Ship-Owners vs Ship-Managers vs Third-Party Managers: Who Decides Procurement?

In maritime supply, the person requesting a quotation is not always the person who owns the vessel, approves the budget or signs the final contract. For suppliers, junior procurement staff and students, this can be confusing. A vessel may be owned by one company, technically managed by another, commercially operated by a third party and supplied through a procurement desk located in a completely different country.

Understanding the ship owner ship manager procurement decision structure helps suppliers route RFQs correctly, avoid delays, identify the real decision-maker and understand why approvals sometimes take longer than expected.

In practice, procurement authority depends on ownership structure, management agreement, budget type, fleet policy, vessel operation model, frame agreements and urgency. A ship-owner may control strategic purchasing. A ship-manager may manage day-to-day supply. A third-party manager may operate within delegated authority. The supplier must understand where the decision sits.

AVS Global Ship Supply & Catering supports ship owners, ship managers, procurement teams and vessel operators with global ship supply, technical stores, provisions, bonded stores and multi-port procurement coordination across international ports.

For vessel supply and procurement support, visit Global Ship Supply, read more about Global Procurement or submit your request through Quick Quote.

Three Tiers of Ownership and Operation

A vessel is not always controlled by a single company in every sense. The owner, manager and operator may be different entities. Each may control a different part of the vessel’s commercial, technical or procurement life.

For suppliers, the important point is this: the company name painted on a vessel, listed in a registry or mentioned in an RFQ may not be the company that approves a supply order.

The Ship-Owner

The ship-owner is the legal or beneficial owner of the vessel. The owner may be a shipping company, investment company, family business, fund, single-purpose vehicle, bank, leasing company or maritime group.

The owner typically has a strong role in:

Vessel ownership
Financing
Insurance decisions
Long-term asset strategy
Major capital expenditure
Fleet policy
Management appointment
High-value supplier agreements
Strategic procurement standards
Budget approval at senior level

However, the owner may not manage every daily supply request directly. Many owners delegate operational procurement to managers.

The Ship-Manager

The ship-manager is the company responsible for managing the vessel under a management agreement. This may include technical management, crew management, procurement, maintenance, compliance, insurance support and operational administration.

A ship-manager may be an in-house management company owned by the ship-owner, or an external third-party manager.

The ship-manager often handles:

Daily vessel operations
Technical purchasing
Provisions requests
Spare parts coordination
Repairs and maintenance
Supplier communication
Budget monitoring
Port delivery coordination
RFQ collection and comparison
Purchase order issue
Invoice checking

For many suppliers, the ship-manager is the most visible procurement contact.

The Third-Party Manager

A third-party ship manager is an external company appointed by the owner to manage the vessel. The owner keeps ownership, but the manager handles agreed operational functions.

Third-party management is common when an owner wants professional fleet management without building a full internal technical and crewing organization.

A third-party manager may manage:

Technical operations
Crew operations
Safety and compliance
Purchasing and supply
Planned maintenance
Dry-docking support
Budget reporting
Vendor coordination
Documentation and inspections

However, a third-party manager’s procurement authority depends on the contract with the owner. Some managers have wide authority. Others must seek owner approval for many purchases.

What the Ship-Owner Controls

The ship-owner usually controls the asset and the strategic direction of the vessel. Even when day-to-day management is outsourced, the owner remains important in procurement because budget, supplier policy and major expenditure often connect back to ownership decisions.

Strategic Procurement Policy

Owners may define procurement rules for the fleet. These rules can include preferred suppliers, approved vendor lists, compliance requirements, payment terms, documentation standards, ESG expectations and budget approval levels.

Owner-level procurement policy may cover:

Approved supplier lists
Frame agreements
Fleet-wide contracts
Budget limits
Supplier compliance rules
Insurance and liability requirements
Anti-bribery and due diligence expectations
ESG and sustainability requirements
Technical standards
Payment approval process

This means a manager may request a quotation, but the owner’s policy may decide whether the supplier can actually be used.

CAPEX and Major Technical Decisions

Ship-owners typically play a stronger role in CAPEX procurement. CAPEX refers to capital expenditure: major spending that improves, upgrades or extends the life of the vessel.

Examples may include:

Major equipment replacement
Dry-dock projects
Retrofit systems
Ballast water treatment systems
Scrubber projects
Energy efficiency upgrades
Major engine overhaul
Navigation system renewal
Cargo system upgrades
Large safety or compliance investments

These decisions usually require owner approval because they affect asset value, long-term financing and vessel strategy.

