Maritime Leaders Urge Shipping Industry to Prepare Now for Future Challenges, Regulation Changes

K. Murali Pany, Managing Partner at JTJB, says shipping companies should give focus to risk management. Image: JTJB

Maritime leaders Thursday, at a briefing session in advance of the Sea Asia 2017 conference and exhibition, called on the shipping industry to proactively prepare now to "future-proof" the industry and stay competitive in the current volatile market environment, the Singapore Maritime Foundation and Seatrade have announced.

Among the industry leaders that spoke at the  briefing session, K. Murali Pany, Managing Partner at Joseph Tan Jude Benny LLP (JTJB), urged shipping companies to assess their business models with a focus on investing in risk management.

"There has to be a fundamental rethink of how business is going to be done in terms of managing the risk. All businesses have risk, but it's a question about whether to take on the risk blindly, or taking it on in a measured way, where you're prepared for when things go wrong," said Pany.

"Rather than chasing every dollar, businesses should be chasing the good dollars. Don't just focus on volumes; focus on creating a more solid business."

Representatives highlighted the importance of investing in solutions now to better understand the impact of technology and ensure companies are prepared to navigate future challenges, including regulation changes.

"The advent of digitalisation will help improve processes in the industry but it will also disrupt the way you do business. With this in mind, there is a need for us to be prepared and start thinking about the new business models that will arise as a result of digitalisation in the industry," said Tan Beng Tee, Assistant CEO of Development at the Maritime and Port Authority of Singapore (MPA).

Also speaking at the event, Rene Piil Pedersen, Maersk Group's Representative for Asia Pacific, said container vessels' cargo volumes have been projected to grow by 2 to 4 percent in 2017 compared to 1.5 to 2 percent in 2016, Platts reports.