“We are faced with a confluence of factors such as the accelerating pace of
— Tan Beng Tee, executive director of the Singapore Maritime Foundation
“It’s difficult to get enough qualified people to Singapore”
— Carl Schou, president of Wilhelmsen Ship Management
“SSA aspires to be a reputable and internationally recognised shipping association”
— Caroline Yang, the president of the Singapore Shipping Association
“Shipping has to revamp its image and look more lucrative in terms of career opportunities and growth”
— Vinay Gupta, the head of Union Marine Management Services
“The aim is to remove adoption barriers and increase user confidence and uptake of biofuels”
— Professor Lynn Loo, the CEO of the Global Centre for Maritime Decarbonisation
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Singapore’s shipping soapbox
Welcome to our annual Singapore magazine, a chance for Splash writers to canvass the local shipping and offshore industries about both the strengths and weaknesses of the world’s premier maritime hub.
A founding principle on the creation of Splash (whose 10th anniversary is coming up next March) was to make sure we do not waste our readers’ time. Incisive, exclusive, unflinching, neutral are attributes that are drilled into all Splash writers. And so it proves with this magazine, which for the powers that be who carefully read through the lines of the following 60-odd pages, they will find plenty of advice on how to improve all things Singapore maritime.
We are only too happy to highlight where maritime cities are getting things right, but as a publisher we believe we serve a greater use shining a light on issues that irk the local maritime community. Hence why over the following pages you’ll read a lot about matters we deem will become hot-button ones for new prime minister Lawrence Wong’s first national elections, which he has to call before the end of next year.
Whether it is the cost of living, immigration, demographics or red tape, we have endeavoured to cover all the matters that are most regularly brought up in shipping boardrooms across the
Lion Republic in order to have a frank debate about how to remedy some of the city-state’s biggest economic problems which hamper day-to-day business life. This is not to take away from Singapore’s incredible, well documented maritime achievements. The country has become the preeminent maritime hub of the 21st century through vision and communication. We’re here to add to that communication.
Sam Chambers Editor Splash
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New horizons
Singapore is ready to carry on leading from the front as shipping enters a period of dramatic transformation
Over the decades, Singapore has continuously built on its strategic geographical location and global hub port to grow a holistic international maritime centre (IMC). Today Singapore’s IMC is a comprehensive ecosystem comprising shipowners/ operators, shipmanagers, shipbrokers, ship financiers, marine insurers, lawyers and arbitrators, and more. Independent reports such as the DNV-Menon Leading Maritime Cities of the World and the Xinhua-Baltic International Shipping Centre Development Index regularly place Singapore as the world’s top maritime hub.
The authorities are acutely aware that the country needs to be offering solutions to the industry’s top concerns todaydecarbonisation and digitalisation - to ensure Singapore remains relevant.
The early months of the new reign of Lawrence Wong, Singapore’s first new prime minister in 20 years, suggest the current government is in tune with maritime and will not let the city’s shipping primacy slip.
“The macro environment is changing,” concedes Tan Beng Tee, executive director of the Singapore Maritime Foundation, a woman who has done more than just about anyone else this century to ensure the republic’s prominent place on the maritime map.
“Within the industry,” she tells Splash, “we are faced with a confluence of factors such as the accelerating pace of digitalisation and decarbonisation, as well as changes in the demographics of the workforce.”
An effective response to these, Tan says, requires a collaborative approach, something the Southeast Asian state is well versed in with public and private sectors always working closely.
“Singapore being a transhipment hub and having almost no production facilities, what attracts the shipowners across the world is the infrastructure and the business environment,” says
Vinay Gupta who heads up local shipmanager,Union Marine Management Services (UMMS). However, he warns the manpower for these operations needs to be imported and that is an area where some local talent can make a huge differentiator in the cost of operation as well as ensuring sustainability.
Singapore can significantly enhance its appeal as a preferred headquarters location for shipowners by creating a conducive business environment, argues Ryan Kumar, managing director at Direct Search Global, a local recruitment firm.
This, he says, involves implementing competitive tax regimes, maintaining a streamlined regulatory framework, and continuously upgrading port infrastructure.
“Developing a skilled maritime workforce through education and
training is essential,” Kumar says, echoing similar sentiments to Gupta from UMMS. Additionally, Kumar says expanding maritime financial services, fostering a vibrant maritime cluster, and providing targeted government support can further attract shipowners.
“By prioritising these elements, Singapore can position itself as a compelling choice for global shipping companies seeking a strategic headquarters location,” Kumar reckons.
Immigration and individual tax incentives as well as the ability to tap into a global talent pool with non-restrictive mobility regulations also have the potential to contribute to this goal, adds Niraj Nanda, group commercial director at shipmanagement giant Anglo-Eastern.
All these issues will be dissected in depth over the coming pages.
Demographic concerns
Singapore’s economy has bounced back very solidly over the past year. An ageing population is a worry going forward
In many ways Singapore’s economic success in the first quarter of the 21st century is for exactly the same reasons as it was in the fifth century. As William Dalrymple writes in his new study of the influence of India on the ancient world, The Golden Road, “By the fifth century a major direct sea route had been established through the Straits of Malacca which easily linked the southern and eastern oceans taking Indian traders to China”– around Singapore. East to West; West to East – for Singapore geography has been destiny, and in part remains so.
Singapore’s economy grew 2.7% year-on-year in the first quarter of 2024, the swiftest pace in 18 months. And the Monetary Authority of Singapore (MAS) is predicting both manufacturing and trade-related sectors to continue to improve their performance over the course of 2024. This is the fastest growth recorded since 2022 – which was largely a result of a unique fast covid bounce back. While there is a little imported inflation, and costs have risen MAS sees mediumterm price stability in the economy. Core inflation is around 3%, unchanged
significantly so far this year. High some might say, but well below the peak of 5% in early 2023.This lower rate of inflation is particularly impressive given Singapore imports many of its basic needs from inflation-wracked outside global economies.
Investment hotspot
Singapore remains Southeast Asia’s investment hotspot. American money especially loves Singapore. The United States remains by far the largest single investor in Singapore, with $428bn invested in the country, compared with approximately $160bn from mainland China and Hong Kong combined. The US is a big employer of Singaporeans, a major provider of overseas education to them and a security partner. That’s a rather under told story compared to the more prevalent Chinese-in-Singapore narrative. Of course a lot of this US interest in Singapore is to do with chips. Increasing restrictions on China’s semiconductor industry by Washington DC Taiwan and Singapore have become ever more crucial
component suppliers – the US needs Singaporean semiconductor fabrication plants (fabs).
Sector by sector
Manufacturing, including fabs, is obviously a pillar of the tradereliant economy like Singapore’s. Manufacturing rose 0.8% year-onyear in the first quarter of 2024. Nothing spectacular but a relief for the government given a contraction in the previous quarter 2.9% from October to December 2023.
The important services sector, which includes accommodation and food, grew 2.9%. Tourism has remained reasonably robust, Singaporean consumers have continued to show themselves keen buyers of basic to luxury goods and services – and increasingly online (see chart spurring serious growth in the e-commerce sector). Tourism, Singapore’s continued strength as a hub location between east and west and a spate of big sports and music events – night time Grand Prix’s and Taylor Swift concerts -
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aided the growth of the hospitality and entertainment-related sectors.
However, exports have been a bit more disappointing in the first quarter and, based on interim data, into June and July this year. In June 2024 Singapore’s non-oil domestic exports fell 8.7% from the same month a year earlier (though monthly averages have all been down this year so far), down mainly due to weaknesses in non-electronic products (fab shipments remained strong thanks to America). The government points to persistent port congestion and the logjam from the Red Sea crisis as factors, and they are, but also there are indications of non-electronic manufacturing slipping this year.
One category worthy of note is that Singapore’s fuel oil imports have been rising steadily since last year, reaching a peak of 950,000 barrels per day earlier this year. However, the Red Sea crisis has arguably accentuated Singapore’s global role as more vessels choose to transit via the Cape of Good Hope instead of the Suez Canal and traverse Singapore.
Reality versus mood
The economic stats might tell us
Singapore is doing well – manufacturing, trade, retail sales, average wages are all up. There’s been a significant influx of money and jobs, as well as high net-worth individuals recently (particularly from mainland China and beleaguered Hong Kong). The Economist, profiling incoming Singaporean People’s Action Party (PAP) prime minister Lawrence Wong recently, noted that “the city-state is now the richest country for many thousands of miles in any direction.” It’s impressive $88,000, its GDP per person has doubled in real terms over the past 20 years. The financial sector is booming with $3.6trn of assets under management. The citystate has closed the gap on Hong Kong in terms of assets under management and looks increasingly likely to surpass the Special Administrative Region soon. The financial centre of Asia is increasingly Singapore and not Central.
