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DANISH

MARITIME MAGAZINE February 2018

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DANISH SHIPPING Facts and Figures

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SPECIAL Outlook 2018


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TOP STORY

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ACCESSING A NEW AGE OF OCEAN OPPORTUNITY It’s not all doom and gloom. Markets remain tight and projected growth uncertain, but maritime has the key to accessing a range of opportunities that are almost as limitless as the oceans themselves.

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DANISH SHIPPING INDUSTRY - FACTS AND FIGURES

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When Danish shipping company Norden enters into a contract on transportation of road salt from Chile to the US East Coast and combines the transaction with transportation of biomass from the US East Coast to Europe, the distances where Norden sails without transporting cargo but nevertheless consumes fuel are minimized.

In 2017, the Danish fleet has grown considerably and reached an all-time high when measured by the gross tonnage of ships flying the Danish flag. The number of ships has hovered around 682 ships. Container ships represent the largest segment within Danish Shipping, whereas offshore and specialized vessels comprise the largest number of ships.

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BUSINESS WITH A PURPOSE

DANISH MARITIME TECHNOLOGY CONFERENCE 2018 Concurrently with Danish Maritime Days 2018 in the first week of May, Danish Maritime and members of the organization invite to the Danish Maritime Technology Conference.

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DANISH MARITIME FAIR 2018 IS APPROACHING FULL CAPACITY In three months, the doors will open for the fourth edition of the Danish maritime exhibition, the Danish Maritime Fair, which is held in Lokomotivværkstedet in Copenhagen. At the event, hundreds of Danish as well as foreign exhibitioners are ready to receive more than 4.400 people who are expected to attend the event, within the three days the exhibition takes place - from the 2nd to the 4th of May.

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CAUTIOUS OPTIMISM IN SHIPPING Minor improvements in the global economy have led to cautious optimism in certain sectors of shipping. The upswing in the dry cargo market is very fragile and it will be necessary for global ship-owners and operators to nurture it if they want it to last. BIMCO’s chief analyst Peter Sand reports.


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MAN PRIMESERV SIGNS CONTRACT WITH ARKAS MAN PrimeServ, MAN Diesel & Turbo’s after-sales division, has signed an EMC maintenance contract with Arkas Shipping and Transport, operator of Turkey’s largest container fleet with 50 vessels.

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DANISH SHIPYARDS MAY END UP BEING DISRUPTED Danish shipyards may end up being in disarray, because the authorities lack of concern have resulted in the government sending orders of new ships abroad, instead of being smart and contributing to innovation and jobs at home. Last October the Danish Defense’s department in charge of purchasing, chose to forward an order of 18 small environment vessels to a Finish shipyard.

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NORDEN SAYS “NO” IN THE SUEZ CANAL When vessels from Norden pass through the Suez Canal in the future, Norden will no longer give in to pilots’ demands for facilitation payments – typically in the shape of 2 cigarette cartons.

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2018: BRIGHT FUTURE AHEAD FOR THE NORTH SEA

NORDIC TANKERS SELLS CRYSTAL NORDIC Nordic Tankers and Embarcadero Maritime have signed and closed an agreement to sell the jointly held company Crystal Nordic to John T. Essberger in Hamburg, a leading owner and operator of chemical tankers in Europe.

The future shines bright for offshore activities in the North Sea Basin! The CEO of the cluster organization Offshoreenergy. dk, Glenda Napier, is very optimistic in her speech, as she states: We are getting ready for some major changes in the coming year!

DANISH MARITIME MAGAZINE ISSN 1903-5888 ADVISORY BOARD President: Klaus Kjærulf, Chairman, SKULD Jenny Braat, CEO, Danske Maritime Jan Fritz Hansen Per Jørgensen, Chairman, MMF og FICT Bjarne Mathiesen, Rambøll Torben Frerks, CEO, Weilbach Lars Thrane, Chairman, Lars Thrane A/S

EDITOR

Martin Uhlenfeldt Phone: +45 23 66 28 99 mu@maritimedanmark.dk

MANAGEMENT

René Wittendorff Phone: +45 70 20 41 55 rw@maritimedanmark.dk

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Phone +45 70 20 41 55 sales@maritimedanmark.dk

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February 2018

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No. 1

DKK 49,50

DANISH SHIPPING Facts and Figures

SPECIAL Danish Maritime Fair

Next issue: 3rd April 2018

SPECIAL Outlook 2018


DANISH SHIPPING INDUSTRY - FACTS AND FIGURES In 2017, the Danish fleet has grown considerably and reached an all-time high when measured by the gross tonnage of ships flying the Danish flag. The number of ships has hovered around 682 ships. Container ships represent the largest segment within Danish Shipping, whereas offshore and specialized vessels comprise the largest number of ships.

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ince April 2017, the Danish fleet has grown by 800.000 GT, and consists of 16.4 million GT as of October 2017. This is more than twice as much gross tonnage under Danish flag compared to 2006. The increase can be explained by the growth within the container segment from 10.5 million GT in April to 11.4 million GT in October 2017. The growth in tonnage under Danish flag points to the fact that Denmark is overall considered a solid and strong flag for shipping companies.

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Despite the growth in tonnage, the number of vessels flying the Danish flag has remained at a constant level throughout the past couple of years. The fleet still contains 682 ships. Container is by far the largest segment measured in gross tonnage, whereas offshore and specialized vessels, as well as passenger transport and RoRo comprise the largest segments measured by the number of ships. 392 vessels in the above mentioned segments fly the Danish flag.

