Samvaad Recap: Understanding Ship Management Companies
- Team Dmet Club
- Mar 24
- 8 min read
In one of the most insightful sessions hosted under the Samvaad series, DMETian Om Prakash, a seasoned shipping professional, delivered a thought-provoking talk that bridged decades of maritime wisdom with the aspirations of today’s cadets.
His address was more than a lecture—it was a journey through the evolving landscape of global shipping, with a heartfelt call to action for young marine engineers of DMET.
Session Recording
Back to the Alma Mater: A Sentimental Beginning
Mr. Om Prakash opened the session with a sense of nostalgia. Visiting the DMET campus during a personal trip to Kolkata had rekindled memories of his formative years. The warmth and receptiveness of the faculty, especially the Director, reignited his desire to contribute. It was this serendipitous visit that brought him to the Samvaad platform, where he stood not just as a shipping executive but as a proud alumnus returning home to mentor the next generation.
Why Shipping Matters More Than Ever
Diving into the theme of the session—Ship Ownership vs. Ship Management—Mr. Prakash began by underlining a core truth: shipping is the backbone of global trade. Over 90% of the world's goods are transported by sea, making maritime logistics not just essential but indispensable to every country’s economy.
Shipping, he explained, is inherently international. Vessels traverse borders, cultures, and regulations, and thus must operate under globally recognised rules—primarily framed by the International Maritime Organisation (IMO). These frameworks ensure uniformity in safety, pollution control, and operational practices across the globe.
A Business Built on Expertise, Not Just Steel
Mr. Prakash emphasized a critical but often underappreciated aspect of shipping—it is not just capital-intensive, but also human capital-intensive. Running a vessel, or managing a fleet, is a complex orchestration involving:
Newbuilding supervision: Overseeing billion-dollar shipbuilding projects.
Sale and purchase: Ensuring a vessel’s true condition through rigorous surveys.
Technical management: Maintaining the vessel’s mechanical health, dry-docking, repairs, and certification.
QMS and Compliance: Adhering to IMO’s ever-evolving environmental and safety standards.
Operations and Cargo Handling: Seamless planning and execution of cargo operations.
Chartering and Commercial Management: Ensuring the vessel earns money.
Manning: Recruiting, training, and rotating seafarers efficiently.
Finance and Accounts: Managing budgets, costs, and revenue in real-time.
Each of these verticals, he said, must be robustly staffed and meticulously coordinated for a shipping business to survive and thrive.
The Cost of Non-Compliance: A High-Stakes Game
Shipping doesn’t forgive errors. One missed compliance, one detention by Port State Control (PSC), or one poor rating can lead to immense financial, operational, and reputational damage. In a world governed by star ratings, vetting inspections, and tight chartering standards, even a single misstep can drastically reduce a ship’s earning potential.
This is where systems and processes become critical. From ISM checklists to changeover SOPs, every procedure must be standardised and enforced, especially because crews rotate every few months. The only constant on board, he said, should be the processes—not the people.
The Rise of Ship Management Companies: From Necessity to Strategy
So how does a shipowner manage all of this complexity, especially if they own only a few vessels?
Mr. Prakash explained that this is where the ship management industry enters the scene. Running a full-fledged in-house management setup is financially viable only if an owner operates a large fleet. For smaller owners, outsourcing operations to a management company offers:
Access to a highly specialized talent pool.
Reduced operational costs due to economies of scale.
Higher bargaining power for dry docking, spares, agency services.
Faster response to regulatory changes (e.g., IMO amendments).
Enhanced risk-sharing and liability management.
He cited examples from his own company, which manages over 600 ships, learning from each incident and applying those lessons fleet-wide. “Even an owner with a single ship benefits from the experience of managing 600,” he said. This collective knowledge, he emphasized, is the true asset that management companies bring to the table.
Outsourcing and the Global Shift in Operations
Mr. Prakash likened this shift to global trends. Just as Apple outsources manufacturing and many corporations rely on Salesforce or AI tools, shipowners today are outsourcing operations to specialized partners. This allows them to focus on ROI, capital utilization, and strategic growth, rather than day-to-day management.
The result? The global ship management industry, valued at over $3 billion, is projected to grow at 9–10% CAGR, expected to cross $33 billion in the coming years.
Message to Cadets: Be the Expert, Be the Differentiator
As the session transitioned from macroeconomics to personal growth, Mr. Prakash spoke directly to the cadets.
He reminded them that marine engineers are akin to doctors—only their patients are machines, not people. The same depth of knowledge, diagnostic ability, and care is required. To stand out, one must:
Have a strong technical foundation.
Develop an attitude of continuous learning.
Be adaptable to changing technologies (e.g., electronic engines, PLCs, environmental regulations).
Uphold integrity and values in every decision.
He applauded DMET’s initiative to encourage student-led research and technical innovation, stating that this will empower cadets to deal with modern shipping challenges, such as emissions control, automation, and green shipping.
On Choosing the Right Vessel Type: Bulk vs. Tanker vs. Gas
Responding to a cadet’s question about whether it’s better to join LNG/LPG ships than bulk or container carriers, Mr. Prakash advised clarity over glamour.
He explained that:
Gas carriers are niche and prestigious but have fewer vessels globally, which can delay promotions.
Bulk and container ships offer broader exposure and faster growth.
No vessel type is “better”—what matters is alignment with career goals and long-term planning.
He cautioned against frequent job-hopping, emphasizing that consistency and depth of experience often outshine flashy resumes in the long run.
Final Words: Build Now, Lead Tomorrow
Mr. Om Prakash closed his talk with a resounding message:
“Today, you’re cadets. Tomorrow, you’ll be industry leaders. Someone from this very room will run a shipping company. Make sure you’re prepared for that moment.”
He urged students to see their time at DMET not as an academic checkpoint but as a launchpad. By focusing on fundamentals, remaining humble, and committing to lifelong learning, they could shape the future of global shipping.
Takeaways for Young Marine Engineers
Learn deeply. Don’t chase shortcuts.
Think long-term. Career decisions made today will echo for decades.
Adapt and upskill. The industry is evolving, and so should you.
Stay ethical. Knowledge without values is incomplete.
Be curious. Question, explore, research.
In a world that’s sailing through turbulence—be it environmental regulations, geopolitical shocks, or digital disruptions—Mr. Om Prakash’s session was a lighthouse for aspiring mariners. It reminded them that the sea respects preparation, and the future belongs to those who are ready to learn, lead, and lift others with them.
Samvaad continues to be a beacon of such transformative conversations, and this one, without doubt, will be remembered as one of its most inspiring chapters.
🚢 How to Start and Run a Ship Management Company: A Curated Guide
The shipping industry forms the backbone of global trade, moving over 80% of the world's goods. Within this industry, ship management companies play a vital role in ensuring vessels are operated efficiently, safely, and profitably. For maritime professionals and entrepreneurs with a strong grasp of ship operations, setting up a ship management company can be a rewarding and impactful venture.
This guide walks you through every step — from planning and legal setup to operations and growth strategies.
