Our Director of Operations, Tanel Hinno, shares in this article some light on what is happening in the contemporary maritime industry, talks about offshore development and sheds light on how a ship management company can mend a headache.
Transformations in the Maritime Industry and the Role of Ship Management
The shipping industry is currently undergoing significant changes, impacting individuals, businesses, and influencing regulations and daily habits. We'll explore shifts in industry practices, adaptations by businesses to new paradigms, and the evolving regulatory framework, unravelling the practical dynamics driving change in the shipping industry. Despite the distinct expectations of each shipowner in the maritime industry, ship management companies, including Tschudi Ship Management, strive to navigate the challenging task of ensuring client satisfaction and keeping vessels within the regulated maritime environment. Tanel Hinno, Director of Operations at Tschudi Ship Management, will explain how this is achieved and elaborate on the changes in the maritime world.
To start off with, Tanel explains that maritime activities and regulations play a pivotal role, primarily governed by the International Maritime Organization (IMO), a UN agency. The maritime industry, given its global scope that involves vessels and crews from diverse cultural backgrounds, is consistently subject to evolving regulations. Standardized rules become essential to create a common understanding and ensure safety. The challenge lies in determining where to draw the line, considering different interpretations of safety requirements across regions.
Tanel says: “In the end, no matter the nationality, human life is important for every country. The difference lies in how you ensure the safety of the human life.”
Given the regulations by the IMO, each country can still decide to make the regulations even stricter. Some inform the ship owners and managers, some don’t and expect the responsible person to know the laws by themselves. Tanel brings an example where they prepared a ship for nine months to finally go to Canada and arriving there, it turns out they have even stricter requirements than they initially researched, or interpretations are differing from those accepted in Europe. This makes it especially hard because the superintendents are expected to adapt quickly in different situations.
The maritime industry is not only adapting to changing global regulations, but also dealing with a rising trend in offshore activities like energy, mining and production. This shift becomes more evident as exploration expands into new territories. The growing shift toward sea-based production is evident, with even Estonia contemplating offshore wind farms. This trend is driven by the freedom from territorial constraints and community opposition. Unlike on land, offshore ventures face fewer challenges. The only considerations to take are ethical such as avoiding harm to marine life. On a broader scale, offshore production is seen as a solution to future challenges, particularly in terms of food production. For example, harvesting algae from the sea is considered a promising source for creating diverse and nutritious food items to sustain a growing population.
Popularity of cruise ships has also grown, reflecting the human desire for sea-based adventures and exploration. Everything on land seems to have already been experienced. Thus, the prospect of taking that same concept to the open sea, offers a refreshing change. It's fascinating that now, as ships become larger and the maritime domain expands, there's an opportunity to approach things a bit differently. The allure lies in the notion that at sea, one can break away from the conventional and embrace a unique perspective.
Little more than decade ago, shipowners started showing interest in ship management companies, like Tschudi Ship Management.
Tanel explains: “Before, it was more like ship owners managing their own ships. They organized the technical, safety and commercial operations of their own ships. But now it’s often no longer individual persons but rather companies, or even banks, for example, who own the ships. They might not want to deal with such a headache as technical management.” This kind of service offers many benefits like cost efficiency, regulatory compliance, crew management, maintenance and repairs and risk management. It allows shipowners to focus solely on the commercial aspects while entrusting the technical complexities to specialized management companies.
In summary, the maritime industry is at a pivotal moment, responding not only to shifting global regulations but also embracing offshore activities and the allure of sea-based adventures. Tanel Hinno's insights emphasize the complexity of harmonizing safety requirements across diverse regions, highlighting the need for adaptive strategies. As shipowners increasingly rely on specialized management firms like Tschudi Ship Management, the industry is witnessing a transformative shift towards efficiency, compliance, and strategic focus. Which Tanel of course absolutely doesn’t mind because this means he will have a lot of work for the future!
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