DAILY NEWS ON WWW.MARITIMEDENMARK.DK

SHIPPING EXPORTS RECOVERED IN 2017 Shipping is still recovering from the large decrease in exports in 2016. The exports from Danish shipping companies decreased from more than 200 billion DKK to 167 billion DKK from 2015 to 2016. Correspondingly, shipping’s share of total Danish exports fell from 20 pct. to 16 pct. in one year. Shipping remains Denmark’s largest export industry. Based on the first three quarters of 2017, the projected shipping exports in 2017, will reach


188.7 billion Danish Kroner based on the assumption that the fourth quarter equals the average of the first three quarters. While the quarterly export from Danish shipping companies fluctuated around 41 billion Danish Kroner in 2016, the three first quarters of 2017 has brought a significant increase in shipping exports. Between January and September 2017, shipping exports amounted to more than 141 billion Danish Kroner. Thus, Danish Shipping expects a strong increase in exports in 2017, though shipping exports presumably do not reach the historically high levels of 2014 and 2015 SHIPPING IS THE MOST GLOBAL INDUSTRY Two thirds of the value creation of Danish shipping companies take place outside of the EU. For the rest of the Danish export industry only one third of the value creation takes place outside of the European Union. Thus, shipping is considered the most global, Danish industry. It is therefore of great importance for the industry that the EU ensures global trade agreements with regions outside of the union in order to

maintain the current trade within these markets as well as enable future growth. CONSTANT NUMBER OF SEAFARERS The number of Danish seafarers has stayed constant the last couple of years, while the number of international seafarers in Danish shipping companies has decreased significantly from 2016 to 2017. Despite the significant decline in shipping exports in 2016, it is noteworthy that Danish shipping companies have managed to keep the number of Danish seafarers at a constant level in 2017. The unemployment among Danish seafarers is almost non-existing ultimo 2017. Therefore, a further increase in the employment of Danish seafarers will require a larger pipeline of seafarers from the educational institutions in Denmark. In 2017, the enrollment of students at maritime educational institutions declined slightly compared to 2016. The decrease in students enrolled was less than two pct. Danish Shipping has proposed a broad range of initiatives to strengthen the pipeline of seafarers and maintains an ambition to increase the number of Danish maritime students.

SHIPPING SECURES EMPLOYMENT Most Danish tonnage is owned by shipping companies situated around the capital, Copenhagen. Even though the companies have their headquarters in or around the capital new data illuminates the positive impact of shipping in peripheral and rural districts of Denmark. Two out of three Danish seafarers live in the peripheral and rural municipalities. This is almost twice the total share of adults living in these municipalities. Thus, there is a large overrepresentation of seafarers in the countryside. The Danish maritime cluster is referred to as ‘The Blue Denmark’. According to the Danish Ministry of Business, Industry and Financial Affairs, the total employment in the maritime cluster is 95.000 jobs. With regard to income and tax payments, the size of shipping is among the top contributors in the maritime cluster. The Danish maritime task force that has worked in 2016 and 2017 has concluded that shipping companies comprise the core of the maritime cluster in Denmark. SOURCE: Danish Shipping Facts and Figures 2017

DAILY NEWS ON WWW.MARITIMEDENMARK.DK

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SPECIAL: DANISH MARITIME FAIR 2018

DANISH MARITIME FAIR 2018 IS APPROACHING FULL CAPACITY In three months, the doors will open for the fourth edition of the Danish maritime exhibition, the Danish Maritime Fair, which is held in Lokomotivværkstedet in Copenhagen. At the event, hundreds of Danish as well as foreign exhibitioners are ready to receive more than 4.400 people who are expected to attend the event, within the three days the exhibition takes place - from the 2nd to the 4th of May. - It is actually going really well, says Martin Uhlenfeldt, Partner at Maritime Denmark, and in charge of the exhibition. - We still have some good stands for those who haven’t secured one yet, but the number of available stands is gradually falling, so people shouldn’t dwell on it for too long, if they want to make sure they get a stand. - Nothing comes easy, and we have put in work to fill up the venue with interesting exhibitors, but the atmosphere is good, sales are steady and hopefully we can hang out the red “Fully booked” sign at the end, says Uhlenfeldt. CHANGE IN TIME AND CADENCE - We have changed several things about the event this time, not conceptually, the concept works fine, but we have changed the cadence and time of the event. Those who have followed us from the beginning knows, that the 2014 as well as the 2016 exhibitions were challenged by the fact, that they were held shortly after the world’s largest maritime fair, SMM in Hamburg, when many exhibitors and visitors were tired after a long exhibition season. That problem has been solved this time, as the the Danish Maritime Fair has been moved to beginning of May, with good distance in time to SMM.

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- In addition to this, we are now transitioning to a cadence where the exhibitions will be 24 months apart, and this will defiantly have a positive effect. ECONOMIC RECOVERY - “All in all, we are anticipating a bubbly atmosphere at the event, as the fair season has just begun, spring is on its way, and there is optimism in the air. Both at home and abroad the economy is in recovery, demand is growing, both in the maritime industry and in the maritime world as a whole. Danish Maritime Technology Conference No exhibition without a contemporary conference proram on the side, and here the Danish Maritime Fair 2018 will mark itself stronger than ever. - We are very pleased that Danish Maritime once again has chosen to hold their international conference, Danish Maritime Technology Conference, at Lokomotivværkstedet. The conference is a stronghold, not only for the maritime industry in Denmark, but also worldwide. The Danish maritime industry is at the forefront of innovation, digitalization and green technology, and this will of course affect the conference. A more detailed review of the conference can be found on the following pages.

