Op-Ed: Europe's Shipping Future Depends on Stronger Ship Management

The role of the ship manager is expanding at a time when owners are applying increased pressure on management fees. That tension should concern the whole European shipping industry.

Shipmanagement should not only be viewed through the lens of the traditional ship manager. This term now refers to second and third-party management companies, like Columbia, and joint ventures between owners and managers. Whatever the set-up, the issues remain the same as many are being asked to take on more responsibility for a range of factors, from decarbonisation to complex regulations, crew welfare and increasingly sophisticated onboard technology. Too often, however, management services are still procured primarily on price. That model is becoming harder to sustain.

Ship management is not simply an administrative function sitting behind the shipowner. It is the operating system of a vessel, the beating heart that connects owners, seafarers, suppliers, technology providers and regulators, and turning strategy into day-to-day performance on board. Europe therefore needs to think differently about what it wants from its ship management sector. It should not aim to be the cheapest. It should aim to be the safest, smartest and most trusted. If Europe allows its ship management capability to weaken, it risks losing far more than management contracts. Technical expertise, quality maritime jobs, operational knowledge and data move with those businesses, as a result, capital and ownership are also likely to gravitate towards the strongest management ecosystems.

Shipping is also facing a shortage of experienced officers at the same time as ships are becoming more complex. AI-assisted decision-making and tighter environmental regulation are increasing the level of competence required, both at sea and ashore. The industry cannot solve the problem through recruitment alone, we need to retain and develop people throughout their careers. Reliable rotations, better connectivity, strong leadership, mental-health support and clearer pathways from sea to shore all have a role to play as well as a more focused approach on training for the next generation of seafarers.

At the same time, Europe must remain international in its outlook. A strong European ship management sector does not mean relying exclusively on European seafarers. Its strength comes from combining European maritime expertise with talented people from across the world. This also relates to the increasing importance of technology in ship management. The industry does not need another generation of disconnected dashboards and applications. Technology only has value if it helps people make better decisions. Predictive maintenance is a good example of this. The real value is not in the sensor or the software itself, it is whether a chief engineer trusts an alert enough to act before a failure occurs. The same test should apply across digitalisation. Before implementation we should address whether the process improves safety, reduces workload, improves reliability or commercial performance? If it does none of those things, we should be asking why it is being deployed.

Crucially, technology should be developed with seafarers in mind. The people onboard are operational experts and their experience should help shape the tools they are expected to use. The European maritime industry also needs to forge a more practical partnership between ship managers, maritime academies, governments and technology companies. New skills should be developed around real operational requirements, while new technologies should be tested on working vessels, measured honestly and scaled when they prove their value.

Cyprus offers one example of how policy can help. Its maritime framework has long recognised ship management as an economic activity in its own right, helping to create an ecosystem in which owners, managers, maritime services, research and technology can coexist. Europe’s major maritime centres need to think in terms of ecosystems, rather than simply competing with one another as cities or countries.

Europe’s problem is not a shortage of ideas, we should address whether it is prepared to invest in the people, technology and management capability needed to turn those ideas into operational reality. Ship management should be treated accordingly - not as another cost to be driven down, but as a strategic maritime capability worth protecting.

Andreas Hadjipetrou is CEO of Columbia Group.

The opinions expressed herein are the author's and not necessarily those of The Maritime Executive.