But that doesn’t mean the public/ consumer mood is positive. Many ordinary citizens bemoan the rising cost of living (which some blame on the arrival of so many high net worth individuals from Hong Kong recently). Pensioners – now a whopping (by Singaporean historical standards) 19% of the population are demanding pensions. That
cost will rise to 25% of the population by 2030 – a rapid growth in older people. Central government spending on healthcare now outstrips the city-state’s education budget and will have to grow further. This means Singaporeans know tax rises are coming round the bend. Indeed, the sales tax jumped from 7% to 9% in 24 months. Not massive, but mood dampening. Singaporeans have raised concerns about migration to the country, yet the birth rate remains stubbornly below 1% – the UN projections suggest that without immigration Singapore’s working-age population would drop by a third between 2022 and 2050.
So the economy remains strong for now, especially when compared to many local economies and former rivals such as Hong Kong. The covid bounce back has been strong. But the future is unsure – demographics and their associated costs appear to mitigate long-term growth and are dampening the public mood significantly. But though Singapore may become older and perhaps less populous it will not physically move and perhaps that fifth century advantage of being key to east-west and west-east trade routes will, as it has many times in the past, serve the city-state well.
Source: Lazada (a leading Singaporean e-commerce platform owned by China’s Alibaba)
Beyond the little red dot
Why shipping has had to look outside Singapore to complete many functions
Singapore now ranks as the city with the highest cost of living in the world, rivalling Zurich, according to last year’s Economist Intelligence Unit survey.
Hong Kong, Singapore and Zurich are currently the costliest cities for international workers in 2024, according to Mercer’s latest cost-of-living data report, published in July.
Singapore-based fintech platform ROSHI recently released a report showing the cost of living in major Southeast Asian cities.
Singapore had the highest index score for cost of living as the city-state was the only entry to score over 80, the closest to it being Cambodia (44.5) and Thailand (40.7).
According to the platform, Singapore’s high cost of living is because of limited land and advanced infrastructure, a robust economy, high wages, strong currency, stringent import regulations, and highquality education and healthcare systems.
The report also acknowledged Singapore’s status as a global financial hub attracting multinational corporations and wealthy expatriates.
Other things attributed to its numbers were Singapore’s high employment, and salary rates, with the annual income of residents in Singapore increasing by more than 40% over the past decade.
Singapore’s core inflation index, which excludes private road transport and accommodation costs, rose 2.5% in July from a year earlier, according to official statistics. While inflation has eased from its peak of 5.5% in early 2023, the financial burden remains significant.
Economic sentiment has dominated public opinion in Singapore. According to the latest quarterly survey in June by local pollster Blackbox Research, 52% of respondents said cost of living was the issue that mattered most, followed by salaries and wages, at 16%t. Immigration, often a hot-button political issue in the city-state of 6m, came in at just 5%.
Shipping outsources
Shipping firms are not immune to these high costs. Acknowledging that Singapore remains the leading maritime city in the world, Carl Schou, who as president of Wilhelmsen Ship Management (WSM) shifted headquarters from neighbouring Kuala Lumpur a few years ago, he admits another move is not impossible.
“The rising cost of living may cause one to consider another hub listed as number two or three when it comes to the cost of doing business in this city. There are several attractive alternatives to Singapore which are offering attractive offers to incentivise business to move,” Schou tells Splash.
At WSM, employee costs are generally calculated to be approximately 75% of the cost base. Therefore, moving employees/ functions overseas is an “attractive solution”, Schou says, noting that several other companies have moved operations to other countries.
Immediate action is crucial to stem the current exodus
Vinay Gupta, managing director of Union Marine Management Services (UMMS), another Singapore-based shipmanager, says that most companies are looking to reduce their footprint in Singapore as the rising cost of living is making it “almost impossible” to remain competitive and cost effective.
“Complacency of being at the top and in a safe environment has costed the previous maritime centres’ their position and it can happen here as well if a conducive environment is not available for the quality manpower to stay and grow,” Gupta warns.
Covid, he says, taught companies that almost everything can be outsourced. Nevertheless, he admits the pandemic also reminded executives of the value of human interaction and the advantage of being under the same roof.
“A balance of both is necessary to make the business sustainable,” he says. “There is no magic formula or a defined recipe – each business unit needs to look at the operations now and sustainability going forward.”
The rising cost of living in Singapore is most keenly felt among entry and medium level maritime employees, says Peter Schellenberger, who runs Novamaxis, a consultancy.
“I remember well when some years ago a superintendent with an average salary was well able to live in the red dot with family and kids and was still able to save a dime,” recounts Schellenberger. “Today,” he says, “with the ever increasing spiral of cost these same people can hardly sustain and may be compelled to look for alternatives elsewhere including the Middle East and China.”
Shortages persist
Cara Carter, global managing director of Halcyon Recruitment, concedes that the rising cost of living in Singapore poses challenges but she reckons its robust infrastructure, supportive government
A conducive environment is not available for quality manpower to stay and grow
policies, and high living standards help maintain its position as a leading maritime centre.
“Continuous efforts to innovate and provide incentives can further mitigate these challenges and ensure Singapore remains a competitive and attractive hub for the maritime industry providing the human capital development is supported to attract and retain local talent to the maritime sector,” says the recruitment specialist, warning that if the talent gap cannot be filled by local talent, organisations will be exposed to the additional costs of international talent.
Quizzed as to what parts of a business operation are best to outsource overseas due to rising costs, Carter responds backoffice functions such as accounting and finance, IT, crewing and procurement are often the easiest but Carter relays that for many who have already outsourced / offshored these functions, it has not proven to the be optimum solution with some citing a drop in quality.
Ryan Kumar, managing director of Direct Search Global, another recruitment outfit, says places like Dubai, India, Cyprus and the Philippines have been capitalising on the outflow from Singapore in recent years.
“Despite significant efforts to nurture local maritime talent, a shortage persists,” Kumar warns. “While we anticipate a
sufficient local workforce within the next decade, immediate action is crucial to stem the current exodus.”
Companies must prioritise competitive salary and benefit packages to retain their employees, Kumar advises.
When considering outsourcing certain functions of a company, businesses should carefully evaluate several factors, Kumar suggests. A costbenefit analysis is essential, he says, to weigh potential savings against risks like quality control and data security. Ensuring the target location has the necessary skilled workforce is crucial. Robust data protection measures must be implemented. Effective communication and time zone management are important, and businesses must adhere to labour laws and data privacy regulations in both the outsourcing and home countries.
Philippe Lecloux, chief operating officer at fuel treatment specialist Aderco, sees the outsourcing debate from a different angle.
“With a growing demand for work from home, it is not uncommon to see employees relocating themselves across the border and attending office in the central business district perhaps once or twice a week,” Lecloux argues. The direct benefit of this, he says, is the possibility offered to employers to look for smaller office space.
Fuel for thought
Hot-button election issue
Splash canvasses experts on how to make immigration more conducive to financial success
It remains one of the hot-button issues for Singaporeans - as it has been for decades - how to marry immigration laws with demographic realities.
Singaporeans find themselves caught between a rock and a hard place when it comes to mapping out its workforce numbers - locals clamour for greater restrictions from overseas, while authorities have to work through labour shortages.
Singapore’s foreign workforce is now 7% bigger than in 2019. Singapore is loosening limits on low- and mid-skill visas for jobs aligned with the country’s strategic economic priorities. Singapore shares this aim with Japan, which in 2019 launched a programme for letting in
“specified skilled workers” in industries afflicted by shortages, such as nursing.
From September, overseas employees on a work visa will need to fulfil the citystate’s new points-based system, and earn a minimum salary threshold to stay in their jobs.
Points are awarded for how a candidate’s salary compares to Singaporean peers, along with their education and skills, and whether their nationality improves the diversity of the firm. It puts the onus on employers to prove why they need to hire foreigners.
Singapore is no longer a place where foreign talent can start or develop their careers, the way it used to be about a decade ago. Entry-level and the middle of
It’s difficult to get enough qualified people to Singapore
the market jobs are being reserved for the resident population.
For many sectors, it makes sense to hire Singaporeans. The population is extremely well-educated and regularly scores among the highest in the world in maths, reading and science.
It has historically struggled with instilling a culture of creativity in the exam-driven curriculum, but there are efforts to change that.
Still, for a government that trumpets an open and free economy, the perception that it is restricting jobs for foreigners, after a history of being relatively easy, could do more harm than good.
Maritime shortages
Peter Schellenberger, who runs consultancy Novamaxis, believes that with elections imminent the government
and opposition have to talk tough on immigration. However, he maintains that the chat that the foreign workforce is a threat to Singaporean sustainable jobs is not well founded, especially in industries like F&B, retail, maritime and shipyards where even with great efforts to attract and upskill there is not enough of a local workforce available.
“Embracing qualified people from around the world including trainees and making them part of the Singapore success story will be very necessary,” Schellenberger says.