DAILY NEWS ON WWW.MARITIMEDENMARK.DK


OPENING OCEANS CONFERENCE - Lokomotivværksted are also hosting a brand new and very exciting international conference this year - the Opening Oceans Conference, which focuses on the many new business opportunities the oceans offers. The conference, which is expected to attract more than 300 key people from the maritime sector worldwide, is organized by the Nor-Shipping in Oslo. This is an exciting new cooperation that we are looking forward to develop further in the coming years, says Martin Uhlenfeldt. A more detailed review on the Opening Oceans Conference can be found in the upcoming pages. SEVERAL MEETINGS AND WORKSHOPS Aside from the two major conferences, a number of smaller meetings and workshops will take place at Lokomotivværkstedet, at the same time as the Danish Maritime Fair. Further information of this can be found in the next edition of the Danish Maritime Magazine. PHOTO: CARSTEN LUNDAGER

NEW PARTNERCARE PROGRAM The Danish Maritime Fair Partnercare Program consist of a pre-scheduled process where all exhibitors are supported before the fair, at the fair and after the fair. Also including a VIP invitation- process, where the organizer - Maritime Denmark - on behalf of the exhibitor invites VIP’s to the fair. You may still invite your network and clients to join you for free. - We have invested in this Partnercare Program to increase ROI for all our customers and exhibitors. We believe that if we support the exhibitors even more, take a bigger responsibility in getting the right people attending the fair and make it “easier” for our customers to do what they do best – we are all winners!, says René Wittendorff, CEO of Maritime Denmark. WE ARE HERE TO HELP YOU The purpose of the Partnercare Program is to ease your work load and give you more time to network and be present at the fair. Our job is to: - Invite new potential clients on your behalf - Ease your work load as participant - Take responsibility for your success at the fair

We want you to be successful and bring home new leads and relationships as well as a great experience as exhibitor at the fair. YOUR PARTNERCARE PROGRAM 1. Welcome e-mail: Relevant info and deadlines 2. Tele-call: Content and good to know for stand-holders 3. VIP invitations send out 4. VIP invitations follow-up 5. VIP invitations status 6. DMF: On-sight intro and support 7. Feedback & questionaires We look forward to support you!

DAILY NEWS ON WWW.MARITIMEDENMARK.DK

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SPECIAL: DANISH MARITIME FAIR 2018

DANISH MARITIME TECHNOLOGY Concurrently with Danish Maritime Days 2018 in the first week of May, Danish Maritime and members of the organization invite to the Danish Maritime Technology Conference.

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D

anish Maritime Technology Conference gathers the maritime world for two short conference days focusing on new and innovative maritime technologies. The conference takes place 2-3 May in the “Lokomotivværkstedet” where the Danish Maritime Fair is also held. New technologies and business methods are constantly introduced within the maritime industry. Maritime players must be ready for changes, open-minded and innovative, and they must be able to act faster than ever before. With keynote speakers and introductory speakers from at home and abroad Danish Maritime Technology Conference brings together national and international maritime stakeholders and focuses on digitalization, new technologies and competences that comply with increasingly smarter, greener and more intelligent maritime systems.

DAILY NEWS ON WWW.MARITIMEDENMARK.DK

AUTONOMOUS SYSTEMS AND DIGITALIZATION The subjects on the first day of the conference, which takes place in the afternoon of 2 May, are autonomous systems and digitalization. Like in most other industries, digitalization and automation are important issues for the maritime industry. Whether the subject is (nearly) autonomous ships, automation of individual systems or digital monitoring of ships and their components, development is progressing at high speed these years. Within the subject the conference will focus on what is possible today and what we can possibly and realistically achieve during the coming years as well as the potentials and challenges created by this rapid development. DMTC continues the next day, in the morning of 3 May, and the focus will be on how we techno-


CONFERENCE 2018 logically can move towards a greener and more energy efficient future for the shipping sector and further how we can utilize the new business potentials offered by the sea. A GREENER AND MORE ENERGY EFFICIENT FUTURE FOR THE SHIPPING SECTOR Shipping is already the most environmentally and climate friendly means of transport when it comes to transportation of large amounts of goods. However, there is still a lot to catch up with, and with a growing global population, increased prosperity and thus increased worldwide trade there is a great demand for implementation of solutions which can make shipping even greener. BLUE GROWTH AND BLUE OCEAN ECONOMY The ocean is a driving force not least for the European economy and still makes out a vast

untapped potential for innovation and growth. In Europe, the ”blue” economy represents approx. 5.4 mill. workplaces and generates an annual gross profit of nearly 500 billion Euro. However, further growth is possible in various fields and within the framework of the EU a large-scale and ambitious strategy for better utilization of the potentials of the sea has been launched. For the maritime industry an interesting question in this connection will be which kinds of existing technologies can be extended to other branches of the blue economy.

For further information on Danish Maritime Technology Conference, please contact Cecilie Lykkegaard (cl@danskemaritime.dk), Deputy Director of Danish Maritime. Danish Maritime Technology Conference is the flagship arrangement during Danish Maritime Days 2018 and has earlier been successfully held in 2014, 2015 and 2016, likewise as part of Danish Maritime Days. The conference is supported by the Danish Maritime Fond, and Maritime Denmark is the main media partner.

Put a mark in your calendar on 2-3 May and join us when Danish Maritime together with several members including ABB, MAN Diesel & Turbo, Wärtsilä, Alfal Laval, C-Leanship, Pureteq and Danfoss welcome you to two days focusing on the maritime technologies of the future.

DAILY NEWS ON WWW.MARITIMEDENMARK.DK

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danish maritime magazine


A unique business platform for the global shipping industry 22,000 VISITORS 1,825 EXHIBITING COMPANIES 101 COUNTRIES Welcomed by the owners of a fleet of over 4,000 vessels

4 - 8 June 2018 Metropolitan Expo, Athens Greece

www.posidonia-events.com


SPECIAL: DANISH MARITIME FAIR 2018

PROFILE

ACCESSING A NEW AGE OF OCEAN OPPORTUNITY It’s not all doom and gloom. Markets remain tight and projected growth uncertain, but maritime has the key to accessing a range of opportunities that are almost as limitless as the oceans themselves.

