will also issue alerts if a traveller has booked on two different flights on the same day, and trigger the cancellation and refund process. Similarly, the system

has alerts which can trigger an emergency protocol, be it to obtain visas in double quick time or to delay the next crew movement.

The technology platform also has traction with transient travel bookings as it is suited to group travel, which is anything over five people travelling together, and particularly so if it involves multiple locations.

“By operating in close partnership with our clients, we are able to provide them withthe technology that really impacts the performance of their core business, offering exceptional speed and efficiency in the processing of complex crew arrangements,”concludes Ali.

To read about the benefits of ATPI CrewLinkTM view our case study here or watch the video.

“We believe that we’re the only TMC offering this solution in the market today, as the leading specialist in travel for shipping and energy companies.”

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Being able to dive into the data means being able to pick up on an individual maverick traveller consistently booking a non-policy airline to gain loyalty points perhaps, or another who may be ignoring the advance booking guidelines. Similarly, is the mandated booking tool being used to its best effect? Whatever the non-compliant activity, it translates to extra cost to the programme that needs to be eradicated.

Historically, the reams and reams of MI reports that emanated from TMCs used to find their way to the office floor as robust doorstops; that’s how useful travel managers found them. Today, however, it is a very different picture.

Sophisticated DataAccount managers have a more analytical skillset while the increasing influence of procurement folk in the travel spend category has driven the need for more relevant statistics. Moreover, the strides technology companies have made in being able to present more sophisticated data and to also make it more visually exciting, have conspired together to make data so much more relevant for buyers trying to manage costs. One buyer who knows this only too well is Kate Scully, Travel Advisor at Petrofac Services, a leading FTSE 250

company. “Data is your only leverage to control spend,” she says. “We can track trends internally so say, for example on advance purchase, we can see where we’re failing and succeeding on traveller behaviour and evidence it really quickly.”

Moreover, in terms of supplier management, rich data can enable the tracking of negotiated deals and when approaching a supplier review, for example, the travel manager is able to report on how well the supplier is performing, or not as the case may be and see new opportunities.

This new-fangled, more sophisticated data has metamorphosed into a new priority for the business travel community: predictive analytics. Using historical data – both booked and invoiced – to predict traveller behaviour in the future, it has far reaching implications.

Cutting CostsFor Petrofac’s Scully, the advantages are crystal clear. “It helps you forecast for projects when you’re putting in for a bid or tender as we can see average ticket prices for example,” she explains. As a global oilfield services company, cutting costs has been in even sharper focus for Scully since the oil price started to tumble. She has recently successfully wiped £2m off the travel spend by smarter spending and benchmarking with Petrofac’s peer group to see if they were under or over achieving.

RICH DATARICH REWARDSFUTURE ANALYTICSAny Travel Manager will stress how good data is at the heart of any well-managed travel programme. The insight that rich data provides can arm the buyer with ammunition on what elements could be better managed, and the impetus to be able to address these areas.

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RICH DATA – RICH REWARDS

“I can get everything I want, instantly, and it gives me more evidence to go up against our key stakeholders,” says Petrofac’s Scully. “It’s very simple. I just click a button and show the graphs and charts in live time, and dive right down to the individual traveller. Otherwise, I can spend half the meeting explaining it all.”

Happy CustomersPetrofac has been using ATPI AnalyticsTM with success and aside from modifications to control access; she is delighted with the new service. “I’d be happy to run it forever. Everybody’s super impressed. It’s all click, click, click then leave them to play.” Scully says it will free up her time to police policy and clinch supplier deals. “It’s taking the drudge away from my job,” she says.

“Rich data can enable the tracking of

negotiated deals and when approaching a

supplier review for example, the travel

manager is able to report on how well the

supplier is performing.”

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With the drive for greater cost cutting permeating this industry sector, in particular, Scully has sensed a change in attitude from the buying community. “Rather than let the TMC manage our data, buyers now want to know their data, understand it and see where costs are associated. It’s not beyond anybody to get close to the detail.”

