Outsourcing Shipping Management

Outsourcing is a process by which an organization takes the services of an external party to perform some of its operations or functions. Outsourcing is also done by shipping firms all over the Globe (Outsource Freight, 2012). Ship owners generally outsource their operations and management functions to the external parties against for a particular period of time and against a specific sum of money (Lorange, 2009). Outsourcing of the shipping management enables the ship owners to focus on their core competencies and hand over the strategic decision making and policies to the outsourcing parties (AB Crewing, 2012).

Ship owners select the outsourcing parties by analyzing the different aspects of their operations and business environment (Outsource Freight, 2012). There is a full fledge selection criteria which helps the ship owners throughout the outsourcing party selection process (National Freight Management, 2012). The process starts with analyzing the business environment...
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