Ship management must move away from ‘outsourced’ mindset, says CEO

Columbia Group’s president and chief executive Mark O’Neil has called for a shift away from the traditional ship management model towards a more integrated partnership approach, arguing that the future of the industry lies in closer alignment between shipowners and managers, according to its statement.

The company, which describes itself as a leading integrated platform across maritime, logistics, leisure and hospitality, and offshore services, held an industry event in Oslo this week on the theme “Partner-Shipping: What does partner shipping look like for your business?”

In his opening speech, O’Neil reflected on the origins of third-party ship management, saying it emerged more than 50 years ago to separate vessel ownership from technical and crewing operations.

That model, he said, allowed shipowners to benefit from economies of scale, global resources and the investments large managers could make in technology, training and operational systems.

Over time, however, he said the model became increasingly commoditised.

“Margins in ship management are extremely small, which often led to services becoming standardised,” O’Neil said, adding that the result was that management sometimes became a process of “simply joining the dots”, rather than actively thinking and acting in the best interests of the owner.

He said the perception that ship managers were detached from owners’ priorities had been a major barrier to the growth of third-party management.

In response, Columbia Group has focused on what O’Neil described as a partnership, or “second-party management”, model, under which the ship manager operates as an extension of the owner’s organisation rather than as an outsourced service provider.

“It’s a mindset as much as a structure,” he said. Columbia Group calls this “Partner-Shipping”, which, in his words, requires an “insourcing mindset”.

“Even if we are based in different locations, mentally we must be insourced, not outsourced,” O’Neil said, adding that managers need to think and act as if they are part of the owner’s team.

He also stressed that while technology and digitalisation are transforming the maritime sector, shipping remains fundamentally a people-driven industry.

At the same time, he said economies of scale remain an important advantage of professional ship management, particularly in procurement, compliance and operational efficiency.

O’Neil then led a panel discussion featuring Hakon Rosaker of Clarksons Capital, Christen Guddal, Gard’s chief underwriting officer for the Nordics and claims officer, Erik Tomstad, executive vice president at Nat Chartering, Arun Sankar, Columbia Group’s director of commercial and strategic development for Northern Europe, and Andreas Hadjipetrou, the group’s chief commercial officer.

Rosaker echoed O’Neil’s message on the importance of partnership, saying that in today’s environment, partnerships and platforms matter more than ever.

“It’s not just about capital, it’s about working with people you genuinely trust,” he said, adding that when you look at a company’s track record, how it has operated over the years and the partners it has chosen to work with, “you learn a great deal about who they are and whether they’re the right partner”.

Guddal, for his part, said insurance is about much more than capital and rests heavily on people and how they support each other when something happens.

“In many ways it’s like the old Carole King song, when you’re down and weary, you need someone you can rely on,” he said. “That’s what partnership should be: having someone there to work with you when it really matters.”

Tomstad also pointed to the importance of having a manager who thinks like an owner, saying that mindset is crucial.

“It means thinking commercially and understanding the bigger picture,” he said, adding that ultimately “we’re in this together”. Their shared goal, he said, is to move cargo safely and efficiently and make the operation a success for everyone involved.

Sankar, meanwhile, told delegates that communication is essential in strong partnerships and that, at times, this means over-communicating.

“When partners have access to clear data and regular updates, it builds transparency and trust,” he said, adding that this ultimately strengthens the relationship.

Hadjipetrou also focused on the importance of communication, particularly in more difficult circumstances.

“In challenging situations, particularly in regions like the Middle East, communication is constant,” he said, adding that the company stays in close contact with its vessels, ensuring crews have access to mental health support, regular updates from the office and daily calls so they know they are supported at all times.

Finally, O’Neil said the need for strong partnerships is becoming even more important as the global shipping industry navigates growing geopolitical uncertainty, regulatory complexity and operational risk.