{"id":649,"date":"2013-05-24T10:15:00","date_gmt":"2013-05-24T10:15:00","guid":{"rendered":"https:\/\/www.tccfleet.com\/?p=649"},"modified":"2026-02-10T10:28:57","modified_gmt":"2026-02-10T10:28:57","slug":"koo-calls-for-stricter-standards-to-be-applied","status":"publish","type":"post","link":"https:\/\/www.tccfleet.com\/en\/news-and-updates\/latest-updates\/koo-calls-for-stricter-standards-to-be-applied\/","title":{"rendered":"Koo calls for stricter standards to be applied"},"content":{"rendered":"\n<p><strong>Commoditisation of shipping leading to lower standards in the industry<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.tccfleet.com\/wp-content\/themes\/tcc\/assets\/images\/people\/Kenneth%20C.K.%20KOO.jpg\" alt=\"Mr. Kenneth Koo\"\/><\/figure>\n\n\n\n<p>Mr. Kenneth Koo, Group Chairman and Chief Executive Officer<\/p>\n\n\n\n<p>The nature of the bulk markets has changed dramatically in recent years, becoming more commoditised with the entry of private equity funds and other less established players, according to TCC Group Chairman and CEO Kenneth Koo.<\/p>\n\n\n\n<p>He&nbsp; laments&nbsp; the&nbsp; fact&nbsp; that&nbsp; this commoditisation of shipping has led to not only lower&nbsp; barriers&nbsp; of&nbsp; entry&nbsp; but&nbsp; also&nbsp; lower standards in the industry.<\/p>\n\n\n\n<p>The solution to this problem before it got out of control should have come from the class societies, he maintains. \u201cA lot of it has to do with the way the ISM is carried out,\u201d Koo told Seatrade Asia Week.&nbsp;<\/p>\n\n\n\n<p>With&nbsp; the&nbsp; ISM&nbsp; code&nbsp; binding&nbsp; on ship&nbsp; managers&nbsp; rather&nbsp; than&nbsp; beneficial shipowners, there is little incentive for them to&nbsp; run&nbsp; their&nbsp; ships&nbsp; well,&nbsp; instead&nbsp; devolving that&nbsp; responsibility&nbsp; to&nbsp; the&nbsp; managers&nbsp; while they view it as an asset play. \u201cIt&nbsp; means&nbsp; that&nbsp; as&nbsp; long&nbsp; as&nbsp; you&nbsp; don\u2019t manage&nbsp; your&nbsp; own&nbsp; vessel you&nbsp; can&nbsp; always&nbsp; invest in&nbsp; one,&nbsp; that\u2019s&nbsp; why&nbsp; the barriers to entry are low,\u201d&nbsp; he&nbsp; said.&nbsp; This&nbsp; could have&nbsp; been&nbsp; forestalled if&nbsp; class&nbsp; had&nbsp; imposed minimum&nbsp; requirements&nbsp; for shipowners&nbsp; for&nbsp; example, Koo pointed out.&nbsp;<\/p>\n\n\n\n<p>The problem extends to yards, where many of the greenfield yards were only able to start business because the class societies were not stringent enough about their standards, he said.&nbsp; \u201cThe&nbsp; gatekeeper&nbsp; to &nbsp;ensure&nbsp; that the&nbsp; shipping&nbsp; industry&nbsp; maintains&nbsp; a&nbsp; fleet&nbsp; of vessels&nbsp; that&nbsp; are&nbsp; responsibly&nbsp; and&nbsp; reliably managed and owned must be class,\u201d Koo reiterated.&nbsp; Since&nbsp; they&nbsp; are&nbsp; involved&nbsp; with&nbsp; so&nbsp; much regulation,&nbsp; the&nbsp; entry&nbsp; barriers must be protected &nbsp;so&nbsp; that&nbsp; owners&nbsp; are able to address and cope with the risks of shipping. What the new&nbsp; owners&nbsp; may&nbsp; not&nbsp; realise is that ultimate liability comes back&nbsp; to&nbsp; the&nbsp; beneficial&nbsp; owner and&nbsp; with&nbsp; new&nbsp; regulations such&nbsp; as&nbsp; the&nbsp; Rotterdam&nbsp; rules coming up, this may yet come back to haunt them.<\/p>\n\n\n\n<p>The&nbsp; impact&nbsp; of&nbsp; these&nbsp; new players has&nbsp; been&nbsp; felt&nbsp; on the&nbsp; market,&nbsp; he&nbsp; said.&nbsp; With&nbsp; a&nbsp; plethora&nbsp; of different&nbsp; types&nbsp; of&nbsp; owners&nbsp; putting&nbsp; tonnage on&nbsp; the&nbsp; market&nbsp; and&nbsp; rates&nbsp; at&nbsp; record&nbsp; lows, charterers&nbsp; feel&nbsp; there&nbsp; is&nbsp; less&nbsp; of&nbsp; a&nbsp; need&nbsp; to lock&nbsp; themselves&nbsp; into&nbsp; with&nbsp; less&nbsp; emphasis on contracts of affreightment as charterers take a shorter term view on taking in period tonnage.&nbsp; \u201cThere will always be a niche for long term time charters,\u201d he said.<\/p>\n\n\n\n<p><em>Source: Seatrade Asia Week Issue 153, April 2013<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"Commoditisation of shipping leading to lower standards in the industry Mr. Kenneth Koo, Group Chairman and Chief Executive Officer The nature of the bulk markets has changed dramatically in recent years, becoming more commoditised with the entry of private equity funds and other less established players, according to TCC Group Chairman and CEO Kenneth Koo. [&hellip;]","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","_wp_rev_ctl_limit":""},"categories":[1],"tags":[],"class_list":["post-649","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Koo calls for stricter standards to be applied - TCC Group<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.tccfleet.com\/en\/news-and-updates\/latest-updates\/koo-calls-for-stricter-standards-to-be-applied\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Koo calls for stricter standards to be applied - TCC Group\" \/>\n<meta property=\"og:description\" content=\"Commoditisation of shipping leading to lower standards in the industry Mr. Kenneth Koo, Group Chairman and Chief Executive Officer The nature of the bulk markets has changed dramatically in recent years, becoming more commoditised with the entry of private equity funds and other less established players, according to TCC Group Chairman and CEO Kenneth Koo. 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