Supplier Frame Agreements

Owners may sign frame agreements with global suppliers for provisions, technical stores, lubricants, paints, safety equipment, spare parts, chemicals or services.

A frame agreement may define:

Pricing structure
Service scope
Delivery regions
Payment terms
Service levels
Reporting requirements
Quality standards
Contract duration
Claims process
Compliance requirements

Even if the ship-manager handles daily RFQs, the owner may decide which strategic suppliers are preferred or mandatory.

Owner-Operators

Some companies are owner-operators. This means they own and operate their vessels directly through an internal organization.

In owner-operator structures, procurement can be more centralized because ownership, management and operation are under the same corporate group.

Owner-operators may have:

Central procurement departments
Fleet-wide supplier agreements
Standardized purchasing procedures
In-house technical teams
Direct budget control
Faster internal alignment
Stronger category management

However, even owner-operators may use external suppliers, port agents or regional buying offices for local execution.

What the Ship-Manager Decides Day to Day

The ship-manager usually controls daily operational purchasing within agreed authority limits. For suppliers, this is often the most important relationship because ship managers issue RFQs, compare prices, approve routine supplies and coordinate delivery to the vessel.

Daily Operational Procurement

Day-to-day procurement usually includes items needed for safe and efficient vessel operation.

This may include:

Provisions
Cabin stores
Deck stores
Engine stores
Safety items
PPE
Cleaning materials
Galley consumables
Technical stores
Standard spare parts
Tools
Chemicals
Charts and publications
Bonded stores where applicable

These purchases are often treated as OPEX, meaning operational expenditure.

OPEX Procurement

OPEX procurement covers recurring operational spending required to keep the vessel running.

Examples include:

Monthly provisions
Routine technical stores
Consumables
Crew welfare items
Minor spare parts
Cleaning supplies
Standard safety supplies
Local services
Port-related operational supplies

The ship-manager may have authority to approve OPEX purchases within a budget or approval threshold. Above that threshold, owner approval may be needed.

Technical Manager vs Crew Manager

A technical manager and a crew manager may both be involved in vessel operations, but their procurement roles differ.

A technical manager usually focuses on:

Maintenance
Repairs
Technical stores
Spare parts
Class-related items
Dry-docking support
Technical compliance
Planned maintenance system needs
Engineering services

A crew manager usually focuses on:

Crew changes
Crew documentation
Training
Welfare
Medical support
Uniforms
Travel coordination
Crew-related provisions or welfare needs

Some companies combine these functions. Others separate them across different departments or companies.

Purchase Orders and Invoice Control

The ship-manager may issue the purchase order, check delivery documents and verify invoices. Even when the owner pays the final invoice, the manager may confirm that the goods were requested, delivered and accepted.

A typical workflow may include:

Vessel sends requisition
Superintendent reviews request
Procurement team requests quotations
Supplier sends offer
Manager compares offers
Approval is obtained if required
Purchase order is issued
Delivery is coordinated
Vessel confirms receipt
Invoice is checked
Payment is processed by owner or manager

For suppliers, knowing who issues the PO and who pays the invoice is essential.

Third-Party Managers and Operational Outsourcing

Third-party managers allow ship-owners to outsource technical, crew or full management functions. This structure can improve expertise, reduce internal overhead and provide access to established supplier networks.

However, third-party management can also make procurement authority less obvious.

What a Third-Party Manager Can Decide

A third-party manager may be authorized to make routine procurement decisions within the approved annual budget. This can include provisions, stores, routine repairs and minor spare parts.

The manager may be allowed to:

Select suppliers from approved lists
Request quotations
Compare offers
Issue purchase orders
Coordinate delivery
Approve routine invoices
Manage claims
Report costs to the owner

The exact authority depends on the management agreement.

What a Third-Party Manager May Need Approval For

A third-party manager may need owner approval for:

High-value purchases
Non-budgeted expenses
Major spare parts
Dry-dock work
Supplier changes
Long-term contracts
CAPEX items
Emergency repairs above a threshold
Unusual payment terms
Legal or insurance-sensitive purchases

This explains why suppliers sometimes receive RFQs quickly but wait longer for final approval.

Can a Third-Party Manager Change Suppliers Freely?

