ShipCrunch

Yes, finally, a few words on piracy

What it takes to put an issue like piracy on the high seas,
higher on the public agenda

By Ryan Skinner (email)

Piracy's a subject I long ago decided not to touch with a barge-pole. Why? It doesn't need attention from the likes of me, and so many people know so much more than I. Let them fill the airwaves with ideas and opinions.

It's a tragedy that piracy has not gained more attention, though. An utterly solvable problem of heart-rending proportions taking place in full openness has generated less overall attention than, say, one memo from a Nokia CEO.

Don't blame the public. Until these pirates are stealing our women and raping our cattle, we're not going to give it two thoughts. It's not an issue that is touching people where they'll feel it.

The industry has seemingly crafted pretty strong economic arguments against piracy. I've heard cost of piracy figures ranging from $1 billion up to $12 billion (can you say piracy bubble?). I'm sure these facts and opinions get the creaking machinery of the bureaucracy moving, but there's no urgency.

I've seen little in the way of emotional appeals. The closest it came was during the Maersk Alabama incident, but that story turned into an action movie featuring a sniper.

Suspend your disbelief for a sec. I see Leslie Stahl of 60 Minutes in the humble home of a Ukranian second mate, who describes the harrowing ordeal of an extended period of incarceration on his own ship at the hands of pirates. Stahl asks the mate's young daughter "how did you feel when your daddy was kidnapped?" The young girl cannot explain her fear, but we can see it better than any words can convey.

Stahl interviews one of the warlord pirate leaders in Puntland, and a couple 16-year-old pirates who are about to board a mother ship. "Why do you do this?" Through the translator, we hear them say "It's a living."

Stahl talks to shipowners, negotiators on both sides, IMO leaders and Navy admirals. She paints the picture of an entirely avoidable state of affairs, beginning with a collapsed state harried by fish poachers and illegal dumping and ending with a menace to a salt-of-the-earth workforce.

Who's going to pitch this story to 60 Minutes? Take Producers David Gelber, Howard Rosenberg, Shachar Bar-On, or Associate Producer Sam Hornblower. All have friends of friends in shipping. Go ahead and look them up in LinkedIn. Maybe you know someone who knows them, or another producer.

It's all about the stories. Who knows a seafarer with a piracy story that hits heart-strings? Our piracy experts have countless colorful sources on both sides of the piracy equation. We know the navies, the IMO and the shipping industry will talk about it.

For a producer of gripping television documentaries, this story has a bow on it.

Here are some examples of other people trying to put some color to this story, if on a more modest scale than 60 Minutes:

Kirk Klocke's 3-part documentary on the shipping industry and piracy

A CBC documentary that has, unfortunately, been taken off the air

Sky's Ross Kemp in search of pirates

My cousin the pirate on Vimeo

Somaliland Piracy (but only if you understand Italian)

Are shipping lists of value to readers or advertisers?

In the wake of a mini-tussle on the LinkedIn Marine Media group, I ask: How are lists of powerful people linked to the revenue streams of those publications who push them?

By Ryan Skinner (email)

It all started with an email from a trusted source at a shipping company. He complained that Lloyd's List, in putting a pirate among its top 10 most influential people in shipping, was legitimizing piracy, and terror. What about the families of those killed or taken hostage by these thugs?, he asked.

As a result, he told me, and I quote: "I just pulled my advertising with Lloyd's." I told him to keep the ads (if he got something out of them) and just criticize Lloyd's List publicly. It would serve his purposes better.

Interested to see if there was similar sentiment in the market, I started a discussion in the Marine Media LinkedIn group (just ask to join, if you're not already a member), describing this one advertiser's response, and asking if there were any other strong reactions.

Lloyd's List responded truculently. Deputy Editor, and soon-to-be editor, Richard Meade accused me of lying, current editor Tom Leander called me to ask if I had my facts straight and a commercial guy with Informa (Lloyd's List's owners) fired emails through.

For the record, I state: No, the advertiser is not a client. And, no, I don't know whether the advertisements were ordered, then rescinded, or if he had merely planned to advertise, then cancelled those plans.

If anything, this silly non-controversy showed two things:

1) Lloyd's List blows at PR. Why demonize the messenger? If a company Lloyd's List had covered negatively in its paper were to respond like Lloyd's List has, it would be a classic example of how NOT to handle a story.

