Wilhelmsen challenges the established management fee system

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Wilhelmsen Ship Management is to challenge the established management fee system by moving away from a lump sum basis in favour of charging for individual services within the total management service chain.

The move, which was put in train by outgoing Wilhelmsen Ship Management President Geir Sekkesaeter and will be continued when he has left and a new successor has been found, is a new direction for the company and is based on a similar scheme operated in the Wilhelmsen Maritime Services’ agency operations.

Dag Schjerven, President and Chief Executive Officer of WMS, told SMI that the strategy change would boost revenues because of the increased potential for new business.

“Only 10% of the market is outsourced in terms of full technical shipmanagement but if you look at the remaining 90% there is huge potential here to offer single services,” he said.

“The strategy is definitely to move towards not offering a total service for a fixed fee but rather view it as a single offering and a standalone service that we can offer to everybody, not just the clients that we have on the shipmanagement side. We would say to an owner, we can do your dry docking, look after your manning or handle your administration services. There are a number of different services you can actually split and look at individually,” he said.