ispieces issue 34 - International Shipping Partners

ISPieces
A quarterly newsletter with announcements and information from our Miami headquarters.
International Shipping Partners
www.isp-usa.com
ISSUE #34 Q1 2009
Clipper Odyssey UPGRADE
The CLIPPER ODYSSEY was drydocked in November 2008. Work on the
vessel included interior upgrades, and a new feature was the framing of 136
photographs to be mounted in cabins and public rooms.
The photographs, of wild life, nature and people were taken during CLIPPER
ODYSSEY cruises throughout Alaska, Russia and the South Pacific to name a
few areas, and were all taken by members of the onboard staff.

Excerpt from the
Tradewinds
OUTSOURCING CONFERENCE
I have had the pleasure of being in the
passenger ship industry for 39 years
and very often have heard from my
colleagues in the dry bulk, tanker,
container business, how wonderful it
must be to be in cruise industry as this is the sexy part
of shipping.
Most people in the cargo shipping segment believe that
anyone managing cruise ships is laying by the pool with a gin
and tonic in hand, surrounded by lots of girls in bikinis and
looking at the white sandy beaches, the palm trees moving in
the wind and just enjoying life.
I regret to inform everyone with that belief that
unfortunately, that is not the case. The cruise industry is not
sexy, nor is it actually shipping.
The cruise industry is tourism, it’s the vacation market, it’s
the hotel and entertainment industry, and is a purely created
market compared to the cargo shipping industry where not a
lot can be done to increase the market in total but where you
have to take market shares from other operators.
I think everyone has heard that it is amazing how many new
ships are being built, and the size of the new vessels. We have
seen ships with 3,500 passengers, and we know that the new
ships being built are for 5,500 passengers, which have been
ordered by RCI.
A lot of people have said, can this really continue, this very
heavy expansion and all these ships. I have to say that it is not
really that many ships, nor that many cabins.
Looking at the total number of cabins for the 465 cruise
vessels in the world, which is approximately 230,000 cabins,
and we try to look at the travel industry, then a good
comparison would be to take a few cities and see how many
hotel rooms they have, and if you take Las Vegas, the US city
with the largest number of hotel rooms, that one city alone
will have 171,000 hotel rooms by 2010, at the same time when
the cruise industry will have about 230,000 rooms worldwide.
A city such as Orlando has 120,000 hotel rooms, so two
cities in the US have more hotel rooms than all the cruise
vessels worldwide.
This clearly illustrates that the cruise market is still a very
young industry having a very, very small percentage of the
tourism and vacation market, and there is basically unlimited
room for expansion within this market.
The three large cruise companies basically do everything in
house, and do not outsource technical management, hotel
management or any other main aspects of the operation.
However, many of the smaller operators elect to use a
passenger ship manager to manage certain aspects of the
operation.
There are a few dedicated passenger ship managers, and
then there are a number of managers who have opted to
manage both cargo and passenger vessels, with the emphasis
on cargo vessels as this is the largest market, and have then
added a few passenger ships.
ISP believes it is very important to be a dedicated passenger
ship manager where all the operations personnel have
passenger ship experience and do nothing else than operate
passenger ships.
We also feel it is important to outsource to a manager who
does all aspects of the passenger ship services.
When selecting a manager for a passenger ship, we believe
that experience, quality certification, and size are of
importance. You want to have a manager who has been in
business for many years and whom you expect will stay in
business for many years to come, and you would also like to
have a manager with high quality certification.
Who is International Shipping Partners? We are dedicated
passenger ship managers and everyone employed in the
Miami organization has extensive passenger ship
background. Top management all have in excess of 25 years
in passenger shipping and all other operational staff have a
minimum of ten years prior to being employed at ISP.
We have the highest quality certification of any passenger
ship manager, have now been in business for more than 20
years, and are controlled by the management of the company.
Our clients are typically small cruise lines, tour operators,
travel agencies, governments, banks and private investors.
Who should then outsource their cruise ship operation?
For the existing owners and or operators of cruise vessels, it is
ISP’s opinion that if an owner or operator has four or less
passenger ships, then no doubt using a manager is clearly less
costly and gives a higher quality operation.
If you have no ships but have cash and would like to get
into the industry, would like to own cruise vessels, then you
should stay away from doing any management yourself, and
Continued on page 6
ISPieces ISP Miami Headquarters: +1 305 573 6355 | www.isp-usa.com International Shipping Partners, Inc.

