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For centuries the great port cities analysed in the recent Xinhua-Baltic International Shipping Centre Development Index report were built on the confluence of trade, people and ideas. Centred around ships and the presence of their owners, managers and charterers, maritime clusters steadily grew across Europe, Asia and the Americas. A combination of talent, time-zone, geography, expertise and government policies has helped locations such as Singapore, London and Shanghai thrive. Successful clusters combine the experience and size of established companies with the energy and drive of smaller and start-up firms. Collectively they have consistently delivered innovation, jobs and tax receipts.

But has the successful shift to working from home during the COVID-19 pandemic ruptured the maritime business cluster concept forever? Will like-minded and complementary as well as competing businesses operating in the same field continue to see the advantage of co-locating in the same expensive business districts? Has the theory of clustering, which describes the economic advantages of the concentration of specialised industries in a single location, been overturned by a brave new world of remote meetings and home working? Or will we see a swift return to business as usual and offices in maritime clusters fill up again with shipbrokers, tech-specialists, financiers, insurers and lawyers when the pandemic ebbs? Continue reading “Shipping: Does location matter anymore?”