SSG No 10 - Shipgaz

Price:
Denmark 50 DKK
Euro region 6 EUR
Norway 55 NOK
Sweden 55 SEK
UK 4 GBP
May 21, 2007 10
SHIPPING AND
SHIP MANAGEMENT
Manning: Industry must solve officer shortage
nBSR – major cluster of marine business
Mika Nykänen: Turning a new page in Finnish Shipping

Finnlines’ aim is to be the leading company in
its field. For a company operating in the service
sector, competent and enthusiastic employees
are a key resource.
A good, well-planned human resource
policy serves to guarantee the enthusiasm and
expertise of our personnel.
A CAREER OPPORTUNITY
WITH ROOM FOR MY
PERSONALITY
Employee satisfaction are one of the main values
of Finnlines. We are constantly aiming
to achieve this by being a reliable and motivating
employer treating employees with
fairness and equality, encouraging every
employee to continuously develop his or her
own competence and expertise.
THE WAY TO GO IN SHIPPING
The competence of our personnel is ensured
through continuous training. One of the challenges
for the future is to attract new, talented
persons as Yourself.
For further information on vacancies
please contact our human resource offi cer at
Finnlines Ship Management.
FINNLINES PLC, PORKKALANKATU 20 A, FI-00180 HELSINKI, FINLAND,
TELEPHONE: +358 (0)10 343 50, FAX: +358 (0)10 343 4242, EMAIL: SEAPERSONNELFIN@FINNLINES.FI
FINNLINES SHIP MANAGEMENT AB, BOX 158, SE - 201 21 MALMÖ, SWEDEN,
TELEPHONE: +46 (0)40-17 68 40, FAX: +46 (0)40-17 68 41 / 17 68 51, EMAIL: SEAPERSONNELSWE@FINNLINES.FI
WWW.FINNLINES.FI

HEAD OFFICE
P.O. Box 370, SE-401 25 Gothenburg, Sweden
Phone +46-31-62 95 70, Fax +46-31-80 27 50
E-mail: info@shipgaz.com
editorial@shipgaz.com
marketing@shipgaz.com
Internet: www.shipgaz.com
Rolf P. Nilsson, publisher and editor-in-chief
Phone: +46-31-62 95 80
Mobile: +46-708-49 95 80
E-mail: rolf@shipgaz.com
Lars Adrians, marketing manager
Phone: +46-31-62 95 71
Mobile: +46-702-22 92 92
E-mail: lars@shipgaz.com
BRANCH OFFICES
Denmark
Bent Mikkelsen, editor
Smedegade 13, DK-6950 Ringkøbing, Denmark
Phone: +45-9732 1333
Mobile: +45-2424 1335
E-mail: bent@shipgaz.com
Estonia (Tallinn)
Madli Vitismann, editor
Mobile: +372-5038 088
Phone & Fax: +372-646 13 18
E-mail: madli@shipgaz.com
Finland
Pär-Henrik Sjöström, editor
Malmgatan 5, FI-20100 ÅBO, Finland
Phone: +358-2-242 62 50, Fax: +358-2-242 62 51
Mobile: +358-400-82 71 13
E-mail: par-henrik@shipgaz.com
Stig-Johan Lundström, sales manager
Ruissalontie 10 as 22 FI-20200 Turku, Finland
Phone: +358 45 32 44 99, Fax: +358 50 855 558 21
E-mail: stig-johan.lundstrom@marconwest.fi
Norway
Petter Arentz, editor
P.O. Box 31, Teie, NO-3106 Tønsberg, Norway
Phone: +47-33-40 12 00, Fax: +47-33-40 12 01
Mobile: +47-90-99 06 37
E-mail: petter@shipgaz.com
Dag Bakka Jr, editor
Strandgaten 223, NO-5004 Bergen, Norway
Phone: +47-55-32 17 47
Mobile: +47-414 56 807
E-mail: dag@shipgaz.com
Marit Eggen, marketing manager Norway
Søndre Vøra 20, NO-3234 Sandefjord, Norway
Phone: +47-33-45 36 55, Fax: +47-33-47 30 33
Mobile: +47-913-15 901
E-mail: marit.eggen@shipgaz.com
Odd-Einar Reseland, sales manager
Sandakerveien 76 F, NO-0483 Oslo, Norway
Phone: +47 22 09 69 10, Fax: +47 22 09 69 39
Mobile: +47 47 33 29 96
E-mail: odd.einar@shipgaz.com
Poland
Leszek Szymanski, correspondent
Korzystno, ul. Truskawkowa 35, PL-78 132 Gryzbowo, Poland
Phone: +48 94 354 04 84, Fax: +48 94 355 48 58
Mobile: +48 602 579 620
E-mail: leszek@shipgaz.com
SUBSCRIPTION
EUR 95/year. For further subscription details,
please send an e-mail to subscribe@shipgaz.com
or call +46-31-62 95 85
www.shipgaz.com
SCANDINAVIAN SHIPPING GAZETTE, MAY 21, 2007
16
39 74
IN THIS ISSUE
13 Anchor handling – fraught with danger
16 LPG: Substantial carrier
scrapping necessary
20 Herning shipping: Preparing
for the next generation
SPECIAL FEATURE
Shipping and
Ship Management
REGULARS
4 News Review
8 SES Onboard
11 Editorial
78 Fleet News
81 Technical News
82 Finance & Insurance
85 IT & Communications
90 Market Reports
FRONT PAGE PICTURE
28
13
23 In a global perspective, the Nordic Baltic Sea Range is a region of large and
diversified maritime activities, in fact one of the major clusters of marine business in
the world. There is probably no other sector in which the the Nordic Baltic Sea
Range region exerts a stronger impact on the global economy than the maritime.
A/S Consultas, situated in Horten, Norway,
a specialist maritime software provider since
1972 for many of the world’s leading maritime
companies, helping them to improve
both overall safety and general ship management
duties. 35 years of experience,
combined with solid understanding of daily
maritime operations, enable Consultas to
create innovative solutions that are simple
to operate, logical and above all reliable.
Read more about Consultas on page 77
and on www.consultas.no