2) Lloyd's List is particularly ticklish at the moment about the commercial aspects of this Top100 list. Patrick Neylan argued convincingly that the list was not created to win advertisers; why, otherwise, would they put a pirate there, which risks opprobrium?

Curious to see how the industry feels about such lists, I have started a poll on LinkedIn, asking whether the Top100 list will impact ad-buying decisions at Lloyd's List. That poll is embedded here:

Shipping marketer, who the hell are you talking to?

Probably 70% of marketing efforts in this industry are box-checking exercises. Who are you talking to?

By Ryan Skinner (email)

Tell me if this sounds familiar: A new pump/box/widget/port-service is going to be launched, so the marketing people put together direct mailings, a press release, maybe a press conference at a trade show, a product sheet, an advert for a few trade mags, a new product web-page, maybe an e-newsletter and (dare I say it?) a blog post.

Lots of marketing boxes are checked. We're good. Then someone asks the marketers: "So, who did we reach? Who read your stuff? Who liked it? Who came back for more information?" Then the marketers say, "hey, that's sales job!"

No.

I take it for granted that at least 70% of marketers and marketing efforts in shipping (and probably more) work just like this.

The Five Big Marketing Ideas of Shipping

If you thought it was all about environment, price or partnerships, you'd be wrong.

By Ryan Skinner (email)

For all its desire to stay the same, shipping's changing. You can feel it in the desires of customers and the customers' customers, both shippers and carriers. And anyone talking to them better tune their story accordingly.

Here are the five big issues that marketers in shipping should be thinking about when framing their arguments and conversations:

Shipping PR & Marketing all mixed up

If your products are so special, why do you describe them just like everyone else?

By Ryan Skinner (email)

It's a fact: Most companies in the shipping/marine sector don't have the kind of wherewithal to hire separate managers for PR things and for marketing things. Generally, the marketing person is going to get the PR responsibilities.

The results aren't pretty. An editor of a major maritime publication wrote me recently:

from my experience, a lot of the PR people that I deal with are still sending me things layered with 'leading' this and 'innovative' that, which leaves me spending an unnecessary amount of time getting the useful information out. It's not everyone, but some seem to think it's part of their job to get as many superlatives into the press as they can.

Hands up, the marketer/PR managers who he's nailed. (Don't lie now - admit to that "100th mother-of-god awesome marine pump sold to extremely delighted customer" press release last month).

The problem is this: The marketer/PR guy's marketing language bleeds into his PR work. Sure, when you're flirting with the big customer, you're telling her you're the biggest and the best. That's just marketing. Imagine that the press is her father-in-law. He's not interested in why you think you're great. He wants to know what you stand for, what you're really all about.

Here's a fact: Most suppliers/products aren't a whole lot different from one another. They can't be, as you spend much of the time copying the best aspects of your competitors. The difference between success and failure in too many instances boils down to the success of a sales guy. So stop trying to convince the journalist you're "the leading" or "the most innovative."

What you can achieve with PR are these incredible things called authority, credibility and tangibility. Most people will say "PR?!" and roll their eyes. PR's about telling your story in terms that make sense economically, socially and environmentally. You tell a journalist what it means that you do things the way you do them. The more authentic you speak, the more successful your endeavor.

This whole dialogue with the editor resonated from an intention to republish this blog in his magazine, and from an article I recently shared on twitter. Basically, it's saying that the lines between PR and journalism are blurring. Read it. It's worth it. It's the same thing I talked about half-a-year ago with my post about every company a publisher.

The Jones Act and Affirmative Action

Subsidies, protectionism and entitlements desiccate an industry and its professionals

By Ryan Skinner (email)

John McCain's attack on the 90-year-old Jones Act has some rejoicing, others fretting 

When I studied at Duke University in the 90s, one of the hot campus topics was affirmative action, the government-backed policy of favouring racial minorities in hiring and school admissions. Effectively, an African-American, Hispanic-American or Native American with lower test results and grades than the mean would get accepted.

Ironically, most minorities at my school (and many others) hated affirmative action. Why, if it meant a ticket to a prestigious school? They understood that, in the school's ultra-competitive environment, they were branded "second-best". No one could tell who got into the school via affirmative action and who didn't, so it appeared that anyone with dark skin was given an unfair boost.

That kind of uncertainty corrodes integrity. Am I good enough? Do I have an unfair advantage? Would I be here if it weren't for unfair laws or rules? If you love competition or believe in the level playing field, government-granted help takes the legs out from under you.

