(Introduction) At the outset of the interview, Carl Schou, the President and CEO of Wilhelmsen Ship Management (WSM, Head offices in Singapore), a leading European ship management company, emphasized the company’s commitment to prioritizing quality over quantity. In a conversation with our reporter, Mr. Schou delved into the dynamics of the ship management industry, which has witnessed numerous mergers and acquisitions, leading to the emergence of colossal corporations. However, WSM has stood apart from this trend, steadfastly upholding its dedication to delivering “excellent seafarers” rooted in its extensive tradition and experience.
We sought Mr. Schou’s insights to elucidate the concept of “excellent seafarers” and to explore the trajectory that WSM is charting in response to the evolving landscape of the ship management industry.
■Dealing with Various Kinds of New Fuel: WSM’s Strategic Approach
Wilhelmsen Ship Management (WSM) currently oversees the management of 250 technical-managed vessels and 200 crew-managed vessels, totaling approximately 450 vessels. With a workforce of 11,000 seafarers, around 6,000 are actively engaged in marine transportation across the globe at any given time. In the face of these substantial numbers, one might wonder why the company has chosen not to further expand its operations.
CEO Carl Schou sheds light on this decision by highlighting a critical industry challenge— the need to retrain approximately 700,000 seafarers globally to handle new fuels. Examining the order book for new vessels, Schou notes that a significant majority are powered by LNG (liquefied natural gas), ammonia, and methanol. Addressing this imminent shift, he emphasizes, “This will be a major challenge for the industry.”
WSM has proactively established a training center in India dedicated to the new fuel paradigm. Accredited by the Directorate General of Shipping in India, the center specializes in training for dual-fuel LNG vessels. Schou underscores WSM’s commitment to leading the industry in adapting to these changes, emphasizing, “We have to train seafarers to be able to handle the new fuel that global shipping wants. And WSM is at the forefront of this. That is what I mean by quality over scale.”
Indeed, WSM stands as the world’s largest third-party ship management company for LNG and LPG gas, boasting ownership of eight LNG carriers, 28 LPG carriers, three FSRUs, and five LNG bunkering vessels” – We do not own any vessel, these are vessels managed by us in ship management.
However, Schou remains pragmatic about the future, stating, “Ship-management companies need to be ready for all new fuels.” The choice of fuel lies with the shipowner, and WSM is closely monitoring industry trends to ascertain whether the majority of new vessels will opt for LNG or the dual-fuel methanol model.
Schou acknowledges the evolving regulatory landscape, such as the inclusion of ships in the EU-ETS from 2024. Reflecting on the changing dynamics, he notes, “At the time of our last interview, it was the responsibility of ship managers to transfer EU allowances to the authorities. This has changed.” Now, shipowners directly remit EU allowances to the EU authorities or delegate this responsibility to ship management companies. Schou expresses a preference for this model, emphasizing the importance of adaptability as the industry navigates the challenges posed by new fuels and evolving regulations.
Preserving Tradition and Focusing on Quality: WSM’s Unique Position in Ship Management
Wilhelmsen Ship Management (WSM) stands as a beacon of tradition in the ship management industry, a realm that has experienced a wave of mergers and acquisitions. CEO Carl Schou underscores the distinctive advantages of WSM’s traditional roots, stating, “WSM is a very traditional company. The owner is in the fifth generation. The company has a history of 165 years. This means that the same owners have been in the company for a long time.”
In an industry where numerous ship management companies have fallen under the control of private equity funds, WSM takes pride in its status as part of the world’s largest maritime services group. This affiliation empowers WSM to offer unparalleled comprehensive services, including cruise ship management. Schou highlights this capability, saying, “So we can provide comprehensive services for shipowners. That is something many shipowners cannot do. We can show you the right ship score, TMSA score, whatever score you want. We are at a very high level in terms of quality.”
Amid challenges in objectively assessing the quality of ship management companies, Schou offers insights into WSM’s distinctive approach to seafarer training. “We do not outsource crew dispatch to companies in India or the Philippines that are not related to us. We currently own 12 seafarer centers in Brazil, Europe, and other countries.” This ownership, he emphasizes, enables WSM to maintain precise control over the quality of its services, reinforcing a commitment to excellence.
Schou’s emphasis on cooperation with educational institutions underscores WSM’s dedication to building a robust cadet system. With agreements in place, WSM actively contributes to the development of top-tier seafarers by training them through the maritime academies. This strategic approach ensures the continuous development of human resources, laying the foundation for a resilient seafarer supply network in the future.
As WSM explores new horizons, Schou reveals the company’s interest in emerging markets, with a particular focus on Africa. Recognizing the continent’s potential and the presence of strong education systems in several countries, WSM has initiated efforts to expand its reach. “WSM, like other companies, is looking at new markets. Africa is one of them.”
Throughout the interview, Schou consistently echoes the mantra of “Quality over quantity.” He emphasizes the importance of maintaining a medium-sized company, emphasizing the goal of training high-quality seafarers. This philosophy stands as a guiding principle for WSM’s ship management operations, solidifying its reputation as a stalwart in the industry.