NEWS REVIEW
NEW JOB FOR FORMER DFDS CEO The
Clipper Group owned company
Seatruck Ferries has appointed a new
chairman of the board, Ole Frie, the
former CEO of DFDS Group. He
retired at the end of 2006, but has now
accepted the position in the company,
which operates ferries between Heysham
and Warren Point with several ropax
units. The company was founded in
1996 and has since then been a part of
the Clipper Group. Ole Frie has spent
his whole working career at DFDS.
MAJOR INVESTMENT IN ÅBO The engineering
company Konepaja Häkkinen
in Åbo has signed an agreement with
Wärtsilä on long-term cooperation in
the production of diesel engine blocks.
At the same time, Konepaja Häkkinen
will increase its capacity by investing
EUR 25 million in new equipment.
Häkkinen has been manufacturing
engine blocks for Wärtsilä since 2004.
These engine blocks are delivered mainly
to the factories in Vasa and Trieste.
The company utilises Wärtsilä’s previous
production areas, which became
available when the production of diesel
engines in Åbo was moved to Italy.
LULEÅ LOSES – KARLSHAMN GAINS
According to statistics supplied by
SIKA, Luleå has fallen two places on the
list of the 25 largest ports in Sweden,
measured in goods volume handled,
after being overtaken by Karlshamn and
Helsingborg in 2006. The figures are still
preliminary, but they indicate that Karlshamn,
with 7,650,000 tons of handled
goods, is now the fifth largest port in
Sweden followed by Helsingborg,
7,564,000 tons, and Luleå, 7,472,000
tons. Göteborg is still the largest port
with 39,911,000 tons handled, followed
by Brofjorden, Trelleborg and Malmö.
ATLAS COPCO LANDS MAJOR ORDER
Atlas Copco has, together with its longtime
partner Hamworthy Gas System,
won a major order for equipment for
seven LNG-carriers from South Korean
shipyard Daewoo Shipbuilding and
Marine Engineering. Atlas Copco’s
share of the deal is worth SEK 210 million
(EUR 23 million). According to
Atlas Copco, this new equipment will
significantly reduce power consumption
compared to previous systems supplied.
ANDERS RYDBERG
The Containerships VI.
”Containerships Group
not for sale”
ssg-åbo. The container traffic operator
Containerships Group has reacted to information
in the Russian press according to
which the Russian liner operator Fesco has
named the company as a purchase target.
From Containerships it is said that there
are no plans to sell the company to Fesco
or anyone else.
RECORD PROFIT FROM SEATRANS IN BERGEN Bergen-based chemical tanker to liner and
forestry carrier owner/operator Seatrans has announced a record profit after tax of NOK
218 million for 2006 compared with NOK 154 million a year earlier. Gross group operating
income last year was NOK 1.39 billion compared with NOK 1.139 billion in 2005.
Seatrans is strong in small and medium-sized chemical tankers.
Poland looking for shipyard
investors in Middle East
ssg-kolobrzeg. The short time left for the
privatisation process of the Polish newbuilding
shipyards is a hot topic and it has
lead to considerable speculation. The government
has the least chance of fulfilling
its obligations to the EU Commission concerning
Gdynia Shipyard, scheduled for
privatisation by the end of June.
Two investors have shown interest, but
no one has filed a formal bid due to the
shipyard’s huge debt of PLN 500 million
(EUR 130 million) to the social security
agency ZUS.
Costly bankruptcy
According to a report from the independent
Globalisation Institute in Gliwice, a
possible bankruptcy for Gdynia Shipyard
would cost society PLN 20 billion over the
Later, Fesco released a public statement
denying that it is involved in any attempts
to purchase the Containerships Group or
the Moby Dick terminal used by Containerships
Group in St Petersburg. Containerships
Group is a Finnish company, 65 per
cent of which is owned by the Iceland listed
company Eimskip.
next five years, lead to direct unemployment
for 7,500 people in Gdynia and affect
a further 80,000 jobs. For Gdynia, this
would mean a doubling of the total unemployment.
The latest reports suggest that the Al-
Sabah family in Kuwait could be interested
in buying the yard. The reports include
speculation that Middle East investors
could be interested in buying all Polish
shipyards to secure transport capacity for
the oil exports when 480 tankers will soon
be up for scrapping. Polish yards would
then build long tanker series and oilrigs.
The speculation took off when the
Prime Minister’s trip to Kuwait was
announced. He will, however, not be
accompanied by any shipyard or industry
representatives.
4 SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007

