Norvic Shipping has the world in the palm of its hand as a global specialist in shipping dry bulk commodities. Driven by strong personal ties with clients and shipowners, it has a ship operating platform that connects cargo with vessels on the most efficient routes. The billion-dollar bulk-operator is primed for further expansion, with a foray into long-term vessel chartering and in handling special project cargos. Commercial Director and Co-Head of Atlantic Business Unit Niels Kay Kjaer-Petersen discussed the company with Andy Probert.
For a company that began as a oneman band in a Toronto basement to become a $1 billion plus venture by 2022, AJ Rahman’s Norvic Shipping is a model of international success. Yet, as with all enigmatic entrepreneurs, the goal is to aim even higher.
The dry bulk operator has signalled intentions to diversify and deepen its capabilities by acquiring three newly built dry bulk vessels on long-term charter from Japan, as demand for its services
shows no sign of slowing. And having secured a $42.5 million working capital credit facility to bolster its growing physical presence in key markets and strengthen its project cargo division, the company is hungry to extend its global reach.
Norvic has a focus on all basins alike: Atlantic, Indian and Pacific Ocean. Chartering and Operations services are underpinned through offices in Copenhagen, Houston, San Francisco, Rio de Janeiro, Dubai, Mumbai, Delhi, Shanghai and Singapore. Its Atlantic business unit handles all chartering activities in the Atlantic basin, spanning the east coast of the Americas to West Africa and Europe, including the Mediterranean and the Black Sea. The west coast of the Americas is covered jointly by the Atlantic and Pacific Business Units.
Niels Kay Kjaer-Petersen is the Commercial Director and Co-Head of Atlantic Business Unit and, since his recruitment about four years ago, has been instrumental in Norvic transcending from mainly being a short-term charterer into the long-term charter landscape it now covets.
“In my time, the Atlantic division has grown considerably and employs more people now in all 3 offices, and it has, in line with Norvic’s aims, been a success story of continuous growth,” said Mr Kjaer-Petersen, who has been in the shipping industry for more than 30 years.
Fast-growing operator
Initially a crude oil and petroleum transportation operator, Mr Rahman pivoted Norvic Shipping into shipping
dry com modities in 2012 and the company has grown rapidly. Today, it has 11 offices globally and an experienced team of 180 people.
Norvic operates an all-inclusive, agile business model that inspires innova tion among its workforce. Another standout is that the company, rather than owning dry bulkers has adopted a lean, light operation, meaning it does not own any ships.
Mr Kjaer-Petersen outlined how Norvic’s asset-light approach enabled it to offer clients lightning-quick freight and logistics services. It trades in all dry commodities, inc-luding minerals, metals, grains, clinker and fertilisers. It presently employs around 135 vessels across its global network, covering Handysize, Supramax and Panamax bulk carriers.
“Norvic is one of the fastest-growing bulk operators, now moving over 60 million
tonnes of cargo annually. It has over 700 clients that include miners, producers, traders and end-users,” he said. “We have trade operations in North America, Europe, the Middle East and Asia.”
Norvic Shipping’s Project Cargo division, headed by Kasper Bihlet, has been highly successful since its launch about a year ago. The specialist division transports out-of-gauge cargo such as wind turbine equipment, construction materials, vehicles and offshore components. The team can be asked to transport bus shells one day and huge turbine blades, each measuring 82 metres in length, the next.
Mr Kjaer-Petersen acknowledged:
“Project Cargo is currently negotiating some exciting projects that may come to the fore in the coming months. The division wants to expand its workforce,
recruit natural problem solvers and help support Norvic’s ambitious growth targets.
“One of the wonderful experiences of being with Norvic is the can-do company culture fostered throughout the workforce. It has a progressive and active ownership that seeks to empower its people. Mr Rahman has a great approach, never says no to a good idea and is always open to getting into new trades and ventures.
“Norvic has been successful because it acknowledges that the dry bulk industry is still a personto-person business. It is essential for us to have the right people connecting with clients. While highly agile in business, the key is maintaining a personal touch. Ultimately, we are dealing with people, not computers. Building strong persona l and professional relationships across our network has ensured greater collaboration.”
Unbridled ambitions
Mr Kjaer-Petersen noted that Norvic remained super-motivated to build on its growth and strengthen its
dominance in what can be a highly volatile and unpredictable sector.
“Our immediate ambition is to increase our fleet to between 200 and 300 ships, and we are geared for that,” he explained. “Norvic has always been respected as a short-term charter operator but is now getting into the long-term game.”
The company is set to take on three new build vessels – one Ultramax and two Handymaxes – in 2023 on fiveyear charters from Japanese shipyards. The first will be a 64,000 dwt bulker from Japanese shipowners following delivery from Imabari Shipyard. The vessel, Norvic Copenhagen, will enter the Norvic period fleet and service customers worldwide.
“These three ships will obviously help expand the long-term fleet, as well as diversify and deepen Norvic’s service offering globally,” Mr Kjaer-Petersen said. “Building a long-term charter profile is one that I am highly involved in. The new vessels are in response to our growing business and commitment to IMO’s environmental regulations to
reduce the carbon intensity of ships by 40 per cent before 2030.
“The decarbonisation challenge is one being faced by the entire dry bulk industry, and not just in terms of legislation. BIMCO is making time-charter clauses for ship owners in this respect, but if they become too strict, they could be difficult to navigate for the time charter operators.”
Norvic, further bolstered by securing a $42.5 million working capital credit facility to finance its growing physical presence in key markets, is also considering buying vessels and becoming more involved in dry cargo logistics rather than just being an operator. The company aims t o do this without compromising the
agility in the market and to keep its asset-light approach in general.
The aim is to continually build on Norvic’s experiences and to become a complete end-to-end dry bulk transportation logistics and solutions provider. “Like all operators, N orvic is facing competition,” concluded Mr Kjaer-Petersen. “The markets are extremely transparent, and it’s difficult to find your niche in trade, but Norvic still believes it has some angles in both commodities and trades, and we continue building on those strengths.”
“Over the last four years, Norvic has buil t fantastic teams with a mix of youth and experience, and the company is now primed to drive its expansion aims.” n
