VENTURE Issue 3 - Wallenius Wilhelmsen Logistics
VENTURE Issue 3 - Wallenius Wilhelmsen Logistics
VENTURE Issue 3 - Wallenius Wilhelmsen Logistics
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Here to stay<br />
The Middle East is a very active<br />
market for many of <strong>Wallenius</strong><br />
<strong>Wilhelmsen</strong>’s key High and Heavy<br />
customers. The Middle East Express<br />
service comes as a great extension<br />
to our services in a new area.<br />
The more routes and berths we<br />
serve, the greater our potential to<br />
maximize the use of our vessels and<br />
deliver cross trade to our customers.<br />
<strong>Wallenius</strong> <strong>Wilhelmsen</strong> seeks to<br />
provide a total solution, developing<br />
services in areas of high demand.<br />
The Middle East Express service is<br />
a great opportunity for <strong>Wallenius</strong><br />
<strong>Wilhelmsen</strong> and our customers.<br />
The market looks very robust and is<br />
going to remain that way for a long<br />
time. With interest expressed from<br />
all of our key customers, this<br />
service looks set to become yet<br />
another addition to an already<br />
strong global portfolio. ■<br />
John J Felitto<br />
Senior Vice President<br />
<strong>Wallenius</strong> <strong>Wilhelmsen</strong> Lines<br />
Americas<br />
Published by Global Corporate Communications www.2wglobal.com<br />
Middle East Express<br />
sets sail<br />
May 2005 will mark the inaugural voyage<br />
for the first <strong>Wallenius</strong> <strong>Wilhelmsen</strong> vessel on<br />
its Middle East Express service. The move<br />
to launch a direct monthly service from the<br />
US to the Middle East ports of Jeddah,<br />
Saudi Arabia, Kuwait, Damman and Dubai<br />
comes from unprecedented growth in<br />
the region.<br />
Due to the combination of economic growth<br />
with redevelopment and reconstruction in<br />
the Middle East, the demand for heavy<br />
machinery, automobiles, construction parts<br />
and oil equipment is at an all-time high.<br />
Customers will benefit from potential links<br />
to South America and <strong>Wallenius</strong><br />
<strong>Wilhelmsen</strong>’s global logistics chain. The<br />
requirement for increased transportation<br />
capacity using a fast, efficient, carrier<br />
service from the US will also be met.<br />
The service will initially run two vessels on<br />
a competitive schedule for the round trip.<br />
Plans are in place to expand the service to<br />
four vessels, enabling an impressive 21 day<br />
frequency.<br />
Striving for<br />
cleaner seas<br />
In April, <strong>Wallenius</strong> <strong>Wilhelmsen</strong> actively raised<br />
the issue of environmental challenges on the<br />
high seas by bringing together the world’s<br />
top international maritime and business<br />
publications at its Marine Environment Club<br />
in London, with the goal of discussing the<br />
current state of the oceans.<br />
Dr Sian Pullen, Head of European Marine<br />
Programme, WWF, hosted the debate with<br />
Lena Blomqvist, Vice President,<br />
Environment, <strong>Wallenius</strong> <strong>Wilhelmsen</strong>. Last<br />
September, <strong>Wallenius</strong> <strong>Wilhelmsen</strong> signed<br />
a three-year agreement with the global<br />
conservation organisation.<br />
ISSUE 3 2005<br />
Gordon Hammer, Head of Americas<br />
Trade, <strong>Wallenius</strong> <strong>Wilhelmsen</strong>, pinpoints the<br />
advantages of the Middle East Express<br />
service: “<strong>Wallenius</strong> <strong>Wilhelmsen</strong>’s ability to<br />
service ports directly is crucial. Being a<br />
global carrier, we can link up to local trade<br />
lanes, enhancing our existing services.”<br />
As well as delivering an efficient service,<br />
the global carrier is also looking to develop<br />
and grow the existing market. In Galveston,<br />
Texas, <strong>Wallenius</strong> <strong>Wilhelmsen</strong> is developing<br />
a modern port to improve efficiency and<br />
accommodate increased traffic, as well as<br />
link Middle East Express to its South<br />
American trade routes. ■<br />
The meeting explored major environmental<br />
threats, including global climate change,<br />
land-based sources of marine pollution,<br />
over-fishing and the impact of ballast<br />
water, used to maintain vessels’ stability.<br />
The debate also encompassed the use of<br />
low sulphur fuel – a practice <strong>Wallenius</strong><br />