Thus a florid discussion that popped up on Maritime Executive's LinkedIn group (probably the most vibrant online shipping community today), where many American mariners and shipping professionals railed against the Jones Act, should come as no surprise.

So far, 168 back-and-forth comments from 21 committed shipping men (and one woman - Go Maria Dixon!) basically conclude either that protectionism and entitlements suck or that they're a blessing. Nonetheless, they're a fact of life in the US market and you're a sucker who's going to kiss off the domestic shipping and shipbuilding industry if the Jones Act is scrapped.

Arguments for subsidies, favouritism and protectionism weigh heavily in the long run. Saving jobs, keeping strategically vital trades open, preserving naval construction capability, etc. - these are all strong and valid arguments.

On the con side, state-sponsored protectionism kills competitiveness, which is why most economists hate it. Once a business is protected, it starts becoming wasteful and dies if you stop propping it up. That's a pretty strong argument for business leaders to reject state aid. Yet, they do it again and again.

An argument that dances well in the spotlight but performs poorly on the poker table is simply that of morale. People working in state-sponsored industries quite simply feel inferior. They never know, and never will know, whether they actually could compete, given equal footing. That thought's a killer, and it's part of the uncertainty that surrounded affirmative action.

It looks like the Jones Act is headed for revision. To those who suffer under its incapacitating tyranny, it'll be a blessing.

Some gems from the Jones Act discussion at Maritime Executive's LinkedIn group:

Preaching shipping to an audience of none

What can go wrong when a gang of shipowners erect a defence of the industry? Everything.

By Ryan Skinner (email)

Last week I penned a short column questioning the organization, orientation and goals of yet another self-appointed outfit determined to ride to the defence of the shipping industry's tattered reputation. Here it is.

Yesterday, the director of said self-appointed outfit, Captain Peter Swift, voiced his dissatisfaction with my view on the opinion page of Lloyd's List.

First of all, I'm sorry, Captain Swift. I'm sorry I failed to convey my point.

My point was this: An organization inspired by, led by and composed of shipping people, determined to tell shipping stories and aiming to provide accurate details of the shipping industry, an organization just like that, has a zero percent chance of exerting a lasting influence on people outside the shipping industry.

You say I have no need to be concerned that you are trying to preach to the converted. I'm not concerned. I'm disappointed.

I am disappointed that what's truly exciting about the industry is not going to come across. Why? Because shipping people are among the least likely to know what might make shipping interesting or worth learning about to people who are not in shipping, and not likely to get into shipping.

I don't do this for fun. I don't do charity work. I do it for a living. I spend my time explaining to executives that those stories they want to tell, those stories about how spiffy their company and their product is, is one their audience is not predisposed to want to hear, or to believe. Let other people talk about how great you are. The smart leaders see the point.

What I fear most about the organization you've put together is precisely what you consider its strength. I quote: "While we have so far concentrated our membership on shipowners, ship managers, P&I, classification and educators our intention is to include everyone involved from ship design to recycling such as ship builders, underwriters, legal practitioners, ports, repair companies, marine equipment suppliers and manufacturers."

You are assembling a choir for self-congratulation, not industrial activism. Get environmental organizations, fair trade advocates, economists, politicians, technologists, entrepreneurs, natural and social scientists on your board and in your organization, not sailors, suppliers and ship-brokers.

The former will keep you focused on the social value of world trade driven by a responsible shipping industry. The former will keep you honest. The latter will simply applaud to see their name on a web-site, a banquet invitation or a press release. But perhaps that's what charities are all about, anyway.

When should you spill your oil: An Instruction Manual

A colloquial guide to proper oil spill etiquette, as formulated by ISO and EMSA policy

By Ryan Skinner (email)

This crane contributed to the development of this instruction manual

Before we go any further, please note:

If you are anywhere in or near the US Gulf of Mexico and you need to spill oil, DO SO NOW. Do not hesitate. Just dump it, report the oil to the US Coast Guard and deploy some booms. Send the bill to BP.

If you are within easy steaming distance of the US Gulf of Mexico, set your course for the gulf, then follow the above procedure.

The same rules apply if you are anywhere near the Bay of Bohai in China, except you should address the cost of cleanup to PetroChina. If they fail to pay, try BP there too.

If none of the above applies to your oil spill situation, you will need to follow a specific oil spill management programme. Good preparation for oil spills is key to ensuring a successful spill.