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or anyone involved in shipping, sometimes it pays to look to the horizon. Today’s challenges understandably occupy both heads and headlines, but a longer-term focus is necessary to unlock real value and business potential. According to Danish Ship Finance, the maritime industry is eyeing projected growth of just 1% over the next five to ten years. But look beyond that to the ocean itself and OECD sees a doubling of value creation by 2030. Key growth areas include tourism, offshore wind and port activities, marine aquaculture and deep-sea mining, amongst others. These segments need maritime. Maritime has the established skills, resources and infrastructure

to help these emerging areas develop, while supporting ongoing requirements and success. Today’s firms need the right partners, expertise and ambition to seize tomorrow’s opportunities. OPENING OCEANS CONFERENCE This is the focus for Nor-Shipping’s new initiative in 2018 – the Opening Oceans Conference. Timed to coincide with Danish Maritime Days in Copenhagen, Opening Oceans Conference runs from 2-3 May and is supported by both the Norwegian Shipowners’ Association and Danish Shipping. It will attract key players within maritime and the ocean industry, as well as financial, advisory, and policy leaders.

Together participants will highlight and discuss opportunities, equipping one another with the tools to tackle them, while facilitating fresh collaborations and the exchange of knowledge. Central themes include energy production and access to minerals, changing logistic demands, food production, and releasing value from the ever-increasing flow of ocean-related data. This is a game-changing initiative for a transforming industry landscape. Look to the horizon in May this year – join us at Opening Oceans Conference 2018.

DAILY NEWS ON WWW.MARITIMEDENMARK.DK

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BUSINESS WITH A PURPOSE When Danish shipping company Norden enters into a contract on transportation of road salt from Chile to the US East Coast and combines the transaction with transportation of biomass from the US East Coast to Europe, the distances where Norden sails without transporting cargo but nevertheless consumes fuel are minimized.

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t the same time, Norden lives up to its purpose – its Corporate Soul Purpose – to contribute to smarter and sustainable global trade where every person and actions matters. Norden also lives up to this purpose when some of Norden’s operators around the world pays physical visits to both customers’ and their customers’ ports to examine how loading and discharge operations can be optimized – this is often some of the loading and discharge operations which Norden’s port captains will later personally attend to ensure that they proceed smoothly and to solve potential challenges that may occur in the process. Similarly, it is in direct continuation of Norden’s Corporate Soul Purpose that Norden’s dry cargo departments across the globe have

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a new set-up meaning that the employees have been organized into smaller and more specialized teams with increased agility and authority. This allows them to act faster, more easily and with more flexibility and that they are able to immediately provide the customer with a price for his transportation need without having to ask a higher-ranking person in the organization. SIDE BY SIDE Furthermore, it contributes to smarter and sustainable global trade that charterers and operators in the Dry Cargo Department sit side by side in the new teams and that they can always draw on a knowledge centre manned by colleagues who are experts within risk assessment, market analysis, law and last but not least fuel efficiency.

DAILY NEWS ON WWW.MARITIMEDENMARK.DK

The fact that Norden is active in the global organisation Maritime Anti-Corruption Network (MACN) is yet another example which makes it clear that Norden takes its Corporate Soul Purpose seriously in the daily work. Why the word soul is part of Norden’s purpose? The reason is that Norden’s leadership principle is based on the word soul since the Company focuses on the entire human being to release the full potential in each and every person. PURPOSE OF GOING TO WORK EVERY DAY - Norden has to generate earnings and have a healthy economy. This is a prerequisite if the Company is to survive and develop. It is also a prerequisite in our efforts to produce and deliver the service to our customers that matches their individual needs and which is crucial if we are


- But in order for it to make complete sense to operate a business like Norden – in order for us all to see a greater purpose in going to work every day no matter if the day offers success or setback – we need a higher purpose in what we do every day. This purpose has been put into words in our Corporate Soul Purpose, which besides from providing us all with a purpose actually also ties our 3 business units – Dry Operator, Dry Owner and Tankers – together, allowing us to have a common purpose for what we do – regardless of where in the company our job is located, says Rindbo. PROVIDES ECONOMIC GROWTH AND DEVELOPMENT - Global trade enables economic growth and development throughout the world.

Through a dedicated team effort, it is Norden’s ambition to find efficient and agile solutions and to raise the standards for global trade. We are curious and have the courage to let new ideas grow. We challenge the status quo and push ourselves and others to constantly improve, says Jan Rindbo. He is convinced that Norden is strengthened as a company by having an overall purpose where the wording is so concrete and down to earth that managers and employees but also people outside Norden can relate to it and find meaning in it. - In my opinion, our Corporate Soul Purpose has made us a more attractive company – this is definitely also the case when we recruit new employees. It accommodates a growing demand from especially the future work force for a higher purpose of their daily work efforts, says CEO Jan Rindbo.

FACTS: NORDENS CORPORATE SOUL PURPOSE “As custodians of smarter global trade, we are conscious, soulful people uniting a world, where every person and action matters” 44% 44% of the 14,830 students who are about to complete their education at universities in Denmark, and who have participated in the consultancy firm Universum’s annual Employer Branding Research, say that in their future career they will attach most importance to having a job that serves a higher purpose than generating earnings for the company. THE GLUE ”Purpose is critical for a firm’s long-term success. In particular, purpose “glues” the different stakeholders of an organization- customers, employees, suppliers, communities, and investors - towards a common mission.” Professor Alex Edmans, London Business School, in Forbes.

SOURCE: Norden News Winter 2017-18

to stand apart from our competitors, and which is really our ticket to the market. It is also important that we generate earnings and have a healthy economy in order to live up to the shareholders’ – our owners’ – expectations and trust in us and to attract new money from shareholders, banks and other lenders, says CEO Jan Rindbo.

