The world is progressively becoming digitalised across all industries. This rapid shift brings opportunities, challenges and risks for a huge array of stakeholders across the maritime community. But in shipbroking, which has always been a fundamental foundation of global trade, many major players have already embraced innovation and digitalisation with open arms, argues Glenn Murphy, Chairman, Institute of Chartered Shipbrokers.
The only constant in life is change – and the emergence of Artificial Intelligence (AI) has the potential to muddy the waters.
Nevertheless, the industry should embrace technological evolution. That’s because one crucial tenant of shipbroking will forever hold firm. Trust and personal relationships are integral, even as the need to showcase added value in a congested market becomes more important than ever.
Shipbroker and client rapport is essential to the industry and delicately developed, sometimes over many years and months. It goes without saying that many owners and charterers will have a well-established professional relationship with their brokers.
Over a decade ago, that might have been enough. However, as data becomes more accessible and client demands shift, deal making and high-level knowledge alone will increasingly be regarded as a substandard service.
Internal training as shipbrokers enter the profession isn’t uncommon, but it’s a profession where individuals are often thrown in at the deep end. Detailed advice to principals will be given in time, although shipbrokers are not actually required to have an academic grounding in the subject.
Increased scrutiny is inevitable as compliance becomes more prevalent. Are shipbrokers, particularly in the more junior ranks, ready for the spotlight if it’s shone on them? How can they demonstrate that they are qualified to be advising on and handling vessel transactions and fixtures?
A minimum set of standards and training is given to seafarers. Insurance professionals also evaluate fleets based on meeting minimum standards of safety and compliance before providing cover. But professionals that negotiate contracts and provide instructions to vessels do not require any formalised education.
At The Institute of Chartered Shipbrokers (ICS), we think there should be a shift in focus. Education and targeted professional development still has a huge role to play for shipbrokers at all levels globally.
We are the professional body for all members of the commercial shipping industry worldwide, founded in 1911 in the UK and awarded a Royal Charter in 1920. The ICS remains the only internationally recognised professional body in the commercial maritime arena.
With 26 branches and 14 teaching centres in key locations, 4,000 individual members and fellows and over 100 company members the ICS is committed to maintaining the highest professional standards across the shipping industry. Data to aid decision making in shipping is becoming ever more ubiquitous. But regardless of technological advances, the Institute’s qualification remains the unique hallmark of professionalism
Business culture has specific nuances in every country and we embrace every branch having its own unique identity. The Liverpool Branch holds an annual dinner for 500 guests, which is respected throughout the shipping community as being a major event on the calendar.
The Institute Teaching Centre (ITC), the teaching arm of the Greece branch, was established in 2005 by Natalia Margioli, FICS, under the administration of the Hellenic Management Centre. The Germany Branch, founded in 1996, has grown from 11 founding members to presently about 160. Members of the Germany Branch are mainly brokers, but other areas from the maritime industry such as agency, shipowning, ship financing and liner shipping are also represented, along with adjusters, flag states and class societies.
Outside of the Europe, the Hong Kong Branch – now in its 60th year – is one of the oldest branches outside of the UK headquarters. In addition to continuing the assistance provided to all ICS fellows, members and exam candidates in Hong Kong, the Hong Kong Branch has also become one of the largest entities among local shipping professionals, where knowledge and ideas can be shared to collectively improve the shipping industry at a regional and global level.
Individual professional membership of the Institute is gained by candidates passing the Qualifying Examinations. Promotion to Fellowship permits the person to be described as a Chartered Shipbroker.
It’s worth noting that professional development is important for everyone in the maritime community – not just shipbrokers. For seafarers eyeing a return to shore, ICS also has a variety of qualifications and modules available. These can also be completed by distance learning and via the online Academy.
We are still registering students for the ICS exam session scheduled for this Spring. If you are still thinking about your study-plan, we would be happy to give you some guidance and help you choosing the best options available to you. Please email us at [email protected].
Shipbroking around the globe has an exciting, dynamic and prosperous future. But to flourish in 2023, formal qualifications must be at the core of its continued expansion.
The views presented are only those of the authors and do not necessarily reflect those of SAFETY4SEA and are for information sharing and discussion purposes only.
