Discussion with David Ratner, Managing Director at Scorpa Pranedya
How did you come to the shipping industry?
My path was somewhat unconventional. I began my career in finance, moved into media technology, and later became an entrepreneur in the mobile payments space. Following that, I worked in strategy consulting for infrastructure and the TMT (Technology, Media, and Telecommunications) sector, which provided a structured way to approach complex problems. In 2021, after 20 years of professional and start-up experience, I was asked to join our family business, Scorpa Pranedya, and take over its direction.
Having seen so many different sectors, how does shipping stand out to you?
The most significant difference for me is the shift from B2C to a purely B2B industrial focus. When you are outside the industry, you don't think about shipping often, but once you are in it, you realize how much everything on the planet depends on it. You look at the statistics, and you realize that 90% of world trade is carried on water. Shipping is critical for world trade and of course recently it has been getting more attention in the geopolitical arena.
Another striking factor is the 24-hour nature of the business – you have to be ready to respond around the clock if needed. Whether it is a mechanical failure, an accident, or a ship struggling to leave port at 3:00 AM, the industry requires incredible dedication and often immediate attention.
Could you explain exactly what Scorpa Pranedya does?
We are a ship owner specializing in a very specific niche - we operate J19 tankers, which are approximately 18,000 to 20,000 deadweight ton vessels. What makes them unique is their shallow draft of about 7 meters. This allows our ships to service ports that others of a similar size cannot. The company was originally founded in Indonesia specifically to service clients with this specific requirement. Currently, there are only about 19 to 21 of these exact vessel types in existence.
Shipping is a competitive industry, what is your strategy for succeeding?
It is a combination of being in our niche vessel segment and strong relationships we have built. Our ships face less competition because of their technical specifications. And absolutely key is to have strong relationships with the clients we serve in areas we focus – that’s the foundation of long-term success in this business.
Beyond ownership, we are also a service provider in Indonesia. We offer technical management and crewing services through a partnership with CST Singapore, a subsidiary of the German firm Chemikalien Seetransport. Our goal is to bring best-in-class service – the kind you would expect in Singapore or Europe – into the Indonesian market. We are finding that clients in Indonesia are increasingly willing to pay for high-quality service because they see the long-term benefits.
You have lived in the US, the UK, and Switzerland. What is your perspective on the advantage of Singapore as a global shipping hub?
Singapore is incredible from a shipping perspective. This success stems from a very focused approach by the Singaporean government and the Maritime and Port Authority (MPA). They have created a favorable tax regime, a high concentration of talent, and a culture of collaboration that you don't always see in other markets. They know how to push the industry to collaborate across different companies, bringing the whole industry together. Strategically, Singapore is such an important global center that shipping people want to be here; the way Singapore has nurtured the shipping industry is truly second to none.
Looking ahead 10 years, what are the most relevant trends you see?
Two major topics dominate the conversation: alternative fuels and technology adoption. With the pushback from the new administration in the US there is no longer much regulatory clarity on the former. While there is still uncertainty regarding which specific fuel will see the widest adoption and what regulations will ultimately be put in place, the push toward greener credentials still remains a focus for many global operators.
On the technology front, the industry has historically been slow to adopt digital tools, but that is changing by necessity. We are seeing AI being used to gain efficiencies in route planning and workflow automation, leading to significant fuel and expense savings. I think we will see a lot of efficiency gains in shipping due to developments in AI. But impact on employment may be less compared to other white-collar industries, it is hard to think how seafarers would be replaced with AI anytime soon or even critical members of land teams.
Regarding autonomous vessels, I believe it will be a long time before we see them at scale. The level of responsibility involved in shipping means that humans will remain essential to operations in the logistics industry for the foreseeable future. A lot of elements within ship operations may be powered autonomously but you will need to have humans in the loop for responsibility.
If technology adoption is so important, why it is notoriously difficult to sell digital technology to shipping companies?
One key challenge I’ve seen for vendors is who the decision-making sits with. In my view, there are at least three important parties in relation to tech purchasing decisions: The owners, the charterers and the technical managers (assuming they are indeed three separate parties). So a vendor has a great tech platform that helps the vessel improve efficiency leading to cost savings. But there is a capex component. If they approach the ship owner and the vessel is on charter hire, the owner will likely say its up to the charterer since voyage costs are on them. Approach the charterer, and they’ll likely tell you the ship operations are under the owner’s appointed technical manager or they are not interested in spending any CAPEX because its not their ship. And technical managers are not going to add anything that increases their cost. So it’s a vicious cycle where most parties can see the benefits but they are not properly incentivized to make the investment. For me that is one issue that stands out. There is also a lot of noise in the market with so many new tech solutions, it hard to know which one will deliver and more importantly if they’ll even be around in 12 months.
What advice would you give to young people considering a career in shipping?
Shipping powers world trade. I would tell them that shipping is never dull and offers a vast array of career opportunities. You can find a path that suits your passion in so many different areas within shipping. If you want to be a lawyer, maritime law is an extremely interesting area and can keep you very busy. If you enjoy commercial angle and relationship building you can consider trading or brokering. If you are interested in technology you can focus on improving operations.
Shipping also offers significant earning potential. Outside of the tech world, many of the world's wealthiest families built their fortunes in shipping. Shipping is one of the oldest industries in which people have built phenomenal wealth over time. I’d hope that would get young people excited.
Finally, I would strongly encourage more women to join the industry. There are so many exciting opportunities, and we definitely need more women in the field.
