Can you explain a typical day in the life of a ship suppler? What are your main tasks and responsibilities each day?
Each day is different in the life of a ship supplier. There are many different departments, all with their own responsibilities. The main thing in this business are the constant critical deadlines we work with. We are given a short period of time to complete all the requirements and ensure the ship is supplied in full prior to sailing – we may only be a limited part of OPEX (Operating expenses or operating costs. The costs of the vessels including crewing costs, insurance, repairs and maintenance, stores, spares, lubricants and miscellaneous expenses (but excluding capital costs and voyage costs) for a vessel, but if we do not deliver, the vessel can’t sail. No water or food, no sailing. There is no chance for the ship to take important items once it has sailed.
The short deadlines and the fact the customer does not have any other option at sea to procure goods is something new people to the industry struggle to understand, as well as the importance of getting the right products on board. What one may forget is that our clients may be at sea for 30+ days at the time where all they see is water around them. The main thing that separates on day from the next is the meals they are being served, so it has to be the right quality.
What are the primary services or products your company offers?
We are a “one-stop-shop” for ocean going vessels. Like a supermarket & hardware shop all in one. We are not specialists in any one area, we are generalists, but have colleagues specialised in each area. Whatever the ship wants we source. Regardless, if it locally acquired or specially imported from another country.
What were your primary tasks from client meetings to closing deals?
When meeting with clients. We introduce our Company, the ports we service & the areas we cover. We need to be professional and be able to cover every area of the clients’ requirements. We need to be punctual with quality goods & services at competitive rates. We must also make ourselves available 24/7 as we must always remember we are a global industry with global customers. The most important task ship suppliers is to ensure that the clients can always rely on us. We pride ourselves of being able to provide the highest service level.
How did you reach your current position? What key experiences and decisions shaped your career path?
I started in the family business in 1974. Basically, assisting my father. Once I had a reasonable understanding of the business, I was allowed to board vessels and secure orders via the Masters. In those days many decisions in regard to supplies were made by the Masters. I made friends with them and in those days the vessels were on liner trades whereby they would return to our port within 3 months and stay for up to 10 days at a time. Once they returned, they ensured that I received the bulk of their orders.
Later I was introduced to marketing overseas ship owners as they appointed their suppliers. My first overseas effort was in 1984 and I was thrown in the deep end. In 1986 the family business was purchased by an Australian Giant, Metro Meat Ltd a division of Adelaide Steamship, at the time one of the biggest groups in Australia. I commenced in various State Managership positions, until eventually I became Managing Director. The company went through some highs & lows based on our parent company’s fortunes. Eventually it was sold to a group of investors and from there we had a break-away group and formed the current Southern Cross Marine Supplies business, owned mostly by our local Manager operators, until the Superior Group purchased Southern Cross. I am now a consultant with Southern Cross. I have very good relationship with the current management and we ensure that Southern Cross remain as the Australian leaders in the industry.
In 2017 I was head hunted by the Everise Group and relocated to Singapore. Together with the former owner we made Everise attractive to be purchased by Ship Management giant Bernard Schulte. Schulte Group added to this with the purchase in 2021 of HMS Far East as well as the Seven Seas Group worldwide in 2023. I am the leading Group Global consultant at this time.
What specific skills and qualities do you believe are essential for success within ship supply?
To be successful in this field you need to be dedicated. Ensure the customer is always satisfied and be available 24/7. Ensure top class organisational and problem-solving skills. We are not brain surgeons, we offer a high-quality service to all clients. It is an industry of one of the world’s last true traders of goods.
What knowledge is critical for a successful ship supplier and entrepreneur?
A successful ship supplier needs to understand the marketplace. Understand the requirements of the customer. How to arrange it in the limited time available. To ensure he knows where to source anywhere across the world and proud of the job. Always strive for the highest standards. As our competition is not only local, but its worldwide. We are competing with the best.
What educational background and professional experiences are important for someone looking to advance into an executive role in this field?
Education is always an advantage, however, a dedicated person that has a willingness to learn and is dedicated, can succeed in this business, as in most other industries. Most of the family ship suppliers around the world fit into this area. I believe any type of education can be advantageous, especially business management and accounting disciplines as these are very valuable tools to have in everyday business life.
How important are networking and relationship-building?
The most important area in the industry is networking and relationships. Our industry luckily has many opportunities for this occur. Apart from constant travelling to meet our customers, there are numerous exhibitions and conferences that are vital. For example, Posidonia in Athens, Norship, SMM in Hamburg, IMPA London, IMPA Singapore and ISSA at a different venue each year. Various other Asian based events as well as many others. This part of the business is the most enjoyable and building friendships at these events is what I love. But in business you need to perform to be successful, purely attending is not acceptable. You must go into these events with the right mindset and whilst it is about business, it is also about learning from your peers and forming strong relationships.
What aspects of your job did you find most rewarding?
I found every aspect of the business rewarding. From warehousing, to driving trucks, boarding vessels, sales, purchasing, accounts receivables, accounting, Management and finally Board level. This industry can have many highs, from a vessel getting listed for your port, obtaining an opportunity to quote for their requirements, winning the quotes, ensuring the supply goes well and Master & Management are all happy and eventually you get paid. Each step in this process gives a new level of satisfaction, if you don’t get excitement from winning orders and then supplying the vessel then maybe it is not the right business for you.
