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Photo: Joachim Sjöström

A blue corner – diverse and impressive
Scandinavian Shipping Gazette has been a promoter of a common Nordic maritime identity, and never before has the full range of our shipping activities spanned so widely and held such a global importance.

True, the nature of the shipping business varies from country to country; from predominantly international in Denmark to largely national in Finland. In all our countries the national economies are to varying degrees dependent on effective maritime transportation, and the surrounding clusters of maritime services hold a significant position in many communities throughout the region.

The recent bonanza has injected profit and optimism into most of these communities. This ranges from commercial organizations in Copenhagen, Gothenburg and Bergen, to shipowners in Mariehamn, Skärhamn and Haugesund, coastal shipowners in Marstal, Borgå and Fonnes, offshore shipowners in Esbjerg and Fosnavåg. Since 2002, shipping companies in our four countries have invested some USD 37 billion in ships, new and secondhand, which promises determination and confidence.

Strengthened
The stronger shipping markets since 2003 have bolstered the Nordic shipping industries in several respects, with more vessels, the building of larger partnerships and stronger commercial positions. In the global market, Scandinavian-based operators are strong in several segments, and many hold leading positions in the regional shipping market.

The large shipping houses like Mærsk, Stena, Clipper, Lauritzen, John Fredriksen have acted vigorously to build stronger positions, either by partnerships, contract coverage or by attracting public equity. Camillo Eitzen & Co has extended its commercial network by taking over British, French and Spanish companies.
The region’s industrial shipping operations have gained further foothold. A P Møller-Mærsk’s acquisition of P&O Nedlloyd may be the most-publicized case, bringing together 550 container carriers in the world’s largest logistic system. Wallenius Wilhelmsen Logistics and Höegh Autoliners have extended their total services far beyond running ships.

Apart from the conspicuous deals, most companies have quietly continued to make the most of the opportunities in their respective segments. This goes for industrial operations like the chemical groups Odfjell and JO Tankers as well as the forest transport groups Star Shipping, Gearbulk and Saga which have all expanded with their customer industries. The reefer operator LauritzenCool has joined forces with NYK Line, whereas Star Reefers has largely left Norway for operation from London and now with management moving to Gdynia. Green Reefers of Norway has built up a stronger presence in the Transatlantic trade.

The LPG carrier-pools operated by Bergesen Worldwide and A P Møller-Mærsk dominate their tonnage segments in the global market, along with a build-up in the etylene and smaller sizes by Eitzen Gas, Skaugen and Lauritzen-Kosan.
The product/chemical market has attracted great interest internationally, but Scandinavian owners and operators have not been left behind. Broström bought out partner Vroon from the product pool and has increased its standing in smaller and handy sizes. Swedish owners operate some 130 tankers in European waters, mostly on T/C or commercial operation by Broström and Nortank.

A P Møller–Mærsk is expanding its product tanker exposure in the 16,000- and 35,000 DWT range, as are compatriots Torm and Norden in the handy- and long-range market. New contenders have entered the market with timechartered and latterly owned tonnage, like the Bergen-based Bryggen and Champion Tankers.
There is indeed a strong Danish position in the chemical/product tanker market up to 20,000 DWT, with Clipper Wonsild Tankers, Eitzen Chemical and the Swedish-owned Nordtank, as well as Herning and M H Simonsen. Norwegian owners like Utkilen and Seatrans have a leaning towards stainless chemical tankers.

	Photo: Joachim Sjöström

Impressive presence
The presence in the dry bulk market is very impressive, despite the fact that few such vessels are actually owned in our region. Groups like Klaveness, Western Bulk, Lauritzen Bulkers, Eitzen Bulk, Torm, Norden, Clipper, Ugland Bulk and Star Shipping, are commercial managers of more than 700 bulk carriers, ranging from small handy- to capesize.

Even the shortsea dry market has had a couple of profitable years with secondhand imports to Scandinavia. There is a consolidation going on towards larger logistic systems in the region, as seen by Transatlantic – the former B&N and Gorthon, the Bore group of Åbo and DFDS.

The rising oil prices and the looming energy shortage have unleashed a wave of investment in vessels for oil exploration, construction and supply. Two decades of very scant interest in new drilling vessels has led to an investment boom without precedence, partly driven by shipping-related entrepreneurs.

Human capital
Human capital needs investment, too. The maritime industries require human resources and competence, from maritime experience to technical skill, innovative minds and commercial talent.

Sweden and Denmark have managed to keep a relative high number of national seafarers, many of whom may in turn end up in operative positions ashore. Denmark, in particular, has succeeded in presenting its shipping industry as exciting and with great opportunities for young people. Until recently, there seemed to be no sort of common strategy for recruitment in Norway; now there are local initiatives for more trainee positions at sea and the Shipowners’ Association has set up a trainee scheme to attract post-graduate youngsters.
Shipping is not really about ships, it is about commercial networks selling sea transportation and maritime logistic services, and operating ships. It is a mystery how a company can lay down strategies and invest hundreds of million USD without proper attention to the personnel who shall run the operations and ensure the performance of the ships in a 10–15 years’ perspective.

Larger than you would think
In terms of tonnage, what is the share of the global fleet owned and commercially controlled in our region?

Now, there is a problem. The statistics, such as provided by ISL-Bremen, is mainly built on Lloyd’s-Fairplay information, corrected for national figures. These sources point to an owned fleet in the region of 72 million DWT (Norway 38, Denmark 20, Sweden 12, Finland 2 mill DWT), of which 39 (22+10+6+1) flies the national flags. In real terms, as for vessels with some sort of management from Scandinavia, about 30 million DWT should be added for Norway alone (to 102 million).

The fleet under commercial control, however, is much larger. Just the above-mentioned 700 bulk carriers come out at about 30 million DWT, of which 4/5 are owned elsewhere. A somewhat smaller share of product tankers, in addition to foreign-owned container vessels, car carriers, chemical tankers, gas carriers under pool or T/C control would come out at an estimated 20 million DWT.
Summing it all up, an owned/managed fleet of 102 million DWT in addition to 40 million under commercial control adds up to some 140–145 million DWT; give or take a few million tons.

Based on the pretence of being roughly right rather than exactly wrong, this points to a Scandinavian presence in the global shipping industry of 15 per cent. This defies the assumption that shipping is in decline in our part of the world. It is an industry of global consequence, the product of long maritime traditions and the continuity of an international business culture. In short: an industry to appreciate and encourage.

//Dag Bakka Jr