Our Corporate Soul Purpose has made us a more attractive company. - Jan Rindbo, CEO

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SPECIAL: OUTLOOK 2018

BY MARTIN UHLENFELDT

CAUTIOUS OPTIMISM IN SHIPPING Minor improvements in the global economy have led to cautious optimism in certain sectors of shipping. The upswing in the dry cargo market is very fragile and it will be necessary for global ship-owners and operators to nurture it if they want it to last. BIMCO’s chief analyst Peter Sand reports. - What we are witnessing in general is an improved global economy. In 2017 we saw for the first time in many years, that business was a little bit better than the preceding year. This information comes from IMF, who are normally pretty accurate in their predictions. It seems that we hit something close to rock bottom in 2016. In 2017 things were a little better, and this will also be the case in 2018, says Peter Sand, chief analyst at the international shipping organization BIMCO, headquarters Denmark. - This is the underlying reason for optimism. But one has to be aware that growth in the

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global economy does not necessarily mean an increased demand for shipping. DRY CARGO - In the dry cargo area, we expect 2018 to be better than 2017. But whether the whole year will be profitable for the industry, is in the hands of the industry. There is still some scrapping and slow steaming to be done, says Peter Sand. - The recovery, that everyone talks about, is very fragile. It could stick, but that would require that the global ship-owners and operators take good care of it.

DAILY NEWS ON WWW.MARITIMEDENMARK.DK

- Looking towards 2019, we start to see that some of the ships that was ordered in 2017 - as a result of the renewed optimism, are being delivered. Then we will experience a more stable market. CONTAINER SHIPS - In 2017, we saw a 5 percent growth in demand, which is the largest growth we have experienced in several years. We probably wont reach this in 2018, since our expectations are a little lower. Hopefully we will witness profitable markets, but it is the shipowners and their ability to get the capacity adapted


PRODUCT TANKERS - Product tankers have the opportunity of delivering decent figures in 2018, but this is not a given, says Peter Sand. We are witnessing an oil market that is still in a constant struggle with large stock everywhere in the world, of refined products as well as petroleum products. If we take a look at refined oil products, the market in which the product tanks are located, is driven by two elements. The basic demand for oil – the fact that we still use more oil, and then a firm element of trade - where the upset balance that is found around the world contribute to the shipping of a lot of products. And when a situation with lots of stuffed storage occurs, those areas practically disappear. That is why we witnessed lower growth this year and probably also will during the majority of 2018. I think we have

to look towards the beginning of the winter season 2018 before we start seeing progress for product tankers. Therefore 2018 will be a challenging year for product tankers, Peter Sand concludes. CRUDE OIL - We expect the Crude oil market to be considerably more pressured than product tankers. The reason is somewhat similar. There is a lot of crude oil on stock. A lot of adjusting still needs to be done, and it may happen over the next year, and this will decrease the prize of crude. The capacity is too large compared to the demand, so crude oil tankers are in for a negative 2018, no matter how we look at it. DANISH SHIPPING - Danish shipping is equally as global and international as the rest of the worlds shipping industries, and therefore it falls victim to the same situations as the rest of the world – at least the other major ones do. Of course Danish shipping also has some more local companies

who operate in coastal transport and Short Sea Shipping in Europe, and they might reap some benefits from the current optimism in the European economy, Peter Sand believes. SHIP BUILDING - In the dry cargo area, we have witnessed contracts in 2017 that looked like the ones predicted, while in the container area we experienced a striking setback of 400,000 TEU, the form of an order of 20 ships with a capacity of 20-22,000 TEU. No matter who places the orders, it’s certainly not something industry is enjoying seeing, as we are already over-capacity. Of course the individual shipping companies have given this a thought and they see it fit for their own optimization, but if we take a general look at it, it’s not exactly what we need, says Chief Engineer Peter Sand.

to the market, which determines if it will be a positive or a negative year. But all things aside, 2018 is bottom line a good year for the containers, says Peter Sand.

In 2017, we saw a 5 percent growth in demand, which is the largest growth we have experienced in several years. - Peter Sand, Chief analyst, BIMCO

DAILY NEWS ON WWW.MARITIMEDENMARK.DK

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SPECIAL: OUTLOOK 2018

BY JENS NĂ˜RGAARD

DANISH SHIPYARDS MAY END UP BEING DISRUPTED Danish shipyards may end up being in disarray, because the authorities lack of concern have resulted in the government sending orders of new ships abroad, instead of being smart and contributing to innovation and jobs at home. Last October the Danish Defense’s department in charge of purchasing, chose to forward an order of 18 small environment vessels to a Finish shipyard. On top of this, there is an ongoing offer of three large environmental vessels, where the specifications are based on past experience rather than innovation.

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EO, Jenny N Braat, Danish Maritime, is far from impressed by the formal and slow procedure, which is currently the case in the public sector. - In our opinion, it is only reasonable, that a publicly owned organization (the government) danish maritime magazine

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should have a broader perspective, than just focusing on price and minimalist functionality. It is not fair that the government will not work on new developments, which focuses on the environment and safety for the benefit of our society in general.

DAILY NEWS ON WWW.MARITIMEDENMARK.DK

Danish shipyards, suppliers and the maritime industry in general are highly respected abroad. The Danish companies are definitely able to compete internationally, in the field of quality, environment and safety. The Danish maritime industry also holds a solid position


PHOTO: JENS NØRGAARD

Ships from all over the world come to Danish shipyards for reparations or re-building. A frequent guest at Orskov Yard in Frederikshavn - the British research and supply ship from Falkland Islands - Ernest Shackleton.