Schellenberger knows of many companies that are very frustrated by the ever increasing barriers of minimum salaries and qualifications to bring in people that guarantee company growth.
“The risk is that such players will chose other locations in the process,” Schellenberger warns. Therefore lower barriers and transparent criteria for decision-making processes such as, for example, in Canada would be much desirable, he says.
Policy adjustments
To foster a more conducive business environment in Singapore, Ryan Kumar, who heads up local recruitment firm Direct Search Global, advocates several adjustments to immigration policies.
First, expediting the processing time for work permits and visas would significantly benefit businesses, particularly startups and SMEs. Streamlining the application process and
Maritime Singapore is the choice location for global investors and Singapore can retain essential expertise and foster a global talent pool
reducing bureaucratic hurdles would enable companies to scale operations more efficiently, he argues.
Secondly, implementing a more flexible work pass framework that accommodates the evolving nature of businesses would be advantageous, Kumar reckons. This could include options for part-time work passes or project-based employment permits, providing greater flexibility for companies to manage their workforce.
Thirdly, relaxing ownership restrictions for foreign entrepreneurs could encourage greater investment and innovation, Kumar advocates.
“Expanding opportunities for foreign entrepreneurs to establish and grow businesses in Singapore would contribute to a more dynamic and competitive economy,” he tells Splash.
Finally, establishing clearer pathways for foreign talent to obtain permanent residency or citizenship would incentivise top talent to stay and contribute to Singapore’s long-term growth.
“By offering a clear career progression for skilled foreign workers, Singapore can retain essential expertise and foster a global talent pool,” Kumar says.
“Simpler visa processes - and for family / dependents, increasing visa quotas for organisations and clearer criteria on permanent resident pathways would give organisations a clearer view
of talent pipeline and planning,” advises Cara Carter, global managing director of Halcyon Recruitment.
“From a business point of view, we need to develop a workforce here that considers Singapore home and not only worries about operations today but creating a system for the next generation to be ready to see the company grow and prosper,” maintains Vinay Gupta, managing director of Union Marine Management Services (UMMS). That is only possible, he reckons, if a person has a clear path of being able to have a continuity plan for themselves and for the company.
“Good to great requires good people to stay in the organisation and plan for the future,” Gupta surmises.
Another shipmanger, Carl Schou, the head of Wilhelmsen Ship Management, points out that access to qualified technical people such as vessel managers is crucial.
“With the strict immigration policies, it’s difficult to get enough qualified people to Singapore - and the ones which do come to Singapore command compensation packages which are not sustainable in the long run,” Schou points out.
With national elections due soon, expect to read plenty more about immigration in the coming months.
For all the latest shipping and offshore news from Singapore
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Don’t rock the boat
For the first time in 20 years Singapore has a new prime minister. What does the local maritime community want to see from the Lawrence Wong government?
More of the same, please, and don’t rock the boat. That’s the message emanating from the local maritime community on the accession of Lawrence Wong to head the country.
This May, Wong became Singapore’s fourth prime minister taking over from Lee Hsien Loong, who remains in the cabinet as senior minister. Aged 51, Wong is the first Singaporean leader born after the country won independence in 1965.
The US-educated economist is widely seen as a social media-savvy stalwart who effectively handled the covid pandemic when he oversaw a government taskforce.
Prior to becoming a member of parliament in 2011, Wong worked at the Ministry of Trade and Industry (MTI), the Ministry of Finance (MOF) and the Ministry of Health (MOH). Two years ago he was promoted to deputy prime
minister.
Wong will lead the ruling People’s Action Party into the next general election, due by November 2025. With this in mind, he announced new benefits at a national day address in August including unemployment support, housing and training grants and mandatory paternity leave months.
Wong has also promised a businessfriendly environment and pledged to keep the regulatory burden to a minimum.
Ideal background
All those polled for this magazine hope that the new administration will not do things too differently to how the previous 20-year Lee administration did when it
comes to maritime, a period of time where the Lion Republic leapt to become the unquestioned leading maritime centre in the world.
Niraj Nanda, group commercial director at shipmanagement giant AngloEastern, reckons Wong’s background in trade and industry, finance and education provides a versatile set of experiences that could benefit the maritime industry. Plans laid out in the budget back in April appear to positively support Singapore’s place in maritime, Nanda points out too.
Wong’s previous role as CEO of the Energy Market Authority and the extension of the Energy Efficiency Grant (EEG) to the maritime sector may enable additional benefits around energy efficient technologies, says the Anglo-
Image source: PMO
We don’t believe there will be any changes in the way the Singapore administration views maritime
Eastern executive.
“Singapore has had a stable administration and environment for the maritime sector. We don’t believe - or hope - that there will be any changes in the way the Singapore administration views the maritime sector. They have good momentum, and this will hopefully continue,” says Carl Schou, the president of Wilhelmsen Ship Management.
While this sentiment rings true for Ryan Kumar, the managing director of Direct Search Global, a recruitment firm, the issues facing Wong and his team are different from the past, he stresses.
Global supply chain disruptions such as port congestion, delays, container shortages, and rising costs have impacted the efficiency and profitability of the maritime industry, he points out. Labour shortages, particularly among seafarers, have further compounded the situation, Kumar adds. Additionally, geopolitical tensions and environmental concerns add
to the complexities faced by Singapore’s maritime sector.
Despite these challenges, the country is actively working to enhance its supply chain resilience through digitalisation, diversification, and sustainable practices, Kumar maintains.
From what she has seen in the opening months of his reign, Cara Carter, global managing director at Halcyon Recruitment, reckons the new PM has indicated some shifts in approach to his predecessors, but she expects most policies will continue along the established paths.
“He’s likely to have a strong focus on sustainability and innovation, including in maritime, so this could mean increased investment in green technologies and practices,” Carter tells Splash.
No room for complacency
As ever when it comes to all things
Singapore maritime, there’s unlikely to be any risk of complacency, says Vinay Gupta who heads up local shipmanager, Union Marine Management Services (UMMS). While there’s no need to change the “winning formula” per se, Gupta advises: “This is a dynamic industry and continuously evolving that requires everyone associated with it to remain on their toes and envisage the future to be ready to take the change head on.”
Don’t do things differently, urges Peter Schellenberger, who heads up consultancy Novamaxis.
“More important,” he says, “is that they guarantee consistency to create a business-like regulatory environment of facilitation rather than limitation and controls.”
This also includes the prudent way of positively engaging with the tripartite system of government, workers and employers which creates a safe, yet creative environment.
Battling congestion
The world’s largest transhipment hub has been working around the clock this year to keep world trade moving
Liner shipping has had to face supply chain kinks on an unprecedented scale - bar the covid era - during 2024, which has also meant the world’s largest transhipment hub has had to get extraordinarily creative to quell queues building up in Southeast Asia.
The Houthis of Yemen have largely cut off container shipping from transiting the Suez Canal leading to a mass rerouting of boxships around the Cape of Good Hope. This soaking up of tonnage has inevitably brought vessel bunching and spikes in congestion around the world, not helped by plenty of strike action from supply chain workers.
Singapore’s port has seen about 90% of container vessels arriving off-schedule, compared to an average of about 77% in 2023. In addition, vessel port stays at PSA have also increased by 22% compared to the same period last year.
Top management at PSA Singapore has
had to pull many levers to ensure its role in global trade remains well oiled and smooth.
Berths reactivated
Back in May, to staunch the severe congestion building, PSA Singapore reactivated older berths and yards that have previously been decanted at Keppel Terminal, while also adding significant manpower to battle the box build-up.
Increased demand on container handling in Singapore was a result of several containerlines discharging more containers in Singapore as they forwent subsequent voyages to catch up on their next schedules. The number of containers handled per vessel also increased.
In addition to the eight existing berths in Tuas Port, three new berths commenced operations this year.
More staff have been hired to help in the battle of the boxes. In 2024 alone,
PSA hired nearly 1,500 frontline workers to enhance operational capabilities and capacity.
Tuas Port has streamlined its supply chain by embracing automation and establishing an innovative command centre to oversee operations with the largest fleet of self-guided automated trucks in the world flitting back and forth.
Ong Kim Pong, group CEO of PSA International, commented, “The Red Sea crisis has significantly disrupted global shipping and trade and we anticipate this challenging situation to persist for a prolonged period, potentially extending port congestion from Asia to Europe.
PSA is building partnerships with likeminded customers and stakeholders on a series of node-to-network initiatives to better coordinate between upstream and downstream ports so as to uplift shipping schedule reliability and overall network efficiency.”
We anticipate the challenging Red Sea situation to persist for a prolonged period
Image source: MPA Singapore
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The port has seen about 90% of container vessels arriving off-schedule this year
Night-time barges
For the past five months in another bid to ease congestion the port has been conducting night-time barge operations to and from Pasir Panjang Terminal (PPT).
