{"id":13806,"date":"2026-10-19T06:10:42","date_gmt":"2026-10-19T06:10:42","guid":{"rendered":"https:\/\/commodityconversations.com\/wordpress2\/?p=13806"},"modified":"2026-10-15T09:12:21","modified_gmt":"2026-10-15T09:12:21","slug":"a-conversation-with-richard-watts","status":"publish","type":"post","link":"https:\/\/commodityconversations.com\/wordpress2\/2026\/10\/19\/a-conversation-with-richard-watts\/","title":{"rendered":"A Conversation with Richard Watts"},"content":{"rendered":"

Shipping, Trading and the Value of a Network<\/strong><\/p>\n

\"\"<\/strong><\/p>\n

Good morning, Richard, and welcome to Commodity Conversations. You began your career in rice trading, particularly in shipments to West Africa. What did that experience teach you about shipping that a textbook couldn’t?<\/strong><\/p>\n

Rice is a commodity where anything that can go wrong will. It is unusual because you can take a handful of rice, boil it, and feed a family. It is ready to eat without any further preparation.<\/p>\n

At the time, we were a team of 15, moving a million tonnes of rice per year. It was an interesting environment, and I learned an incredible amount during the first three years of my career.<\/p>\n

I started in IT, then moved into execution, shipping, voyage chartering and operations. I also handled insurance and legal disputes and travelled to West and East Africa to resolve issues. Looking back, I don\u2019t understand how I managed all that in three years. It formed much of my underlying knowledge and experience.<\/p>\n

I then spent four years at a more structured company, ASCOT, handling shipping operations for another million tonnes per year. Because nobody else handled insurance, I took that on, along with legal disputes.<\/p>\n

ASCOT was part of Addax. I was quite sociable with people across the larger company, which laid the foundation for my network later in my career. Anyone\u2019s career is built on a network and knowledge. You cannot get anywhere without both.<\/p>\n

I understand you teach. Where do you teach, and what do you teach?<\/strong><\/p>\n

I teach at the Haute \u00c9cole de Gestion in Geneva. My students are enrolled in a bachelor\u2019s programme in international business management. In their final year, they can specialise in commodity trading.<\/p>\n

We focus on commodity trading each Friday. I teach in partnership with Julie Noller, a carbon-credit trader. She teaches in the morning: trading, middle office, risk, derivatives and hedging. I teach in the afternoon: everything physical, including Incoterms, contracts and charter parties.<\/p>\n

I also teach a commodity-trading fundamentals course with SUISSEN\u00c9GOCE, the Swiss trading and shipping association. It is a two-day course that traces an imaginary trade from A to Z and covers all the key elements. Each intake has 20 people, and the courses are always fully booked, with a waiting list.<\/p>\n

I also teach companies directly. I might be in Abu Dhabi or teaching online, with participants in Mauritius, Pointe-Noire and Dubai on the same course.<\/p>\n

It is a mix of structured university teaching, association courses, and bespoke company training: shipping, charter parties, contracts, insurance claims, and letters of credit\u2014basically anything that isn’t pure trading.<\/p>\n

How much of your working time does teaching take?<\/strong><\/p>\n

Probably about 40 per cent. It is difficult to say because it includes time in front of the class, as well as preparation, which can take longer.<\/p>\n

What was the biggest challenge you faced when managing shipping operations at ASCOT, and how does it influence what you teach today?<\/strong><\/p>\n

Two things: time pressures and cultural differences. We bought mainly in Asia and sold in West Africa, so we needed fundamentally different ways of dealing with people.<\/p>\n

If you dealt with the Asians as you did with the West Africans, they would clam up. If you dealt with the West Africans as you did with the Asians, they would not listen. Individual countries also differed.<\/p>\n

That helped me realise that you have to understand someone\u2019s motivations before you can convince them to do something.<\/p>\n

The other lesson was the importance of getting things done quickly but precisely. You cannot hang around; you have to act. But doing something to 90 per cent can be the same as doing nothing. If somebody has to pick up the last 10 per cent, they may have to start from scratch. If you are going to do something, do it to the end.<\/p>\n

