Eimskip Global News 2015

2015

GLOBAL NEWS

SHIPPING 101 EIMSKIP STRENGTHENS ITS OPERATION EVEN MORE EIMSKIP SERVICE PORTFOLIO THE VOYAGE HOME

TABLE OF CONTENTS SHIPPING 101. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 THE HOME MARKET.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 THE GREEN LINE DIRECT LINK BETWEEN EUROPE AND NORTH AMERICA. . . . . 5 KEEPING IT COOL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 EIMSKIP STRENGTHENS ITS OPERATION EVEN MORE.. . . . . . . . . . . . . . 7-8 KEY FIGURES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 EIMSKIP’S DEDICATED REEFER SOLUTIONS. . . . . . . . . . . . . . . . . . . 10-11 GLOBAL NETWORK. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12-13 EIMSKIP SERVICE PORTFOLIO. . . . . . . . . . . . . . . . . . . . . . . . . . 14-15 LOGISTICS PARTNER FOR THE 24 HOUR RACE IN DUBAI 2015. . . . . . . . . . .

16

COOL LOGISTICS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

17

THE VOYAGE HOME. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18-19 EIMSKIP’S 100TH ANNIVERSARY. . . . . . . . . . . . . . . . . . . . . . . . . .

20

NEARLY A CENTURY OF DEVELOPMENT. . . . . . . . . . . . . . . . . . . . . .

21

EIMSKIP CHINA 10-YEAR ANNIVERSARY.. . . . . . . . . . . . . . . . . . . . .

21

AK EXTREME!. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

22

CHARITY DONATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

22

TRADE SHOWS ALL OVER THE WORLD. . . . . . . . . . . . . . . . . . . . . .

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Publisher Eimskip Korngardar 2 104 Reykjavik Iceland Telephone +354 525 7000 E-mail: eimskip@eimskip.com Web: eimskip.com

2

Editors Ólafur William Hand Dagný Jónsdóttir Hermann Sigurðsson Production Eimskip Marketing

Printing Litróf printing, Iceland Paper Arctic Volume White by Arctic Paper The printing of this magazine has Nordic Swan Ecolabel accreditation.

The paper used for the magazine has Nordic Swan Ecolabel accreditation an carries the FSC label.

SHIPPING 101 In the transportation industry, a great deal has changed since Eimskip was founded 101 years ago. The company is still going strong, both businesswise and financially. Last year, we celebrated both Eimskip’s 100th anniversary and the company’s first ten years in Asia, being one of the leaders in reefer forwarding services.

Eimskip’s vision is to be a leading transportation company in the North Atlantic, providing outstanding services through a dependable transport system and an extensive worldwide network of reefer logistics services.

Today, Eimskip runs a network of 55 own offices and works with 68 associates in a total of 46 countries. The company employs a total of 1,400 employees. It operates 16 vessels, twelve of which are on scheduled services, two in spot services, one used for bulk cargo and one used as a ferry. Eimskip has defined its home market from the north and west coast of Norway to the east coast of North America, or Norway, the Faroe Islands, Iceland, and Newfoundland. These countries are all rich in natural resources.

The continuous task ahead is to improve our liner services in the North Atlantic, expand our range of services in the company’s home market, and fine-tune our customer services and international forwarding services.

The latest change, made to our sailing system in the North Atlantic in February, was to combine three vessel systems under the name Green Line, our former Green and Red Lines. The Green Line was serving between Iceland and North America, and the Red Line was serving from the Icelandic coast to Europe. With this change, we are connecting Europe and North America on a direct route without transshipments and are adding frequency by five voyages a year. This will benefit our port calls in Argentia and St. Anthony in Newfoundland, Halifax in Nova Scotia, and Portland, Maine. Our transportation system remains organic and is wholly dependent on how efficient it is at every given moment, depending on the needs of our customers.

Eimskip’s forwarding services include international reefer and general forwarding, concentrating mainly on Asia, Europe, and North America. The forwarding services are transportation solutions which are outside the company’s own transportation system, but nevertheless the forwarding services and the liner services support each other. The international forwarding market is diverse and very competitive. We have managed to follow our customers in their globalization by creating a service network in cooperation with various transportation companies all over the world. The forwarding

services have been growing year by year.

Eimskip’s strategy is to grow organically, but also through a very strategic process of mergers and acquisitions. We have, through our investments in the operation of the cold storage of St. Anthony and by aquiring the forwarding company CargoCan in Newfoundland, Gylfi Sigfússon, strengthened our service network President and CEO in the fast growing market of Newfoundland. Our plans are also to keep on building and investing in Portland, Maine in the near future, in order to finalize and strengthen the infrastructure in the New England area. In Europe, we finalized early this year the acquisition of Jac. Meisnera forwarding company in the Netherlands that will support our growth in Europe. Eimskip will from the first of March take over the warehouse operation of Damco in Aarhus Denmark, beeing the largest provider of 3rd party logistics in this second biggest port in Scandinavia. Early this year, we also established Eimskip & KCie GmbH & Co. KG, a ship management company in Hamburg in Germany. The intention is to better support the managing of our vessel fleet in the future.