“This initiative was part of MPA’s ongoing efforts to review its rules and regulations to reduce business costs and turnaround time, enhance resource optimisation, while ensuring safety. Previously, night movement for
line-towed container barges was only permitted at Brani and Keppel Terminals, where navigational traffic is less complex than around PPT,” the Maritime and Port Authority of Singapore (MPA) said in a release.
“This initiative will fully utilise the night window to transport containers on barges into and out of the Port of Singapore and neighbouring ports, including those for transhipment. By enabling more containers to be delivered on barges throughout the day at PPT, this
measure will improve connectivity with regional ports, enhance port efficiency, reduce the time container and feeder vessels spend at berth, and the need for containers to be transported between land terminals. Each line-towed barge can carry an average of 300 teu.”
The total number of containers handled by the Port of Singapore in the first seven months of 2024 amounted to 23.82m teu, marking a 6.1% increase in container volumes over the same period last year.
Image source: MPA Singapore
No room for complacency
Splash identifies areas Singapore could bolster to ensure it remains a leading maritime hub
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There’s never been any complacency when it comes to Singapore’s maritime dominance. The authorities working with the private sector are constantly looking at areas to improve the republic’s hub status, never satisfied with sitting still, acutely aware of how other maritime cities have faded thanks to hubris.
Singapore remains the world’s leading maritime hub according to multiple global surveys, including the detailed 2024 Leading Maritime Cities (LMC) report from DNV and Menon Economics.
The city-state is expected to hold this position for at least the next five years, the report maintained.
Dr Shahrin Osman, co-author of the report, said: “Singapore is undoubtedly the world-leading hub at the forefront
of the maritime industry. It appears unaffected by the many changes currently sweeping the sector and is expected to maintain its top spot for the next five years through its implementation of a consistent strategy for innovation and its investment into green transformation and digital technologies.”
An international maritime centre while possessing the key elements of the ecosystem is also one that is evolving taking into account changes in the external environment.
“We need to be watchful of such developments,” admits Tan Beng Tee, executive director of the Singapore Maritime Foundation, who has done more than most to put Singapore on the maritime map this century. She sees areas for improvement in the technology and
We could do more in marine insurance
Source: DNV & Menon
startup space.
Insurance
Also, as the global environment becomes more complex, an area Tan suggests Singapore still needs to focus on would be around services such as finance, legal and insurance which has been similarly identified in the latest DNV-Menon Leading Maritime Cities of the World report.
“Specifically, we could do more in marine insurance,” Tan says. This means that the country needs to be able to continue to attract experts globally to Singapore to augment the republic’s capabilities. In tandem, the country needs to upskill the local workforce so they have a good foundation in this profession and are able to handle more complex transactions.
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Workforce development through comprehensive training programmes is imperative
To this end, SMF and the International Group of P&I Clubs (IGP&I) signed a memorandum of understanding in April this year to cooperate in the promotion of education and training of marine liability to the Singapore talent pool. As part of the cooperation, SMF and IGP&I will work together to design and deliver professional development courses on topics related to marine liability such as an introduction to protection and indemnity (P&I) insurance, limitation regimes, claims case studies, safety at sea, liability and compensation, and more.
“Singapore aims to solidify its maritime supremacy by investing in talent, technology, and financial services,” says Ryan Kumar, managing director of Direct Search Global, a recruitment firm.
A skilled workforce, digital innovation, and a robust maritime financial ecosystem are crucial for sustaining growth, he tells Splash.
Expanding maritime insurance is key to this strategy, Kumar says in agreement with the SMF boss.
“By creating a favourable environment for insurers and developing innovative products, Singapore can become a global insurance hub. This will not only attract more shipping businesses but also enhance the city-state’s risk management capabilities, further cementing its position as a maritime leader,” Kumar says.
Singapore is a player in insurance but there is room for growth, says Cara Carter, global managing director of Halcyon Recruitment, perhaps, she suggests, with niche products such as cyber risk and environmental liability. Ship finance could provide a more comprehensive service offering to support this, Carter advises.
Sustainability
Carter also feels digitalisation and smart port initiatives are a big factor to competitiveness for Singapore’s maritime sector, to streamline logistics, IoT in port operations for efficiency and operational cost effectiveness.
“A commitment to sustainability is essential, with efforts focused on developing green ports, alternative fuels, and carbon-neutral shipping lanes,” says Pankaj Singhal, product director at Fleet Management. By implementing targeted regulations and incentives, Singapore can establish itself as the preferred hub for alternative fuel bunkering, he reckons.
There’s a big potential for the establishment of maritime training centres for crew to upskill especially for all the new fuels, says Carl Schou, president of Wilhelmsen Ship Management.
Quite so, concurs Singhal from Fleet. “Workforce development through comprehensive training programmes is imperative to ensure a competitive maritime workforce amid technological advancements,” he tells Splash.
“With the further integration of all maritime stakeholders to face the challenges and chances of the future such as new fuels and nuclear technology it would be good to get stronger representations of the other important parties such as flag states, insurance, charterers and P&I clubs,” says Peter Schellenberger, who runs Novamaxis, a consultancy.
What Singapore’s top shipowners have been up to in 2024
Splash reporters provide readers with a unique snapshot of all the key developments among the city-state’s best known shipping brands
The Singapore Shipping Association (SSA) continues to be one of the most vibrant, and largest shipowning bodies in the world, its annual dinner in September attracting more than 2,000 people.
In late June, the SSA held its 28th annual general meeting, led by Caroline Yang, the president of the organisation, in which it unveiled its new long-term objectives.
“SSA aspires to be a reputable and internationally recognised shipping association that creates significant value for its members. Our vision for the future is rooted in our commitment to the maritime industry and our role in enhancing Singapore’s standing as a leading international maritime centre,” Yang said.
SSA stressed it will act as a sounding
board for government policies, providing critical insights and feedback. Additionally, SSA is committed to supporting the training and development needs of the industry by offering customised and cost-effective programs tailored to the specific requirements of various industry segments.
Among priorities in the new long-term goals the SSA is encouraging members to adopt advanced technologies like AI and blockchain to optimise operations. Over the next few pages we look at what some of the biggest names in Singapore shipowning have been up to in 2024.
Winning
This July, Winning Shipping solidified itself as a big-league player in the large bulker arena with an order for six very
large ore carriers (VLOCs) worth nearly $700m.
The company commissioned the sextet for construction at Hengli Heavy Industry, with shipbuilding sources suggesting deliveries kicking off in the second half of 2027 and a price tag of around $116m per vessel.
The so-called WinningMax 325,000 dwt newbuilds will be nearly 330 m long and methanol-ready with 12,000 cu m fuel storage tanks. Compared with traditional capes, the newbuilds are expected to reduce energy consumption per tonne-mile by nearly 50%.
Winning owns and operates one of the largest bulk carrier fleets in Singapore, with almost 100 vessels, of which 51 are owned. The company is currently the world’s top bauxite carrier and is mainly engaged in the developments in Guinea,
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with an annual shipment of more than 50m tons.
In addition to newbuilding moves, Winning has been very active in the secondhand market where S&P sources have tied the company to around 10 acquisitions in the cape and newcastlemax segments this year.
Jaldhi
In August this year, Jaldhi Overseas returned to the shipbuilding market after nearly a year and a series of 14 newbuilds spread across multiple sectors booked during 2022 and 2023.
The Singapore-based shipping arm of India’s Bothra Group ventured into the very large ammonia carrier (VLAC) segment with up to four newbuilds at Jiangnan Shipyard in China.
Jaldhi contracted two firm 93,000 cu m gas carriers and signed a letter of intent for two additional units with the yard at about $120m per ship and deliveries starting in 2027.
The company’s fleet expansion in the past two years has mostly been focused on the newbuilding side, albeit one secondhand 27,900 dwt chemical tanker
was picked up in April this year. The 2002 Italian-built T Sirius joined the fleet for $16.3m and now goes by the name Jal Kisan.
Jaldhi was established in 2004 and in addition to VLACs, the company has ultramax bulk carriers, MR2 tankers and mid-size gas carriers on order at Yangzi-Mitsui Shipbuilding (YAMIC), a joint venture between China’s Yangzijiang Shipbuilding and Japan’s Mitsui E&S Shipbuilding.
Berge Bulk
One of the world’s leading dry bulk shipowners Berge Bulk made a step forward towards its carbon neutrality by 2025 goal with an order for ammonia dual fuel newcastlemaxes in China this February.
The James Marshall-led company, which counts a fleet of nearly 90 vessels, signed up for a pair of 210,000 dwt newbuilds at Qingdao Beihai Shipbuilding estimated to cost $80m each. The ships should deliver in 2027.
The move toward new fuels complements Berge Bulk’s many other decarbonisation efforts and projects
including a comprehensive programme of energy efficiency retrofits, innovative pilots for new wind technology, and a commitment to plant 25m trees in the coming years.
