Österreichischer Lloyd Shipping (ÖL Shipping Group) has an extensive history stretching back almost two centuries. Over this time, the bespoke shipping service has remained committed to quality and working closely with partners. COO & Partner Sunil Kapoor and Chairman, CEO & Partner Captain Eberhard Koch explained this process to Hannah Barnett.
ATthe start of 2024, ÖL Shipping Group took a significant step forward with the appointment of Sunil Kapoor as Partner & Chief Operating Officer. He joined forces with Captain Eberhard Koch, Chairman, CEO & Partner, elevating the group’s potential.
“I retired from my last company in September 2023,” Mr Kapoor explained. “And I was intending to think more about what to do next, but Captain Koch made me an offer. It was clear we would make a great team to take ÖL Shipping in a new direction. So, all my retirement plans were cast aside.”
Captain Koch also noted that the age difference between the two individuals will guarantee the continuation of the company’s legacy for many more years.
A meeting of minds
The new managing force intends to develop ÖL Shipping and return to the bulk carrier market, purchasing ships as well as expanding its third-party ship management services and securing a shipping fund. Mr Kapoor is convinced that the company’s hands-on approach makes it stand out from the pack.
“We are a boutique ship management company,” he said. “We have a great pro fessional team based at our office in Limassol, Cyprus. Captain Koch has a lot of experience in shipowning and commercial banking and mine is in third-party ship management and operations. So, together we have formulated some strategies.
“There is a demand for hands-on firms offering services to owners based
on value and quality. We are focusing on the niche market because most ship management companies are huge. For small owners or small fund managers, that size does not justify doing business. They are looking for quality and ways that expenses can be minimised, while at same time, being run by skilled and experienced management.”
ÖL Shipping consists of a team of 12 onshore staff and an exclusive pool of 150 seafarers, many of whom have been working for 25 years or more alongside Captain Koch. The personal touch remains vital.
“I want our superintendents to treat third-party vessels the same as an owner would,” said Captain Koch. “That’s why we don’t want to have 50 ships, we want
to be a small, first-class ship owner and manager. Sunil and I can talk to owners on a daily basis, if so wished, which the big ship managers don’t have time for. We make the time.”
“We ensure that our operations remain simple yet efficient,” Mr Kapoor added. “Honesty and integrity are fundamental to our ethos. Every fund allocated for the operation and maintenance of our vessels is meticulously spent solely on the ships’ necessities. We diligently negotiate to secure the best prices for any stores and spares required for the vessel.
“Plus, we want to extend the life of those ships for many years, so we ensure predictability in terms of maintenance and reliability in operations.”
The value of quality
ÖL Shipping currently owns and operates three ships on long-term charter and one Kamsarmax bulker on third-party management. The company follows all EU and IMO guidelines regarding environmental measures, though in an uncertain and undeveloped market, is also keen not to waste money on untried technology.
“During dry docking, we take care of everything we can to reduce fuel con sumption and improve efficiency,” said Mr Kapoor. “However, we also have a ‘wait and watch’ attitude, unless new
regulations come in which require us to act. But, as of now, our approach is to see how things develop.”
ÖL Shipping works closely with suppliers, owing a portion of its success to corporate relationships that stretch back for decades. At the same time, it is part of the company ethos to conduct business in a considered manner.
“Even if we have a main supplier, we will still tender three different companies, taking our time to compare quality and price, then the best quality for the best price will get the order,” Captain Koch explained. “We have suppliers in Cyprus, Singapore and China that we have worked with for 25 years. They know exactly what our standards are.”
Indeed, to uphold such principles, ÖL Shipping only uses genuine spare parts from recognised suppliers.
“We don’t cut corners,” said Mr Kapoor. “We use first-class spares and pay for them on the dot so there is no question of a dispute later. That has been our forte, even during turbulent times in the market, and we have been able to maintain good relationships that way.”
This focus on quality suppliers is reflected in the company’s relationship with its customers, too. Namely, the price a customer pays guarantees the standards the company will deliver.
“We set our budget on this basis,” said Captain Koch, “and it is down to the ship owner to decide whether to go for a company with 500 ships or us, a small boutique. We will deliver quality and attendance 24/7, 365 days a year, while treating the vessels like our own. But the owner must accept, possibly, a slightly higher price than they will get from a large third-party management company.”
The personal touch
As ÖL Shipping has a relatively small number of ships to look after, its superintendents can focus on delivering a superior
service. The company’s crew retention rates are high, meaning those employed are skilled and familiar with the operation of the vessels.
The company also has its own riding teams based around Europe. Whenever necessary, they will go on board a ship to carry out maintenance, contributing to ÖL Shipping’s focus on crew safety and security.
“Our mobile phones are not switched off overnight,” said Captain Koch. “If the captain or chief engineer of a vessel needs support or advice, we tell them not to hesitate to call us, anytime.
We are a team, and it is the team that is successful.”
The company has a goal to increase its fleet to 12 ships within the next few years, as well as creating a fund to invest in more vessels. With these plans firmly in motion, and ever more possibilities offered by technology, digitalisation and AI, will ÖL Shipping ever lose its hands-on approach?
“A ship cannot be run by sitting ashore and giving instructions to the crew,” Mr Kapoor concluded. “Yes, technology is required to improve efficiency, but at the end of the day, we need to support the ship staff who are actually onboard. So, we embrace the technology that is out there, but that does not mean that our ships will ever be operated solely that way.
“ I’ve been in shipping all my life. There’s no better career because every day is different. It keeps us excited. We work hard and take problems in our stride. Though we may not carry the weight of industry giants, our strength lies in our unwavering commitment to delivering tailored excellence, ensuring every interaction reflects the core principles of the requirements that define us.”
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