Unfortunately, this was not reason enough for the Ministry of Industry to stop DanPilot’s order of 11 new pilot boats in a foreign shipyard this past summer. The deal could mean that 70 jobs would be maintained or created in Denmark. For the environmental vessels it is about approximately 500 one-year contracts and employment of a number of subcontractors. On top of this, the state would get approximately 40 percent of the costs returned in the form of tax revenues. GREATER VISIBILITY IN THE INDUSTRY About 100,000 people are directly or indirectly employed in the Danish maritime industry. With approximately 40,000 employees, the maritime industry is the part of the industry with the largest share of employees in Denmark. The

industry is based on intensive knowledge in specific fields, and hard-working employees. According to Jenny Braat, the problems are slowly being acknowledged in the political area. Knowledge and industry are without a doubt intertwined. The current approach is insufficient - we need technically skilled employees and PhD graduates for the more specified technical areas of profession.

in the global market due to its technology advanced products and specialized products and solutions.

- We have to be more visible within the educational system and show the many possible maritime educations we offer, which can lead to a long, exiting and versatile career in the Danish maritime industry. We have to get in touch with the youth, and we have to cooperate with educational institutions in order to make sure that the sufficient skills needed to work in the maritime business are being taught in

We have to be more visible within the educational system and show the many possible maritime educations we offer. - CEO, Jenny N Braat, Danish Maritime DAILY NEWS ON WWW.MARITIMEDENMARK.DK

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SPECIAL: OUTLOOK 2018

the programs. And it is clear that the maritime industry is unavoidable, when you look at the education and competencies needed in The Blue Denmark; For example, a major part of those employed as marine engineers are employed in land-based jobs. Engineers are also in popular demand in the maritime industry, and together with DTU we work on a maritime-based engineering educational program. Ships operate in rough environments, and building a ship is something that requires special expertise and experience within the field. - Therefore, I recommend that the government orders newbuildings. We are innovative, Jenny Braat continues. By showing our “governmental” products we are stronger internationally. We are able to build ships that can be exported, but the granting authorities lack ambitions regarding this. When the government places shipbuilding orders abroad, it has a negative effect. This has been a well-known fact in our neighboring country, Germany, which builds its ships in German shipyards. FITTER ARRANGEMENT HAS TO BE ESTABLISHED A key concern for Danske Maritime in 2018 is the so-called fitter arrangement – an arrangement that has already been 4-5 years in the works, but is far from accomplished due to political concerns. Some fear that the arrangement is a violation of EU government aid rules. To Danske Maritime this fear seems irrational. The arrangement in which companies pay a net salary to employees who are sent onboard ships, to perform maintenance work and upgrades, is only fair to both the companies and the employees that the arrangement concerns. Instead of loosing a large number of jobs to foreign countries, the arrangement can make sure that businesses maintain their know-how and obtain knowledge for innovation in the future. This will lead to more competitiveness for maritime companies when they have positions to offer. It is not about competing on gross wages, but on net wages. As CEO of Danske Maritime, Jenny Braat does not foresee a problem. The fitter arrangement cannot be compared to any other. Because of this, we expect the arrangement to be settled in 2018. MORE WOMEN IN THE INDUSTRY Within the maritime industry productivity growth in 2017 was at 7.2 percent, which is well above the average in Denmark. It is certain that we have to keep evolving and attract new labor to the industry, including more women. Søby Shipyard has made great effort in this area. Though the most important task of the New Year will be to increase growth in maritime areas. Overall, the most important tasks for 2018 in my opinion are: • A greater focus on getting more young people to enroll in technical educational programs targeted at the maritime industry • The work environment rules are enforced and implemented throughout the EU • Further effective implementation and enforcement of bilge water, sulfur and NOx regulations. • Greater focus on maritime research, development and innovation • The fitter arrangement is approved Jenny Braat concludes; generally speaking, Denmark and Europe have to act fast. If we wish to avoid being disrupted in our part of The Blue Denmark, a stronger European unity on standard development must be established otherwise, Europe will be will be overtaken by the maritime industry in the Far East, where China has already taken the first steps towards this issue.

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DAILY NEWS ON WWW.MARITIMEDENMARK.DK


Activity on Fayard at Odense Fiord.

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SPECIAL: OUTLOOK 2018

BY JENS NØRGAARD

2018: BRIGHT FUTURE AHEAD FOR THE NORTH SEA The future shines bright for offshore activities in the North Sea Basin! The CEO of the cluster organization Offshoreenergy.dk, located in the city of Esbjerg in Jutland, Glenda Napier, is very optimistic in her speech, as she states: We are getting ready for some major changes in the coming year! Oil and gas exploration and production is being stabilized and wind offshore is continuing to grow. French company Total is a new operator and has purchased Maersk Oil, and with new companies in the field, more activity is happening, which certainly can be beneficial for Danish subcontractors.

D

espite admonitions, in regards to The North Sea’s former global attractiveness - now that American company Hess is leaving Danish soil in 2018 in the same fashion as Dong Energy and Maersk Oil - Glenda Napier’s spirit is far from broken, as she remains optimistic about the future of the North Sea.

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Totals takeover of Maersk Oils activities should be considered a perk, since it has led to expansion and renovation of the gas condensate field Tyrefeltet. The field was founded in 1968 and put into operation in 1984. The investments so far are estimated to be 33,9 billion Danish Kroner.

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The selling process of American company Hess has started and is expected to be completed in the course of 2018. The company expects to be able to sell their stakes in Denmark. Hess owns a share of 61,5 percentage of the oil and gas field Syd Arne.


An adapter for big cranes on rigs being lifted in place for assembly. The picture illustrates how major the elements being handle don the open sea are.

