briefing paper
TRANSCRIPT
Marine Trader is pleased to present another
in our series of technical pull-out guides
on essential products and services.
Welcome to the latest in the current series of
briefing papers from Marine Trader, offering
guidance on products, services and strategy
that are essential to the marine purchaser.
These guides are created as reference tools for
your daily practise as a marine purchaser and
are intended to supplement your learning on
the job and through more traditional educational
pathways, such as the IMPA PG Certificate in
Supply Chain Management. Suggestions for future
topics are always welcome, so please contact
Our thanks for this update goes to Wave Shipping,
who give their recommendations on what to look
for when choosing a port agent.
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P ort agents are as old as the shipping industry, and
the role has not changed much since the early days.
Agents still act on behalf of the owner, charterer,
operator or captain, but the decision of who to choose, has
changed in many companies.
The captain used to be the sole decision maker, and the
choice would be based on past experience, who replied to
enquiries first, the estimated costs, perceived knowledge
of the agent, recommendations from other captains or
agents, or other personal reasons.
If the agent performed well, according to the captain’s
own measures, they would trust the agent and choose the
same again (if they ever called at the same port). Trust was
built up over time, and the relationship between captains
and agents could last for years, if not decades.
As the shipping industry started to evolve, and the
global trade grew, more and more port agents emerged,
and today it is an industry on its own. Similar to the
shipping industry, be it liner, tanker, bulk for example,
the market is very fragmented, and each port will have a
lot of port agents to choose from. Choosing the right agent
is key to a successful port call, yet only a few shipping
Jesper Steenbuch, Managing Director of Wave Shipping, gives his recommendations on what to look for when choosing a port agent
DO YOU CHOOSE A PORT AGENT BASED ON PRICE OR VALUE?
Ch
oo
sing
the
rig
ht a
ge
nt i
s ke
y to
a
su
cc
ess
ful p
ort
ca
ll, ye
t on
ly a
few
sh
ipp
ing
co
mp
an
ies
pa
y a
lot o
f a
tten
tion
to th
e p
erfo
rma
nc
e
of t
he
ag
en
t
companies pay a lot of attention to the performance of the
agent. “They must just get the job done” - but “the job” can
be done in many different ways.
According to a study done by Fonasba (the Federation
of National Associations of Ship Brokers and Agents), “the
job” includes more than 130 specific tasks, which the agent
can be asked to perform. Not all the tasks will be performed
during the same port call, but the sheer number just
highlights the complexity.
As shipping companies grew in size, competition
became fiercer. As a natural consequence, all costs and
processes needed scrutinising, and principals started auditing
the agents. Much to their dismay, there were irregularities,
which indicated malpractice or dishonest behaviour of the
agent. This forced a lot of principals to rethink their decision
making processes. They chose to develop in-house agents or
moved the decision of appointing agent to headquarters, but
due to the limited hands on port call experience, the choice
of an agent is today often based on price rather than value.
Most agents have therefore been cutting costs to stay
competitive, but without changing their way of working, or
making use of Lean Model thinking (Eliminate, Simplify and
Jesper Steenbu
ch
Sponsored by
Competent, Convenient and ConsistentCompetent means hiring experienced staff who can do
“the job” faster and better than the young and inexperienced
(hired by the older port agency companies). They spend money
on attending fairs, trade shows and conferences, which may
not be directly shipping related, but just to stay on top
of what is happening outside their own sphere - they
continue to improve their knowledge and skills, just to
improve the service.
Convenient means they work when clients are working
(being an agent is not a nine-to-five job), they provide world
class and real-time data and performance reports which are so
valued by the clients that the positive customer feedback just
keeps coming. The most sophisticated even provide options
for system integration and real-time cloud video surveillance,
enabling the owners, operators, charterers and others to
monitor the operation on their own computers, tablets or
smartphones, despite being thousands of miles away. As one
customer puts it: “It is like being there myself”.
Consistent means that the execution of “the job” is done
exceptionally all the time, every time. This is enabled through
deliberate choices of being sure the agent stays on the forefront
of technology, using lean thinking and always putting the
customer first.
The ideal port agency should always combine these three
principles, and as a new agent (founded in 2014), and active
in multiple locations, Wave Shipping is always striving to do
a top quality “job”. It has of course been challenging, but we
have done it, and are now reaping the benefits of being bold
and on the forefront of bringing the port agency into the 21st
century. This is reinforced by the fantastic feedback we get
from our clients.
So next time you choose an agent, be careful not to choose
on price alone, as it may cost your company more. Take the
time to look for other, more value-based alternatives - they
are out there and if you choose to go for value, you will surely
experience the benefits.
Good luck with choosing the right port agent.
So n
ext
tim
e y
ou
ch
oo
se a
n
ag
en
t, b
e c
are
ful n
ot t
o c
ho
ose
o
n p
rice
alo
ne
, as
it m
ay
co
st
you
r co
mp
any
mo
re. T
ake
the
tim
e to
loo
k fo
r oth
er m
ore
va
lue
-ba
sed
alte
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s
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Automate), they are using the only tool they know – lay people
off, or hire young, inexperienced people, to handle the port
call. The consequence is that both captains and principals
experience that “the job” is not performed as well as in the
past, and more time is spent internally on tasks which used
to be performed by the agent, or they have to set up their own
internal performance measures and controls, to manage the
agent. The focus on price, is therefore generally more costly
than focusing on what value an agent can bring, and then
jointly develop solutions, which are beneficial to both parties.
On the other hand, agents have generally not been very
good at listening or understanding the requirements and
converting them to solutions, but continue to do “the job”
the old-fashioned way.
There are exceptions but they are rare, and are mostly done
by newcomers who are not afraid of rocking the boat, not
bound by old systems, an old way of thinking or huge overhead
costs; they are choosing a path which has been successful in
other industries, and are based on three basic principles. For more information relating to this article you can email Jesper directly at [email protected]
en
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