This greater awareness within ATPI’s client base for good data, coupled with in-depthdiscussions about their requirements for ‘actionable’ data to drive their travel programme behaviour, were the key motivators behind developing a new analytics tool. ATPI AnalyticsTM helps companies work around the clutter of travel data, by consolidating it in a single source of information and making analysis easier and more effective.

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logistics piece and the pure HR elements of the role. Together we agree what activities are intrinsic to the business operation and need to remain in-house with the client team and what activities linked to travel can be taken on by us as an extension of the travel management service we already provide.

A good example of this in practice is complex crew roster changes. Traditionally the rig contacts the crew coordinator to request last minute changes to travel who in turn contacts ATPI Griffinstone to action the request. Now, the rig or vessel contacts us directly to request travel changes, we can react immediately to the request and communicate directly to the rig providing a much quicker and efficient service. In turn, it enables the rig administrator or the HR Manager to focus on other key elements of the business as they simply pass these functions onto us.

Close co-operation between the client and our team is fundamental to the success of the service. This is not one-size-fits-all, but very much a bespoke approach as the complexity or simplicity of each location unique and has very different requirements. However, the process to identify requirements remains the same.

After in-depth consultations with a leading global offshore drilling company, a recent implementation has now gone live in

ATPI Griffinstone has been working hard with clients within the industry to reduce costs, streamline processes and to strategically formulate effective programmes to ensure real value and efficiencies in the processing of crew and rig travel requirements. We talk to Pippa Ganderton ATPI’s Director International Network and Account Management Strategy, to find out what all companies within the sector should now be considering.

Personnel management involves many different elements in crew planning and logistics. The downturn in the market has meant that those working in the industry more than ever need to focus resources on core activities and possibly outsource other elements. Cost cutting and

cash preservation is top of the agenda as companies look to remain competitive and be able to react to the market if new opportunities arise.

As a specialist supplier to the industry, we were approached by one of our major energy clients to develop a new business process outsourcing (BPO) service model that delivers cost savings and drives more efficiencies enabling clients to dedicate their own resources to areas of the business that focus on their core activities.

ATPI Griffinstone’s service offers a customised solution by working closely with clients to look at all the elements of crew coordination, identifying and differentiating the travel

EFFICIENT BUSINESS PROCESSES OFFER LONG TERM SAVINGSChallenging times continue to face the marine and offshore industry on a global scale and so far the short-term outlook remains volatile.

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EFFICIENT BUSINESS PROCESSES

five countries spread around the globe in key regional hubs of Europe, the Americas including Latin America, Asia-Pacific, the Middle East and Africa. In every location, the outcome has been different to meet the specific requirements of the client for that location as we looked to remove duplication and deliver efficiencies.

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In a very remote location where the size of the client’s operation has been significantlyreduced and rigs moved out due to the downturn in the industry the requirement for an out of hour’s operation still remained. We have been able to take on the provision of a 24/7, 365 service delivery as part of the outsourcing process providing significant cost savings to the client.

Across on another continent where our client has a particularly large scale operation, weidentified the best solution for the business was for our team to move into the same office as the client. Now the client’s HR team is literally the other side of the wall to our staff which provides a very quick and efficient service. The close proximity of the two teams means that we are quick to react in emergency situations that arise due to the nature of the business but also facilitates better planning and makes us a true extension to the client’s operation.

The benefit of having our own local people on the ground cannot be underestimated in this process. Ground transportation is another element often handled by the crew coordinator. By outsourcing, this element of the travel process clients can make potential cost savings. We often arrange ground transportation for other clients in the same location and therefore have larger negotiating power as our team use their local knowledge to get competitive quotes from alternative suppliers.

Another interesting development as a result of this process is in a couple of locations we are in discussions about possibly employing one existing crew coordinator per location who can be cross-trained to continue with the travel elements of their original role but also be up-skilled to develop into a travel management role. This will provide a fantastic opportunity for personnel who possibly, due to the downturn, could have faced unemployment, to train and develop new skills. In turn, we benefit from the expertise the crew coordinators bring to our business so it works for all parties involved.

