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Accident spotlights meteoric rise of firmwith Indian roots
Synergy, a company founded by Rajesh Unni in 2006, had its fleet grow from scratch to some 30 ships in early 2010s to some 660 vessels now
The collision on Tuesday of a cargo ship, the Dali, with one of the concrete piers of the Francis Scott Key Bridge in Baltimore, which resulted in the bridge collapsing, has thrown the spotlight on an Indian story: the success of Synergy Maritime Group, which manages the vessel involved in the freak accident.
Synergy, a company founded by Rajesh Unni in 2006, had its fleet grow from scratch to some 30 ships in early 2010s to some 660 vessels now. A growth rate in fleet strength of 50 ships a year tells a tale of how ship owners across the world, including in Japan, Singapore and China, have come to trust Synergy with their ships.
Dali’s crew is entirely Indian, and Synergy reported that they are all safe, except for some minor injuries to one member. But accidents such as the one on the Patapsco river can lead to action by national governments on not only owners or managers of the ship but also individual seafarers. Whether the accident will impact Synergy’s standing as a trustworthy manager among ship owners and the commercial stakeholders hinges on what actually caused the crash and whether safety standards were compromised — that is now a matter of investigation, being carried out separately by the company and authorities in the US
Synergy Management Group is registered in Singapore and has offices and companies at strategic locations across the world including Singapore, Hong Kong, Japan, Denmark and UK. But it is Chennai, where the 50-something Unni began the company, that remains the company’s unofficial base. Unni still maintains an office at the company’s Perungudi premises.
At any point in time in recent years, Synergy has on its rolls some 10,000 to 15,000 seafarers on board its ships, the bulk of them Indian. It’s also one of the few Indian companies that manages assets across class — from oil and gas vessels, bulk carriers to state-of-the-art container ships.
Its growth mirrors the increasing differentiation in roles in global shipping, a complex set of mobbing parts. While London remains the hub of shipping finance, insurance and commerce, ship-owning has diversified in recent years.
Next in the industry pecking order are charterers -- those who handle cargo and provide fuel for the vessel. Ship managers are those who run the ship. They provide the crew who operate and maintain the ship, take care of technical aspects, and ensure smooth sailing among regulators – governments of countries the ship calls on, insurance, as well as authorities of countries the ship is registered in.
Ship management is a typically Indian niche in global shipping. While finance, shipbuilding and owning are at the top of the industry food chain, and require much national heft and capital access, ship management is a skill akin to providing operational support and services in the IT industry. And it’s a niche that Synergy leads in.
During Covid, for instance, Synergy arranged crew transfers across countries and continents using bio-bubbles. Globally, seafarers were critical links in pandemic mitigation, with many serving in the lonely seas often for more than a year without stepping on land because of pandemic restrictions.
Industry insiders, asking not to be named, said Unni operates with a calmness that has earned the trust of owners and regulators.
Synergy’s growth has been boosted by strategic alliances including joint ventures, such as with Maersk, which provided a step change in fleet strength. The growth story has been continuing and for that reason the accident has triggered a feverish interest and much speculation in the merchant shipping world.
