Is the Maritime industry suffering from the ostrich effect?


By Constantine Komodromos
August 17, 2017

The CEO of Transas, Mr. Frank Coles, in an article he wrote published by the Maritime Executive found here, mentioned that:

The industry is in denial.

I will not discuss whether Amazon and its ilk, as mentioned in the article by Mr. Coles, can potentially enter the market and turn it upside down in many ways. I feel however, that there is a as far more important underlying message here: that a technology provider in the market like Transas states that industry players are in denial of the change that is coming. From our experience, we agree that what is described in the article is fairly true, however through our market interactions we feel that there is an increasingly large number of companies cooperating with cutting edge third parties. They are currently testing new concepts and technologies in order to adjust their current business models and increase their operational and financial results.

Additionally, we usually tend to forget of the benefits and the value which can be brought by the introduction of technology, digitalization and digitization of the current modus operandi. The organizations that are offering technological solutions in the shipping industry, have already identified the inefficiencies of the current operating models. As a result, they developed such technological solutions to bridge those gaps and inefficiencies bringing the market closer to the 21st century technological standards.

The Maritime industry is no different than other markets which have been significantly changed by technology in the last few years. The benefits reaped out due to this change, by those who adjusted their business models, have been great, while those who insisted to stay in denial have been left behind. The question is at which side of the spectrum each company will be when this will happen…and based on other markets this is usually done very quickly.