Hong Kong’s prowess in ship management is a phenomenon that continues to capture global attention, especially during Maritime Week, where the city showcases its maritime excellence.

As one of the world's foremost hubs for ship management, Hong Kong is home to numerous leading companies in the sector, drawing clients from all corners of the globe. Gautam Chellaram, the executive chairman of KC Maritime, emphasized, “Hong Kong has been the historic leader in ship management, fostering a vibrant knowledge center that supports the industry’s growth.”

So, What Sets Hong Kong Apart?

Richard Hext, the deputy chair of the Hong Kong Shipowners Association, points out the many advantages the city offers: “Overall, Hong Kong provides an environment conducive to business growth, with fantastic airline connections, a high standard of living, and an incredibly supportive maritime ecosystem.” Stability, favorable government policies—including tax incentives—and Hong Kong's bustling port, enriched by a diverse array of well-established shipowners, make it uniquely appealing.

The Tax Advantage

Hong Kong’s ultra-low tax rates and uncomplicated tax structure are among the chief reasons why shipping companies choose to set up here. The fact that it does not impose global taxes further enhances its attractiveness to maritime businesses. Tax incentives tailored specifically for the maritime sector have been introduced over the past few years, solidifying Hong Kong's reputation as a preferred destination for ship management and related industries.

Firoze Mirza, managing director of BSM Hong Kong, states, “Hong Kong offers an independent and well-established legal system and a transparent business environment that inspires confidence among international maritime players.”

A Legacy of Leadership

Anglo-Eastern, the world’s largest ship manager, exemplifies this legacy, having been founded in Hong Kong 50 years ago. CEO Bjorn Hojgaard attributes their success to the city’s strategic location, robust legal framework, skilled workforce, and business-friendly climate.

The Path Forward: Nurturing Growth

To further develop this booming sector, Hojgaard advocates for targeted government support through training programs, industry partnerships, and regulatory reforms aimed at fostering innovation. Continued investment in specialized education and training is essential to maintaining a skilled workforce ready to meet evolving industry demands.

Biju Narayanan, deputy general manager at Wah Kwong Ship Management, adds, “We believe that the government’s recent efforts to provide tax concessions, alongside relaxed visa arrangements for Hong Kong residents, will bolster growth in the ship management sector.”

Battling Crew Retention Challenges

Despite its strengths, the industry faces significant challenges, especially in crew retention. The global officer shortage has escalated, with a recent Drewry study indicating a current shortfall of about 9%—the highest since records began. This deficit is projected to persist through 2028, posing serious implications for recruitment and costs.

Ioannis Stefanou, managing director of ship management at Wallem, stresses the need for competitive wages and excellent working conditions for seafarers to attract and retain talent. Moreover, maintaining employee morale is crucial, and access to communication technologies is key to bridging the gap between seafarers and their families.

Steven Jones, founder of the Seafarers Happiness Index, notes, “While some companies excel in providing connectivity at sea, the industry as a whole must improve, enabling seafarers to maintain meaningful connections with their loved ones.”

Conclusion: A Call for Transformation

Transforming the way ships operate and ensuring proper connectivity could lead to a more sustainable and joyful working environment for seafarers. Such positive changes not only enhance the quality of life at sea but may also influence the market value of vessels, proving that doing good is good business too. As the industry looks ahead, the hope is that Hong Kong will continue to lead by example, nurturing both its maritime future and the well-being of those who keep it afloat.