Eimskip is observing various opportunities in the Arctic, which due to global warming, is rapidly opening up. These opportunities are related to port operations, specialized transportation and services for oil exploration, mining, fisheries, and various other ventures in and close to the Arctic region.

It is one of Eimskip’s duties to make sure that environmental issues are not forgotten. We are actively participating in discussing potential environmental risks and finding ways to minimize the costs to the operations in the North. Iceland’s sovereignty and its strategic geopolitical location make it an ideal platform for such discussions.

I am very optimistic about the future of Eimskip. Our operations in our home market will continue to grow in the foreseeable future, and we are constantly looking for ways to improve our customer services and our international freight forwarding services. We are energetic, ambitious, and focused on the tasks ahead and with increased opportunities discovered in the North Atlantic and in the Arctic. I am certain that Eimskip’s future is exciting and bright, guided by our values: Achievement, Cooperation, and Trust. •

3

Nuuk Greenland

Ísafjördur

St. Anthony

Iceland

NL, Canada

Grundartangi

Akureyri Iceland

Iceland

Reydarfjördur

REYKJAVÍK

Iceland

Iceland

Portland Maine, United States

Halifax NS, Canada

Argentia NL, Canada

Vestmannaeyjar

Boston

Klaksvík

Iceland

MA, United States

Sortland

Tromsø

Hammerfest

Norway

Norway

Båtsfjord

Norway

Norway

Faroe Islands

TÓRSHAVN

Kirkenes Norway

Faroe Islands

Tvøroyri

blue line

Sandnessjoen

Faroe Islands

Norway

Scrabster

yellow line

Murmansk

Ålesund

Russia

Norway

Scotland

Måloy Norway

Bergen

Aberdeen

green line

Norway

Scotland

Stavanger Norway

gray line

Fredrikstad Norway

Grimsby England

Immingham

orange line

England

Århus

partner route

Finland

Sweden

Swinoujscie

freight forwarding possible arctic sailing route

Helsinki

Halmstad

Denmark

Velsen

ROTTERDAM

The Netherlands

The Netherlands

Hamburg Germany

Vigo

Poland

St. Petersburg

Riga

Russia

Latvia

Szczecin Poland

Spain

Gdynia Poland

Klaipeda Lithuania

Porto

Portugal

optional port / seasonal route

Lisbon Portugal

transit hub port partner port

THE HOME MARKET Core operations Eimskip’s vision is to be a leading transportation company in the North Atlantic. Executing this vision requires custom-made transportation solutions, solutions which have been developed throughout the company’s 100 years of history. Today, the home market sailing system reaches from Russia’s Kola Bay and the Norwegian coast in the northeast to Europe and stretches to Portland, in New England, USA. On average, Eimskip is calling close to 40 ports in the North Atlantic east and west regions on a weekly basis. No other transportation company in the North Atlantic offers the same coverage in the region.

Support and benefit from core operations Eimskip’s goal is to provide its customers with total transportation solutions and full supply chain needs, many of which are tailored to meet the specific needs and logistic challenges of its customers. Eimskip’s support activities are assets that are strategically located to support the home market and the supply chain needs of its customers, whether it is operation of container terminals or domestic distribution system.

The supply chain infrastructure and resources are integrated solutions designed in combination with own-acquired assets and third party assets, building a solid transportation solutions in often remote areas.

The transportation system remains organic and is wholly dependent on how efficient it is at every given solutions and markets, therefore the company is constantly reviewing its routes and services and will continue to be a leading service provider in the region. • chilled and cold storage facilities

11 4 Iceland

1 Asia

warehouses

25 14

11

Iceland

Europe and North America

teu

19,638 5,685 Reefer containers

10,973

2,980

Dry containers

Other containers

container cranes and forklifts

354 272

82

Iceland

Europe and North America

trucks, vans, and trailers

714 365 Iceland

4

6 Europe and North America

349 Europe and North America

THE GREEN LINE DIRECT LINK BETWEEN EUROPE AND NORTH AMERICA

St. Anthony NL, Canada

Ísafjördur Iceland

REYKJAVÍK

Akureyri Iceland

Iceland

Boston

Sortland Norway

MA, United States

Portland Maine, United States

Halifax

Argentia

NS, Canada

NL, Canada

Green Line Optional Port / Seasonal Route Transit Hub Port

Eimskip decided to combine its Green and Red Lines in the company’s sailing schedule. The Green Line has served between Iceland and North America with a port call in Sortland in Norway. Containers with origin in Europe and Scandinavia have been transshipped to the Green Line in Reykjavík. The Red Line has served between Iceland and Europe and on the coastal route in Iceland. Combination of the two routes forms the basis of increased service reliability between Europe and North America.

The new route is named the Green Line, and three vessels are serving on this combined route as before. They sail direct between Europe and North America, with calls in at least three Icelandic ports to serve importers and exporters in Iceland. The ports of call on the Green Line are the same as on the previous routes, but the change creates direct sailings between Europe and North Ameri-

Immingham England

ROTTERDAM The Netherlands

ca, without transshipment in Reykjavík like before.

