The shipping industry, being an integrated part of society, is facing the same challenges as all industries.
The world is changing rapidly, and at an ever-increasing pace, as a result of the fourth industrial revolution, the new world order that is developing after the end of the Cold War and the Climate Crisis which is putting a lot of existential pressure on governments to do some- thing. In contrast with other industries that may be wiped out from the changes and given that the sea is by far the most efficient mode of transporting raw materials and finished goods across the continents, shipping itself will continue to thrive as it covers a very basic need of humanity – the need to trade with each other.
Although shipping itself will continue to serve us all for the fore- seeable future, the question is what shape will shipping take and how will individual shipping companies adapt so that they can continue to exist, despite the volatile environment.
The definition of “resilience” is “the ability to be successful again after something bad has happened” and in my view the key phrase in the definition is “successful again” – you need to be successful in order to be able to return to it! Therefore, the number one and obvious priority of any company is to be successful the first place. Although good profitability and big cash reserves are necessary components of “being successful” they are not adequate these to guarantee this. Both can vanish very quickly during times of prolonged recession or sudden change.
The world today is very complex and fast paced - we cannot predict with any reasonable degree of certainty the future as the world comprises more than the two equal superpowers who kept each other in balance and the world in stability. Regional conflicts are frequent as more countries are trying to assert their power and unfortunately trade has been weaponized and being targeted directly adding many spikes and dips to the natural super cycle of the shipping economy.
Added to this geopolitical uncertainty is the technological uncertainty brought about by the quest of alternative to carbon fuels which will require massive investments. If we further add to the equation the very strict regulatory environment and the changes in the nature of the finance providers, the result is even more uncertain world where volatility and unpredictability is the new normal. It seems that companies now must face a major crisis once a year where previous generations faced one in a decade.
The shipping industry is full of stories of brilliant individuals who through their entrepreneurship and foresight managed to rise
to the top and make headlines and it is very easy to make the mistake that success and resilience is based on these qualities. Moore Greece has been working closely with the shipping in- dustry for sixty years and throughout our long history we have witnessed all crises that affected the industry and have seen many companies rise and fall. We therefore know with certainty that what creates headlines, does not ensure long term survival.
What differentiates a “survivor” from a “shooting star” is the fact that behind the brilliant individual there is a great management team working together and in perfect harmony with their excellent staff having aligned targets and priorities. A shipping company
is no different from any other company in the business world – it is a collection of individuals with different characters and back- grounds, and they will success or fail together. What binds them together is a common belief that they are working together to- wards a common goal and trust each other that they will perform to their best of their abilities towards that common goal.
The challenges of the modern world are just too complex to be handled by one individual, no matter how brilliant and therefore many experts are required. Well defined company culture and clear and loud tone from the top is required to bind together these different experts and stay focused towards the company’s aims. Every age had its challenges and shipping survived and thrived as humanity turned towards trade to increase prosperity. Challenges and problems will never go away and are common for all companies across the industry. Nobody can control the variables outside the company and therefore the one thing to
do is build great teams that are ready to tackle anything that life throws at them. Greek shipping is successful because of these great teams and great individuals and I am confident that it will continue its success.
* Managing Partner | Global Maritime Leader Moore