21-10-2016

Professional Strategy Think Tank is Need of the Hour: Mr. Deepak Shetty (I.R.S.), Director General of Shipping

SDS

Shri. Deepak Shetty (I.R.S.), Director General of Shipping, graced India Ship Management Summit 2016 as the Chief Guest. The Summit saw the participation of all segments of the shipping industry from various maritime hubs in the world.  

Mr. Deepak Shetty spoke about the solemn commitment of the D.G. Shipping to do what is important in the current contemporary times and stay connected with the shipping community through the internet making an array of online activities accessible from anywhere in the world.  His office is determined to take the shipping community on board for every initiative that they launch. Every merchant shipping order, notice and circular or however innocuous communication will be first drafted and put on the website and invite stakeholder comments anywhere between a fortnight to a month depending on the salience of the topic at hand, factor the inputs to the extent that they accommodate the views of the shipping industry.  “We deem ourselves as a service provider and the shipping industry as the service recipient. We are conscious of the fact that if we don’t adapt and accept ourselves in the new paradigm, we will be swept away in the dustbins of history. We don’t wish to become a small footnote in history.“

He also shared with the gathering that roughly around 75% of the services across spectrum by D.G. Shipping were already online. And that they were in the midst of business process of reengineering through Ernst & Young.  “We hope to put out and select a vendor. By next year we will be able to put out a top of the line, state of the art, electronic platform wherein we will migrate or transport our existing services and go completely paperless.”

  The challenges in the legislative changes was another subject touched by Mr. Shetty.  As the legal framework impinges on the way one transacts business, he spoke about his endeavour to push merchant shipping bill through the parliament in the upcoming winter session.  The repeal of some other acts was also mentioned.   He took pride in mentioning the recent report released by the World Bank and the IMF which harped on India being the most mature among the developing economies in terms of GDP numbers which ranges from 7.4% to 7.6% in contrast to China which is slowing down and not expected to grow more than 6.5%. The global GDP numbers hover around 3.1% to 3.4%.  The Indian GDP numbers translates into exports and brings good tidings to the Indian industry. 

Mr. Shetty sounded the alarm bells and goaded the industry to prepare themselves from a strategy perspective, take cognizance of some of the global trends that have been developing in the globe and have an extremely salient bearing on the shipping industry and the world at large. He quoted the Mckenzie report which talked about 20% oversupply in capacity year on year and continues even now.   Another report which found a mention in his speech was one by   Seabury, a transportation consultation organization which stated that the ocean container trade has started decelerating.  According to the journal of commerce and shippers approximately 1,50,000 USD is lost per year per shipper due to price volatility, staff cuts and the like. 

    Highlighting the need for technology adoption in the field of research and development and services which is going to be the name of the game, innovator and enabler for the industry to move forward, Mr. Shetty instilled a sense of realism and shared his concerns about cyber security, terrorism, the implications of Brexit, the current political environment over the South China sea with regards to navigation and free control of trade.

He concluded his speech by saying, “The world is no longer the same it used to be.  There are new elements which have come into play. It’s driven with security vulnerability and for quite some time whether we like it or not that’s the way it’s going to be. The time has come for us to have a professional strategic think tank which doesn’t get swayed by any interest groups but looks at it from an academic and   strategy perspective as to what are the elements which will impact the shipping industry in the next 10-15 years.”

 

Source: TST Newsdesk

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