Digital revolution forces fundamental restructuring of shipmanagement sector

Columbia Group president Mark O’Neil delivered a stark assessment of the sector’s transformation needs, declaring traditional third-party shipmanagement has become "an anachronism" that must evolve or face extinction. "We have to change or we will wither on the vine and surely die," Mr O’Neil told delegates.

The maritime world has undergone dramatic changes, becoming "much more sophisticated" with increased regulations, digitalisation requirements and technological advances at every turn. Artificial intelligence stands poised to revolutionise operations, with Mr O’Neil revealing insights from recent discussions with a major American software provider, "In the next few years, we’re going to have artificial employees who learn from one another and replace the actual employees in our office so they can do everything from client management to delivering service."

The relationship between managers and clients has also transformed. "Clients demand a much closer relationship and involvement with the asset than was previously delegated to us as third-party shipmanagement," Mr O’Neil noted. "They want partnerships, they want collaboration, they don’t just want to give their asset over to a third-party shipmanager and say here you run it, you crew it, you technically manage it."

In response to these changes, the industry has shifted from providing commoditised services to creating integrated service platforms. Mr O’Neil outlined three essential components for success, "First, be client facing. Second, be relevant. And third, be compelling. Make sure the clients have those services."

The transformation reflects shipping’s increasing integration with broader logistics networks. "Shipping as a standalone sector [probably] has a limited timeframe where it has to fit in to a much bigger, sector-specific world," he concluded.