The change further strengthens the selling of services between North America and Europe and will increase the service reliability since connections between the company’s different sailing routes have sometimes been jeopardized, mainly due to adverse weather conditions. The change will increase the total number of voyages per year between Europe and North America by five.

Gylfi Sigfússon, President and CEO “We are pleased to offer increased frequency and direct services between Europe and North America since transported volumes to and from the United States and Newfoundland have been increasing. We are also better able to respond to our customers’ needs for direct services without transshipments.” •

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ST. ANTHONY NL, Canada

HAFNARFJÖRÐUR Iceland

HARBOUR GRACE

REYKJAVÍK

NL, Canada

Iceland

SORTLAND

KLAKSVÍK

Norway

Faroe Islands

KIRKENES Norway

TÓRSHAVN Faroe Islands

Our services include:

HELSINGBORG

• Full-scope trawler discharging services • Re-packing and re-labeling • Small packaging for retail • Laboratory and inspections • Customs and documentation formalities

Sweden

QINGDAO China

KEEPING IT COOL Eimskip offers storage for frozen and chilled products in many countries around the world. Fish and other refrigerated cargo is transported from North Atlantic with Eimskip reefer vessels and discharged and stored in various refrigerated warehouses, waiting to be sold and forwarded in smaller quantities to buyers across the world.

Eimskip provides the complete logistical package for the storage of frozen and chilled products. We find the appropriate refrigerated warehouse, with the best price and location, take care of all formalities, manage our customer‘s stock, and arrange the distribution of shipments by road, railway, or any other form of transport.

Eimskip in cooperation with the port authorities in Qingdao Eimskip signed a joint venture contract with the port authorities in the city of Qingdao in China, regarding operation of a 55,000-ton cold storage. The cold storage has been operated by A1988 hf., formerly known as Eimskipafélag Íslands, since 2007.

According to the joint venture contract, Eimskip will become a 30% partner in a new joint venture company where the port authorities will own 70%. Involvement of the Qingdao port authorities is an important factor in strengthening the operation of the cold storage, as various changes are planned in the port’s environment that the operation will benefit from in the near future. The port authorities have selected Eimskip as a partner to develop transport-related services to importers and exporters in reefer forwarding business, which Eimskip is specialized in.

The cold storage in Qingdao is located at the city’s container terminal, which is the seventh largest container port in the world, with a turnover of about 15.5 million TEU per year. Approximately 80 employees will be working in the new company, and annual revenue at the outset is expected to be in the amount of about EUR 4.5 million.

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Eimskipafélag Íslands builds a 10,000-ton cold storage facility in Iceland Eimskip has decided to embark on the construction of a hightech, 10,000-ton cold storage facility at its operating site in Hafnarfjörður. The decision is made in light of the considerable recent increases in the fishing and processing of pelagic species, which calls for increasing cold storage services. In addition, there is increasing demand for warehouse hotel services for frozen consumer goods. Since 1970, Eimskip has had operations in Hafnarfjörður, where it operates the cold storage facility Fjarðarfrost. Fjarðarfrost’s capacity is approximately 3,000-tons. The company also operates extensive discharging services for the fishing industry together with related services. •

Alcoa Fjardaál and Eimskip renegotiate stevedoring agreement for Mjóeyri Harbor Alcoa renegotiated agreements with Eimskip following an international tender on stevedoring services for the smelter in Mjóeyri Harbor in Reydarfjordur for the next five years. Eimskip has provided these services for Fjardaál ever since the smelter started operations in 2007.

Eimskip has already entered into investments of around ISK two billion (over USD 16 million) in East Iceland related to the services for Alcoa Fjardaál and other operations in the area. Around 100 employees are now working for Eimskip to prepare products for export and provide harbor services as well as container and local transport services.

After Mjóeyri Harbor was constructed by the smelter site, transport to and from East Iceland has increased significantly, and now around 1.5 million metric tons pass through the harbour each year. •

EIMSKIP STRENGTHENS ITS OPERATION EVEN MORE Eimskip acquires Jac. Meisner Eimskip has strengthened its position in worldwide reefer logistics services with an acquisition of the forwarding company Jac. Meisner Internationaal Expeditiebedrijf B.V. in the Netherlands.

The company Jac. Meisner was founded in 1959 and is located in the port of Rotterdam. The company’s main expertise is custom brokerage, veterinary and agricultural inspection, and the receiving and checking of frozen and chilled cargo with origin all over the world for import into European countries. The company’s annual turnover amounts to approximately EUR 7.5 million, and with expected synergy with Eimskip, the estimated EBITDA margin of the company will be 8–9%. The acquisition will strengthen the services to Eimskip’s customers, and the customers of Jac. Meisner will also benefit from Eimskip’s global network. The transaction is a part of Eimskip’s strategy of external growth and will further strengthen the company’s worldwide reefer logistics services. •

Eimskip and König & Cie. establish a joint venture in Hamburg, Germany Eimskip and the company König & Cie. Holding GmbH & Co. KG in Germany have established a joint venture company named “Eimskip & KCie GmbH & Co. KG”. The new company will be specialized in ship management and trading. The ownership will be 80% by Eimskip and 20% by König & Cie. The new company will create synergy in vessel operation, including technical management, chartering, sale and purchase, new building projects, and various other ship management and investment projects. Eimskip’s aim has through the years always been to optimize and secure the operation of Eimskip’s vessel fleet, and with this joint alliance with König & Cie., Eimskip will even further strengthen its operations. •

7

Eimskip invests in infrastructure in Grundartangi, Iceland Eimskip has signed a purchase agreement for three lots at the industrial and harbor area in Grundartangi, Iceland. The total size of the purchased land is 22,410 sq. meters. A comprehensive construction is planned in this area by various parties, in which Eimskip intends to participate with this investment.

