CC SHIPPING
Peter Sullivan, Director, Mediterranean Trading Shipping “Strategically located within the Grand Harbour, Mediterranean Trading Shipping Co. Ltd boasts a rich history dating back to its inception in 1946, a subsidiary of F. E. Sullivan & Co Ltd founded in 1860 as a ship chandling company. From the very beginning, the company proved to be innovative in the local sphere. In 1947, run by my late father, Eric Sullivan, a veteran in the marine world, the company hoisted the Maltese maritime flag for the first time. The family-run business took the company to new heights with each passing generation. In more recent years, services such as manning, crewing, logistic management, forwarding agents, transhipment services, bunker brokerage, offshore services, warehousing facilities, services to the oilfield industry, cruise liner agents and hospitality have been added to our portfolio. Today I am confident to say that the company has built a fine reputation and sound connections among the world-leading maritime companies and the shipping industry.” Do you feel like there’s a surge in demand within the shipping industry? What has this been caused by? “Shipping is a dynamic industry, always evolving, yet challenging. It is a nevershrinking market and it is said to be the
largest service industry. Various aspects contribute to this, primarily the increase in volume in the movement of cargo. There has also been an increase in cruise liners and super yachts, which at one time were associated with high-profile people; today, the increase in global wealth has led to a surge in this industry. Obviously, the increase in the movement of vessels results in a surge in bunkering demands. It is a fact that our island also benefits from the turmoil of neighbouring countries as well as from EU regulations which prohibit tankers over 20 years old from entering European ports.” What investments has Mediterranean Trading Shipping made to ensure it keeps up with these demands? “We hold years of experience in this field and apart from taking stock of the current requirements, we always keep a watchful eye for the next opportunity, delivering an idea to completion. The company is always regenerating its IT system, investing and upgrading its equipment and storage facilities to cater for the current needs. A dedicated and experienced team of personnel, equipped with maritime knowledge and continual training ensures high standards in the operation. We have also engaged stakeholders overseas to identify new business, thus broadening our portfolio.”
What are the factors that will ensure that demand for shipping services remains strong in the long-term? “The world economy influences the demand in shipping, sometimes making it volatile. However, globally, industries are continuously growing, creating a demand in dry-bulk and containerised cargo. In my opinion what is crucial for long-term demand is the opening of borders and of the market to foreign investment and trade, as this increases the flow of shipping. Shipping carries more than 90 per cent of physical world trade and will do so for the foreseeable future. Personally, I believe shipping will continue to flourish.”
Joe Gerada, Managing Director, Thomas Smith Group “Thomas Smith is one of the oldest established shipping agencies in Malta and one of very few that are involved in all modes of transport. Thomas Smith has always represented worldleading companies and the main one we represent today is Maersk Line, the world’s largest container shipping company and one of the larger users of Malta Freeport. We as a company have always held high values and are known to be a company of high integrity and reliability. We focus on developing long-term relationships with principals, clients and our own workforce.”
Do you feel like there’s been a surge in demand within the shipping industry? What has this been caused by? “Yes, I would say that during these last years there has been a surge in demand, but one that has also been accompanied by a surge in supply, which has had a downward effect on freight rates. We are faced many times with rates that do not justify the effort involved in giving a proper service. This surge in demand is definitely the result of a growing population in Malta, the increase in the number of visitors to Malta, the resident expats working
here and the higher level of consumption and construction associated with that.” What investments has Thomas Smith made to ensure it keeps up with this demand? “In a company like ours, investments made are in people, systems, and international networks which can help us maintain a high level of service also at destination.” What are the factors that will ensure that demand for shipping services remains strong in the long-term? “As long as we are an island and we keep on consuming products, a demand for shipping services will follow. That is what the local market will require. Beyond that, we can keep on developing Malta‘s role as a hub, which is already happening successfully. There is enough enthusiasm for it to be sustained and developed.” What’s in the pipeline for Thomas Smith? “Constant improvement and fine-tuning of what we do.”
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OCTOBER/NOVEMBER 2017