Rules of thumb for spill timing:

• Do NOT spill in US waters during presidential election season. Nor election season for the US Senate, or House of Representatives. Nor state senate seats in any state affected by your spill. School board elections are probably safe.
• If you are within spilling distance of waters inhabited by, or habitable for, walruses, guide your vessel there before spilling.
• A fast spill (a "wad") is preferable to a long, drawn-out and pathetic dribble of a spill. Instruct technical personnel appropriately.
• If you can time your spill when passing another vessel or rig, do so. Then report the spill to authorities, targeting the other vessel. Prepare for a "he who smelt it, dealt it" defence from those you accuse.

With the dawn of new satellite technology that can detect oil spills, the oil spill timing picture grows more complicated. Fortunately, careful management of the spill, along with knowledge of the limitations of said technology, does not have to threaten your planned oil spill.

According to the EMSA, the satellites may be confused by "sea ice, turbulence generated by a ship propeller, rain, naturally occurring algae blooms, reduced wind speeds in wind shadow areas (behind an island or coastal mountains), fish and the egos of oil company executives".

In other words, if you're steaming through a major storm just off a rugged coastline in frigid waters with plenty of algae, screw the engines up to full and spill at will. Otherwise, just let it fly in high winds and hope the satellites are looking the other way.

FYI: It is considered highly impolite to spill oil at weddings, funerals, birthdays, bar mitzvahs, christenings, a brit milah, or at or around a major yachting competition.

We hope this oil spill instruction manual contributes to your future successful oil spill.

I see shipping news scams

Powerful medium for news and info creates powerful temptation to fool people, and yourself

By Ryan Skinner (email)

The Internet is not a way to print money. Shipping people, be warned: the Internet may have turned the information economy on its head, but it is still an economy. Value does not come out of the air.

As a player in the shipping PR economy, I see a fair share of hustles. Here are a few:

1) The Maritime Press Release Hustle

2) The Shipping News Site Hustle

3) The Scraped Shipping News Hustle

4) The New Shipping News Hustle

5) The Marine Address List Hustle

The sea is not our stomping ground

How to generate interest in shipping? Stop talking about shipping!

By Ryan Skinner (email)

Craig Eason of Lloyd's List recently called me up to get my opinions on a new maritime foundation that aims to cultivate the reputation of the shipping industry.

"Wait a sec, hasn't this been done before, I mean, again and again?"

He says they're using twitter this time, and social networking, and other Silicon Valley-smelling gizmos.

"Oh."

I spouted something on the spot that I hoped wouldn't seem too stupid in Lloyd's List, then spent the rest of the day returning to the topic.

My main message for Eason: You need to take your audience into account. That's alpha and omega in the communications and PR business. A non-shipping audience doesn't care about ships or shipping. Why should they?

Eason more or less concurred: Shipping will say that the industry moves 15,000 pairs of sneakers across the world every day. Who cares? Exactly.

I may be interested to know exactly how the sneakers I bought yesterday came to arrive at the store. I may be interested to hear how the two engines of globalization - the immaterial, Internet-driven transactional economy and the material web of product movements - interrelate. I'm probably at least fleetingly interested in world trade, emerging market economies, supply chains or the like.

What about the shipping industry's particular expertise dealing in an environment of multiple, conflicting jurisdictions? Political risk? Adapting to operational requirements from countless regulatory bodies, acting only half-concertedly?

Give me that. Just don't give me the amount of coal that moves over deep seas daily, or the number of nationalities working on big boats.

This maritime foundation better decide right away who the real audience is. So many of these efforts fail because the internal audience trumps the actual audience. In other words, people working for the foundation spend their time writing for the near audience of internal stakeholders (effectively, the big shipowners backing it), as opposed to the far audience - the public.

Before you scoff at their near-sightedness, know that this failure to target is widespread in business. In how many companies are the communicators working to stroke the egos of top management, as opposed to doing the real job, the harder job: Communicating to a world of strangers whose love isn't measured in your next pay-check but in political and business decisions years from now?

My advice for anyone endorsing shipping: Keep your eye on the real audience. Forget about ships. Focus on social utility. The sea isn't shipping's stomping ground.

[While I'm on the topic of shipping PR faux pas, I pass along an article I was sent by Ben Strong of AMVER. Articles like this, and the actions that result in them, do nothing to dispel shipping's reputation as an industry of shady practices and chummy, good ole boy relationships. Slimeballs.]