Concurrent with the investment, the company has bought two new harbor cranes of the type TREX Gottwald GHMK 6507.

The cranes are electrically driven and are therefore more environmentally friendly than the older cranes powered by fuel. This is in accordance with Eimskip’s environmental policy which e.g. aims at minimizing the release of carbon dioxide. Furthermore, the cranes will increase safety and reliability during the unloading and loading of the company‘s vessels.

Eimskip‘s total investment in these projects amounts to approximately EUR 8 million. •

EIMSKIP ADDS VALUE Eimskip takes over the warehouse operation of Damco in Aarhus Eimskip will strengthen its position in warehouse services in Denmark by entering into a strategic partnership with Damco and taking over a 15,500-square-meters warehouse operation. Eimskip has been operating a warehouse of 6,000-square meters, and with the agreement with Damco, the merged warehouse will be 21,500-square-meters in total. After the changes, Eimskip will be the largest third-party logistics provider in Aarhus.

Aarhus is the second largest port in Scandinavia, handling over 600,000 TEU per year, and the warehouse is located on the container terminal with direct access to the port.

Damco has operated the warehouse in the port of Aarhus since 2003. The main expertise and focus has been on storage, packaging, project cargo, cradling, container freight station, distribution, and pick-and-pack services. •

Increased services in Newfoundland Eimskip has acquired the cold storage operation of St. Anthony Cold Storage Ltd. in Newfoundland and Labrador, Canada. The main services of St. Anthony coldstore are the discharging of fishing vessels and the storage and transportation of seafood. Eimskip has been calling the port of St. Anthony since 2005, and with this acquisition, the company will further strengthen its services and operations in relation to the seafood industry in Newfoundland as well as towards large industrial projects ongoing in the area.

Eimskip has also acquired the forwarding company Cargocan Agency Ltd., which is a leading forwarder in Newfoundland and Labrador, located in the capital city of St. John’s. The company was established in 1992 and has been a leading forwarding company for the seafood industry and for dry cargo to and from Newfoundland and Labrador.

The total estimated annual turnover of these investments is EUR 6 million, with an estimated EBITDA ratio of 12.5%. •

8

KEY FIGURES Revenue and EBITDA for the year 2014 were in line with expectations, both showing increase from previous year. The company is financially strong with strong equity ratio and low leverage. Geographical split of the revenue is about half Iceland and half is international business outside of Iceland. •

operating revenue

ebitda

Adjusted for one-off items* eur million

Adjusted for one-off items* eur million

500

50

400

40

300

30

200

20

100

10

0

373.1

386.7

423.7

433.8

451.5

2010

2011

2012

2013

2014

geographical split of operating revenue

0

38.6

37.5

40.8

37.1

38.5

2010

2011

2012

2013

2014

net debt and equity ratio eur million

ICELAND

OTHER

47%

4%

ASIA

12%

EUROPE

50

100%

45

90%

40

80%

35

70%

30

60%

25

50%

20

40%

15

30%

10

20%

5

13%

0

NORWAY

11%

FAROE ISLANDS

13%

44.4

21.9

18.7

22.0

33.0

24.9

2009

2010

2011

2012

2013

2014

Net debt

10% 0%

Equity ratio

*In the graphs above, operating revenue and EBITDA have been adjusted for one-off items. Operating revenue and EBITDA were reduced by EUR 6.4 million in first quarter 2011 due to a claim that had previously been written off. EBITDA was increased by EUR 0.7 million in second quarter 2011 due to the grounding of Godafoss. In 2012 EBITDA was increased by EUR 0.7 million in third quarter and EUR 1.0 million in fourth quarter due to expenses related to the Company’s listing at NASDAQ OMX Iceland. EBITDA in fourth quarter was further increased by EUR 2.9 million due to non-cash expenses related to forfeiture of stock options.

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EIMSKIP’S DEDICATED REEFER SOLUTIONS Eimskip’s dedicated reefer solutions Over the years, the traditional shipping company Eimskip from Iceland has developed into a globally operating all-round logistics service provider. Through an extensive network of offices and agents, it offers worldwide door-to-door logistics solutions for perishable products such as seafood, fruits, vegetables, and meat products.

Our vision is clear, “We want to be the leading company providing outstanding services through a dependable transportation system in the North Atlantic and offering extensive worldwide reefer logistics service, “ explains Óskar Sveinn Friðriksson, Head of Eimskip Logistics.

We started out as a shipping company in 1914. In the decades that followed, the company mainly focused on transport between Iceland and the Faroe Islands, Newfoundland, and Norway. Today, the company is operating two revenue segments, the liner services in the North Atlantic and international forwarding, focusing on perishable cargoes.