Discussions are now underway with other clients to see how the new BPO model could be beneficial to them in saving costs and driving efficiencies.

“Close co-operation between the client and our team is fundamental to the success of the service. This is not one-size-fits-all, but very much a bespoke approach as the complexity or simplicity of each location unique and has very different requirements.”

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In fact, according to a study published by International SOS, a leading provider of international medical assistance, emergency services, healthcare, evacuation and repatriation services, a company’s baseline attitude to Duty of Care performance differs due to many factors including the size of the organisation, the core industry that they operate in, for high see (energy and natural resources, aerospace and defence) or low (construction and real estate, education) plus the region of the world that the business is headquartered, due to Corporate Social Responsibility policies.

The International SOS Report Found:1. All countries are potentially risky

for employees 2. Organisations face unique risk

challenges, but differ in how they cope with similar risks

3. Duty of Care is not just about natural and human-made disasters

4. Organisations are becoming more aware of Duty of Care responsibilities

5. There are normally five key stakeholders, but Duty of Care is everyone’s responsibility

6. Organisations vary widely in Duty of Care practices

7. Company size matters most in Duty of Care, but other company characteristics also play a role

8. Most organisations fail to plan and implement a global Duty of Care strategy

9. Duty of Care is a Western concept 10. Corporate Social Responsibility is the

main motivator for Duty of Care.

It’s a reality of doing business that many ship owners and managers have had to learn how to manage, with careful planning, preparation and crew training all serving as useful platforms.

It is clear that while some of the marine industry has embraced many of the necessary tools to safeguard its assets, many have not. By taking the time to re-evaluate your existing Duty of Care policies in line with your travel programme, best practice improvements can be made to protect your employees. ATPI has extensive experience in working with some of the largest shipping businesses and we can suggest benchmarks

DANGEROUS WATERSWith the global threat of natural disasters and terrorist activities nowhere in the world can be considered as an entirely risk-free destination for today’s travellers. When planning a Duty of Care policy ship owners and employers need to include considerations regarding onboard safety compliance and how to best avoid accidents, crew health and the medical repatriation of staff when necessary, plus issues surrounding operations in ‘high-risk’ waters where the threat of piracy is prevalent.

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DANGEROUS WATERS

not only for your travel spend but also with key markers to enhance your Duty of Care policy and improve your response in times of need.

Knowledge is PowerComparing your Duty of Care policies with others in the industry can guide you to develop best practices to protect and support the global mobility of your employees. Working with a specialist travel management company (TMC) can offer insight into the latest technologies such as employee tracking and travel alerts, both essential tools to put you at the forefront of a possible situation.

Some of the sophisticated Duty of Care systems can be scheduled to inform the line manager or HR department if a traveller has not read the medical and safety briefing triggered by their planned trip to an “at risk” location. It can often be the frequent traveller, who is the most complacent, believing that familiarity equals immunity, which we know is not the case. Organisations that take good preventative actions, taking all necessary precautions both with regards to medical and terrorist threats, are those that not only avoid many accidents but also recover fastest when a disaster happens.

The health of employees is always a priority but considering today’s geopolitical uncertainty and the ever-present threat of piracy the message has to be to prepare for the worst, train and educate your travellers and implement an employee emergency response system throughout your operation.

Put your emergency response procedures to the test. This will highlight where there may be gaps or other risks, will give your travellers or seafarers more confidence should they ever have to deal with a live threat or ambush. ATPI has worked in partnership with a number of clients by playing an integral role in workshops to ensure that every aspect, including emergency repatriation, is considered and documented.

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To see read how ATPI had to deal with the travel requirements of a shipping client’s personnel during a flood situation in Chennai - See more here.

To view the International SOS Duty of Care and Travel Risk Management Global Benchmarking Study click here.

