• 2020 April 22 16:56

    Norwegian shipping companies lost nearly 25 percent in turnover due to Covid-19

    Norwegian Shipowners’ Association says that according to a recent member survey, Norwegian shipping companies have so far lost nearly 25 percent in turnover due to Covid-19 and its global effects. This is expected to grow to 35 percent by year-end, with all segments impacted. Members now project a tripling of vessels in lay-up, a doubling of vessels for recycling and report a deterioration in capital supply.

    As of 17 April, the passenger ship segment has been hardest hit with a fall in turnover of close to 80 percent. Deep sea shipping companies have seen a fall in turnover of around 25 percent. This is a sharp increase from the previous survey (31 march), and clearly shows the situation deteriorating rapidly for shipping companies as the weeks go by. Offshore service shipping companies had a turnover decline of 13 percent.

    Members expect turnover to fall further in 2020, reaching an average decline of 35 percent by year-end.

    "This will have major, long-lasting effects on the engine of the maritime cluster," says Harald Solberg, CEO of the Norwegian Shipowners' Association.

    - The consequences for the maritime industry are likely to be greater than the financial crisis and the oil price crisis combined. At this time, it is crucial for society that the wheels that can be kept in motion are indeed kept in motion. The flow of goods, crew changes and measures to stimulate activity are crucial for companies that are basically healthy to be able to get through the biggest economic crisis in recent history, he says.

    The 35 percent decline in turnover amounts to more than NOK 83 billion and reduces the forecast for total turnover in 2020 from NOK 244 billion to NOK 161 billion. Members had initially projected a near six percent increase in turnover for 2020. This decline will be by far the biggest in the last 15 years - financial crisis and oil crisis included.

    Members report significant growth in lay-up figures, up from 95 to 138 since February. Based on new estimates, the number of vessels in lay-up at year-end will be double that of February, which means a tripling over the year-end projection for 2020.

    Offshore service, deep sea and rig companies are anticipating the biggest negative changes. Passengers and short sea respectively report significantly fewer or about the same number of vessels in circulation at year-end.

    Due to weak markets, several shipping companies are now considering recycling excess tonnage. Almost all segments estimate that they will recycle more ships than they assumed in January. This is particularly true of offshore segments and passenger ships, where there is a huge growth in projections for ships that may be considered for recycling.

    Shipping companies are experiencing very tight capital access. Almost no one replies that they have good or very good access to capital. This is especially true for offshore service and rig companies, which have experienced a significant deterioration in capital inflows in recent months. At the opposite end, we find short sea, which has experienced little change in capital access.

    The shipping companies also expect further deterioration of the capital inflow, across all segments. Here too, offshore service in particular is expecting a significantly lower supply of capital in the coming months. This is probably because the offshore shipping companies are in a double crisis, both as a result of Covid-19 and the sharp fall in oil prices.

    Virtually all shipping companies have experienced operational challenges as a result of the coronavirus outbreak. Crew changes have been a key obstacle and are expected to continue to be very demanding. A large share of member companies has chosen to extend contracts with existing crews. These extensions are running out, and soon the need for crew changes will become critical. Shipowners fear that the operational challenges will increase substantially in the time to come.

    - We are working closely with the international and European shipping industry to establish good structures to carry out the necessary crew changes, says Harald Solberg.

    For the passenger vessel companies, the operational challenges are mainly related to the authorities' travel restrictions, stopping virtually all passenger transport in and out of Norway. These companies have seen their revenue base fall away overnight, while customers are entitled to having ticket expenses reimbursed. With other fixed costs running as normal, the government-imposed travel restrictions have put these companies in a challenging liquidity squeeze.




2024 March 29

13:40 HD KSOE and Infineon sign MoU to develop ship electrification technology
13:29 NYK and JMU formulate method for evaluating ship performance in actual seas
12:59 HD Hyundai wins US$463 mln warship order in Peru
12:09 COSCO SHIPPING Ports throughput up by 4.4% YoY to 135,808,554 TEU in 2023
11:46 The "Ane Maersk" calls at the Eurogate container terminal in Hamburg for the first time on its maiden voyage from Asia to Europe
11:20 Sallaum Lines and Fujian Mawei Shipbuilding commence construction of Ocean Class vessels
10:43 Oasis Marine develops solutions for offshore hydrogen bunkering
10:03 Petrofac secures contract extension with ONEgas West in the UK market