<strong>Wilhelmsen</strong> has endorsed for a number of<br />
years – and the potential of routing ships<br />
around sensitive sea areas. ■
US Dollars per barrel<br />
Bunker oil<br />
price rise<br />
260<br />
240<br />
220<br />
200<br />
180<br />
160<br />
140<br />
120<br />
April<br />
2004<br />
June<br />
2004<br />
July<br />
2004<br />
Aug<br />
2004<br />
Sept<br />
2004<br />
Oct<br />
2004<br />
Nov<br />
2004<br />
Dec<br />
2004<br />
Feb<br />
2005<br />
Rotterdam bunker oil<br />
Price change over last 12 months<br />
Mar<br />
2005<br />
A variety of factors have conspired to<br />
raise the price of bunker oil to a<br />
historical high. A larger demand on<br />
bunker resources, combined with a lack<br />
of new refineries and discoveries, as<br />
well as market uncertainty from events in<br />
West Africa and the Middle East, has<br />
led to sustained rising prices across the<br />
globe. A shipping market that puts more<br />
pressure on carriers to run more vessels<br />
at greater speed has also resulted in<br />
higher marine fuel consumption.<br />
<strong>Wallenius</strong> <strong>Wilhelmsen</strong> is working to<br />
maintain control of increasing costs in<br />
order to protect its customers and<br />
minimize its Bunker Adjustment Factor<br />
(BAF) surcharge. On current predictions,<br />
bunker oil will represent up to 50% of<br />
total running cost per vessel in the near<br />
future. In addition, approaching lowsulphur<br />
fuel requirements look set to<br />
further increase running costs for carriers.<br />
With fewer barrels being produced<br />
globally and demand continuing to rise,<br />
particularly from Eastern markets, the<br />
future rests more than ever in<br />
developing transport that is less reliant<br />
on traditional fuels.<br />
<strong>Wallenius</strong> <strong>Wilhelmsen</strong> holds environmental<br />
friendliness as one of its core values.<br />
<strong>Wallenius</strong> <strong>Wilhelmsen</strong> currently works in<br />
advance of low-sulphur fuel<br />
requirements and spearheads the<br />
development of fuel-efficient vessels and<br />
alternative power sources to ensure<br />
future cost-efficiency. ■<br />
April<br />
2005<br />
Published by Global Corporate Communications www.2wglobal.com<br />
ISSUE 3 2005<br />
Sydney Harbour<br />
welcomes Toledo<br />
Sydney Harbour, Australia, played host to its first vessel<br />
naming ceremony, launching the latest addition to the<br />
<strong>Wallenius</strong> <strong>Wilhelmsen</strong> fleet, Toledo, on April 22.<br />
The event took place in the shadow of the new vessel,<br />
berthed strikingly between Sydney’s two main<br />
landmarks, the Harbour Bridge and Opera House.<br />
Among the 300 guests at the event<br />
were dignitaries and captains of the<br />
automotive, agricultural, construction<br />
and mining industries from Australia,<br />
New Zealand, Japan, UK, USA and<br />
Scandinavia. The new vessel is part of<br />
<strong>Wallenius</strong> <strong>Wilhelmsen</strong>’s new building<br />
program, aimed at boosting fleet<br />
capacity. The 61,300 tonne vessel<br />
comes to Sydney, one of the main ports<br />
served by <strong>Wallenius</strong> <strong>Wilhelmsen</strong>, from<br />
the yards of Mitsubishi Heavy<br />
Industries (MHI) in Nagasaki, Japan.<br />
Ingar Skaug, President and CEO,<br />
Wilh. <strong>Wilhelmsen</strong> hosted the event<br />
and introduced the vessel’s lady<br />
sponsor, Mrs Sissel Wang, who<br />
bestowed the vessel name and used a<br />
symbolic axe to cut a line that<br />
launched Toledo.<br />
Toledo is part of a younger generation<br />
of vessels that are around 20 percent<br />
more fuel-efficient than their<br />
predecessors. These vessels form a<br />
key part of the global carrier’s<br />
leadership in environmental issues.<br />
Co-host Peter Dexter, Regional<br />
Director, <strong>Wallenius</strong> <strong>Wilhelmsen</strong> Lines<br />
Oceania, commented on its<br />
significance: “We introduced ro-ro<br />
ships in the late ‘60s-70s in Australia<br />
and today we’re still building new<br />
ships which are an evolution of that<br />
particular class which represent the<br />
most modern in the world. Vessel<br />
capacity has more than doubled and<br />
this is a reflection of how the concept<br />
of Roll on Roll off has evolved since<br />
we brought these ships into Australia<br />
35 years ago.” ■