Cash Management Services – A Must For Today’s Shipping Industry

Picture this: You are a shipowner and today is the due date for you to make a bunker payment. You also need to place an urgent new bunker stem. Not knowing exactly how much money is in your bank account, you fax a wire transfer instruction to your bank for payment of the bunker invoice. Meanwhile, you call the supplier to place the new stem.

“We are sorry but we cannot sell you the additional IFO until your account balance is zero,” explains the supplier. “We must have some kind of proof of payment.”

You call your banker to get the CHIPS reference number for the transfer as proof of payment and are horrified to learn from the banker that the transfer was never made because there were insufficient funds in your account. You ask the banker, “What about the hire payment that we should have received yesterday?” The banker states that no incoming wire transfers were credited to your account.

This is only an excerpt of Cash Management Services – A Must For Today’s Shipping Industry

Content is restricted to subscribers. To continue reading please Log-In or view our subscription options.