Berge Bulk has mostly been quiet on the S&P side this year, apart from the deal to sell one of its largest bulkers to Greece’s Capital Maritime & Trading. The Evangelos Marinakis-controlled diversified group snapped up the 2021-built newcastlemax Berge Bobotov for about $75m. Berge Bulk is not known to be a serial seller. The sale struck in July was one of only four since 2014.
IMC
Singaporean shipowner IMC Group this year marked a rebrand of its parent IMC Pan Asia Alliance.
The Frederick Tsao-led conglomerate has become TPC (Tsao Pao Chee). The name is the original trade name of the Tsao family business, which dates back to the late 1800s, during the Qing dynasty. It has evolved over four generations, moving from Shanghai to Hong Kong in the 1940s, and then to Singapore around 20 years ago.
“This is more than just turning the page. I decided to return to our roots and bring back the original trade name of the family business used by my great grandfather because that has always been our true brand, ” Tsao said.
The shipping business has retained the IMC brand. The group, which includes IMC Shipping, Aurora Tankers and IMC Ship Services has been outside of the shipbuilding market since March 2018 when it last placed orders for MR2 tankers. On the secondhand S&P side, one supramax bulker was reported sold in April, the first such transaction in more than two years.
Eastern Pacific
A diversified shipping giant, Eastern Pacific Shipping (EPS), has this year stepped up its impressive ordering drive becoming one of the most active companies in the shipbuilding market.
The Idan Ofer-controlled shipowner
has this summer secured yard slots in China for ships covering a wide range of sectors from ultra large containership to supersized ethane carriers.
The past few months have seen newbuilding series for a dozen of 5,500 ceu car carriers and 18,000 teu boxships as well as 150,000 cu m ethane and 60,000 cu m LPG ships, topped off by another string of up to seven 8,400 teu containerships.
The year, however, kicked off in the dry sector with four ammonia dual-fuel newcastlemax bulkers delivering in 2026, that was followed by a series of LR2 and MR2 tanker orders.
EPS has an orderbook estimated at over 120 newbuildings worth more than $10bn.
The company has been heavily investing in dual-fuel engines including LNG and ammonia but it has also made its first wind-assisted propulsion move this year by signing up one of its oil and chemical tanker for a retrofit in Q4.
SeaLead
The year started with a bang at liner operator SeaLead Shipping which was taken over in February by a group of investors, namely Singapore’s Eurasia Capital, Cayman Islands-registered Access Capital Funds, Mauritius-based HCP Investments, and Saral Incorp VCC SubFund.
SeaLead’s managing director Henry Schmidl left the company immediately with his position filled on an interim basis. New leadership was announced in July with Suleyman Avci appointed as global CEO. Also, the board now consists of the interim CEO and the strategic advisor to SeaLead SC Chan as chair, Joachim Schlotfeldt, Kim Young So, Captain Subhangshu Dutt, and Martin Kaalund.
This is a big year for the company in more ways than one though. An analysis done by Alphaliner in March showed that the market share of non-alliance liners operating in the Asia-Europe tradelane has doubled in the space of one year. One of the more notable examples mentioned by Alphaliner was SeaLead which has a market share of 1% after growing its Asia-Med fleet by 40.6% year-on-year to 61,400 teu.
X-Press Feeders
As it was in previous years, X-Press Feeders is still flying the methanol flag high. Evergreen signed a memorandum of agreement with the company to place its containers on their new dual-fuel green methanol vessels set to operate within Europe.
Evergreen and X-Press Feeders also agreed to launch a feeder network, the first in Europe to be powered by green
methanol. These dual-fuel ships will be centred at the port of Rotterdam and cover ports in the Baltic Sea and Scandinavia.
Later in the year, the company decided to beef up its orderbook by signing a letter of intent for four conventionally fuelled 10,000 teu ships at $115m per unit with Shanghai Waigaoqiao Shipbuilding. These orders took up the last 2027 container slots at the shipyard.
There was another methanol-related landmark when X-Press Feeders took delivery of the first methanol duel-fuel retrofit in late June. The 1,170 teu Eco Umande was subjected to a retrofit by PaxOcean. The transformation included the installation of a methanol dual-fuel engine as well as a host of other systems.
Pacific International Lines
The Pacific International Lines (PIL) high point this year was the order for five 13,000 teu ships in China. The LNG dual-fuel ships will start delivering from Hudong-Zhonghua from the end of 2026.
The orders, part of a fleet renewal strategy for larger and more eco-friendly vessels, are added to the four 14,000 teu and four 8,200 teu ships previously ordered in China. This way the company
is looking to steadily regrow its fleet following a sizeable restructuring earlier in the decade.
BW Group
Singapore maritime conglomerate BW Group led by Andreas Sohmen-Pao has done plenty of wheeling and dealing in the year to date. The company started it all in March when it put up for sale some 7.48m shares of tanker giant DHT Holdings for around $82.9m to decrease its stake in the company by 4.65%.
One divesture followed another as the company sold 5.1% of its shareholding in Hafnia for around $178m to back the tanker firm’s dual listing scheme.
The company then decided to separate its offshore oil and gas company BW Energy from its shipping businesses as part of a corporate restructuring. BW Group owns nearly 75% of BW Energy but the spinoff made no change to the ownership of the oil and gas firm as it remained under Sohmen-Pao’s control.
Usually, three is a crowd, but not in BW Group’s divestment plans as it relinquished its position as the lead shareholder in LNG shipping giant Navigator Holdings back in June, putting
shares worth $93m on the market. This allowed Ultranav to become the largest shareholder.
In August, John Fredriksen-controlled Avance Gas agreed to sell its entire very large gas carrier (VLGC) fleet to BW LPG in a $1.05bn cash and shares deal. BW LPG takes over 12 ships built between 2015 and 2023, adding to its fleet of 41 VLGCs.
Swire
Swire’s extensive shipping footprint includes offshore via Swire Pacific, dry bulk via Swire Bulk and liner activities covered by Swire Shipping.
Swire Bulk boasts one of the youngest fleets among major bulker owners. Earlier this year the company let go of two of its oldest ships, selling the Lintan and Liangchow – both 39,800 dwt and built in China in 2015 – in an en bloc deal to Global Meridian for a total of $41m.
On the liner side, the decision was taken earlier this year to fold a famous American brand. Westwood Shipping Lines, a niche vessel operator specialising in the trade between the Pacific Northwest and Northeast Asia, changed its name to Swire Shipping. Swire Shipping acquired Westwood in June 2022.
Seatrium solidifies post-merger
Singapore’s premier shipyard group has enjoyed a return to form
Singapore’s premier yard, Seatrium, has had a busy year, bagging some prestigious contracts, while also closing off some legacy legal cases which have been hounding the merged company for years.
Following its combination with Keppel Offshore & Marine, Sembcorp Marine rebranded to Seatrium last year.
Mega FPSO deal
The single biggest deal of this year for Seatrium came one in May when it won a S$11bn ($8.14bn) contract to build two floating production storage and offloading (FPSO) vessels for Brazil’s Petrobras.
The vessels will each have a production capacity of 225,000 barrels per day and a gas processing capacity of 10m cu ft. Construction will start in the first quarter of 2025, with the final delivery expected in 2029.
Both FPSOs will incorporate advanced technologies such as zero routine flaring
and venting, variable speed drives and measures to control emissions and capture CO2, including an all-electric concept, which focuses on efficient power generation and increased energy efficiency to achieve a 30% reduction in greenhouse gas emissions intensity, Seatrium said.
Seatrium’s facilities in Brazil, China, and Singapore will build the modules, weighing 60,000 tonnes, with the outsourced hull and accommodation transported to Singapore for topside module integration and commissioning, after which the units will be towed to Brazil.
The FPSOs - dubbed P-84 and P-85will be deployed in the Atapu and Sépia fields, located in the eastern part of the Santos Basin, some 200 km offshore of Rio de Janeiro in Brazil.
Angelicoussis contract
Seatrium also secured a prestigious favoured customer contract this year with
Angelicoussis Group, Greece’s largest shipowner.
The two-year contract with a one-year renewal option includes the refit of 10 to 15 vessels per year comprising LNG carriers, tankers and bulk carriers.
Seatrium and Angelicoussis already have a strong relationship, having delivered over 70 retrofits since 2012.
Big owners around the world have been flexing their financial muscle in recent months, carving out space at ship repair yards aware of the tight capacity going forward with demand for retrofits expected to soar in the coming years to meet recently enacted global green shipping targets.
Class society ABS reckons current global repair yard capacity is expected to meet demand through 2027, however demand for retrofits will continue to increase through 2035, which will require additional repair yard capacity to support fuel conversions.