New EMPLOYEES
ISP welcomes the following new employee
who joined the company during our last quarter.
Presidential
INAUGURATION
On January 20, 2009, ISP’s employees
while working or at lunch, took time out
to watch the inauguration of the 44th
President of the United States of America,
Barack Obama.
CAPTAIN NICK HOPE-INGLIS
Captain Nick Hope-Inglis started working for ISP in 1995 as
Staff Captain. He had previously worked for a British
shipping company on-board the M/V BEAUPORT which was
on charter from ISP.
Nick worked as Staff Captain for a short period before he
became Master on another ISP vessel, and since that time,
has worked on almost every vessel ISP has managed, be it
large cruise ships, expedition ships, ferries, etc.
As our Senior Captain, he was the one who normally took
command of new vessels brought under the Company’s
management, to insure that all ISP’s systems and procedures
were properly implemented, a good working relationship
was established with the owners, the evaluation of new crew
members, etc. Having done a fantastic job over the last
fifteen years and having the specific knowledge of all ISPs
vessels, crew members, owners, systems, etc., made him
extremely valuable to ISP, and the decision was made in 2009
to bring Captain Nick shoreside!
Being married to “Mrs. Kathy” has transformed Nick from
a stiff British gentleman into a normal American man. Nick
met Kathy when she was a passenger on one of our cruise
ships several years ago, and while he may be the Master
when on-board one of the vessels, as soon as he is home he
is the “deck boy”!
ISPieces ISP Miami Headquarters: +1 305 573 6355 | www.isp-usa.com International Shipping Partners, Inc.

REMBRANDT
MOVE TO THE SOUTH OF FRANCE
The river cruise vessel REMBRANDT has been on charter to
Noble Caledonia during 2008, cruising the Rhine and the
Danube. Early in the season a further contract for several
years was negotiated, but this time for the French rivers
Rhône and Saône.
Due to Rembrandt’s size it is not possible to re-position her via
the Inland Waterways, instead Rembrandt was sent as cargo on a
Heavy Lift vessel from Rotterdam to Marseille.
The planning for this move started in the summer of 2008
and involved the expertise of both Clipper Projects in
Copenhagen and Singapore as well as help from our Technical
Managers, River Advice in Basel. River Advice had previous
experience from a similar move of another river cruise vessel
under their management. After exploring various options,
including using a Clipper ship, a contract was negotiated with
one of the industry leaders in this segment, Condock in
Hamburg, for a voyage in January 2009.
After a few weeks lay-up in Amsterdam following the
Christmas Cruises, Rembrandt was floated onto M/V
Condock V on January 10, 2009. As requested by our insurers,
the leading survey company BMT, was contracted to survey
both ships prior to loading and to certify the loading process.
Once Rembrandt was floated into the cargo hold, Condock
V started to pump out ballast water rising to the level where
Rembrandt would be firmly “on deck”. No steel-to-steel
contact is permitted and as part of the loading procedure the
cargo hold had been lined with timber and rubber cribbing.
Once all loose items on-board Rembrandt as well as in the
Condock V cargo hold were secured and a number of
securing brackets were welded to the deck, Condock V sailed
with its “cargo” January 11, 2009.
After an 11-day safe voyage Condock V arrived at Fos Sur
Mer (Marseille) at midday January 22, 2009. During January
23rd the supports were removed and Condock V started
pumping ballast. Rembrandt was refloated at around 14:30
and in open water an hour later.
Rembrandt was securely laid up and will be made ready for
her first Noble Caledonia cruise starting in Avignon March
28, 2009. ISP would like to thank everyone involved for a job
WELL DONE!
- Niels Berger
ISPieces ISP Miami Headquarters: +1 305 573 6355 | www.isp-usa.com International Shipping Partners, Inc.

ISPieces ISP Miami Headquarters: +1 305 573 6355 | www.isp-usa.com International Shipping Partners, Inc.

Tradewinds OUTSOURCING CONFERENCE - Continued
everything should be outsourced to a qualified passenger ship
manager.
Same is the case for tour operators, travel agencies, etc., who
have passengers but do not know the aspects of managing a
ship, and for them it would be a big mistake to try to bareboat
charter a ship or to purchase a ship. They should definitely
outsource all aspects of the operation.
A ship manager with a large fleet will have much better
purchasing power for spare parts, consumables, etc., and will
have a fleet insurance program which will lower the cost for the
operator or owner.
A passenger ship manager with high qualifications will also
have more efficient and better systems and procedures, with a
higher quality than a small operator would have.
The cruise industry is a very recession-resistant market,
even in bad economy; after September 11, 2001; with the
tsunami or bird flu, the market does not go down. There might
be areas throughout the world which will be affected for a
short period of time, and where operators may move vessels to
another market, or there might be shorter periods where
passengers are reluctant to book, however on an annual basis,
even with bad events throughout the world there have not
been years when the passenger numbers have gone down.
One of the big pluses in this market is that the asset can be
moved unlike a hotel where if a city or an area is affected, there
are no guests - here you move the asset and either pick-up or
create a different market.
Over the years we have had quite a number of private
investors who have asked us to buy vessels and charter them
out, and over the last four years, the Danish Clipper Group,
who operate close to 300 cargo vessels, has become ISP’s
largest client.
As you can imagine we see many, many projects per year
from people who are not in the industry but believe that it is a
very easy thing to do, and of course in theory there is no
difference in theory and practice, however, in practice there is!
So, if you do not have the knowledge, my recommendation
would be to contact a serious, qualified passenger ship
manager to help and advise you with your outsourcing.
ISPieces ISP Miami Headquarters: +1 305 573 6355 | www.isp-usa.com International Shipping Partners, Inc.

