• 2019 April 3 14:27

    The Norwegian Shipowners’ Association Outlook Report 2019: Faith in the future despite tough markets

    Norwegian shipping companies in foreign trade report a total turnover of NOK 229 billion in 2018, an increase of 11 per cent from the previous year. International deep sea shipping companies in particular showed strong growth in 2018, driven by an increase in freight rates in the second half of the year. 60 per cent of shipowners expect increased revenue in 2019, while 20 per cent expect reduced revenue, and 20 per cent unchanged.

    Deep sea shipping companies are once again the largest group in the Norwegian foreign-going fleet. Revenue increased notably in 2018 and is expected to total NOK 120 billion in 2019.

    The results of the member survey show that Norwegian shipping companies' revenue from markets outside Norway made up 61 per cent of total turnover in 2018, or NOK 139 billion.

    For short sea shipping, Germany is still the largest market, followed by the UK. For deep sea shipowners, the USA and China are most important markets. Norway and the UK are most important for offshore and rig companies.

    The offshore segments anticipate continued challenging markets with a high number of ships in layup, prolonged low rates, and relatively short horizons on contracts.

    Several years of major cost reductions and efficiency improvements, combined with extensive consolidation in the supplier industry, have significantly increased profitability on the Norwegian shelf. The combination of large cost reductions and a more stable oil price, which is considerably higher than at the lowest levels, has led to very good margins for the oil companies.

    "When activity levels pick up and the markets tighten on the capacity side, the oil companies must also expect a significant increase in the rates for ship operations," says Harald Solberg, CEO of the Norwegian Shipowners' Association.

    The number of ships in layup peaked during the winter of 2017. As of February 2019, 112 offshore vessels and 20 rigs were in layup, compared to 137 ships and 25 rigs in February 2018. Norwegian Shipowners' Association members report that the figure will fall to 78 ships and 15 rigs by the end of this year. This reduction in the number of ships and rigs in layup is due to a combination of increased activity on the Norwegian Continental Shelf and sale of ships.

    In this year's member survey, half the shipping companies state that they will renew the fleet through newbuilding over the next five years. Shipowners estimate that they will contract a total of 137 ships and five rigs during that period. Most of the orders are expected to come in the transport segments, deep sea and short sea shipping. More than 40 per cent of shipping companies, primarily short sea shipowners, consider Norwegian shipyards as relevant for the construction of new vessels.

    "The short sea sector is poised for extensive fleet renewal. This is a tremendous opportunity to develop and implement new technology that will give us a more environmentally friendly and competitive short sea shipping fleet, at the same time as we develop technology for export to larger markets,” says Solberg.

    Norwegian shipowners, offshore enterprises and supplier companies are well positioned to take a larger role in the renewables market, including offshore wind. Three out of ten shipping companies have activity in the offshore wind market today.

    27 per cent of shipping companies state that they consider the offshore wind market to be interesting for their business over the next five years. Among offshore service companies, 55 per cent state that they are considering activity in the offshore wind market over the next five years.

    18 per cent of shipping companies report that they consider the aquaculture industry to be of interest in the next five years, while 14 per cent say the same about subsea mining.

2019 August 23

08:35 MABUX: Bunker Market this morning August, 23
08:07 World’s largest all-electric ferry completes its maiden trip