NYKLauritzenCool and partners
take over the Great White Fleet
ssg-ringkøbing. NYKLauritzenCool has
taken control over the Great White Fleet
owned by Chiquita Bananas. The banana
producing company has sold off its logistic
division to a joint consortium consisting of
NYKLauritzenCool and the shipowning
companies Eastwind in New York and
Chartworld in Piraeus.
The fleet of eight reefers and four con-
Another profitable
year for Sweden’s
shipping authority
ssg-göteborg. The Swedish Maritime
Administration reports a SEK 38.2 million
(EUR 4.1 million) pre-tax profit for 2006,
and pays SEK 10.7 million (EUR 1.2 million)
in tax and a further one third of the
SEK 27.5 million (EUR 3 million) net profit
in dividend to the state.
8 per cent grants
Total revenues reached SEK 1.65 billion
(EUR 180 million). Of this, SEK 138 million
(EUR 15 million),
or 8
per cent,
were state
grants. The rest are external revenues,
mainly fairway dues and pilotage dues with
SEK 961 million (EUR 104.1 million) and
354.9 million (EUR 38.4 million) respectively.
www.jets.no
tainer vessels, with a high reefer container
capacity, has been sold to the two shipowning
companies for a sum of USD 227 million.
NYKLauritzenCool will take care of
the commercial management in close cooperation
with Chiquita Bananas in longterm
time charter agreements in combination
with other reefer ships under NYK-
LauritzenCool’s control.
Record orderbook
at Aker Yards
ssg-tønsberg. Aker Yards had 148 vessels
worth a little more than NOK 86 billion
on order at the end of the first quarter.
NOK 14.7 billion worth of orders were
added in the three months since the turn
of the year. The orderbook this time last
year was nearly NOK 48 billion.
The company’s subcontractors are under
a lot of strain to keep up deliveries to prevent
delays, according to Aker Yards’ first
quarter report.
Thin margins
However, profit margins on orders remain
thin. Despite operating income increasing
from NOK 5.4 billion to NOK 8.4 billion
in the first quarter, operating results only
improved from NOK 290 million to NOK
320 million and results after tax actually
fell from NOK 221 million in the first
quarter in 2006 to NOK 203 million in the
first quarter this year.
JETS VACUUM AS. P.O. Box 14, N-6069 Hareid, Norway. Tel. + 47 70 03 91 00. Fax + 47 70 03 91 01. E-mail: post@jets.no
The Sichem Copenhagen.
NEWS REVIEW
NORDIC AND EITZEN SWAP TANKERS
Nordic Tankers and Eitzen Chemical
ASA have swapped ownership of three
chemical tankers. Previously, the companies
had owned 50/50 each but
Eitzen Chemical ASA has now taken
over the full ownership of the Sichem
Pearl, while Nordic Tankers A/S has
taken over the full ownership of the sister
ships Sichem Copenhagen and
Sichem Oslo. The change does not
affect the commercial management,
which remains at Eitzen Chemical ASA
and the Eitzens City Class pool.
POLAND DECIDES ON EU GREEN BOOK
After some months of consultation, the
Polish government has officially decided
on the EU Commission’s green
book on future maritime policy.
Poland is in favour of system development
and the implementation of measures
to monitor ship traffic, increased
shortsea shipping and the development
of the European port infrastructure. It
also supports the green book’s proposals
for coastal protection measures. However,
Poland does not feel that changes
need to be made to the United Nations
Convention on the Law of the Sea.
– to install
a vacuum
toilet system
Sanitary Systems
– made to please
SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007 5
LENNART RYDBERG
BerCom