Not always. Some third-party managers can choose suppliers within approved categories. Others must follow owner-approved vendor lists or frame agreements.

Supplier change may require approval when:

A frame agreement already exists
The supplier is not approved
Payment terms differ
Compliance documents are missing
The purchase is high value
The item is critical to safety or operation
The owner has centralized procurement rules
ESG or due diligence checks are required

Suppliers should not assume that a manager’s interest automatically means the supplier can be used immediately.

Why Vessels Switch Managers

A vessel may switch managers for commercial, operational, financial or strategic reasons.

Common reasons include:

Change of ownership
Fleet restructuring
Performance concerns
Cost control
Change in charter requirements
Consolidation under a new management platform
Sale and leaseback structure
Owner preference
Regulatory or compliance concerns
Transition to specialist management

When a vessel changes manager, supplier contacts, approval routes and payment instructions may also change.

How Procurement Authority Is Delegated

Procurement authority is usually delegated through contracts, budgets, internal procedures and approval matrices. The question is not only “who wants the item?” but also “who has authority to approve the purchase?”

The Approval Matrix

An approval matrix defines who can approve which type of spending and up to what amount.

It may include:

Vessel master approval limits
Superintendent approval limits
Procurement manager approval limits
Fleet manager approval limits
Owner approval thresholds
Emergency procurement rules
CAPEX approval process
Supplier onboarding requirements
Payment approval levels

For suppliers, this explains why a small provisions order may be approved quickly, while a large technical supply request may require multiple approvals.

Vessel Requisition vs Purchase Approval

A vessel requisition is not the same as purchase approval. The vessel may request an item, but shore management decides whether to approve, source and order it.

The vessel may identify the need for:

Spare parts
Stores
Safety equipment
Provisions
Tools
Repairs
Services

But shore teams may check:

Budget
Stock availability
Supplier options
Urgency
Technical necessity
Alternative products
Approved vendor status
Delivery feasibility
Owner approval requirement

The supplier should treat a vessel request as an important signal, but not always as final authority.

Budget Type: OPEX vs CAPEX

OPEX and CAPEX are important in procurement authority.

OPEX is routine operational expenditure. It usually covers recurring supplies and services needed for vessel operation.

CAPEX is capital expenditure. It usually covers major investments, upgrades or asset improvements.

OPEX may be approved by the manager within budget. CAPEX usually requires owner approval.

Examples of OPEX:

Provisions
Standard stores
Minor repairs
Consumables
Routine services
Crew welfare items

Examples of CAPEX:

Major equipment replacement
Retrofit projects
Dry-dock upgrades
Long-term asset improvements
New systems
Large technical investments

Understanding whether the request is OPEX or CAPEX helps suppliers predict the approval path.

Bareboat Charter and Procurement Authority

A bareboat charter is a structure where the charterer takes over possession and operation of the vessel for a period, often with responsibility for crewing, maintenance and operational costs.

In a bareboat structure, procurement authority may shift from the owner to the bareboat charterer or its appointed manager.

This can affect:

Who issues purchase orders
Who approves suppliers
Who pays invoices
Who manages technical procurement
Who handles provisions
Who coordinates repairs
Which company appears on delivery documents

Suppliers should confirm the responsible contracting party before accepting orders.

Implications for Suppliers and RFQ Routing

For suppliers, the most practical question is: “Who should receive the quotation, and who can approve the order?”

Wrong RFQ routing can delay supply, create duplicate quotations or cause confusion between owner, manager, vessel and agent.

Identifying the Decision-Maker in an RFQ

Suppliers should look for clues in the RFQ.

Important questions include:

Who sent the RFQ?
Is the sender the owner, manager, agent or vessel?
Who will issue the purchase order?
Who is the invoice party?
Who is the delivery party?
Is the vessel under third-party management?
Is there a preferred supplier list?
Is there a frame agreement?
Is owner approval required?
Is the request OPEX or CAPEX?
Is the request urgent or planned?
Who confirms technical acceptance?

These questions help prevent quotation and payment problems later.

RFQ Routing in Multi-Party Structures

In a multi-party structure, the RFQ may involve several stakeholders:

Vessel master or chief engineer
Technical superintendent
Procurement officer
Fleet manager
Ship-owner representative
Third-party manager
Port agent
Supplier
Forwarder or logistics provider
Accounts payable team

The supplier should confirm who is responsible for final commercial approval and who will be the contracting party.