There are around 1,250 active shipyards and ship repair yards. Despite
Image source: Seatrium
this apparent surplus of potential capacity, the pool of yards capable of carrying out fuel retrofits is significantly smaller. Turnkey fuel retrofits are complex projects, requiring capabilities that are not available at all yards. Due to these requirements, ABS estimates that only a small number of shipyards can undertake fuel retrofits.
New energies
In April Seatrium partnered up with the city-state’s Agency for Science, Technology and Research (A*STAR) to explore research opportunities in new energies and artificial intelligence (AI) to develop new products and engineering solutions for the offshore and marine sector.
Under a memorandum of
understanding, the parties said in a release they would aim to boost the O&M sector’s pivot to new energies efficiently and reliably and support the global transition to a low-carbon economy.
The MoU includes the co-development of hydrogen and ammonia engines, specifically tailored for offshore and marine applications, following the duo’s involvement in Singapore’s first ammonia fuel trial on the Fortescue Green Pioneer platform supply vessel.
The focus will now be on establishing a sustainable ammonia supply chain and addressing bunkering, transportation and storage challenges. Coupled with carbon capture technologies, Seatrium said its suite of product solutions aims to provide sustainable energy solutions for the offshore and marine sector.
Through machine learning,
manufacturing process technologies and digital solutions, the collaboration will also look to streamline product development and manufacturing processes, and promote innovation and sustainability in Seatrium’s operations, the yard said.
Seatrium’s predecessor entities and A*STAR have worked on research projects such as green shipping, digital design, automation, Internet of Things (IoT) and advanced manufacturing since 2008.
“The collaborative efforts between Seatrium and A*STAR are geared towards accelerating the energy transition and maritime decarbonisation. By combining our knowledge and pushing boundaries, we aim to develop advanced energy solutions that will help the industry adopt renewable sources more quickly,” said Chris Ong, CEO of Seatrium.
Image source: Seatrium
Not quite on top
The city-state has plenty of maritime digital initiatives underway but more could be done
Not one to rest on their laurels be assured that the powers that be in Singapore will have taken onboard how in its maritime dominance it is seen lacking when it comes to tech/ digital.
Busan came out on top in a recent DNV/Menon shipping hub survey when it comes to this domain, something that will galvanise both public and private players in the city-state to up their game.
Peter Schellenberger, a consultant at new firm Novamaxis, highlights one practical example of how South Korea’s second city can be more agile than Singapore. Schellenberger recounts how hard it was to establish an enabled drone operation centre in Singapore.
“We battled for some years to get the necessary clearances from the
authorities. It would have been a true first mover event but then Korea jumped in and solved these problems within weeks,” Schellenberger relays, going on to advise: “While the basic infrastructure and government mindset is great and supportive, some faster actions and targeted support across agencies would be helpful.”
Some faster actions and targeted support across agencies would be helpful
Microsoft chips in
The Maritime and Port Authority of Singapore (MPA) is planning to use artificial intelligence (AI) and digital twins to optimise vessel route planning to enhance safety and reduce emissions in maritime operations.
The aim is to achieve just-in-time arrivals to reduce the turnaround times for vessels in port.
It has recently signed a memorandum of understanding (MoU) with Microsoft.
The focus lies on technologies including cloud computing, AI, data analytics, robotics, and cybersecurity
to develop digital and green solutions for the maritime industry.
MPA’s assistant chief executive of operations technology, David Foo, said the collaboration with the industry is to create digital solutions and applications to address the challenges in port operations and service delivery, safe navigation of ships, cybersecurity, and sustainability.
MPA and Microsoft will train early adopters and upskill workers on how to use and implement these solutions in their operations.
People are generally resistant to change
Digitalising the maritime industry has the potential to stimulate innovation, increase efficiency, improve safety, and cut costs. The path to accessing these advantages is nevertheless not straightforward.
“When introducing digital technologies in a conservative industry which is asset heavy and
people light with many established business and work practices, it is essential to consider the human factor and innovate accordingly,” says Torgeir Willumsen, resident partner at Simonsen Vogt Wiig in Singapore and founder of Assentiri, a digital solutions provider to help shipping parties close deals. “People are generally resistant
to change,” he adds, “and introducing digital innovations that require too much change too soon, will result in an uphill struggle.”
Singapore is doing many measures to create a conducive environment for startups, says Carl Schou, president of Wilhelmsen Ship Management.
Several early investor setups have been established with funding from the industry, he recounts.
“The effort has been a success as we see many startups in maritime tech forming in Singapore,” Schou says.
This July Berlin’s Flagship Founders and Singapore-based Studio 30 50, two maritime technology venture studios, decided to combine their future venturebuilding activities under the Flagship Founders brand.
Founded in Berlin in 2020, Flagship Founders has built five companies operating in areas such as emissions management, crew planning and ship inspections.
Studio 30 50 was launched in 2023 as a collaboration of Hafnia, DNV, IMC Ventures, Microsoft and Wilhelmsen.
Digital ship identity trials underway
Singapore is serving as a testbed to trial and pilot the use of digital ship identity in maritime applications such as digital port clearance and digital bunkering.
The Maritime & Port Authority (MPA) of Singapore is hosting the so-called Marine Vessel Pass (MVP) trials.
S&P Global Market Intelligence manages the International Maritime Organization (IMO) database of unique identification numbers that all vessels are assigned and has been working with Bunkerchain for a number of years developing the MVP.
“We envision a unique Digital Pass for all seafaring vessels tied to a ship’s IMO number to enable digital
transactions and process automation during port calls,” Bunkerchain states on its site. “The IMO number is never reassigned to another ship and is shown on the ship’s certificates. It is similar to a citizen’s digital identities tied to a National Registration ID database.”
“Digital ship identity plays a crucial role in making electronic transactions more secure, trusted, and efficient in the maritime sector,” the MPA stated in a release. “When deployed in tandem with electronic signatures, these digital technologies will eliminate the need for physical ship stamps and wet ink signatures, and accelerate the transition towards a truly digital, secure, and paperless operations.”
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Attracting Gen Z
Are sufficient numbers of tech students enthused enough to enter a career in maritime in Singapore?
The maritime industry is on the cusp of a major transformation, according to Hor Weng Yew, chairman of the Singapore Maritime Foundation (SMF).
“Whether it’s the imperative to decarbonise or the increasing pervasiveness of technology across all aspects of our business, these changes that are already picking up pace will require the workforce to adopt the mindset of lifelong learning in order to remain relevant,” Hor said while signing a memorandum of understanding this August with the National University of Singapore to jointly develop, promote and deliver applied data science and analytics courses tailored to maritime professionals.
At the recent MaritimeONE and Tripartite Maritime Scholarships (TMSS) awards ceremony, 63 MaritimeONE scholarships and 10 Tripartite Maritime scholarships were awarded to this year’s scholars. To date, SMF and sponsor organisations have awarded a total of 647 MaritimeONE scholarships since 2007.
In addition to maritime-related fields, scholarship recipients are enrolled in various courses such as
accountancy, data science, artificial intelligence, business analytics, and more. There’s also the newly established SMI-MaritimeONE postgraduate R&D scholarship aiming to expand the republic’s maritime research talent pool, with efforts to deepen Singapore’s specialised R&D capabilities as a global maritime knowledge hub.
“With these initiatives in the pipeline to nurture a skilled, agile and diverse workforce that will grow our maritime hub, I believe that Singapore will retain its competitiveness and attractiveness to shipping companies worldwide,” Tan Beng Tee, SMF’s executive director, tells Splash.
“With the support of the Maritime and Port Authority (MPA), Singapore can drive innovation by investing in research and development, fostering academia-industry partnerships, and incentivising tech startups,” says Pankaj Singhal, product director at Fleet Management. Strengthening digital infrastructure and promoting continuous learning will equip the workforce with essential skills, helping Singapore maintain its position as a global leader in maritime technology, he reckons.
While he does see an impetus from the government in driving students in to the maritime field, Vinay Gupta, who heads up Union Marine Management Services (UMMS), hopes to see more local talent fill up the slots.
“So far,” Gupta says frankly, “it is a long way from where we need to be. Shipping has to revamp its image and look more lucrative in terms of career opportunities and growth.”
Quite so, agrees Niraj Nanda, group commercial director at fellow shipmanager Anglo-Eastern.
“We need to raise awareness of maritime being an industry that is breaking free from its traditional nature and is enabling innovation,” Nanda says, arguing that other industries, often with less regulation, are able to present themselves as more exciting.
“We need to do better in being part of the broader conversation and highlight how we are contributing to causes that energise younger generations including the environment, betterment of communities, and collective wellbeing,” Nanda says.
This is not only a Singaporean problem but rather a global industry issue, points out Peter Schellenberger, who runs Novamaxis, a consultancy.
“The competition with maritime for tech students from often more sexy and less conservative industries that portray an easier semblance of purpose is a challenge,” Schellenberger says.