NEWS REVIEW
AFP IN DEAL WORTH USD 750 000 000
Aker Floating Production (AFP) has
struck a USD 750 million deal to
deploy the FPSO Aker Smart 1 with
Reliance Industries offshore India. Aker
Kvaerner is also involved in the deal
and will deliver a complete subsea production
system. The value of Aker
Kvaerner’s contract is in excess of USD
300 million. The subsea production
system will be installed at 1,100–1,400
meters water depth and includes trees,
manifolds, controls, umbilicals, flowlines
and risers.
ATLAS SHIPPING LOSING MONEY
Atlas Shipping of Copenhagen posted
a much lower profit in 2006 than in
2005. The profit fell from DKK 250
million to only DKK 44 million. Most
of the fall in profits comes from a number
of contracts in the panamax segment
signed at a price level that did not
match the actual market.
“We were completely wrong in our
judgement of the market and my former
partner signed cargo contracts at a level
much too low”, says Bo Kristensen, MD
and one of two founders of Atlas Shipping,
to the newspaper Børsen.
RØKKE/DOF ORDER IN VIETNAM Kjell
Inge Røkke and DOF has established a
new shipowning company, hitherto
unnamed, and ordered six anchor handling
vessels at Aker Yards’ new yard in
Vietnam for NOK 1.5 billion en bloc
with an option of another six vessels.
DOF earlier joined Aker in the oil service
company Aker Oilfield Services
but will take on technical and commercial
management of the new vessels.
The first vessel is scheduled for delivery
in 2010 and the last in 2012. Røkke is
working through Aker Capital.
NOE-TIME COSTS HIT RESULT Tanker
operator Concordia Maritime reports a
SEK 5.2 million profit after tax, down
by SEK 12 million compared to the
first quarter 2005, despite a strong
product tanker market. The result was
hit by a one-time SEK 9.8 million cost
in relation to a final decision on a dispute
and a SEK 7.8 million cost for
delayed repairs of the Stena Vision
reduction gear. The full year result forecast
of SEK 80 million after tax is
unchanged.
BENT MIKKELSEN
The Finnarrow.
Capacity boost
on Poland–Sweden run
ssg-göteborg. Stena Line has chartered in
the ro-pax vessel Finnarrow for three years
to meet increasing demand on the Karlskrona–Gdynia
route. The new vessel will
boost freight capacity by about 60 per cent.
During the first quarter this year, the number
of passengers rose 15 per cent, cars 29
per cent and freight units 11 per cent.
Acron halts terminal
investments in Estonia
for political reasons
ssg-tallinn. As a result of the strained
relations between Estonia and Russia, the
Russian chemical group Acron has decided
to stop financing the construction of Baltic
Chemical Terminal in the Port of Sillamäe.
“We realise the importance of the events
that have occurred in conjunction with
moving the monument and we have been
forced to halt the financing of our investment
projects in Estonia until the situation
has normalised. We cannot stand idly by
when our country’s rights are trampled
on”, is the reason given by the group on its
website.
Even though its collaboration with the
In a few years time, Stena Line will add
further capacity to the service by deploying
either the two 5,500 lane metre newbuildings
to be built by Aker Yards in Germany
for deliveriy in 2010, or the two ro-pax vessels
recently lengthened to 240 metres and
currently being operated on the Hoek van
Holland–Harwich run.
ports in the three Baltic states is profitable,
the company is now looking for alternative
export routes via e.g. Kaliningrad State Sea
Fishing Port. At the same time, Acron is
negotiating with Seaport of St Petersburg
with a view to routing a part of its exports
via the port.
Acron owns 45 per cent of the shares in
AS DBT (Dry Bulk Terminal) in Muuga
and 85 per cent of the shares in Baltic
Chemical Terminal, which is under construction
in Sillamäe.
More news on page 87 >
6 SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007

