The report included the findings of a focus group consisting of 30 young shipping professionals, and notably absent of bluster over London as the definitive “Shipping Capital of the World” that the International Chamber of Shipping (ICS) declared at the end of last September’s London International Shipping Week (LISW). The grounds this statement have become increasingly shaky since another SPNL survey found 70% of respondents warned London risked declining influence - in particular competition from Asia and the city state of Singapore were cited in that survey.
This time, the picture that emerged from the report was of a London with a rich maritime heritage hamstrung by government mis-regulation: “a powerful brand and legacy which is not being fully leveraged,” in the words of SPNL chairman Claudio Chiste.
Describing London’s “sometimes world-leading” insurance, legal and finance markets, free media and “global, open” economy as its major strengths, Chiste indicated: “London is the location for highly developed, and sometimes world leading, sectors such as maritime insurance, legal expertise, broking, technical expertise, ship finance expertise/capital markets and education. Not capitalising on these strengths could jeopardise London’s strong market position.”
Although the focus group participants described the government’s involvement in shipping as “highly relevant”, the group recommended an “ain’t broke, don’t fix” strategy, citing in particular the issues of tonnage tax and non-domicile taxation, for which “a clear and predictable course must be taken to ensure no unnecessary impediment to London’s global competitiveness.”
Meanwhile, the UK population’s “general lack of awareness” was again raised as a major barrier to progress, after being illustrated in June, when a survey of 1,000 residents by Seafarers UK found that 2% of respondents knew that 95% of imported food arrives by ship, while 27% thought it arrived by air and 20% by road.
Focus group members suggested raising awareness in schools and amongst the general public of the possibility of a career in shipping, which would facilitate “a larger supply of home grown talent to the industry in the future”. Participants also noted that despite the work of organisations such as the Women's International Shipping & Trading Association (WISTA), London is losing out on talented female professionals for whom transport generally remains a prohibitive “boys’ club” – an issue the government is attempting to address with the appointment of Claire Perry as transport under-secretary earlier this month.
The UK’s tight border controls and visa restrictions were also regarded as hostile to talent: “Every year… educational institutions with a strong maritime flavour such as University of Southampton, Plymouth University and CASS Business School educate a large number of students,” the report noted. “Upon graduation many are forced to leave the UK.”
The group called for the two-year post study work visa to be reinstated, and for companies in the maritime sector to “collectively invest in the future by taking on graduates for internships, traineeships and work placement programs, possibly as part of a structured and government supported scheme.”
“We hope all industry stakeholders take note of the points highlighted by our research,” said Chiste. “We believe there are some valuable insights relevant to attracting and retaining young international shipping talent in London and SPNL as an organisation continues to grow and promote this vital sector for the future.”
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