Seafood was – and still is – a very important cargo flow. In 2004, the company, however, decided to embark on a new course and started to diversify its operations and geographical focus. “We noticed that many of our clients were starting to move their seafood to China for processing. We decided to follow them. We followed the fish and began to organize their transport to China as well,” says Friðriksson.

The company added several branches to its network and globally expanded the number of agents. Friðriksson also says, “We currently have 55 offices and a network of 68 agents in 46 countries.” In 2014, the company had 1450 employees and generated a turnover of EUR 452 million.

Exploding global growth Thanks to its extensive global network and vast experience in reefer transport, the company’s freight forwarding volumes exploded overnight. Starting out with 4,000 TEU in 2004, Eimskip forwarding handled 138,000 TEU in 2014. “Traditionally, our orientation has always been on seafood. We used this knowledge and network and applied it to the logistics of vegetables, fruit, and other perishables,” explains Friðriksson. In 2014, perishables accounted for 78% percent of the Eimskip Logistics volumes; 70 percent of this entailed seafood and 30 percent meat, vegetables, and fruits.

The underlying philosophy of the freight forwarding division is the concept of a one-stop-window. It covers the entire logistics chain, from collecting cargo and loading ships to transport, warehousing, distribution, stock management, and customs formalities.

Friðriksson, “We want to take care of the entire logistics chain for our customers. To give an example: if a European company buys pineapples in Costa Rico, our local agent collects the reefer and we book space on a ship to, for instance, Rotterdam. From there, we arrange the customs clearance and delivery of the reefer to the client or organise further distribution.”

“We are also increasingly integrating and exploring different transportation modes, e.g. combining sea, road, and air transportation solutions. The best example on this integration is the transport of fresh salmon from the North Atlantic to the USA and Asia. We are

10

Óskar Sveinn Fridriksson, senior manager

now capable of delivering fresh products for the North Atlantic regions, Iceland, and the Faroe Islands to Shanghai in less than 6 days, 3–4 days on the water, 1 day on land, and 1 in the air.”

As the shipping branch of Eimskip uses its own equipment (it for example has a fleet of 16 vessels), the freight forwarding division cooperates independently with reliable partner carriers. Through its frequent dealings with container shipping lines like Yang Ming, Cosco, Maersk and CMA-CGM and moving huge volumes Eimskip offers the leverage to negotiate attractive rates.

According to Friðriksson, transporting seafood, meat, fruit and vegetables in reefers has a bright future. Overall, the market will grow 3–5% this year. More fresh products will be moved in reefer containers rather than conventional reefer ships. And sea shipping will increase its stake at the expense of air freight. Moreover, he expects exports to China to rise considerably. “Europe is stagnating, and I think everyone in logistics is noticing a slow and fragile recovery in the euro area, whilst China is rapidly growing. In general, I expect this trend to continue, Europe slowly recovering but China generating an upswing in imports.

The trade in perishable goods between China and Europe is more

and more in balance, whereas in the past China almost exclusively imported raw materials for re-exports. China’s increasing wealth, supported by a growing middle class will continue to grow, powered by labor-market and policy initiatives that push wages up. Inevitably, the growing demand for consumer products and services will fuel the demand for imports and freight trends will follow (imports of seafood are probably the closest example) for increased consumption,” explains Friðriksson.

The intra-Asia trade is currently the fastest growing trade within Eimskip, and we believe with further establishment of the ASEAN– China Free Trade agreements, the trade will increase. Other emerging market areas are also developing, i.e. the seafood and meat imports to Africa. It has actually been interesting to see how the Russian import ban on agricultural products has affected our organization, as the ban has created more opportunities than challenges. I think it is fair to say that when one door closes, another opens.

Bright future The Eimskip brand is strong within the seafood segments, and as a result of the same, we are noticing more and more interest from other perishable segments not related to seafood. We also intend to capture more of the supply chain values by adding our value added services. The acquisition of the Dutch logistic company Jac. Meis-

ner (JM) was an acquisition primarily to strengthen the value added services of Eimskip in Rotterdam. JM has expertise within custom brokerage, veterinary and agricultural inspection, and the receiving and checking of frozen and chilled cargo with origin all over the world for import into European countries. In Atlantic Canada we acquired the forwarding company Cargocan Agency Ltd., which is a leading forwarder in Newfoundland and Labrador, established in 1992 and has been a leading forwarding company for the seafood industry in Canada. We think the acquisition of Cargocan will bring value to our overall reefer logistics network and create one stop shopping platform for our Atlantic Canada customers.

In anticipation of the expected growth within Asia, Eimskip has been and still is expanding its logistics network in Asia. The company has for example entered into a joint venture with the Qingdao Port Authority to operate a 50,000-ton cold store in Qingdao. In Qingdao, we will be building a new and modern Border Inspection Point (BIP) station which will un-doubtfully increase new commodities to the cold store and therefore create new opportunities.