The New ME-B Engine
The ME-B engines are the latest and most modern MAN B&W engines with low specific fuel oil con-
sumption at all loads as well as a very low lubricating oil consumption. This together with the long
time between overhauls and a very high reliability give these engines one of the lowest life cycle
costs in their power range.
Furthermore, these smokeless engines have a lower impact on the environment due to the low
emissions. Other advantages are the low propeller speed and the low minimum constant speed
MAN B&W – a brand of the MAN Diesel Group
Stronger
shorter
lighter
That’s ME-B
MAN Diesel A/S • Teglholmsgade 41 • DK-2450 Copenhagen SV • Denmark • Tel. +45 33 85 11 00 • Fax +45 33 85 10 30 • www.manbw.com

Safety
Environment
Security
Lights! Camera!
… and action!?
Editor: Cecilia Österman | Phone +46 31 62 95 88 | E-mail: cecilia@shipgaz.com | www.sesonboard.com
Recently, IMO proudly announced
that they won the UN Documentary
Film Festival with a documentary
featuring the tiny stowaways transported
in ballast water causing havoc
in ecosystems worldwide.
My first reaction was that IMO,
instead of filming minuscule ctenophores,
should agree on a standard
for approving equipment that kills the
vicious predator. And make sure the
member states ratify the environmental
conventions. Then I thought again.
Can this be a way to get more stakeholders
involved?
Historically, maritime regulations
have been rather reactive, often based
on lessons learnt the hard way after a
tragic accident that caught the attention
of the public.
The slow pace of ratification of
IMO’s environmental conventions is
possible since the public knows about
oil spills but less about operational
pollution. It took eight years for Marpol
Annex VI to enter into force, and
by then it needed a substantial review.
One third of the seabed in the Baltic
Sea is already dead, and the bio-invasion
has not yet seen its peak. It is time
the 85 million people living in the area
around the Baltic Sea demand a choice
of who is shipping their cars, their coffee
and the pulp for the morning paper
Preferably before jellyfish is the only
fish on the
menu.
cecilia österman
cecilia@shipgaz.com
SES Onboard
The SES Onboard section
focuses on Safety, Environment
and Security issues of interest
for ship operating professionals
at sea and in shore-based
organizations.
Rag left in a fuel tank
behind loss of the Bohus
A rag, or similar, forgotten in the fuel
oil day tank after cleaning was probably
the cause of the main engine shut down
on the illfated tug Bohus.
The Swedish Maritime Safety Inspectorate
(SMSI) has published a report on the
grounding and consequent sinking of the
Bohus off the Swedish west coast on March
16, 2007. The crew assessed that the situation
would quickly be solved and did therefore
not alert the MRCC until it was too
late to prevent the grounding. The crew
was rescued by helicopter.
Confusion among the crew
According to the report, the crew was
admittedly experienced in general but had
not had enough time for familiarization on
the Bohus. This led to confusion around
the length and fastening of the anchor
chain and also difficulties in finding and
using the survival suits.
The tug Bohus sank outside the Swedish
west coast on March 16.
Recommendations from the SMSI
include allowing crew time for familiarization
when signing on a new vessel, that the
survival suits are regularly inspected and
tried on and also that the MRCC is alerted
as soon as possible on the suspicion that
help might be needed in a later stage.
For more information, please see
www.sesonboard.com
Super Cepco finds slicks
in the North Sea
A very first extra long surveillance
period of the English Channel and
the North Sea, a Super Cepco (Coordinated
Extended Pollution Control Operation),
has just finished.
“The idea is to create a continuous surveillance
pressure in a confined geographical
area”, says Yngve de Bourg of the Swedish
Coast Guard, which had an observer in
the operation, to SSG.
According to British media five vessels
were caught and 45 oil slicks discovered
during the operation held under the Bonn
Agreement between the states bordering
the North Sea and EU.
Previus operations lasted up to 48 hours
and where called Copco’s, now they are supposed
to last up to two weeks, and are therefor
called Super Cepco’s. The surveillance
was performed with airplanes and satellites.
THE SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007
kBV/NorrlANDSFlYG

