Crazy for starting up in maritime? Seeing the Sunrise when everyone sees the Sunset

“Let me give you some advice young man. You should spend your time in an industry that is doing well and growing fast. You seem intelligent,… why waste it in shipping?”

Crazy for starting up in maritime? Seeing the Sunrise when everyone sees the Sunset

“Let me give you some advice young man. You should spend your time in an industry that is doing well and growing fast. You seem intelligent and since you have an accountancy degree, why waste it in shipping? Why not be an entrepreneur in another sector?” This was what one of the EY Entrepreneur of the year award winners a few years back told me during the event. He was being honoured for his efforts and success in growing his business that night. A very successful entrepreneur in his own right, his words stung. It stung not because I was offended, but because what he said made sense.

At that time, shipping was at a low point. Almost every segment of the industry was doing poorly; tankers, bulkers, offshore, there were no exceptions. Prominent companies, that just a few years back were riding high in the stock markets, were now tethering on the verge of collapse or had already collapsed. Our own national liner, Neptune Orient Lines (NOL), was sadly sold to a foreign conglomerate in 2015 as well. Most of my peers were not considering shipping as a possible career. Financial services, law and technology are seen as much more attractive; shipping and the maritime sector has a rather poor reputation for being backward, with a vast majority of Singaporean millennials not being aware of a career in the sector, despite its relevance to the Singapore story. By all accounts, the maritime sector in Singapore continues to have great difficulty in recruiting and retaining young talent as it is seen as a sunset industry with very little progressive ideas.

So why did my team and I, decide to start Ship Supplies Direct in this sector and specifically in the ship supplies sub-sector, despite knowing the challenges?

1) Team of industry and technology experts

The first reason is that we have a great team. My founding team comprises a mix of experienced professionals from the maritime sector and from software engineering. I myself have been in the maritime sector for the last 8 years covering different roles, from shipbroking to business development. My other founders have also been in the sector ranging from ship supplies to telecommunications. This gives us unique insights to how the shipping industry works, specifically the ship supplies sub-sector. This also means we have friends in the industry whom we can collaborate with, allowing us to offer our customers a wide array of services while bringing our partner organizations more business.

2) Many low hanging fruits are available (assuming you understand the industry well enough)

The second reason is that we see many low hanging fruits where digital technology could reap quick returns. Prior to our launch, we had studied the ship supplies industry in great detail. After studying the sector, we have identified inefficiencies where we are confident that, by working with incumbents, we can use digital technologies to improve. The solutions we are building and providing to the ship supplies industry are not new to other industries; they just have not been applied here by a team of people who understands and has access to it.

3) To hold our flag high and rebrand the Singapore maritime sector

The third and most important reason is that we want to ensure that in decades to come, the Singapore maritime sector would become known to be progressive, innovative, with a bigger proportion of Singapore’s best and brightest aspiring to join it. We should have more Singapore-based/led companies going into global markets to offer innovative products that were developed right here in our nation.

Preventing “death by a thousand cuts”; no more NOL moments

The Singapore maritime sector is still strong and would be for the foreseeable future. What I, and many of my Singaporean peers are concerned about are that there would no longer be any local companies in the marine services sector that can compete on the international stage. Don’t get us wrong. We deeply admire the North European maritime ecosystem, and the companies there. However, we believe it is about time more Singapore companies step up and start to lead innovation in the maritime sector, instead of just adopt a “wait and see” attitude.

The time for the “fast follower”, “services provider” and “buy low sell high” style of business is over! The tactics that made Singapore successful will no longer suffice going forward. The industry globally would benefit from it.

To the “towkays” in this business who are the gatekeepers of large swathes of the Singapore maritime sector, my team and I want to assure you that we are not here to take away your business. Most of us are young and looking to work with you, learn from you. Our greatest concern is that, long after you have retired, your role would have been outsourced or offshored or just become a thing of the past; just like how being the CEO of NOL is now no longer a possibility for any ambitious Singaporean to aspire towards.

Standing on the shoulders of giants

Coming back to that night at the EY Entrepreneur of Year Awards Dinner, even though I had received those discouraging words from one of the award winners, I was delighted to see the founders of Ascenz, a technology company in the maritime sector, Mr Sia Teck Chong and Mr Chia Yoong Hui being honoured as well. That was also the first year there was a maritime technology company being honoured at this prestigious event. What I respect most about these two gentlemen was that they believed in the possible impact digitalization would have on the maritime sector way before we ever did. It was so much harder then and their example is an inspiration for us.

Mr Sia’s and Mr Chia’s example reminded me that it is always easy to believe that I have got it tougher. Looking back into our maritime history, it is also important to remember that NOL was likewise once against many odds and it was only by the sheer determination of Singapore’s founding fathers, with NOL’s pioneer team, that turned it into a major shipping line.

Why can’t we do the same?

What is Ship Supplies Direct? www.shipsuppliesdirect.com

We are a Singapore-based start-up that uses digital technologies to optimize the procurement and delivery of ship supplies. We have already launched an online marketplace for seafarers to make their own purchases and we are launching a smart logistics service soon. You can also reach us by visiting our company website at www.shipsuppliesdirect.com or email us at [email protected].

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