Exploring the future of the shipping industry: an article inspired by Dr Martin Stopford
I’m now almost 2 months into my journey at FB Larsen. The initial response to my venture is heart-warming and highly encouraging, and I want to thank everyone who has reached out to me during this exciting time in my life.
This week I’m focusing on getting my FB Larsen communication ducks in a row. And the first step in that process is sharing a couple of thoughts with you that I have about the future of the shipping industry. The angle of today’s article was in fact inspired by a piece I read recently by Dr Martin Stopford, a man who I had the great fortune to work with when I was doing The Blue MBA.
Dr Martin Stopford on the future of shipping — Splash 24/7
‘Dr Martin Stopford on the future of shipping’ is a thought-provoking article that was published recently in Splash 24/7. If you haven’t read it already, you can find it here.
For anyone who doesn’t know Dr Stopford, he’s a global shipping superstar and a man I personally look up to enormously. For me, his book ‘Maritime Economics’ is an all-time industry favourite and well worth a read if you don’t know it.
Now back to this article. I was delighted to see Dr Stopford’s article in Splash 24/7 while searching for inspiration for my first industry comment on the FB Larsen Company page of LinkedIn. The timing of his article was such that it inspired me to respond to his conclusions and to add my own personal view. For anyone who’s short of time, the key takeaway of this article is…
Don’t use shipping digitisation as an excuse to stop driving improvements or do nothing while you wait for it. Instead, make the most of the data and information you have available to you here and now. Not only will this strategy improve your immediate performance, it’ll also put you ahead of the curve when d-day arrives.
Shipping digitisation needn’t be overwhelming
The conclusion of Dr Stopford’s article is that “Digital shipping is the only solution in sight”. While I agree in principle with this view, I am also conscious that the industry still has some way to go before digitisation is fully onboarded. It’s for this reason that I think the notion that “digital shipping is the only solution in sight” might leave some shipping companies feeling somewhat overwhelmed and tempted into inertia.
This is why I’m keen to say that it’s important on the journey to all things digital, that you neither wait nor stop doing what you’re currently doing to drive improvement. The shipping industry is arguably in survival mode right now and it is continuous improvement at this moment in time that will support your digital modernisation journey — financially and strategically.
Now is the time to get in the digital shipping mind-set
By focusing on actively improving current performance, you’ll be better positioned to identify exactly what digital support you need when the time comes to switch over, as well as being better positioned to fund it. Working towards a digital mind-set in the here and now will give you invaluable insight and understanding of how digitisation will add real power to your shipping elbow. Approaching shipping digitisation in this way won’t only save you money, it’ll save you a whole lot of time and frustration when the time comes too.
I’d advocate that right here, right now, every shipping company should be looking at the data they have available to them today.
I’d encourage them to be asking if that data is being fully exploited. Are you maximising the possible outcomes from information and data you have in your IT platform and systems at this very moment in time? Are you looking at all this data with a truly holistic view? If not, then in my mind you’re missing a trick.
In most cases, companies aren’t doing these things, and my argument is that closer examination and more effective, more holistic use of the operational, technical, executional and financial data that shipping companies have to hand right now could significantly accelerate excellence. It is my belief that getting into this sort of mind-set now is what will allow you to hit the ground running when full digital solutions are available.
New entrants = new mind-set => opportunity
What about new entrants in the shipping industry? Could new suppliers who don’t have the weight of traditional shipping methodology around their necks provide opportunities for a brighter future?
In my view they definitely can. There’s no getting away from the fact that entry barrier levels are currently low and the competitive landscape is attractive. So it is only logical that tech innovators and experienced data/connectivity/analytics companies from other industries have their eye on the maritime sector.
As I see it, new suppliers have the chance to come into the shipping industry with the technology and holistic approach that will spark the synergy required for some truly exceptional performance.
Taking a horizontal approach across automation, performance, reporting and analytics is, when looking from a vessel, fleet and company perspective, in my belief what will really accelerate maritime excellence in the years and decades to come.
Data warehousing, applications and tools will be developed that will create opportunities for forward-thinking new kids on the block to make their mark and change the way traditional shipping works.
Who are these people? For now, it’s impossible to put names on the table with any accuracy, but we are all aware that there are young, and experienced companies out there who are innovating in areas that could revolutionise how shipping works. Disruption in the likes of automation-, performance-, equipment- and propulsion- systems is already happening, and tailoring that disruption to each owner/operator’s requirement is a certain by-product of that. So, from where I’m sitting, I believe that there are truly exciting times ahead.
I’d welcome your thoughts on my view of the future of the shipping industry and digitisation in particular. Do you have any experiences to share? Have I missed anything that you can bring to the table? Please, I’d love to hear from you in the comments here or on my LinkedIn Company Page, or alternatively you could visit my website http://www.fblarsen.com.