“If you don’t develop and innovate, your competitors will overtake you. We are therefore constantly developing, constantly inventing new solutions for our customers. We want to make everything as easy as possible for our clients.”•

INTERESTING FACTS ABOUT EIMSKIP LOGISTICS • • •

n average, Eimskip is dealing with approximately 229 partners to fulfill its services O Eimskip Logistic moved cargo to 663 ports and destinations worldwide, ports located in all continents The East–West Trades are the largest trades, followed by the intra-Asia trade

11

Anchorage

AK, United States

Akureyri

Ísafjördur

Iceland

Iceland

Grundartangi

Nuuk

Iceland

Greenland

Reydarfjördur

REYKJAVÍK

Iceland

Iceland

Dutch Harbor

AK, United States

Vestmannaeyjar Iceland

Å

TÓRSHAVN

Klaksvík

N

Må

Faroe Islands

Faroe Islands

Nor

Tvöroyri

Be

Faroe Islands

Prince Rupert BC, Canada

Nor

Stavanger

Scrabster

Norway

Scotland

Aberdeen Killybegs

Scotland

Ireland

År

Den

Grimsby

S

England

Immingham

St. Anthony

Seattle

England

NL, Canada

Vel

WA, United States

The

ROTTER

Portland

OR, United States

The Netherlan

Argentia

Bayside

Halifax

NB, Canada

NL, Canada

NS, Canada

Portland

Maine, United States

Boston

MA, United States

Barcelo

Porto

Spain

Portugal

NY, United States

CA, United States

Spain

Spain

MA, United States

Oakland

Bilbao

Vigo

Everett

New York

Valencia

Lisbon

Norfolk

Los Angeles

Spain

Portugal

VA, United States

CA, United States

Long Beach

CA, United States

Casablanca

Charleston

Morocco

SC, United States

Houston

TX, United States

New Orleans

Agadir

LA, United States

Morocco

Miami

FL, United States

Veracruz

Kingston

Mexico

blue line

Jamaica

Puerto Caldera, Punta Morales Costa Rica

Puerto Limon & Moin

Caracas

Costa Rica

Venezuela

Panama Panama

Abidjan

yellow line green line

Ivory Coast

Guayaquil Ecuador

gray line orange line

Lima Peru

Callao Peru

partner route freight forwarding

Rio de Janeiro Brazil

Santos Brazil

possible arctic sailing route optional port / seasonal route transit hub

Rio Grande Valparaiso

Chile

Brazil

Buenos Aires

Montevideo

Argentina

Uruguay

Mar del Plata Argentina

port partner port reefer tradeline network

Puerto Madryn Argentina

Puerto Deseado Argentina

Sailing schedule is subject to changes Ushuaia

Argentina

12

Lago

Niger

Hammerfest

Båtsfjord

Norway

Tromsø

Norway

Kirkenes

Norway

Murmansk

Norway

Sortland

Russia

Norway

Sandnessjoen Norway

Ålesund

Norway

åloy

Helsinki

rway

ergen

Finland

rway

St. Petersburg Russia

Fredrikstad Norway

Halmstad

rhus

Latvia

Klaipeda

Sweden

nmark

Lithuania

Gdynia

Swinoujscie

Poland

lsen

Riga

Hamburg

Germany Netherlands

Moscow

Poland

Russia

Szczecin Poland

RDAM

nds

Vladivostok Russia

Odessa Ukraine

Genova

Novorossiysk

Constanta

Italy

Russia

Romania

ona

Italy

Japan

China

China

Qingdao

Izmir

Gioia Tauro

Sendai

Dalian

Tianjin

Istanbul

Turkey

Busan

China

Turkey

South Korea

Piraeus Greece

Tokyo Osaka

Japan

Japan

Limassol Cyprus

Haifa Israel

Port Said Egypt

Bahrain Bahrain

Xiamen

Jebel Ali

Shenzhen

United Arab Emirates

Taipei

Taiwan

Kaohsiung

Taiwan

China

Hanoi

Jeddah

Saudi Arabia

China

China

Hong Kong

Vietnam

Nhaa Sheva India

Manila

Philippines

Bangkok

Thailand

Ho Chi Minh City Vietnam

os

ria

Port Harcourt Nigeria

Port Kelang Malaysia

Singapore Singapore

Jakarta

Indonesia

Surabaya Indonesia

Brisbane Australia

Cape Town South Africa

Fremantle Australia

Sydney

Adelaide

Australia

Australia

Melbourne Australia

GLOBAL NETWORK 13

PRODUCT / EIMSKIP OFFICE AGENCY SERVICES: - Eimskip Liner Agency - Faroe Ship Liner Agency - Eimskip Norway Liner Agency - Agency, Other FREIGHT FORWARDING: - Dry Forwarding - Reefer Forwarding - Project Forwarding TRUCKING/DISTRIBUTION: - Trucking Desk - Heavy Haulage service - International Haulage - Domestic Haulage WAREHOUSING: - General Cargo Warehouse - Temperature Controlled - Inventory Management CUSTOM SERVICES: - In-house Custom Clearance - Veterinary services OTHER SERVICES: - Airfreight - Oil & Energy “Supply base” - Discharging Services - Insurance Services - Reefer Vessel Brokerage TERMINAL OPERATIONS: - Terminal Operations