2024 March 28

18:05 Jan De Nul, ENGIE and Equans launch a pilot project centred around the use of Vanadium Redox Flow batteries
17:35 Latvian port equipment manufacturer Bleste introduces new bulk handling ‘bucket’
17:05 Investors upgrade Navios Maritime Partners
16:25 DEME reports 22% increase in the orderbook and a record-high turnover of 3.3 billion euros in 2023
16:14 MABUX: Bunker Outlook, Week 13, 2024
15:41 AD Ports Group announced the opening of Saadiyat Marina & Ferry Terminal and Rabdan Marina
15:11 Sydney invests $11.5 million in two new operational vessels designed by Incat Crowther
14:55 China’s Jinzhao wins Peru $405m port construction contract
14:13 APM Terminals Moín handled six million TEU
13:48 ClassNK grants Innovation Endorsements for Products & Solutions to two innovative initiatives by MOL
13:37 Konecranes launches its flagship Konecranes X-series industrial crane
12:53 United European Car Carriers UECC spearheads collaboration with industry leaders to advance CNSL as a sustainable marine fuel
12:26 Ocean Network Express announces Transpacific service
11:48 Yang Ming announces 2025 Trans-Pacific service network
11:24 Fincantieri signs contract for the supply of two PPAs to Indonesia
10:42 Maersk transported more than 660,000 TEU using clean fuel in 2023
10:23 Documentation delays push industry costs to $3bn
09:48 PONANT and FARWIND Energy partner to develop green hydrogen refueling solutions

2024 March 27

18:22 Bureau Veritas awards world’s first prototype certification for SolarDuck’s floating offshore solar solution
17:58 The recently converted Allseas's shallow water pipelay barge starts preparations for its first commercial project
17:38 The Port of Rotterdam calls on the European Commission and Parliament to focus on actively promoting green energy
15:23 SEFE to become sole shareholder of WIGA
14:53 Ocean Installer secures yet another SLM contract with Equinor
14:23 Cadeler signs offshore wind turbine installation contract for the vessel Wind Scylla
13:42 Carnival Cruise Line orders 5th Excel-class cruise ship
13:11 Maersk and MSC overcharging cargo owners for EU ETS, says T&E
12:52 The Port Authority of Valencia launches the ZAL project in the Port of Valencia
12:11 Clarkson Port Services and Peak Group collaborate to deliver Port Agency services across the North Sea
11:42 Wan Hai Lines holds ship naming ceremony for new vessels
11:24 Consolidated shipping lines EBIT loss was $1.44 billion in Q4 2023: Sea-Intelligence
10:49 Seaspan Shipyards receives long-term contracts for the pre-construction work of the the Canadian Coast Guard's first six multi-mission vessels
10:14 Woodside completes sale of 10% scarborough interest

2024 March 26

18:02 COSCO Shipping Lines introduces new Americas service
17:30 Davie awarded first contract for design of icebreaker fleet under Canada’s National Shipbuilding Strategy
17:04 Sanctions complicate Arctic LNG ship sales, Hanwha Ocean says - Bloomberg
16:57 Terntank places an order for 1+1 additional wind/ methanol-ready hybrid tanker
16:28 BW LNG completes acquisition of two TFDE vessels from Stena Bulk
15:50 Hanwha Ocean develops VR-based special vehicle simulator
15:20 TotalEnergies and SINOPEC join forces to produce sustainable jet fuel at a SINOPEC's refinery
14:52 Wärtsilä Lifecycle Agreement to guarantee operational reliability of new wind farm installation vessel
14:23 Hudong-Zhonghua launches two LNG carriers
13:51 Cargo ship hits Baltimore’s Key Bridge
13:12 Final sanctioned tanker with Russian Sokol oil to reach China port - Reuters
12:42 Adani Ports acquires 95% of Odisha's Gopalpur Port from SP Group for $162 million
12:21 IHI and Yara Clean Ammonia agree to jointly assess clean ammonia business collaboration
11:41 Yara Clean Ammonia and Azane granted safety permit to build world's first low emission ammonia bunkering terminal
11:16 Wartsila and Royal Caribbean Group celebrate 15 years of collaboration on digital transformation
10:46 A global carbon tax on shipping is coming, says ABS Chairman and CEO
10:21 Eni, Fincantieri and RINA establish partnership for maritime transport decarbonization

2024 March 25

18:07 The Maritime and Port Authority of Singapore continues to investigate reports of oil spills off the port of Tuas
17:31 “K” Line, NIPPON HAKUYO and OPT Gate sign an agreement for a new fire detection system for car carriers
17:07 Greek merchant fleet recorded slight decline in January 2024
16:47 Hanwha Ocean Plans to develop green technology and naval ships
16:25 U-Ming Singapore and ITOCHU sign milestone MoU for the joint development of ammonia dual-fuel and de-carbonized vessels
15:34 Svitzer targets methanol-fuelled MAN 175DF-M engine for tug application
15:04 Wallenius Wilhelmsen signs contracts for four 9,300 CEU vessels with China Merchants Jinling Shipyard
14:40 Taiwan International Port to upgrade terminal facility at Kaohsiung
13:59 Сruise ship Carnival Freedom catches fire near Bahamas
12:59 Hanwha Ocean wins 2.4 tln-won order for 8 LNG ships
11:16 Inland Ports meet in Paris to talk about the innovation potential of inland ports
10:50 IMO agrees possible outline for maritime “net-zero framework”
10:24 Hapag-Lloyd to continue to avoid the Red Sea route