What prompted you to establish HR Maritime in 2008?<\/strong><\/p>\n

In early 2007, I was seeking a new challenge. I had been working in shipping operations for some time and was speaking to various companies. I always knew I wanted to be the boss and make decisions. But at every company I considered, that position was still a long way off.<\/p>\n

Do you see your company as a link between physical commodity traders and shipping companies?<\/strong><\/p>\n

People see me as an intermediary, but I am not. I work on behalf of my client, reinforcing their capacity or filling any gaps in their understanding.<\/p>\n

I spend as much time on purchase and sale contracts as on shipping. If there is contamination on board a vessel, is that shipping or trading? It is difficult to draw the line.<\/p>\n

I also have a shipowning client. When I write their emails, I have to pause and remind myself: I am on the owner\u2019s side now.<\/p>\n

A company like Cargill may not need my consulting or claims services, but it might need training to address a specific gap. Training tends to be for larger and medium-sized companies; consulting, advisory work and claims handling tend to be for medium-sized and smaller companies.<\/p>\n

All I do is plug a gap. There are plenty of gaps because what we do is complex. Being an expert in all the moving parts is very tricky.<\/p>\n

Does the growth of trading companies\u2019 shipping operations change that role?<\/strong><\/p>\n

Whether you are a voyage or a time charterer, you will have shipping claims. They might be demurrage or consumption claims, but there will always be areas where people need advice.<\/p>\n

The trading companies are growing and have greater capacity. When they charter vessels on a time charter, the trading company often charters on a voyage charter from its internal shipping entity. This adds layers of complexity that have to be considered and managed internally.<\/p>\n

Traders, or sometimes operations managers, tend to bring me in. Operations people may be less convinced that outside assistance is required. But a trader might need an answer within ten minutes and often has the confidence that i can provide this, considering the various angles but not sugar coating it. If the answer is that the trader is wrong, I don’t hesitate to say so. They know they can get that reactivity and honesty from me. I jump in when needed and step out when I’m not; however, I am always a phone call away.<\/p>\n

How is AI changing shipping and the relationship between shipowners and traders?<\/strong><\/p>\n

Everyone is working in their own silo, behind their city walls. I do not currently see much use of AI for collaboration. That will come, but in rare cases, people see it more as a competitive advantage.<\/p>\n

I have seen plenty of people trying to solve the chartering question: how do we connect shipowners with charterers? I haven’t seen a system make much progress. I spent a year consulting for one in 2016, and it never went anywhere.<\/p>\n

We are seeing both sides use AI extensively, including in voyage optimisation. But charter parties remain extremely disorganised documents with far too little thought put into drafting and eventual consequences. I am not sure whether this is an opportunity for AI or simply a need for clearer contracts.<\/p>\n

Will AI take over chartering, or will we still need the human element?<\/strong><\/p>\n

We can use AI for lower-complexity tasks, but we still need people to manage it. I would be shocked if AI were independently chartering vessels within the next 20 years, although predictions about AI are difficult.<\/p>\n

Chartering and trading involve a great deal of personal interaction. Contracts also vary widely. If everything were standardised, big companies would tweak it and make money off those using the standard version.<\/p>\n

But AI can do impressive things. I use it to review charter parties and claims.<\/p>\n

Could you describe a particularly challenging assignment?<\/strong><\/p>\n

One involved an Angolan shipowner whose vessel was managed by a Greek ship manager. I ended up taking charge of the whole matter, to the point that the owner sent me money, which I released to the manager. The vessel went into dry dock. I went to Split, Croatia, to visit it and meet the manager, then to Piraeus to audit the office. It was really interesting.<\/p>\n

What I like about complex projects is that I learn something. Essentially, I\u2019m paid hourly to learn, which I find fascinating.<\/p>\n