TEN DUTY OF CARE BEST PRACTICE RECOMMENDATIONS

1. Increase awareness 2. Plan with key stakeholders 3. Expand policies and procedures 4. Conduct due diligence 5. Communicate, educate and train 6. Assess risk prior to every

employee trip 7. Track travelling employees

at all times 8. Implement an employee

emergency response system 9. Implement additional

management controls 10. Ensure all of your suppliers within the chain (TMC, Port Agents etc.) are aligned.

“By taking the time to re-evaluate your existing Duty of Care policies, best practice improvements can be made to protect your employees.”

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www.atpi.com

MEET THE TEAMGary PearceChief Commercial Officer

Jochem HeminkHead of Shipping Sales – Europe & Asia

Jochem has a track record in the global shipping community for almost 10 years now. After a career in the hotel industry, he has held several commercial positions within ATPI - both in The Netherlands and internationally.

It is Jochem’s passion to understand why travel is so important to the shipping business. As an expert in this domain, he is driven by providing the ultimate solution for cost efficient, high service travel management with a maximum return on investment.

With an early career in airlines Gary went on to become regional head for some of the leading travel management companies in the US.

During this time Gary gained a wealth of experience in the specialty travel market for the Energy, Marine and Offshore industry. In 2013 Gary joined Griffin Travel, which later became part of the ATPI Group and today oversees all commercial aspects of the Energy, Shipping and Offshore global portfolio.

Nikos GazelidisGlobal Head of Shipping Sales

Nikos is the Global Head of Shipping Sales & Managing Director for ATPI in both Greece & Cyprus.

With over 25 years’ experience in the travel industry, Nikos joined Instone International in 2005 (now part of the ATPI Group) to establish the operation in Greece, growing the business by an average of 15% per annum, which today is ranked among the top three marine travel companies in the region.

Nikos has spoken at many local and international conferences and has been a regular author in national industry journals. He has been a member of the Hospitality and Catering International Management Association (HCIMA) and the Hellenic Institute of Marketing (EIM).

Pippa GandertonDirector International Network & Account Management Strategy

Prior to the acquisition by ATP she was Director of Global Sales & Account Management for Instone International since 2007.

Previously Pippa worked with British Airways for 16 years. Initially in Austria, she relocated to BA’s UK Head Office where she managed sales for the global marine market before heading up the global specialist markets sales team until 2006.

Pippa manages a portfolio of key global accounts for the Group.

Gary HanceDirector of Operational Improvement & Yield

Formerly Chief Operations Officer in the UK, Gary now has Group responsibility for Operational Improvement and Yield.

He is one of the industry’s leading travel experts and the architect of ATPI’s innovative technologies. In 1995 he created the acclaimed online booking tool ‘Ticket Window’ to meet the oil industry’s need for an on-call service.

Gary sits on the GTMC (Guild of Travel Management Companies) technology working party. He has been an integral member of the management team at ATPI - and at its predecessor Seaforths Travel since 1988.

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China Operations Juce Bao E: juce.bao@atpi.com Commercial Sun Hui E: hui.sun@atpi.com

Cyprus Operations Elena Kalogreadou E: elena.kalogreadou@atpi.com Commercial Eleftheria Letsiou E: eleftheria.letsiou@atpi.com

Denmark Operations Carsten Hansen E: carsten.hansen@atpi.com Commercial Henrik Moller E: henrik.moller@atpi.com

Greece Operations Takis Linardopoulos E: takis.linardopoulos@atpi.com Commercial Calypso Diareme E: calypso.diareme@atpi.com

Hong Kong Operations Gary Mok E: gary.mok@atpi.com Commercial Henry Mok E: henry.mok@atpi.com

India Operations Nazneen Sudanwala E: nazneen.sudanwala@atpi.com Commercial Trevor Almeida E: trevor.almeida@atpi.com

Italy Operations Giuseppe Meloni E: giuseppe.meloni@atpi.com Commercial Giuseppe Meloni E: giuseppe.meloni@atpi.com

Latvia Operations Solvita Martinsone E: solvita.martinsone@atpi.com Commercial Uldis Martinsons E: uldis.martinsons@atpi.com

