Shipmanagers need to up their game when it comes to their sales pitches. Splash canvasses opinion on how best to get the right message across to principles. On paper, the pitch to owners ought to be a simple one. “We can save you money and time,” is the line invariably trotted out by myriad managers seeking business from shipowners around the world. And yet, appealing to a client’s bottom line is not delivering the business volumes it should. “Currently, less than 20% of the global fleet is under third-party management, indicating a significant untapped potential,” concedes Ian Beveridge, the CEO of Bernhard Schulte Shipmanagement (BSM). The sales spiel clearly needs refining. “It’s crucial to demonstrate tangible added value to justify the decision to entrust shipmanagement to a third party,” Beveridge says. Value creation “The only reason a shipowner would consider outsourcing management would be based on one simple reason – value creation,” admits Vinay Gupta, the managing director of Union Marine Management Services (UMMS). Owners need to be convinced that a manager can add value into the business, either through their size, proficiency, economies of scale or geographical footprint, Gupta says. “Specialisation is the key,” says Ioannis Stefanou, managing director at Wallem Shipmanagement. “Owners can focus on what they do best and what matters most which is taking strategic commercial decisions for their assets. They can rely for the day-to-day management of their assets on professionals whose only job is to manage ships safely and efficiently.” Less than 20% of the global fleet is under third-party management This, says Steafanou, will allow owners to also expand or scale down their fleet or enter new segments as they deem fit without having to adjust their shore side organisation or scramble to find crews. Regulatory minefield There is another aspect to the pitch that is taking on ever greater importance. “The constant change in the regulatory environment is slowly nudging owners to outsource as each change demands additional resource and becomes unviable for small and medium size owners,” Gupta from UMMS says, stressing: “The business case is simple – let the experts handle.” “We are seeing there is a lot more consolidation and with the latest regulation requirements the sector is moving beyond nuts and bolts management. In order to manage all of this you need certain economies of scale and a global footprint,” says Carl Schou, the president of Wilhelmsen Ship Management. “Engaging external managers brings a host of benefits to businesses as they bring specialised knowledge, objective viewpoints, and a flexible approach that drives success. They help businesses make better decisions, identify blind spots, and seize new opportunities,” says Angad Banga, chief operating officer at the Caravel Group, which oversees Fleet Management, the world’s second largest shipmanager. Not a binary decision The in-house/out-house management dichotomy is too simplistic an approach for today’s complex maritime and logistics sector, argues Mark O’Neill, the head of Columbia Group, in conversation with Splash. “This is not a binary decision any longer,” he says, adding: “Rather than persuading an owner to outsource services we should rather focus on the enhanced and added value which can be derived from a much closer and true partnership of interests between an owner/operator and a scaled integrated maritime services provider.” With the latest regula