The happy Officers and Crew from the CLIPPER ODYSSEY in the South Pacific
THE NEW WAY TO GET YOUR PAY!
For the past several months, we have been implementing a new
pay system, OceanPay. I am pleased to report that we now have
the majority of the ISP managed vessel on OceanPay.
Here is a brief recap of how the OceanPay system works.
Wages are deposited into the OceanPay Visa card, which can be
used worldwide at over 20 million locations that accept Visa
debit cards, and in turn can be used at any ATM machine to
make a withdrawal, pay bills, use at restaurants, and/or to
obtain cash on-board the vessels. In addition, each cardholder
can provide a family member or a friend with an OceanPay
Money Transfer (MT) card, which is funded by the crew
member by transferring funds from the OceanPay Visa card. In
addition, OceanPay provides wire services. This is a unique
online service that enables you to send international payments
from your Visa OceanPay card to virtually any foreign bank
account worldwide, and you can also create and send
international draft payments in all major currencies.
Currently we are tracking which crew members are still
missing their OceanPay cards and which crew members are
currently experiencing problems using their OceanPay cards.
We work very closely with our OceanPay Representative, Stuart
Ostrow, from Paycard Systems. The vast majority of the crew
members do have and are using their OceanPay cards. Our
target date for having OceanPay cards to all the remaining crew
members who are still without cards is March 31, 2009.
Challenges and obstacles normally accompany change, and
the OceanPay system was no exception to this. We, at ISP, along
with Stuart Ostrow from Paycard Systems, are working through
these issues as they arise.
However, the positive feedback which we have received
concerning the OceanPay system far outweighs the obstacles
that we have encountered putting this pay system in place.
Therefore, we consider this new pay system to be a much better
pay system for all involved.
We would like to take this opportunity to thank all Officers
and crew for their patience and understanding as we continue
to work our way through this process of change. We are
confident that all will be very satisfied with the OceanPay
system once all are comfortable with and accustomed to it.
- Luann Ayer, VP-HR D&E
ISPieces ISP Miami Headquarters: +1 305 573 6355 | www.isp-usa.com International Shipping Partners, Inc.

On Location
TRIP TO MANILA
Down
MEMORY LANE
Due to the age of this photograph, it might be
difficult differentiating our very own Captain
Jorg Walczak from his fellow Captain on the
bridge of the M/V SCOTIA PRINCE when the
vessel traded between Nova Scotia and
Portland, Maine in 1982!
In January, Luann Ayer – Vice president human resources, deck and
engine and Hal Hodgson, Manager Human Resources – traveled to
Manila to visit the Pacific Valiant
office, ISP’s crewing agency in the
Philippines. The goal was to get to
know those with whom we work
and to review the current policies
and procedures, and to better
understand their day-to-day
operations and the challenges
that they deal with on a regular
basis. Luann and Hal met with
Antonio Visaya, President,
Valentin Say, Executive Vice President, and Victor Alviola, a new
member to the Pacific Valiant team. Victor is overseeing all crewing
matters, and he is now ISP’s direct contact. The meetings proved to be
informational and beneficial for both ISP and PVI.
All employees at PVI were most helpful during the visit, and Luann
and Hal were very grateful for the hospitality and the very warm
welcome received while there. Hopefully, the office will be visited at
least once per year, and we look forward to a long and productive
working relationship with PVI for many, many years to come.
ISP is dedicated to passenger ships
and only passenger ships
For information on ISP’s wide range of passenger ship
management services, please browse our website or
contact our Miami Headquarters:
International Shipping Partners, Inc.
4770 Biscayne Blvd., Penthouse A
Miami, Florida 33137 USA
Main: +1 305 573 6355
Fax: +1 305 573 5177
www.isp-usa.com
dedicated
passengership
management