Can you describe a successful deal that stands out in your career?
There are many over the years. But a highlight for me was securing the contract to supply the Queens vessel BRITANIA on its visit to Australia during the Australian bicentennial festivities. With Queen Elizabeth II on board, I was cleared by the Queens security and allowed to board the vessel daily. We supplied the crew’s requirement with high quality goods, similar to a cruise ship. For the Queen herself, her assistant and I would personally visit our vendors and purchase specifically for her use. The vessel was in port for 10 days and I created
an excellent relationship with all on board. One evening I was playing football at a nearby ground to where the vessel was berthed, and the majority of the crew attended to watch. As well as BBQ for the officers at my home. At the time the Queen presented her personal plaque to Heads of State when she visited different countries. I am proud to say that I also have one, it is proudly displayed in my Adelaide office together with an excellent recommendation on the Britania’s letterhead.
What are the biggest challenges you faced in your role?
There were many challenges, all different over the years. This is where good problem-solving skills and the desire to look after your customer comes into your mindset where you simply must just carry on and find the right solution. I achieved everything I ever aimed at by pure hard work & dedication.
How did you handle the pressure of fluctuating market conditions?
The market continues to fluctuate and the pressure is never ending. It is a matter of identifying the requirement, planning the best way to handle it and action it accordingly. You must always remain fluid and be able to shift direction in a moment as the market really does change daily in this business. That said, ship supply is core to global trade, and in the end, it does not make a big difference for us if the vessel is 100% utilized or 80% – in the end, the crew as well as wear and tear on the vessel is almost the same. We always have a desire to make our clients successful, so the higher utilization the better, but for us as ship chandlers it does not make a big difference.
How did you stay informed about the latest trends in the shipping market? How do ship chandlers stay informed today? What resources do you rely on?
Ship suppliers rely on word of mouth, networking and constant contact with colleagues around the world, as well as vessel tracking and reliable data sources allowing us track vessels far more easily and we have started using machine learning and AI to provide our clients with an even better service.
What are the key challenges you face in ship supply?
The greatest challenges in our industry are quality of staff. This area is vital as people with the right attitude are required. Not many young people like the idea of 24/7, but it is vital for success.
How do you recruit and retain talent in such a competitive industry?
It is very difficult. For example, in Australia, in my Adelaide office, the staff have been with us for a very long time. If you treat them well, pay them fair, be fair & reasonable, make their job interesting then staff usually stay with you. In Singapore I am surrounded by a young and dedicated team. I spend quality time with them during office hours discussing the requirements, how to handle different aspects. I also ensure we meet up out of office hours regularly. This creates excellent bonding and I am proud to say that the team in Singapore is first class. All will have long and successful careers in the industry. I pride myself on educating the next generation in ship supply.
How do you envision the role of ship supply in the maritime industry over the next decade? What new challenges and opportunities do you expect to arise?
The world is changing and the shipping industry will follow. But shipping doesn’t change too quickly. It is still one of the last traditional type industries. Being with people face to face and talking to them is still far more crucial than spending time in Teams meetings. When a ship Owner trusts his supplier to look after his multi-million-dollar investment (his ship), they do expect more than automated artificial intelligence type attention. The ship owner however is seeking more benefit and less cost. This is the vital area we must concentrate on. However, we must always be looking to get best value for our customers by buying smart and keeping our running costs lean, this then allows us to offer most competitive prices to our customers.
How do you balance the demands of running a business with personal life and well-being?
Great question. For me the job is life style, therefore it is easy for me. I ensure my family receives as much of my time as is needed and the business receives the same attention. Our industry is not for persons that view it as only a job. It really is a lifestyle and one that can be very rewarding if you let it.
Throughout your career, what are the most valuable lessons you’ve learned?
Lessons. Where do I start. People do not always say what they mean, or even do as they say. I have learnt to understand people and different cultures. I can safely say I can identify genuine people very quickly.
How do you stay motivated and inspired in the face of challenges and competition?
As mentioned earlier the job is a lifestyle for me. I am very focused on success and ensuring all my clients feel the “love” and dedication from our group. I always strive to be the best and I am my strongest critic. I have enjoyed my association with ISSA & IMPA. I am currently the IMPA Ambassador to Australia and have been since the early 90s. I am involved with the arrangements for IMPA Singapore 2024. I have been the Australian Chairman to ASSA for 15 years. I am currently a Senior Vice President to ISSA for seven years and was recently asked to become a consultant to SASS.
What one piece of advice would you offer to young professionals who aspire to work in the field? How can they best position themselves for success?
Be professional, look at both sides of the situation. Ensure if you give your word, you honor it. Put in the effort & hours and you will be rewarded. And most importantly, ensure to have fun while you do it.
Looking back, what advice would you give to your younger self?
The only thing I would do different is when I was approached to relocate to greener pastures. I should have accepted. I was a parochial proud South Australian and that held me back a little, I should have been looking at the bigger picture, it is a big world out there and there are many opportunities if you are prepared to take the leap and grab them.
Jim Costalos
Head Consultant Global for the Everise Group (Singapore, China, Panama)
Shipping Consultant for Southern Cross Marine Supplies (Australia)
Executive Vice President of ISS