Exasperated, Philippe Lecloux, chief operating officer at Aderco, a fuel treatment specialist, reveals how his company abandoned sponsoring local trainees because, he says, it was leading to nowhere.
“This was not a matter of cost, it was simply about reaching the target of educating a new generation of seafarers,” Lecloux says, admitting that Aderco has now successfully engaged with a marine academy based in Busan in South Korea.
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Deals proliferate amid boom times
It’s been a belatedly glorious year for Singapore’s offshore community
As befits a sector coming out of hibernation and enjoying multiyear highs rates-wise, it is no surprise to see Singapore’s offshore scene being the most active recorded for more than a decade. The OSV rate index conducted by Clarksons Research hit all time highs this year, while plenty of other segments within offshore basked in extraordinary profits.
One of the largest single news items occurred in May when giant maritime conglomerate BW Group decided to separate its offshore oil and gas company BW Energy from its shipping businesses as part of a corporate restructuring.
The Andreas Sohmen-Pao-led group owns nearly 75% of BW Energy following a mandatory offer to purchase shares from its FPSO specialist BW Offshore.
BW Energy started as the E&P division of BW Offshore in 2016 and was listed in
Oslo in 2020. The company owns 73.5% of the producing Dussafu Marine licence offshore Gabon, 100% interest in the Golfinho and Camarupim fields, a 76.5% interest in the BM-ES-23 block in, a 95% interest in the Maromba field in Brazil and a 95% interest in the Kudu field in Namibia.
Making plenty of headlines this year has been Singapore-based offshore wind vessel pure-play Cyan Renewables. In July it acquired Perth-based OSV operator MMA Offshore for AUD 1.1bn ($702m).
According to a statement by the two companies, this transaction marks the region’s largest take-private deal in the offshore wind energy services industry.
The acquisition was supported by a group of co-investors including the Alberta Investment Management Corporation and Singaporean business magnate Michael Kum who holds a
stake in MMA via his vehicle, Halom Investments.
MMA’s fleet of 20 offshore vessels and operations in Asia Pacific will now benefit from Cyan’s knowledge of the offshore wind sector as well as installation and operations and maintenance (O&M) expertise.
The deal comes at a time when the global demand for vessels in the offshore wind sector is expected to outpace supply significantly, particularly as the average turbine size has increased, with some projects now planning to install turbines as large as 15MW.
In January Cyan Renewables acquired a 75% stake in offshore support vessel specialist Sentinel Marine, owner of the youngest fleet of emergency response and rescue vessels (ERRVs) in the UK.
Sentinel Marine has a fleet of 13 high-specification offshore support
vessels which enables them to respond to environmental emergencies, such as oil spills and other incidents. The company’s fleet is also designed to support various offshore activities such as offshore wind, fisheries control, and maritime surveillance.
Cyan Renewables entered the European offshore wind market last year with the acquisition of the service operations vessel Groenewind from Belgium’s DEME Group.
“With Cyan’s acquisition of Sentinel in the UK and now MMA in Australia, we are rapidly establishing world-class leaders in new, fast-growing sectors,” commented James Chern, managing partner and CIO of Seraya Partners – Cyan’s main investor.
This August saw Singapore offshore vessel operator and marine engineering player Kim Heng take full ownership of its subsidiary Bridgewater Offshore.
The owner and operator of around 30 OSVs bought out its joint venture partner Philip Capital, taking its 49% stake for about $5.1m
Bridgewater Offshore was incorporated in Singapore in 2019 as a 51/49 joint venture to own, manage and operate offshore support vessels.
Singapore-based fabricator Dyna-Mac has had a busy year. In January it penned a share purchase agreement to acquire all the total issued and paid-up share capital in Exterran Offshore for $8.25m.
The move sees Dyna-Mac secure access to Exterran Offshore’s yard facilities of about 4.5 ha along Gul Road, which will provide additional fabrication capacity for its current and future projects.
In May, South Korean conglomerate Hanwha Group acquired Keppel’s entire holding in Dyna-Mac for S$100m ($73.8m).
The deal sees Hanwha subsidiaries Hanwha Ocean, the yard formerly known as Daewoo Shipbuilding & Marine Engineering, take a 21.52% stake in DynaMac, while Hanwha Aerospace will own 2.39%.
Dyna-Mac is a well-known maker of FPSO, FSO and FSRU topside modules. It has two fabrication yards in Singapore and joint ventures and collaborations with yards in Malaysia, China and the Philippines.
Singapore OSV operator Vallianz, meanwhile, formed a joint venture this year with Thailand’s Penn Marine Service
to strengthen its position in the offshore energy sector in Thailand.
Penn Marine specialises in the repair and maintenance of OSVs, as well as project management and other services for the offshore energy market in Thailand, where Vallianz presently provides OSV chartering services.
As part of the deal, Vallianz agreed to acquire a 49% stake in Marineast Vallianz Offshore (MVO), which was incorporated in September 2023 during the early discussions between the two companies to provide primarily marine vessel services in Thailand.
Finally, turning to Kim Heng, another well known name in local offshore circles, the company signed a vessel framework agreement earlier this year with an unnamed global offshore wind farm developer in South Korea.
Under a four-year agreement, Kim Heng will provide a geotechnical drilling vessel and offshore geotechnical investigation services.
Thomas Tan, executive chairman and CEO of Kim Heng, said the deal empowers the company to make a significant step forward in its diversification into renewable energy.
Shipping’s fuel petri-dish
Singapore is trialling all manner of alternative fuels
Singapore is by a very considerable distance the world’s preeminent bunkering hub so by extension it will serve as the petri-dish for shipping’s green transition.
To put Singapore’s bunkering dominance in perspective, citing 2023 bunker sales carried by Ship&Bunker, the city sold bunkers last year equivalent in volume to the next six top bunkering areas in the world combined.
Singapore reported 51.82m tonnes of bunker sales in 2023, breaking its previous record high of 50.17m tonnes in 2017. More than half of these volumes, or 30m tonnes, were from very low sulphur fuel oil (VLSFO). Alternative marine fuels accounted for 1.2% of Singapore’s total
bunker sales, a figure that is expected to leap dramatically when full year 2024 figures are released in January. Among other alternative marine fuels, LNG consumption sharply increased from 16,000 tonnes in 2022 to 110,000 tonnes in 2023.
Methanol
As for methanol, 2024’s most in vogue fuel, Singapore’s call last December to get methanol infrastructure in place has seen a host of well known names in the bunkering industry order barges specifically for what is viewed as a prosperous future for methanol sales in the Southeast Asian city.
The city sold bunkers last year equivalent to the next six top bunkering areas combined
In April this year, the MPA revealed it had received over 50 proposals to provide methanol bunkers with the potential to supply over 1m tonnes of the fuel by 2030.
Singapore carried out the first shipto-containership methanol bunkering for Maersk last year, which was followed by ship-to-ship methanol bunkering of close to 1,340 metric tonnes of blended methanol for the Stena Prosperous and simultaneous methanol bunkering and cargo operation for X-Press Feeders in May this year.
Ammonia
Singapore is also getting to grips with ammonia, seen as another lead contender in the future fuel race.
The Fortescue Green Pioneer, a platform supply vessel, successfully conducted the world’s first use of
Singapore is positioning itself well to cater to LNG, biofuel, methanol and ammonia
ammonia fuel, in combination with diesel in the combustion process. The vessel was loaded in March with liquid ammonia from the existing ammonia facility at Vopak Banyan Terminal on Jurong Island in Singapore for the fuel trial.
The Fortescue Green Pioneer started its journey towards becoming the world’s first ocean-going ammoniapowered vessel in 2022 when Fortescue successfully converted a four-stroke engine to run on ammonia. The ship then went in for conversion at Seatrium’s Benoi yard in Singapore with two of its four engines switched to ammonia ones.
“The successful conduct of this
ammonia fuel trial onboard the Fortescue Green Pioneer marks a significant milestone in Singapore’s multi-fuel bunkering capability development to support the digitalisation, decarbonisation, and manpower development for international shipping,” stated a release from the MPA.
Biofuels
As for biofuels, which are seeing a serious uptake in sales, Singapore is in the fortunate position to house the Global Centre for Maritime Decarbonisation (GCMD), which has
pioneered many world-leading studies into alternative fuels in recent years. This July, it completed its final supply chain trial for biofuel blended with VLSFO, marking the end of a series of trials initiated in July 2022 as part of a larger pilot to develop a framework to provide quality, quantity and greenhouse gas abatement assurances for drop-in fuels.
“Over the past 18 months, GCMD has meticulously conducted these supply chain trials of biofuels use under business-as-usual conditions, collaborating with partners to test different tracing techniques. The aim is to remove adoption barriers and increase user confidence and uptake of biofuels by assuring users that they are getting value for the cost premium, mitigating fears of biofuels adulteration, and preventing fraud,” commented Professor
Lynn Loo, the CEO of GCMD.
