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Shipping's business model a 'dead parrot' declares Stopford

Shipping markets guru Martin Stopford declared the existing business model of the industry a “dead parrot” on Wednesday and said that a new management based solution was needed.

Marcus Hand, Editor

June 4, 2015

2 Min Read
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Speaking at Nor-Shipping Clarksons Research Services president Stopford noted that over the next 50 years the industry would spend between $4 - $8trn on new ships.

“Are we going to be spending an appropriate amount of money on how we use those assets, or are we going to continue to follow a business model of the last 30 years where you build a slightly bigger ship with every generation, and you going to have one person in the office per ship?” he asked.

Referencing Monty Python’s famous dead parrot sketch Stopford remarked: “Is that the business model you are going to use for the next 30 years? Because if you are I think its worn out, I think it's dead, it's a Norwegian parrot if you know John Cleese.”

He cited four problems with the existing business; firstly that the technology used was old and economies of scale had been taken to an extreme; second there was a real problem in attracting crew; third a change in the market so that two-thirds of the cargo was controlled by non-OECD countries; and fourth the industry has very weak customer relationships.

“The problem with the bulk shipping business over the last 20 -30 years is its been a gambling business not a management business,” he stated.

The solution as Stopford sees it is to “put the management back into shipping”.

“It's a management solution, you semi-automate ship operations, you semi-automate navigation and you implement door-to-door logistics.

“We need to put these things together and squeeze some more value out the transport chain and put a smile on the customer’s face. The customer should not be the person you are beating to death over the negotiating table.”

Implementing such a solution he claimed could create cost savings of 30%.

And how will this happen? “Other people are doing it. The technology is there. The possibility is there, it just needs the vision,” Stopford stated.

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About the Author

Marcus Hand

Editor

Marcus Hand is the editor of Seatrade Maritime News and a dedicated maritime journalist with over two decades of experience covering the shipping industry in Asia.

Marcus is also an experienced industry commentator and has chaired many conferences and round tables. Before joining Seatrade at the beginning of 2010, Marcus worked for the shipping industry journal Lloyd's List for a decade and before that the Singapore Business Times covering shipping and aviation.

In November 2022, Marcus was announced as a member of the Board of Advisors to the Singapore Journal of Maritime Talent and Technology (SJMTT) to help bring together thought leadership around the key areas of talent and technology.

Marcus is the founder of the Seatrade Maritime Podcast that delivers commentary, opinions and conversations on shipping's most important topics.

Conferences & Webinars

Marcus Hand regularly moderates at international maritime events. Below you’ll find a list of selected past conferences and webinars.

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