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Belgium

Canada

China

Denmark

Faroe Islands

Germany

Holland

info@eimskip.is

Brynjar Viggosson

info@eimskip.nl

Peter van der Woude (PW)

info@eimskip.de

Jan Felix Grossbruchhaus

info@eimskip.fo

Jóhanna á Bergi

info@eimskip.dk

Martin S. Henriksen (MSH)

info@eimskip.cn

James Liu (LIU)

info@eimskip.ca

Joanne Gibbons (JGJ)

info@eimskip.be

Johan Verelst (JVT)

EIMSKIP SERVICE PORTFOLIO

Iceland

Italy Japan Norway Poland Russia Spain Sweden Thailand UK USA Vietnam

15

info@eimskip.vn

Tran Thanh Long (LONG)

info@eimskip.com

Larus Isfeld (lisfeld)

info@eimskip.co.uk

Steve Sison (STV)

info@eimskip.th

Dhaneeya Sukkaew

info@eimskip.se

Magnus Svensson (MSN)

info@eimskip.es

Eva Ortiz Fernรกndez (EOF)

reefer@eimskip.com

Trond Lorentzen (TLO)

info@eimskip.pl

Piotr Grzenkowicz (PGR)

info@eimskip.no

Reidunn Dyb (RDY)

reefer@eimskip.com

Matsumoto Marines

info@eimskip.it

Roberta Magillo (RMA)

LOGISTIC PARTNER FOR THE 24H RACE IN DUBAI 2015 Eimskip Nederland was pleased to be the logistic partner for the 24H race in Dubai 2015. Event organizer Creventic nominated Eimskip Nederland at the beginning of 2014, just after the race in January. “Why should we change a winning team!!!” was the comment of Creventic.

Eimskip Nederland arranged transport, stuffing of the race cars and equipment into containers at the port of Rtm and unstuffing at the circuit “Dubai Autodrome.” These containers were shipped from Holland, Italy, United Kingdom, Hong Kong, Malaysia, Denmark, Austria, Switzerland, Sweden and Germany.

Eimskip Nederland has been the logistics partner 6 times out of 10 races. •

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COOL LOGISTICS Eimskip provides comprehensive door-to-door logistics solutions, connecting continents quickly and efficiently through contacts worldwide, and not just for chilled and frozen cargo.

Eimskip General Forwarding is an international player in worldwide logistics and offers specialized services in handling any type

of dry cargo – containerized or conventionally loaded. This service covers the whole logistics chain, including discharge of breakbulk vessels, transportation, warehousing and distribution, inventory control, customs formalities, and more. •

Eimskip offers a complete range of logistics services, including: • • • • • • • • • •

Worldwide ocean freight Comprehensive North Atlantic coverage Own container fleet Transatlantic services for oversized and containerized cargoes Europe and North America short sea services FCL and LCL distribution Pre-carriage & export documentation On-carriage by road, railway, or short sea feedering Coldstorage and general warehousing services Storage & stock control

• • • • • • • •

Fishing vessel discharging services Palletizing, sorting, labeling, and re-packing Cross docking Customs clearance & border crossing documentation Veterinary border inspection and documentation Insurance Comprehensive network of offices and agents Expertise in all sorts of commodities handling

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THE VOYAGE HOME Lagarfoss is specialized and well equipped for conditions in the North Atlantic and will strengthen the services to our customers.

Lagarfoss sailed home to Reykjavík, Iceland from Shidao in China. The journey took 49 days, and it sailed 22,380 km. In comparison, the distance between the North Pole and the South Pole is 20,001 km. • • Vessel’s deadweight is 12,200 tons • 875 TEU vessel • Length overall is 140.7 meters • Beam is 23.2 meters • Powerful bow and stern thrusters

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• • • •

Ice class 1A Plugs for 230 refrigerated containers Two 45-tons container cranes More environmentally safe

REYKJAVÍK Iceland

3 DAYS

IMMINGHAM England

ROTTERDAM The Netherlands

QINGDAO China

SHIDAO

4 DAYS

China

GIBRALTAR England

7 DAYS

SUEZ CANAL Egypt

12,084 NM 22,380 KM 7 DAYS

SRI LANKA 10 DAYS

Sri Lanka

4 DAYS

SINGAPORE Singapore

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EIMSKIP’S 100TH ANNIVERSARY Eimskip celebrated its 100th anniversary by inviting its employees, customers, and other guests to a concert in Harpa Concert Hall in Reykjavik. Three books – The History of Eimskip, Eimskip’s Vessels, and Overview of Eimskip’s Art Collection –

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were published for the occasion, and a 90-minute documentary in two parts was broadcasted on state television. Eimskip also welcomed the container vessel Lagarfoss, the newest addition to the Eimskip fleet. •

NEARLY A CENTURY OF DEVELOPMENT Faroe Ship is a company with a proud 95-year history and like never before still developing and striving to reflect and carry forward the values that built the company – customer service, dynamism, reliability, and expertise in its field of work.

Faroe Ship has been and still is a vital co-player in the development and promotion of the industry in the Faroe Islands through total transport solutions and logistics services in the Faroe Islands and worldwide.

