According to the Shipping Industry Network, with the continuous introduction of new global decarbonization regulations, ship management companies are facing increasing regulatory pressure. Akshay Yadava, Managing Director of Norse Ship Management in Singapore, pointed out that one of the biggest obstacles to the expansion of current ship management companies is the constantly emerging new regulations. He cited data disclosed by Lloyd's Register in a technical lecture, saying, "From 2000 to 2023, the number of regulations has increased by 300%. However, the manpower and management fees for ship management have not increased synchronously. Therefore, even if I hope to undertake more business, it is difficult to achieve and the cost is too high. In the future, our growth will be slow and steady
Akshay Yadava has 15 years of sailing experience as an oil tanker captain, as well as 12 years of extensive experience in ship management, new shipbuilding, and asset management. Norse Ship Management, where he works, is a customized internal ship management company that has developed rapidly in recent years with a clear vision of steady growth. In April 2024, the company took over its first vessel - the 13709 DWT refined oil/chemical ship "Raffles Pride", and subsequently added four more vessels, with plans to welcome a sixth vessel to its fleet in February next year. Yadava said, "Our investors come from three different sectors, so our fleet covers a full range of ship types, including two container ships, two bulk carriers, and two oil tankers
Yadava pointed out that every five years, a new hot topic emerges in the shipping industry. Yadava said, "Ten years ago, the hot topic was big data. At that time, the industry didn't know how to handle this data, but we collected it in advance. Now, we have reached the stage where we can effectively utilize big data." Currently, the latest challenge for the shipping industry is decarbonization. He said, "As a manager, what can I do about it? Actually, there isn't much. Decisions about ships are already made before they are handed over to me. My job is to regularly monitor and provide advice to ship owners to ensure they understand the status of the ships." This means that ship management companies need to inform ship owners of the carbon intensity index (CII) rating of the ships, or inform them of their carbon emission quota responsibilities under the EU Emissions Trading System (EU ETS) when the ships sail to the EU, as well as the fines they may face under the newly implemented FuelEU regulations - these fees need to be charged to charterers.
In addition, Yadava emphasized that ship management companies will need to "play the role of consultants" in the future, providing advice to ship owners on energy-saving technology investments, such as ducted propellers, air lubrication systems, and wind turbines to improve energy efficiency. He pointed out that although air lubrication technology has been in use for 70 years and wind turbine technology has a history of nearly 100 years, due to the unclear prospects of alternative fuels, ship owners have to "rediscover" these traditional technologies to reduce fuel consumption and lower carbon dioxide emissions.
To cope with the complex regulatory environment and fleet management, Yadava believes that it is necessary to start with technology investment. The company stated that through technological investment and innovation, ship management companies can better assist ship owners in achieving sustainable development goals. In the future, how the industry will balance growth and compliance will become a focus of attention for all parties.