Talks with executives in the shipping industry
The modernisation of shipping
Mark Mirosevic-Sorgo, Managing Director, Quincannon Asia
Could you introduce Quincannon? Quincannon is a shipbroking company headquartered in New York and with offices in Singapore, Shanghai and Dubai. Shipbroking is and has always been a hidden industry, but all major shipping hubs, including Singapore, New York and Tokyo, will have brokers. 25 years ago, there was only one other broking company in Singapore doing gas and about five doing chemicals. Today, Singapore has at least 15 gas brokers and going on for 50 chemical brokers. Although it is certainly possible to find cargo for your ship or a ship for your cargo without a broker’s help, brokers will make these processes smoother and safer. Back in the day when there were three ships at the dock, it was simple to ask around who has got spare space, but the more complex the market becomes, the more it will need brokers to facilitate the process.
How is Quincannon staying relevant in the industry? I have been a shipbroker my whole working life. Back in 1998 when I arrived in Singapore, the petrochemical industry in South East Asia was not even 10% of what it is today. China had no deep-sea gas or chemical berths. The industry has grown exponentially, as have the local chemical tanker and gas tanker fleets. New shipping regulations mean new ship designs, and new NOX, SOX, while COX emission regulations mean new fuels and new engine designs. All methods are being looked at to save costs – some new designs have incorporated sails to bring wind assistance and save fuel. Change is happening and we must not sit back and do nothing. Our objective is to continue evolving as the markets evolve, to ride the crest of the waves and be at the forefront of the industry in order to better serve our clients. We need to make sure that we continue to attract good people able to understand the ships and the cargoes, and to read the markets. Based on the old Baltic Exchange mentality that governed shipbroking, the company has always followed the principle that our word is our bond and any deal sealed with a handshake would be respected to the last detail. As time marches on and as things change we learn, we adapt, we continue, and we uphold the same standards.
Chye Poh Chua, Founder, ShipsFocus
What are the main barriers to digitalization in the maritime sector? We see climate change and global supply chains as two sides of the same coin; we cannot solve one without the other. Yet global supply chains suffer from a maritime dark spot that few have solved. We have identified three layers of challenges: Innovation, Adoption, and Scalability, that impede maritime digitalization, which is necessary for enabling visibility. First, the most brilliant of minds are not always able to come up with the best solutions or business ideas due to a lack of maritime and port expertise. Then, adoption requires a rare multidisciplinary understanding of both the big picture and precise operational needs. And thirdly, any innovation must yield financial returns to have a chance to scale up. While we come from a maritime background, we solve these issues at the fringe from an outsider’s angle.
How has the pandemic impacted the adoption of technology? COVID-19 has accelerated this interest greatly, though this is not consistent across the board – some people remain risk-averse or hesitant in embracing new technologies, while others are indifferent. Start-ups are genuinely more interested in tapping into this space, and becoming more familiar with its unique complexities and challenges. However, the traditional maritime operators are less sanguine about change. Whatever technology will enter this market will require adjustment and calibration.
What do you mean by "aggregated shipping"? Aggregated shipping, simply put, is aggregating market-wide supply and demand so as to minimize the number to necessary trips enabling better utilization and reduction of wastage and GHG emissions. The result is lower freight cost to the customer, better earnings for the carrier and a better environment for us all. We are currently helping small launch-boat operators in Singapore accumulate data and use it to develop algorithms. With sufficient data, we can identify patterns in the boat movements and estimate the number of trips that can be aggregated. The prospect includes a lower cost scheduled bus-like service to complement the water-taxi business, and a cleaner and greener harbor for all.