More than 1000 companies in Schleswig-Holstein, such as Dantysk and Butendiek, located west and southwest of Esbjerg, work within the field of wind energy and with offshore wind farms. The German northern state makes up for almost half

that alone in the Helgoland cluster, which operates mostly in the German Bay and along the Wadden Sea coast, an additional 1000 MW will be added by the year of 2025. In addition to this, expansion in other fields will continue.

handling sea transport of wind turbine towers for MHI Vestas Offshore Wind, the deal covers turbines, turbine blades and gear systems. The German shipping company has worked within the offshore wind power industry since 2008. This was the point where Germany gained a serious interest in the field of renewable energy. The larger step towards energy transformation came a couple of years later, when the country decided to shut down a large number of its nuclear power plants. The reason for the sud-

The two major producers of wind power account for 75 percent of the world’s wind turbines. The cooperation between the two companies is therefore important for the entire value chain. - CEO, Glenda Napier, Offshoreenergy.dk

In cooperation with their employees, Offshoreenergy.dk facilitates strategically collaborations on innovation. - We are the Danish offshore industry’s neutral platform for trustworthy cross-industry cooperative work. The purpose is to strengthen the network amongst the cluster organization’s 240 members, and build regional links and bridges to international markets, says Glenda Napier.

of German wind power. Knowhow, economy and political battles have been key problems within German wind power, which the Foreign minister of Germany Sigmar Gabriel stated to Maritime Denmark a couple of years ago. At that time he was the finance minister and initiated the DanTysk offshore wind farm, which is the Swedish energy group company Vattenfall are in charge of running.

COOPERATION WITH A NEW PERSPECTIVE It was indeed this perspective that played a significant role, when Offshoreenergy.dk at the end of October embarked on a joint venture with the German company ”Schleswig-Holstein Renewable Energy Network Agency, EE. SH” located in Schleswig-Holstein, Germany’s northernmost state. According to Glenda Napier the joint venture carries with it major perspective for the Danish offshore industry.

DENMARK IS A PIONEER COUNTRY Denmark is a pioneer country when it comes to wind power. The Danish offshore clusters strengths are found in areas such as installation, project commissioning and logistic services, which appear to be popular on German territory. In the area of logistic service a close cooperation between Blue Water in Esbjerg and shipping company BREB GmbH in Bremen is already in motion. The company has great expertise in transporting equipment to the offshore wind industry from its hotspots in Cuxhaven and Sassnitz.

- The German offshore industry has great potential, Glenda Napier continues to explain. - We know

The two companies – Blue Water and BREB GmbH – have made a long-term agreement. Aside from

den change was the fear for disasters, such as the Japanese nuclear power plant Fukushima had experienced when it was hit by a tsunami on the 11th of March that same year. April 2018 will mark two years since Glenda Napier took position as CEO of Offshoreenergy.dk. By now she has had a wide range of experience working with cluster networks – which aside from her current position, is a result of her former work as area manager in the cluster organization CLEAN, as well as cluster development work she did in Region of Southern Denmark and from her time working in Erhversstyrelsen. EXPENSES MUST BE CUT As a facilitator, Glenda Napier has already made Offshoreenergy.dk a noticeable amongst the big companies of the business. Now they cooperate in the wind power industry towards common standards, which will contribute to cutting the price of wind in half, which will ultimately be for the benefit of consumers. This was announced at the annual meeting in the late autumn of

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SPECIAL: OUTLOOK 2018

working together. Instead of selling components they sell systems. The same concept should apply in the wind industry where subcontractors work together.

CEO of Offshoreenergy.dk, Glenda Napier

DOGGERBANKE’S NEW ISLAND At Siemens Gamesa Renewable Energy this will already be in effect from 2018. Prior to this, the company’s policy was: - We can do it on our own! Now the situation is becoming clearer, says Glenda Napier. Offshore wind companies are starting to realize that cooperation and networking is crucial. This has been well known in the IT business for a long time. By being part of the Silicon Valley network in the US, research and production can unite and strengthen a company’s position to becoming market leaders. It is no coincidence that the “IT experts” are the highest paid people of the US, and that people from all over the world go to Silicon Valley.

2016 in Odense, Funen. Offshoreenergy.dk provided the neutral platform and venue for this collaboration. - We are now doing something about the problem! ”Cooperation is key”, the upper management in both Siemens Gamesa Renewable Energy and MHI Vestas announced at the annual meeting. The two major producers of wind power account for 75 percent of the world’s wind turbines. The cooperation between the two companies is therefore important for the entire value chain. The partnership sends a strong message that we have to work together in order to get the costs down, Glenda Napier continues. What we experienced at the annual meeting between the major companies of the offshore wind power industry is historic. It is an example of the type of innovation we will see much more of in the future, Glenda Napier continues: - As Jesper Møller, Head of Offshore Concepts & Solutions in Siemens Gamesa Renewable Energy expressed at the annual meeting, cooperation is crucial in a wind partnership. We do not work on any innovative projects alone, we do not stand a chance by doing it on our own.

towers, lifting equipment, surfaces and access to the mills in the parks at sea. No one can predict the future, but that does not stop Glenda Napier from trying. In five to ten years we will be able to sell offshore wind farms at a reasonably cheaper price than today. This will happen without financial support from the government. Dong Germany is already at the forefront of this. In order to get the process started, all parties will have to put in the work. Cooperation is and will remain key in the process. Glenda Napier illustrates this by referring to the Airbus industry, where large organizations are

Helicopter on a hoisting mission on DanTysk

NO FINANCIAL SUPPORT FROM THE GOVERNMENT Currently, 26 companies have agreed to look for new common solutions that benefit the entire value chain. Among these companies are Ørsted, Statoil, A2Sea, Vattenfall, Dancoat and Gardit. The cooperation will for example include common standards and specifications, such as

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DAILY NEWS ON WWW.MARITIMEDENMARK.DK

This gives us at Offshoreenergy.dk, as well as our partners in Germany, the Netherlands and the UK an incentive, that something similar can happen in the offshore area in the North Sea. Theory is one thing; in reality we are still working on our plans of establishing an island on Doggerbanke with an airport and vessel port, production facilities and centers for monitoring wind power farms. If everything goes according to the plan, the initiation could occur in 2035. Regardless of the changes in ownership on Danish soil, there is reason to remain optimistic. On offshore wind farms, growth will continue. It is a must that UK, Germany and the EU upgrade their offshore activities to meet the EU’s climate plans from 2025, CEO of Offshoreenergy.dk, Glenda Napier concludes.