Malaysia Operations Muhammad Rafiq E: muhammad.rafiq@atpi.com Commercial Desmond Loke E: desmond.loke@atpi.com

Netherlands Operations Hans van Helmond E: hans.vanhelmond@atpi.com Commercial Jochem Hemink E: jochem.hemink@atpi.com

Norway Operations Gro Otteraaen E: gro.otteraaen@atpi.com Commercial Bente Worren E: bente.worren@atpi.com

Philippines Operations Judith Tabaranza E: judith.tabaranza@atpi.com Commercial Yvette Araullo E: yvette.araullo@atpi.com

Russia Operations Aleksandra Satangova E: aleksandra.satangova@atpi.com Commercial Abhinav Shukla E: abhinav.shukla@atpi.com

Singapore Operations Muhammad Rafiq E: muhammad.rafiq@atpi.com Commercial Kelly Jones E: kelly.jones@atpi.com

South Africa Operations Kerry Brownhill E: kerry.brownhill@atpi.com Commercial James Torlage E: james.torlage@atpi.com

UAE Operations Cally Dey E: cally.dey@atpi.com Commercial Lynn Coutts E: lynn.coutts@atpi.com

UK Operations Steve Desimone E: steve.desimone@atpi.com Commercial James Griffin E: james.griffin@atpi.com

USA Operations Pam West E: pam.west@atpi.com Commercial Saul Punales E: saul.punales@atpi.com

FEATURE NAME

AFGHANISTAN Kabul

ALGERIA Hassi Messaoud

ANGOLA Luanda

AUSTRALIA Melbourne Perth Sydney

AUSTRIA Vienna

AZERBAIJAN Baku

BELGIUM Antwerp

BOSNIA AND HERZEGOVINA Banja Luka

BRAZIL Sao Paulo Rio de Janeiro

CANADA Halifax Montreal

CHILE Santiago de Chile

CHINA Beijing Shanghai

COLOMBIA Bogota

CROATIA Rijeka

CYPRUS Limassol

DENMARK Copenhagen

FRANCE Antibes Paris

GERMANY Munich

GREECE Athens

HONG KONG Hong Kong

INDIA Mumbai New Delhi

INDONESIA Jakarta Pusat

IRAN Tehran

IRELAND Dublin

ITALY Genova Lecco Milan Monza

JAPAN Tokyo Yokohama

KENYA Nairobi

KUWAIT  Kuwait City

LATVIA  Riga

MALAYSIA Kuala Lumpur

MEXICO Mexico City

MONTENEGRO Podgorica

THE NETHERLANDS Barendrecht Eindhoven Enter Schiphol-Rijk

NEW ZEALAND Auckland

NIGERIA Lagos

NORWAY Bergen Oslo Stavanger

PAKISTAN Karachi

PHILIPPINES Manila

POLAND Gdynia

PORTUGAL Lisbon Porto

ROMANIA Bucharest

RUSSIA Moscow Murmansk Vladivostok Yuzhno-Sakhalinsk

SAUDI ARABIA Dammam Jubail

SERBIA Belgrade

SINGAPORE Singapore

SLOVENIA Ljubljana

SOUTH AFRICA Cape Town Durban

SOUTH KOREA Seoul

SPAIN Madrid

SWEDEN Stockholm

SWITZERLAND Zug

TAIWAN Taipei

THAILAND Bangkok

TURKEY Istanbul

UNITED ARAB EMIRATES Dubai

UNITED KINGDOM Aberdeen London Lowestoft Manchester

USA Chicago Houston Miami North Haven

VIETNAM Ho Chi Minh City

For contact details please go to atpi.com/offices

Worldwide Operations Centres

Our Dedicated Shipping Teams

Our global network is all about you

Our network includes 132 cities in over 46 countries.

You’ll be connected to more places in the world for all

your business needs. Fly anywhere and everywhere with

the convenience you deserve.

For more information & reservation,please contact your ATPI consultant

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