Another case involved ethanol loaded in Peru. There were five or six sampling points, with issues related to higher alcohols and acidity. It looked as though the higher-alcohol problem came from the load port, while the acidity came from the vessel. Multiple parties were involved, and there were questions about how the testing was conducted. Now, if you ask me about acidity or higher alcohols, I know far more than I did before.<\/p>\n

Often, I am behind the scenes, writing emails and advising the client: \u201cWe are on the right track. Hold course.\u201d<\/p>\n

How much of the cost of vessel delays could we avoid with better contracts, documentation, and communication?<\/strong><\/p>\n

You have to divide the conversation into two categories. First, why is the vessel delayed? Is it due to poor organisation at the port, too many vessels, an unexpected arrival time, or a vessel too big for the intended berth? Second, where does the cost fall? On the supplier, the charterer, or the shipowner?<\/p>\n

On the first question, good organisation can make a big difference. One client discharges gasoil and gasoline at Pointe-Noire and rarely experiences delays. Other trading companies might wait one, two or three weeks. This company has people on the ground who ensure everything is ready before the vessel arrives.<\/p>\n

Then comes apportioning the cost. You need clear evidence gathered during the operation. By the time you negotiate the claim, the information is already set. It requires collaboration between the trader who agrees to the deal, the people issuing the contract, operations, and claims. Operations must ensure everything runs smoothly and produces or obtains the right documentation. Claims people must understand the issues and have the evidence to argue them.<\/p>\n

If you streamline that, you can save millions. But once the delay has occurred, the money has already been spent. It becomes a question of whose pocket it comes from.<\/p>\n

Is your job always to contest the claim?<\/strong><\/p>\n

Sometimes, my job is to be brutally honest with my clients and tell them their position is extremely weak. I say, \u201cYour argument has too many holes. You are wasting your time and money. Drop the item, pay the money, walk away and focus on deals where you are making money.\u201d<\/p>\n

What is the most common shipping mistake traders make?<\/strong><\/p>\n

There are many types of traders. Some buy and sell and treat everything else as operations. Others oversee everything across the chain.<\/p>\n

Understanding contractual terms and their consequences makes a big difference. But you also have to consider the price. If you secure better terms, the price may be worse. From an operations perspective, it is easy to say, \u201cYou should negotiate better terms.\u201d But how much do those terms cost?<\/p>\n

Traders could benefit from a better understanding of the financial consequences of their agreements. If they give something away, what does it cost? If they understand that and accept it, that is fine. It is their job. The problem is giving something away without understanding the consequences.<\/p>\n

You have been involved in promoting electronic bills of lading. Why haven\u2019t they taken off?<\/strong><\/p>\n

It is a journey. One of my students wrote a thesis on electronic bills of lading and ended his defence by asking why they had failed. I asked whether, in 2019, it would have been accurate to say that artificial intelligence had failed.<\/p>\n

Bills of lading are complex documents that mean different things to different people. For banks, they serve as collateral. A bank lending against them seeks to secure that collateral anywhere in the world. For trading companies, reduced handling costs help, but they are only one of many available improvements. Faster payment benefits the recipient, but not necessarily the payer. A trader is in the middle, doing both.<\/p>\n

For shipowners, these are complex legal documents, backed by about 150 years of jurisprudence. Electronic bills of lading have a much shorter legal history.<\/p>\n

We are getting there, and I think adoption may happen without us noticing. Covantis has adopted Secro\u2019s electronic bills of lading, and agricultural companies have started using them with less fanfare than you might expect.<\/p>\n

I should disclose that I have a vested interest: I actively promoted Secro\u2019s eBL and was compensated in shares. The real reward for my work would be seeing inefficiency decrease as eBLs and other digital documents are adopted. But I also know this isn\u2019t the most urgent problem to solve.<\/p>\n

Where do you see the greatest benefit of digitisation?<\/strong><\/p>\n

Data integration. Start with the contract, then build the documentary instructions, followed by the letter of credit and the bill of lading.<\/p>\n

If we need to discharge against a letter of indemnity, we should be able to click on the bill to generate it. The indemnity could be transmitted on the same platform, making the process more valuable and secure. Then the documentary presentation follows, and everything flows.<\/p>\n