2019 August 22

18:04 Australian Maritime College and KONGSBERG eye potential for VR training with renewed support program
17:39 Nordic Engineering sponsors roundtable meeting “Import Substitution in Russian Shipbuilding: Ambition and Reality”
17:04 DOF Subsea issues Financial Report for 2nd quarter of 2019
16:47 Karelia proposed construction of deep-water freight and passenger port Kem’
16:25 Bunker prices go down at the Far East ports of Russia (graph)
16:04 Navios Acquisition reports results for H1 2019
15:53 PJSC TransContainer reports its Financial Results under IFRS for 6M'2019
15:12 ReCAAP ISC has released Guidance on Abduction of Crew in the Sulu-Celebes Seas and Waters off Eastern Sabah
15:04 Essar Ports expects to meet 60 MT target for FY20
14:31 Höegh LNG announces interim results for the quarter and half year ended 30 June 2019
14:14 Peel Ports takes important step towards being Brexit ready
13:56 Yamal LNG shipped twenty million tons
13:35 Arctic block of Far East Investment and Export Agency headed by Dmitry Fishkin
13:13 Sea Machines successfully deploys industry’s first autonomous spill-response vessel
12:28 Fire onboard MV Pyotr Tchaikovsky kills one in Saint-Petersburg
12:13 Frontera Offshore and DOF Subsea join forces for the Subsea Construction and IMR Mexican market
11:31 Kalmar to enhance STS crane capabilities at EUROGATE Tanger
11:21 HELCOM publishes report on noise sensitivity of animals in the Baltic Sea
10:59 HELCOM gets a new Executive Secretary
10:35 Caterpillar Eurasia and Admiral Makarov University agreed on establishing a brand new up-to-date training center
10:10 Steps towards new treaty to protect marine biodiversity
09:38 Brent Crude futures price is down 0.41% to $60.04, Light Sweet Crude – down 0.38% to $55.47
09:20 Hapag-Lloyd announces changes of North Europe Mediterranean Express Service
09:13 Baltic Dry Index is up to 2,061 points
08:44 MABUX: Bunker market this morning, Aug 22

2019 August 21

18:06 BBC Chartering appoints Ulrich Ulrichs as CEO
17:57 BPO joined World Ports Sustainability Program
17:36 Napier Port’s shares commence trading on the NZX
17:06 ZIM announces Q2 2019 results
16:41 Waterfront Shipping and Marinvest welcome second-generation low emission methanol-fuelled vessels
16:35 CMA CGM announces FAK rates from ISC to North Europe and the Mediterranean
16:32 Grady-White Boats honors MaineMax Pensacola as the worldwide sales leader
16:05 Hapag-Lloyd launches new South East Asia to Australia Services // SEA and S2A to start in October
15:42 Ferry in Estonia upgraded to battery-hybrid by Norwegian Electric System
15:21 Organisations release Joint Industry Guidance on the supply and use of 0.50%-sulphur marine fuel
14:55 Multipurpose small-draft salvage ship of MPSV12 project left for sea trials
14:30 BC Ferries releases first quarter results
14:04 DOF awarded two AHTS contracts to support drilling operations in New Zealand
13:27 Vladivostok offers second venue of “Import Substitution in Russian Shipbuilding: Ambition and Reality” roundtable
13:03 Workshop in Malaysia to help bring into operation the Regional Oil Spill Contingency Plan in South East Asia
12:46 Rosneft BOD recommended 1H’19 dividends at RUB 15.34 per share
12:25 Registration is underway for “Development of Icebreaking and Support Fleet” conference to be held as part of Neva-2019 exhibition
12:03 Ocean Yield extends option with Aker Energy for long-term charter of the FPSO Dhirubhai-1
11:41 Rosneft reports 9-pct increase of its 1H 2019 net income to RUB 325 bln
11:24 Vasily Boitsov appointed as USC Vice-President for Technological Development
11:02 Jan De Nul completes installation of all twenty foundations on the 120MW Formosa 1 Phase 2 wind farm in Taiwan
10:45 RF Ministry of Industry and Trade to prevent outflow of shipbuilding contracts from Russian shipyards
10:17 Scotline orders newbuild vessel from Royal Bodewes
10:16 Brazil readies its biofouling task force
09:51 Clean Arctic Alliance calls on Nordic Prime Ministers to support a ban on heavy fuel oil
09:47 Bunker market sees mixed price movements at the port of Saint-Petersburg, Russia (graph)
09:28 Brent Crude futures price is up 0.48% to $60.32, Light Sweet Crude – up 0.36% to $56.33
09:13 Baltic Dry Index is down to 2,059 points
09:00 MABUX: Bunker Market this morning August, 21

2019 August 20

18:40 ATON repair and maintenance shop to be built at navigation support post in Taganrog Bay
18:06 CMA CGM announces FAK rates from Asia to North Europe
17:29 Wallem-managed bulk carrier rescues Indonesian fishermen lost at sea for 10 days
17:06 MAN Energy Solutions and Samsung Heavy Industries sign a strategic cooperation agreement for the digitization of marine engines