“In the next decade, the port of Singapore is likely to offer biodiesel, LNG, methanol, and ammonia as refuelling options, ranked by anticipated sales,” predicts Prakash Chandra, a director at Fleet Management.
Chandra reckons biodiesel will lead due to its compatibility with existing infrastructure and Singapore’s commitment to reducing maritime carbon emissions, supported by regulations mandating biofuel blends. LNG will remain a strong contender, he tells Splash, with significant investments in bunkering facilities and increasing sales volume, making it a preferred transitional fuel.
Singapore’s proactive stance to trial multiple fuels positions it well for the future, says Niraj Nanda, group
commercial director at Anglo-Eastern.
“For now, Singapore is positioning itself well to cater to LNG, biofuel, methanol and ammonia,” Nanda says.
Digital
It is not just in green fuel trials where Singapore is leading the way. The citystate is also bringing this most archaic segment of shipping into the digital era.
Since November last year, the Maritime and Port Authority of Singapore (MPA) became the first port in the world to implement electronic bunker delivery notes.
Generally, the maritime industry relies on physical bunker delivery notes, a standard document required by the International Convention for the Prevention of Pollution from Ships
that contains information on fuel oil delivery.
The MPA has argued that taking this process digital will boost efficiency and transparency.
Licensed bunker suppliers, shipowners, operators and crew in Singapore are now encouraged to utilise the mobile and cloud solutions approved by MPA to complete and issue digital bunkering documents, which the MPA claims can save close to 40,000 man-days per year for the bunker industry.
Singapore, the world’s largest bunkering hub, has tended to take the tech lead over rivals. For instance, it made mass flow meters mandatory years ago, something that European ports such as Rotterdam are only getting around to introducing now.
Maritime recruitment trends and strategies for success
Mark Charman, CEO and founder of Faststream Recruitment, provides Splash readers with an abridged version of a speech he gave in Singapore earlier this year
The maritime landscape is undergoing profound transformations, driven by technological advancements, shifting workforce dynamics, and evolving industry demands. Our ongoing surveys across diverse maritime sectors illuminate these changes, highlighting the evolving relationship between individuals and their work. With a multigenerational workforce navigating the seas of change and the emergence of disruptive technologies like decarbonisation and AI, the imperative for innovative recruitment practices has become more pronounced. Industry stakeholders must embrace these changes proactively, reimagining their recruitment paradigms to attract, retain, and reward top talent effectively.
Despite the enduring demand for talent within the maritime sector, attracting the right candidates has become increasingly challenging.
You tell us attraction in maritime is more:
Difficult Competitive
Time-consuming Complex
But feedback from industry stakeholders also underscores several key challenges, including perceptions of the industry’s digital maturity, compensation competitiveness, and diversity initiatives.
The rise of Generation Choice means encompassing digital natives and forward-thinking professionals, and it necessitates innovative attraction strategies. These are people who have
more career choices than ever. In fact, The Institute for The Future predicts that 80% of jobs available in 2030 have not even been invented yet. I cannot see maritime not being impacted by this.
In the era of “everything now,” our lives are defined by instantaneous access and immediate gratification. Consider your own evolving expectations regarding services and products, and apply this paradigm shift to recruitment processes. Speed and responsiveness have become integral aspects of our daily lives, and they are increasingly pivotal in attraction and recruitment endeavours. Lengthy processes not only deter potential candidates but also jeopardise successful recruitment. In today’s fast-paced world, individuals are unwilling to wait, underscoring the urgency for streamlined and efficient recruitment processes.
This means that new attraction and recruitment strategies are needed, and one of the strategies to use is: micro-moments.
In the age of instant gratification, employers face the challenge of engaging digitally native generations by crafting multiple micro-moments. These fleeting yet impactful interactions are vital for capturing the attention of individuals who are constantly connected and immersed in digital environments. To effectively seize these micro-moments, you must leverage diverse mediums, including mobile applications and social platforms.
With a generation that is perpetually “always on,” it’s imperative to understand
how they consume information. Capturing their attention has become the new currency in recruitment strategies. It’s not merely a matter of shorter attention spans but rather the proliferation of mediums competing for their focus. To successfully engage this audience, employers must strategically deploy content across various channels to effectively connect with and resonate with digitally immersed individuals.
Getting attention
You need to get the attention of the right people, not the most people.
Ensuring that your attraction strategies effectively target the right individuals, rather than merely casting a wide net, is paramount. Failure to do so runs the risk of attracting candidates who may not align with your company culture or values, ultimately leading to potential misfits within your business. By focusing your efforts on engaging with the right audience, you can enhance the likelihood of attracting individuals who not only possess the necessary skills and qualifications but also resonate with the ethos of your business, fostering a more cohesive and productive work environment.
Effective communication plays a crucial role in the recruitment process, assuming paramount importance. Prospective candidates assess a business’s communication practices as
indicative of its overall employer brand. Poor communication during the attraction and recruitment stages prompts candidates to question the business’s professionalism and reliability. Consequently, they may question what the employer-employee relationship will entail. Prioritising clear and timely communication is essential to establish a positive initial impression and foster trust and transparency throughout the recruitment journey.
You will be judged. Communication is so important in the attraction and recruitment stage because of the ‘Great Regret’.
The great regret
Feedback from individuals highlights a common trend: businesses often inundate prospective employees with flattery and promises, painting an idealistic picture of the role and workplace. However, the reality frequently falls short of these lofty expectations, leading to feelings of disappointment and regret among new hires. This discrepancy between expectations and reality is not exclusive to entry-level positions; even senior executives have experienced it. It serves as a poignant lesson for employers and recruiters alike: while it’s natural to strive to attract top talent by presenting an enticing job offer, these promises must align with the actual work environment and opportunities. Ensuring congruence between promises and reality is essential for building trust, fostering employee satisfaction, and minimising turnover in the long run.
Shifting your focus from the company to the prospective employee marks a crucial transition in recruitment strategy. It’s not solely about showcasing the company’s achievements or offerings; rather, it’s about crafting a narrative that resonates with the individual candidate. By emphasising personalisation and tailoring the recruitment process to cater to the unique needs and aspirations of each candidate, you can create a memorable and
meaningful experience.
This approach taps into the power of the word “you,” which is often overlooked in attraction strategies. Incorporating “you” into communication efforts fosters a deeper connection with candidates, enhancing engagement, clarity, and overall connection. In the competitive landscape of maritime recruitment, the ability to connect with individuals on a personal level during the attraction stage serves as a distinct advantage for both the business and the prospective employee, paving the way for lasting relationships and mutual success.
In today’s landscape, our actions must align with our beliefs and words more than ever. The significance of purpose and values has heightened, influencing individuals’ perceptions and decisions. As businesses, embodying authenticity and integrity in our purpose and values not only fosters trust and loyalty but also attracts like-minded individuals who align with our mission. Thus, establishing a strong foundation rooted in purpose and values sets the stage for meaningful relationships and sustainable success.
In today’s competitive job market, individuals seek more than just a salary; they desire opportunities for personal and professional development. The 3Cs – Career Growth, Continuous Feedback, and Constant Learning – have emerged as essential components of an attractive employer value proposition.
Offering avenues for career advancement, regular feedback loops, and access to continuous learning opportunities are not only crucial for attracting top talent but also for retaining them in the long term. Businesses that prioritise these elements within their employee experience stand to differentiate themselves as employers of choice, fostering a culture of growth, development, and mutual success.
Retaining talent has become one of the most pressing factors for maritime, perhaps even more so than attraction.
Even in our most recent senior
executive survey, 40% indicated their intention to switch jobs within the next two years. From a recruitment perspective, this signals an opportunity, as it means more talented individuals are available for placement in the maritime sector. However, it also poses challenges for businesses, as the demand for experienced and dependable senior talent intensifies. Employers must not only consider the implications of their employees seeking new opportunities but also the potential impact of key executives departing on the stability and strategic trajectory of their business.
The pursuit of growth underscores the prevailing theme of 2024, as individuals and businesses alike strive for advancement and expansion. This desire for growth is not only a preference but also a necessity in today’s dynamic landscape.
Employees are often seeking challenges and growth as intrinsic motivators for staying with their current employers. Extrinsic motivators like reward, title and power can only keep you going at your best for so long.
So, think, challenge, growth and advancement, purpose, responsibility and autonomy, achievement, pride, satisfaction, and flexibility.
Final thoughts
In the quest to attract and retain top talent, increasing compensation isn’t always the solution; sometimes, paying more attention to your employees’ needs and experiences can be far more impactful. This means carefully considering how you’re trying to attract talent and how you’re nurturing and supporting your existing workforce. Merely casting a wide net without genuine attention and engagement is akin to chasing empty metrics. True success lies in the meaningful connections forged with employees, acknowledging their contributions, and fostering an environment where they feel valued, supported, and motivated to excel.
