to bear fruit. “We will see new growth from Southeast Asia, and in the Middle East. I have quite high expectations there, as well as in South America and Latin America.” Jensen also predicts North American market growth, and sees potential in Africa, following a little more work there. From a sectoral perspective, energy has been both a stumbling block and a starting block. Important growth in the renewables sector is expected to in part offset the oil and gas decline.
CLEARING HURDLES
Expanding on challenges, Jensen said: “We have plenty. No. 1 is very, very tough competition.” He cited the bankruptcy of big-league container carrier Hanjin, and said that if one of the top carriers in the world can fail, anybody can. “Overcapacity in the market gives low rates. In general, that is not good for the industry,” he said, predicting that slightly higher freight rates would actually be a comfort to the project industry, lending stability, and providing additional assurance that vessel owners’ assets would still be in place when needed. Similarly, shorter credit terms would be a boon. “They are not 10 days anymore. They are 60-90-100 days,” according to Jensen. There is growing value in managing a project’s accompanying financial supply chain in an efficient manner. Also, Jensen said supply chain connectivity around the world would improve if it were a little bit easier to obtain appropriate paperwork, transportation permits, and so on. “Clear rules, and quicker responses from authorities would help. They can be a headache,” he said. But, good industry leaders are not waiting for the challenges to disappear. Martin Bencher has focused on diversification to keep the wolves at bay. “We are not a courier, not a trucking company. Our core business is project, but we service a wide number of industries,” Jensen said.
That diversification across sectors has proven invaluable in the current market: “We have years when one industry is down, as oil and gas is now, but typically something else comes up. We have quite a lot of legs to stand on,” he said. Coupled with a pervasive sales culture – “everybody remembers to ask customers what we can do for them” – Jensen is confident in Martin Bencher’s competitive positioning. Addressing another fundamental of its business model, he added: “A good quotation is not 30 pages long. It is important to present clear, precise quotations with no surprises. And, once we expedite, monitoring transport from door to door also becomes vital. The cargo must get there on time and without damage.” And when things do go wrong, “you have to be honest and fast in presenting a solution. Customers trust us to transport their cargo and we have to ensure it gets there as they want.”
MAINTAINING BALANCE
“In our industry we have to be ready to assume more roles – project management services, engineering. Embracing new fortes, listening to our customers and being aware of the market are important. And we have a responsibility to play a positive role in society. We want to do the right thing. “We operate in countries where
bribes and child labor, for example, are commonplace. We can influence this. We can decide how we will do things. We should have the same standards for conditions in all our offices, no matter where they are located, and that is important to us. We can’t change the world. Politicians can. But we can change what happens inside our offices,” Jensen said. As an example, the company provides height-adjustable standing desks to all employees. The elevated work stations “are good for your back. We do not want our people to go home at the end of the day as broken individuals,” he said. And, Martin Bencher is better able to retain employees and finds it requires fewer sick days. As a company it has also received many industry accolades, especially for entrepreneurship and rapid growth, which provide testament to its CEO’s skill set. Summing everything up, Jensen said: “I like the industry. A new challenge lands on the desk every day. I was part of starting up Martin Bencher and I want to see it grow. It is an important responsibility to do the best I can for the team. It comes down to the fact that it is an interesting job, an interesting world – and I want to do well.” BB Based in the U.S., Lori Musser is a veteran shipping industry writer.
CEO Jensen spends an “enormous amount” of time ensuring Martin Bencher has the right people in the right places. Credit: Martin Bencher www.breakbulk.com BREAKBULK MAGAZINE 41