Maritime CEOOperations

Maritime CEO Forum: Cutting costs vs cutting corners

The operating efficiency session at this week’s high level Maritime CEO Forum in Singapore saw delegates warn that the prolonged nature of the downturn in various sectors could impact safe operations.

“There’s a big mismatch between commericial operations and safety,” warned K.K.Mukherjee, director of operations at NYK Bulkship.

“There is increasing concern in the dry bulk space that this cycle will lead to problems maintenance wise,” said Warwick Norman, ceo of ship vetting firm RightShip.

Quite so, agreed members of the audience, including P B Subbiah, a director at Hong Kong’s Pacific Basin Shipping, who noted: “Cutting costs for the sake of survival is dangerous as that is where companies start to cut corners.”

With much of the efficiency session focusing on costs, the moderator of the hour-long discussion, Clive Richardson, ceo of V. Group, pointed out: “Cost and efficiency are two different things. In other sectors there is something called spend to save – I don’t really see that in shipping.”

Operating efficiency formed one of four sessions at this week’s Maritime CEO Forum at the Fullerton Hotel. Reports from the other three sessions are being carried all week.

Maritime CEO Forum is sponsored by Anglo-Eastern Univan Group, Dualog, DVB Bank, FCM Marine & Energy, Navigate Response, RightShip, Rustibus, Transas, Unimarine Lubricants, Veritas Petroleum Services, V.Ships and Wartsila.

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