Trading has many moving parts. Each service provider takes its slice of the pie and focuses on it, without necessarily understanding what it affects next door.<\/p>\n

Electronic bills of lading are great, but they are not the only documents in a letter of credit. For true integration, all the pieces must align.<\/p>\n

What is the most pressing problem the industry needs to address?<\/strong><\/p>\n

I am not sure there is one. There are a billion things we could do better. We could gain a lot by talking across industries\u2014agriculture and energy, for example\u2014and sharing lessons learned. We tend to focus on what is different instead of what is the same.<\/p>\n

Everyone brings their own baggage and perspective. A trader sees things from a trading perspective; someone in operations sees them from an operations perspective. Everyone thinks their part is the most important piece of the puzzle. I am not sure there is a single most important part.<\/p>\n

That brings us nicely to the <\/strong>Commodity Show<\/strong><\/a>. You have recently joined as a partner. What prompted you to get involved?<\/strong><\/p>\n

Many events are created by people in the events industry. They are skilled at organising events but do not necessarily understand the business. The business has an opportunity to create an event.<\/p>\n

We are not just cross-commodity; we are cross-functional. We cover agriculture, metals and energy, as well as trading, operations, human resources and finance.<\/p>\n

The idea is not to bring everyone into one massive mix. Instead, we want, for example, a legal panel across commodities, an HR panel across commodities, and other panels focused on a particular sector.<\/p>\n

What do you hope people will gain from attending the event?<\/strong><\/p>\n

Knowledge and networking opportunities for newcomers and established people.<\/p>\n

We spend so much time on daily business that we do not take the opportunity to chat. But chatting is not wasted time. Someone randomly mentions a problem, and someone else says, \u201cWe already encountered the same situation, and this is how we solved it.\u201d<\/p>\n

There is no formal mechanism for that exchange. The more opportunities we create for unplanned interactions, the better the industry becomes.<\/p>\n

How will you assess whether the event was successful?<\/strong><\/p>\n

If people leave having enjoyed it, built relationships, found an opportunity at a new company, or identified talent they need, that is success for me. It is difficult to measure, but financial results aren\u2019t the only criterion.<\/p>\n

What advice would you give to someone already in the sector or planning to join it?<\/strong><\/p>\n

Never miss an opportunity to help someone. It will pay off, though you never know when\u2014five, ten, twenty or thirty years later. Our careers are long. Someone you helped without much thought may come back ten years later.<\/p>\n

That goes back to the network: build it, work on it, and focus on the long term.<\/p>\n

Last question: You are flying to Senegal in a couple of hours. What will you do there?<\/strong><\/p>\n

After several years with SOS M\u00e9diterran\u00e9e<\/a>, I helped establish the Foundation for Humanitarian Action at Sea<\/a> in 2024. The initiative brings together the shipping and humanitarian sectors, with representation from the International Chamber of Shipping and the International Federation of Red Cross and Red Crescent Societies. It focuses on migrant sea routes in the Mediterranean, East and West Africa, the Caribbean and Southeast Asia.<\/p>\n

We regularly hold regional meetings that bring together search-and-rescue authorities to coordinate their efforts and identify support needs. I am travelling to Senegal for our regional meeting there.<\/p>\n

Our guiding principle is that, regardless of debates over migration, people should not die at sea. Merchant vessels often undertake rescues without the equipment, design or training required, putting everyone involved at risk. We aim to help fill that training gap.<\/p>\n

Thank you, Richard, for your time and input.<\/strong><\/p>\n

\u00a9CommodityConversations\u00ae2026<\/p>\n","protected":false},"excerpt":{"rendered":"

Shipping, Trading and the Value of a Network Good morning, Richard, and welcome to Commodity Conversations. You began your career in rice trading, particularly in shipments to West Africa. What did that experience teach you about shipping that a textbook couldn’t? Rice is a commodity where anything that can go wrong will. It is unusual … <\/p>\n

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