NORDEN SAYS “NO” IN THE SUEZ CANAL When vessels from Norden pass through the Suez Canal in the future, Norden will no longer give in to pilots’ demands for facilitation payments – typically in the shape of 2 cigarette cartons – to do the job that Norden has already paid for via the fee to pass through the 193.3kilometre-long canal between Port Said in the Mediterranean Ocean and Suez by the Red Sea.

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ilot demands to ensure optimal passage have given the canal the nickname the Marlboro Canal. A poster on board the vessels informs the pilots that there is no need to ask for cigarettes. Because as stated on the posters, the crew will decline the request. The posters can be found on all vessel with a Norden name – that means both owned vessels and vessels chartered in. With its initiative, Norden has joined a campaign which was started by the Maritime Anti-Corruption Network (MACN) that Norden co-founded and which is a global network that works towards a corruption- free maritime industry.

Norden and the other participants in the MACN cooperation view corruption to be an obstacle to efficient trade and cooperation. Corruption means that the shipping industry incurs extra costs and it leads to unfair competition. In the shipping industry, corruption can also contribute to putting the crew members’ safety and wellbeing under pressure, just as corruption involves legal and reputational risks for the company.

is charged small amounts or cigarettes and goods to get access to a service which it is already entitled to. Norden passes through the Suez Canal approximately 10 times per year, and so far the experiences for Norden vessels with saying no to demands for cigarettes or facilitation payments in the canal have extremely positive.

ZERO-TOLERANCE Norden has a zero-tolerance policy towards bribery and works actively towards eliminating facilitation payments, where a company

SOURCE: Norden News Winter 2017-18

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MAN PRIMESERV SIGNS CONTRACT WITH ARKAS MAN PrimeServ, MAN Diesel & Turbo’s after-sales division, has signed an EMC maintenance contract with Arkas Shipping and Transport, operator of Turkey’s largest container fleet with 50 vessels.

T

he new agreement is for the maintenance of the 2,586-teu container carrier, the ‘MCC Mandalay’. It covers the provision of spare parts, maintenance management and the servicing of the vessel’s MAN B&W 6G60ME main engine, in collaboration with Arkas’ on-board crew. According to the terms of the contract, MAN Diesel & Turbo, Copenhagen will deliver maintenance management and spare parts, while other MAN PrimeServ hubs will take care of the service provision for the engines. Ali Ibrahim Kontaytekin, General Manager of Arkas Fleet, and Jens Seeberg, Head of Retrofit – Upgrade & Engine Management – PrimeServ Copenhagen, praised the cooperation between Arkas Shipping and MAN PrimeServ and stated that they view the agreement as a step towards

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an even closer collaboration between the two companies in the future. THE ENGINE MANAGEMENT CONCEPT The EMC is a tailor-made service model that is customised to suit individual customer’s requirements. Operating on a fixed budget, MAN PrimeServ takes care of equipment, planned and unplanned maintenance, the dispatching of personnel, and the provision of spare parts – a natural task for the engine designer. MAN Diesel & Turbo reports the adoption of EMC by the shipping industry as a paradigm change within maintenance as, traditionally, shipowners have taken care of maintenance themselves in what is generally a conservative industry.

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The close cooperation between MAN PrimeServ’s global network means that it can pool common resources and exchange knowledge, and is able to offer customers a considerably higher level of service worldwide. MAN DIESEL & TURBO MAN Diesel & Turbo is the world’s leading designer and manufacturer of low and medium speed engines – engines from MAN Diesel & Turbo cover an estimated 50% of the power needed for all World trade. MAN Diesel & Turbo develop two-stroke and four-stroke engines, auxiliary engines, turbochargers and propulsion packages that are manufactured both within the MAN Diesel & Turbo Group and at licensees.


NORDIC TANKERS SELLS CRYSTAL NORDIC Nordic Tankers and Embarcadero Maritime have signed and closed an agreement to sell the jointly held company Crystal Nordic to John T. Essberger in Hamburg, a leading owner and operator of chemical tankers in Europe.

- We are of the opinion that John T. Essberger will be a very good owner of Crystal Nordic and thus enhance the service and flexibility offered to the customers, says Per Sylvester Jensen, Chairman of Crystal Nordic. Crystal Nordic was established following the combination of Nordic Tankers’ inter-European stainless steel chemical tanker business with Crystal Pool in 2015. The parties have agreed not to disclose any financial information. DANISH HEADQUARTERED Crystal Nordic is a Danish headquartered chemical tanker operator, owning 14 ships between 4,000 and 12,000 DWT, serving customers

primarily in Northern Europe. Since inception in 2015, Crystal Nordic under the management of Managing Director Jan Eghøj has developed positively and grown its business portfolio significantly. The company is owned 50/50 by Nordic Tankers and Embarcadero Maritime. Nordic Tankers is a Triton Fund III Portfolio Company. ESSBERGER TANKERS Essberger Tankers is a leading owner and operator of chemical tankers in Europe. The company’s fleet consists of 23 vessels capable of carrying a wide range of different chemicals. With its long history, Essberger Tankers is a trusted name in its field of business.

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Copenhagen, 2. - 4. MAY 2018

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Danish Shipping Industry - Facts and Figures: In 2017, the Danish fleet has grown considerably and reached an all-time high when measured by...