Why Suppliers Should Avoid Assumptions

Assumptions create risk in maritime procurement. A supplier may assume the owner will pay because the owner name is known. In reality, the manager may be the contracting party. Or the port agent may request supply on behalf of the vessel but may not be responsible for payment.

Common risks include:

Quoting the wrong company
Issuing invoice to the wrong entity
Delivering without valid PO
Accepting instructions from non-authorized contacts
Missing owner approval
Overlooking frame agreement restrictions
Confusing technical approval with commercial approval
Failing to confirm delivery documentation

A clear RFQ process protects both supplier and vessel.

How AVS Supports Different Decision Structures

AVS works with ship owners, ship managers, technical managers, procurement teams, port agents and vessel operators across different decision structures.

AVS can support:

RFQ clarification
Supplier and buyer communication
Multi-port supply coordination
Global ship supply
Technical stores
Provisions supply
Bonded stores where applicable
Delivery planning
Documentation coordination
Invoice and delivery record alignment
Urgent supply routing
Port-specific execution

Different fleets use different procurement models. AVS helps align supply execution with the correct approval and delivery structure.

For ship supply and RFQ support, submit your request through Quick Quote.

Conclusion: Procurement Authority Depends on Structure

Ship procurement decisions are not always made by one company or one person. The ship-owner controls the asset and strategic direction. The ship-manager often handles day-to-day procurement. A third-party manager may act under delegated authority. The vessel may request the item, but shore teams approve and source it.

For suppliers, understanding the decision structure reduces delays, protects payment, improves RFQ routing and strengthens customer relationships.

The key is to identify the contracting party, approval authority, PO issuer, invoice party and delivery receiver before execution. In urgent supply, this clarity becomes even more important.

AVS Global Ship Supply & Catering supports ship owners, managers and procurement teams with coordinated ship supply solutions across international ports.

FAQ

What is the difference between owner and manager?

The ship-owner owns the vessel or controls the asset, while the ship-manager handles agreed operational functions such as technical management, crew management, procurement, maintenance and compliance.

Who pays the supplier — owner or manager?

It depends on the structure. Sometimes the owner pays directly. Sometimes the manager pays and recharges the owner. Sometimes a charterer or agent may be involved. Suppliers should confirm the contracting and invoice party before delivery.

Can a third-party manager change suppliers freely?

Not always. A third-party manager may have authority to choose suppliers within approved limits, but owner-approved vendor lists, frame agreements, compliance rules or budget thresholds may restrict supplier changes.

How does the technical manager differ from a crew manager?

A technical manager focuses on maintenance, repairs, technical stores, spare parts and vessel compliance. A crew manager focuses on crew changes, documentation, training, welfare, travel and crew-related support.

Who signs the frame agreement?

Frame agreements may be signed by the ship-owner, ship-manager, procurement company, fleet group or holding company depending on how procurement is centralized.

Are owner-operators different in procurement?

Yes. Owner-operators own and operate vessels within the same group, so procurement can be more centralized and direct. However, they may still use agents, regional suppliers or external service providers.

Why do some vessels switch managers often?

Vessels may switch managers due to ownership changes, cost control, performance concerns, fleet restructuring, charter requirements, sale and leaseback structures or strategic management decisions.

How does AVS handle different decision structures?

AVS works with owners, managers, procurement teams, agents and vessel operators by clarifying RFQ details, delivery requirements, invoicing information and operational responsibilities before supply execution.

What is bareboat charter and how does it affect supply?

Bareboat charter gives the charterer possession and operational responsibility for the vessel for a period. This can shift procurement authority, payment responsibility and supplier coordination away from the owner to the charterer or appointed manager.

Are large owners centralized in procurement?

Many large owners centralize procurement through group purchasing departments, frame agreements or approved vendor systems. However, local execution may still be handled by managers, agents or port suppliers.

How to identify the decision-maker in an RFQ?

Check who sent the RFQ, who issues the purchase order, who approves the budget, who receives the goods, who is the invoice party and whether owner approval or manager approval is required.

What is OPEX vs CAPEX procurement?

OPEX procurement covers routine operational expenses such as provisions, stores and minor repairs. CAPEX procurement covers major investments, upgrades or asset improvements and usually requires higher-level owner approval.

Ship-Owners vs Ship-Managers vs Third-Party Managers