Are the old days of third-party management redundant? The second instalment from our brand new shipmanagement magazine. Claiming the old days of third-party management were out, and that second-party management was a better description of the business these days, Mark O’Neil, head of Columbia Group, created one of the big talking points at the last Monaco Maritime CEO Forum (pictured). It’s a topic managers have subsequently had to assess – just how do you define the business of shipmanagement in 2024? “The term third-party can indeed imply a certain distance or detachment, which may not accurately reflect the collaborative nature of many business relationships,” says Mingfa Liu, managing director at IMC Ship Services When outsourcing, he reckons clients typically seek more than just a service provider; they seek a partner who shares their goals and values, and is genuinely committed to their success. “Referring to this partner as a second party emphasises the alignment of interests and responsibilities between the client and the service provider, fostering a sense of mutual trust and partnership,” Liu says. “This linguistic shift can indeed enhance the perception of the relationship and strengthen the bond between the parties involved.” It is necessary for partners to dance together The landscape of third-party management is indeed evolving, concurs Angad Banga, chief operating officer at the Caravel Group, which runs Fleet Management, the world’s second largest shipmanager. “We are moving away from the traditional transactional approach towards closer, collaborative partnerships,” he says. “This shift is motivated by the need for greater alignment, shared objectives, and mutually beneficial outcomes.” Regulatory expertise Vikrant Gusain, the CEO of Dockendale Ship Management, says the shift towards second-party management reflects a more integrated and proactive approach to vessel management. “Moreover,” he says, “acknowledging additional responsibilities, including managing commercial aspects like EU ETS compliance, highlights shipmanagement’s evolving role and scope in meeting industry demands and regulatory requirements.” Quite so, agrees Tim Ponath, CEO at NSB GROUP, who reckons that as owners get more and more technically knowledgeable to meet their expectations regarding aspects such as increasing regulations, compliance, performance monitoring and reporting requires closer collaboration. “Shared values are mandatory in this relationship,” Ponath insists. Clarifying the context The specific terms a manager chooses to describe his or her relationship with customers may evolve, but it’s not crucial to predetermine these labels, argues Olav Nortun, the chief operating officer at OSM Thome. “What’s important,” Nortun says, “is to clarify the context to grasp the distinctions: Third-party shipmanagement is a recognised term for outsourced management services, whereas second-party shipmanagement suggests a move towards a more intertwined, partnership-driven model. This latter approach emphasises a closer, more integrated relationship between the shipowner and the management provider, aiming for a more synergistic collaboration.” Second-party shipmanagement suggests a move towards a more intertwined, partnership-driven model 100% agreeing with O’Neil’s assertion on the definition, Vinay Gupta, managing Union Marine Management Services, tells Splash managers must see themselves as partners of shipowners rather than as a third-party enti