As Faroe Ship is owned by Eimskip and is naturally an inter-

grated part of Eimskip‘s transport system network, the reach is from local to global – wherever in the world the destination or the source, Faroe Ship will get it to or from there.

Faroe Ship is an exciting business that requires constant adaptation to customer demands and continuous product and market development.

Johanna á Bergi, CEO at Faroe Ship, was chosen leader of the year 2014 in the private sector in the Faroe Islands. •

EIMSKIP CHINA 10-YEAR ANNIVERSARY Ten years ago, Eimskip reviewed its global strategy and decided that worldwide reefer logistics services would be one of the core activities, with special focus on seafood services. The establishment of Eimskip Qingdao in 2004, in the Shandong provinces, the largest in seafood among China’s provinces was a part of a strategic focus, which at that time was driven by seafood globalization. Many of the Eimskip North Atlantic customers were actively moving raw material for production to China, and opening an office in Qingdao was an essential part of extending the Eimskip product portfolio and developing the business segment of Eimskip Reefer Logistics.

Today, 10 years later, the Asia operations have developed into being a large part of the Eimskip operations, operating in 4 cities in China – Qingdao, Dalian, Xiamen, and Shenzhen; in Ho Chi Minh, Vietnam; in Tokyo Japan; and in Bangkok, Thailand, altogether employing 167 people in Asia.

Eimskip China’s 10-year anniversary was celebrated during the China Fisheries & Seafood Expo which was held in Qingdao on November 5th. About 220 people from all over the world attended the celebration, illustrating how global and local Eimskip has become in the last 10 years. •

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Akureyri

AK EXTREME! AK Extreme is a four-day festival with events scheduled at Mt. Hlíðarfjall and in downtown Akureyri in Iceland.

For the main event, a terrifying Big Jump is set up out of fifteen shipping containers from Eimskip, smack dab in the middle of town.

At last year’s edition, over 7,000 spectators turned out to enjoy the sketchy huck-fest that is the Eimskip Big Jump competition in the center of Akureyri. •

CHARITY DONATION Eimskip in Hamburg celebrated the company’s 100th anniversary and encouraged guests to provide voluntary contributions instead of giving presents on the occation of the birthday. The idea was a success, with guests donating a total amount of almost EUR 3,000 to support the Sternenbrucke Children’s Hospice. The main purpose of the foundation is to run a children’s palliative nursing home that accommodates and cares for children, adolescents, young adults, and their families who are in special need of care because of the seriousness of their illness and who have no hope of being cured. •

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February

FRUIT LOGISTICA March

Seafood Expo North America April

European Seafood Exhibition June

Atlantic Canada Petroleum Show September (every third year)

The Icelandic Fisheries Exhibition

TRADE SHOWS ALL OVER THE WORLD As a part of the Eimskip promotional strategies, Eimskip has been for many years attending as an exhibitor, specific product expositions such as the European Seafood Exposition in Brussels, the Seafood Expo North America in Boston, the Seafood Exhibition Coxemar in Vigo, the China Fisheries & Seafood Expo, The Icelandic Fisheries Exhibition in Reykjavik, Atlantic Canada

October

Seafood Exhibition Coxemar in Vigo November

China Fisheries & Seafood Expo

Petroleum Show in Newfoundland, and the FRUIT LOGISTICAfresh produce trade show, held annually in Berlin, Germany.

These expos are an important forum for Eimskip to present the company and its current and new services and are also an important meeting point for current and potential customers. •

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A GREEN LINE ACROSS THE ATLANTIC Eimskip's Green Line increases the number of voyages between North America, Canada, Newfoundland and Europe.

The new sailing schedule will increase service reliability and respond to our customers' needs of direct services without transshipments. The new sailing schedule will increase the number of voyages per year between Europe and North America by five.

Nuuk Greenland

Ísafjördur

St. Anthony

Iceland

NL, Canada

Grundartangi

Akureyri Iceland

Iceland

Reydarfjördur

REYKJAVÍK

Iceland

Iceland

Portland Maine, US

Boston

Halifax NS, Canada

Argentia NL, Canada

Sortland

Vestmannaeyjar

Klaksvík

Iceland

MA, US

Tromsø

Hammerfest

Norway

Norway

Båtsfjord

Norway

Norway

Faroe Islands

TÓRSHAVN

Kirkenes Norway

Faroe Islands

Tvøroyri

Sandnessjoen

Faroe Islands

Norway

Murmansk

Ålesund

Scrabster

Russia

Norway

Scotland

Måloy Norway

Bergen

Aberdeen

Norway

Scotland

Stavanger Norway

Fredrikstad Norway

Grimsby England

Immingham England

Århus

Helsinki

Halmstad

Finnland

Sweden

Denmark

Swinoujscie

Vigo Spain

Porto

Portugal

Lisbon Portugal

Korngardar 2 | 104 Reykjavík | Iceland | Tel. +354 525 7000 | www.eimskip.com

Velsen

ROTTERDAM

The Netherlands

The Netherlands

Hamburg Germany

Poland

Riga Lettland

Szczecin Poland

Gdynia Poland

Klaipeda Litháen

St. Petersburg Russia