Paradigm shift in shipmanagement requires thought leadership 

Crew training is a key concern

Mr Peter notes some of the challenges faced are higher operating costs, retrofitting vessels to comply with EEXI requirements, operational complexity and crew training requirements. “Crew training is a key concern as there is a huge gap with the current maritime academy and the expectations with alternative fuels and the modern equipment on board; asset depreciation, as older, less fuel-efficient vessels are depreciating faster as they are becoming non-compliant, leading to a surge in vessel scrapping or secondary use (eg floating storage); and charterers and market dynamics, where we see charterers are increasingly favouring vessels with better environmental ratings, reducing demand for non-compliant ships; and lastly, regulatory uncertainty where  delays in clarity over future fuels (ammonia, hydrogen, methanol) and related infrastructure have left shipowners hesitant to invest in newbuilds or retrofits.”

Mr Peter says shipowners that fail to comply or don’t have a proper decarbonisation strategy face stiff financial penalties and reputational damage, and that is why the key is a technical manager who understands and knows how to navigate the upcoming regulations and is well positioned to manage the staffing challenges. 

“For an owner to be successful, you need a good manager who has all the proper systems and processes in place to collect the data and manage the demands of the upcoming regulatory changes. We’ve invested in those systems over the last 10 years, and the amount of ship data coming through a shipmanager today is humungous,” says Mr Peter.

He also points to the importance of the human element in the process both ashore and on board, and retaining and training experienced personnel to address the increasing data management burden being placed on masters and junior officers.

Opex costs are also rising because of the geopolitical tensions and the recent threats by the rebel groups in Red Sea has tightened crew supply. “Everyone is rushing to India and the Philippines,” he says, driving up costs and competition. Rising national GDPs with better shore opportunities coupled with war-like tensions and the Covid crewing crisis have dissuaded many from seeking seafaring careers.

“The whole phase of shipmanagement is changing, and changing very fast. Smaller shipmanagers will struggle to stay afloat because it has become too costly to manage systems processes with this constant change and the frequent rise in regulatory requirements,” he says.

But Mr Peter believes what differentiates BSM (Singapore) from small shipmanagers is investment in a combination of the right people and technology, and the process. “A shipmanager has to take thought leadership into their whole process of providing service, with innovative systems, processes, data management and people.”

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