Shipping companies, due to geopolitical and technological challenges, have been compelled to rethink their planning and risk management. At a conference attended by nearly 300 representatives from the shipping industry in Singapore, senior managers discussed these developments.
Transition to a New Approach
Bjorn Haugard, CEO of Anglo-Eastern Group, pointed to strategic changes in the industry and stated that shipping is moving towards a 'just-in-case' mindset. He added that predicting the future has become significantly more difficult, and companies must focus on building infrastructures to adapt to various scenarios instead of concentrating on forecasting.
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New Challenges and Risk Management
Hor Wong Yeo, CEO of Pacific Carriers Limited, referred to the risks arising from outdated assumptions in shipping cycles and stated that these cycles have now become much more intense and shorter. He also emphasized that companies must pay closer attention to the risks they can truly afford to take.
Jeremy Sutton, CEO of Swire Shipping, mentioned changes in governance systems and stated that these systems have become part of daily operational tools. He added that risk assessment has now become part of the weekly and monthly management routine.
Nick Potter, CEO of AET, highlighted the necessity to avoid paralysis and short-sightedness, stating that the company's goal is to achieve carbon neutrality by 2050. He also announced restorative projects in the field of carbon reduction technologies.
John Su, CEO of Erasmus Shipinvest Group, pointed to the rapid expansion of his company in various shipping fields and added that the main priority has always been survival in low-profit markets.
Shmuel Yoskovich, CEO of X-Press Feeders, emphasized the importance of decentralization in cargo management and preventing traffic and disruptions in schedules. He stated that the company is moving towards greater ownership of ships.
Ultimately, companies are moving towards creating larger margins, scenario planning, and delegating more power to lower levels. These changes, alongside a focus on efficiency, indicate a new pattern in risk management in the shipping industry.
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