Decision-Making Tools in Shipping

Decision-making tools in shipping are used by ship staff and management to select the safest, most economical, and compliant option for operations, maintenance, and management.

1️⃣ Risk Assessment / Risk Matrix

• Evaluates likelihood × severity

• Mandatory under the ISM Code issued by International Maritime Organization

• Used for:

  • Hot work

  • Enclosed space entry

  • Critical machinery repairs

2️⃣ SWOT Analysis

• Strengths, Weaknesses, Opportunities, Threats

• Used by shipowners/operators for:

  • Fleet expansion

  • New fuel adoption (LNG, methanol)

  • Route planning

3️⃣ Cost–Benefit Analysis (CBA)

• Compares capital + operating cost vs savings

• Used for:

  • Scrubber installation

  • Energy-saving devices

  • Automation upgrades

4️⃣ Decision Tree Analysis

• Visual comparison of multiple options with probabilities

• Used for:

  • Repair vs replacement of machinery

  • Defer repair or enter dry dock

5️⃣ Pareto Analysis (80/20 Rule)

• Identifies major causes of recurring problems

• Used in:

  • Breakdown analysis

  • PMS improvement

6️⃣ Root Cause Analysis (RCA) / Fishbone Diagram

• Finds real cause behind incidents or failures

• Required under:

  • ISM non-conformity investigation

  • Near-miss reporting

7️⃣ Checklists & SOPs

• Standardized decision support

• Used in:

  • Engine room watchkeeping

  • Emergency response

  • Critical operations

Practical Shipboard Examples

Situation	Tool Used
Enclosed space entry	Risk assessment matrix
Main engine failure	Decision tree + RCA
Fuel changeover	Cost–benefit analysis
Repeated purifier faults	Pareto analysis
Safety improvement	SWOT analysis