Editorial:

Competence, competence …

In trying to read the temperature of the shipping industry in our region – the North Sea Baltic Sea Range – we are witnessing vigour and progress on many quarters. Thanks to the strong development in German shipping – which promises to come out as the leading maritime nation in terms of invested value by 2008 – our region’s share of the world fleet appears to be nearing 20 per cent.

However, the intensity of the shipping involvement differs from one country to another, from brisk progress in Denmark and Germany, revival in Sweden and Russia, cautious progress in the Baltic countries, less so in Norway and Finland. But together, Scandinavian owners invested USD 15 billion in new and secondhand ships last year, compared to USD 13.5 in the Greek shipping community.

But all these national maritime ventures have one thing in common, they grow within local maritime spheres of related activities, such as shipbroking and finance, education, suppliers, ship design and equipment manufacturers. Even in our day when technology is available off-the-shelf for money, shipping requires more than capital; it also demands competence and commercial vigour. The progress in Swedish shipping, for example, grows out of a network of maritime and commercial shipping acumen, boosted by opportunity and ambition.

At a time when capital and competence easily move across borders, the Nordic countries have managed to retain quite diversified maritime sectors, and particularly Danish and Norwegian owners have adapted well to changing operating conditions and cost structures. The political ability to support the industry and encourage private ownership has, however, differed from one country to another.

There is a double challenge confronting our industry, one which may appear to draw in two directions, but which should be bridged: To “go global” in commercial focus and organization, and yet to attract and build competence at home. Without the latter – dedicated and competent persons ashore and afloat – there will be little future for shipping operations out of Northern Europe.

The challenge appears to be much the same from Britain to Finland, to attract your people to maritime careers, not necessarily to man the ships, but to inject this sort of knowledge and experience into the entire industry and to staff vital parts of the maritime infrastructure. To be able to retain the ship management functions is vitally important to the related cluster of activities.

The time horizon is crucial; many key employees are nearing the end of their careers and there are too few to follow. In five years the situation may be difficult, after that the management organizations may have to relocate to Bombay or Manila to find the required competence. Many fear that would eventually spell the end for a broad maritime industry in Europe.

For all the encouraging trends within our region’s maritime industries we share the same challenge, to ensure the continued flow of human capital needed to carry on the shipping industry in our blue corner of the world.

As the book says, there is a time to sow and a time to harvest. Now, while we are harvesting, let us not forget the seeds.

Dag Bakka Jr, Editor