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Conflict of Interest in Shipping
Name
Institution
Conflict of interest is a state in which individuals in a particular position derive private benefits from actions or decisions made in their formal capacity. Competition for limited resources is the primary source of the encounter due to different interests (Heathfield, 2010). Conflict of interest occurs in a different situation and diverse forms. An employee may have interest in business deals that the company he or she serves is also interested. Still it may be in an organizational structure or issuing of tenders. Therefore, this essay will discuss conflict of interest that may arise when a ship-owner is both owner and manager of others.
It is difficult for ship-owners to operate their vessels along with vessels they manage for others without conflict of interest. When a high paying cargo gets in the office of the ship-owner who is also a manager to others, he is likely to book the freight on his vessel and sideline these of the other people. Such an action is a conflict of interest because he is in the commanding position to influence which ship to carry what cargo. Meaning, any time the manager gets a well-paying deal he will often assign it to himself. Again the manager may be involved in illicit businesses like drug and gun trafficking using his vessels. When in charge, the manager may recommend promotion of close friends and loyalist who won’t disclose his operations into senior positions leading to a more complex conflict of interest.

The manager may also fuel his vessels using fuel meant for other ships that he manages. Therefore, these are some conflict of interests that may occur when a ship-owner is both owner and manager of others. To do away with the conflict of interest, a person managing the cargo vessels should not have any personal vessels.
References
Heathfield, S. M. (2010, August 8). See the Examples of Potential Workplace Conflicts of Interest. Retrieved February 10, 2018, from https://www.thebalance.com/conflict-of-interest-1918090