Mitropoulos and Dimas agree
on environmental challenges
IMO Secretary-general Efthimios E
Mitropoulos and the European Commissioner
for the Environment, Stavros
Dimas, agreed on a common approach to
ensure global solutions to the environmental
challenges. During a meeting in Brussels
at the end of April, they discussed regulatory
developments at IMO concerning the
reduction of emissions of ships, ship recy-
The hostage taking in Nigeria has
escalated. On May 3, no fewer than
21 expatriates were abducted at different
locations in less than twelve hours. Early
morning, the FPSO Mystras, owned by Italian
oil company Agip, was attacked. Eight
foreigners, including five Europeans, were
kidnapped. They were moved to a different
location and released six hours later. At the
same time eleven Koreans working for Shell
were abducted from a power station under
construction. A few days earlier, militants
THE SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007
cling and the desirability for all EU members
to ratify the environmental conventions
adopted by IMO.
Stavros Dimas stated that the EU members
need to show leadership in this regard
and promised IMO that he would make
every effort to assist in getting all the EU
States to accept and ratify the environmentrelated
IMO instruments.
Fake PiLot StatioN iN NigeRia The international shipping organisation Bimco
warns shipowners to be aware of fake pilot stations in Nigeria. A vessel waiting off
Lagos was contacted on channel 16 by a station identifying itself as Lagos Pilot Station.
The caller instructed the vessel to proceed 0.5 nautical miles off the fairway buoy to pick
up a pilot. The master grew suspicious and contacted the agent, who confirmed that no
berth was yet available and advised the vessel to be wary of such fake pilot stations.
Militants attack oil workers in Nigeria
forced their way onto the FSO Oloibiri and
kidnapped six Chevron workers. Nigeria is
Africa’s leading oil exporter, usually exporting
around two million barrels daily.
Unrest has plagued Nigeria’s oil-rich
southern delta region for years, and in recent
months armed militants have stepped up
a campaign against the oil industry, blowing
up oil pipelines and kidnapping foreign
workers. The latest statistics claims that the
production is cut by close to 700,000 barrels
per day due to the militants’ attacks.
Join the SES forum at www.sesonboard.com
Slight increase
in Baltic oil spills
Oil spills detected in the Baltic Sea
increased slightly in 2006 to 236
illicit spills, compared to 224 discharges in
2005, according to fresh statistics from Helcom.
Even with this increase, the number
of detected oil spills is only half of those
detected in 1999, when 488 spills where
detected. Of the 236 spills in 2006, only
one was larger than 100 cubic metres and
two larger than 10 cubic metres.
For more information, please see
www.sesonboard.com
LoSS PReveNtioN
tooLBox
in co-operation with
More news, sourCes and links
www.sesonboard.com
The new generation in
ship management
OSM Ship Management AB
Backa Bergögata 18
422 46 Hisings Backa, Sweden

GPS MARiNKONSULT
TL Sea Electronics Oy

One industry, three facets
What we often refer to, a
bit casually, as the shipping
industry in the
Nordic-Baltic area, is in
fact a three-headed phenomenon,
each with wide effects on the
community at large. These three facets of
the industry are sharing the roots in seafaring,
but have evolved along different tracks
into three rather distinct clusters: Regional
transport and logistics, into deepsea trading
and into the maritime offshore business.
Though the industry should speak with one
voice in most cases, the conditions and
challenges tend to differ, and this should be
understood by the political level.
The maritime logistic systems, with elements
like ferry and cargo services, ports,
distribution and cargo-tracking, are essential
to the economies of Sweden and Finland,
and quite important to Norway and
the Baltic nations. Deepsea trading, or
simply international shipping, provides
the basis for the Danish shipping industry
and is still the main market for the Norwegian.
Also Sweden, Finland and Latvia
have a foot or two in the deepsea trades.
The maritime offshore industry has
become the driving one in Norway, but is
also important in Denmark and to a lesser
extent in Sweden.
These different aspects of sea transport
The Scand(a)lines saga
For more than two years the owners of
Scandlines have tried to agree on selling
the company, because they cannot settle
on how to run the company. The compromise
worked out by the Danish Ministry of
Transport, as the owner of 50 per cent of
the company, has been turned down. The
compromise was to give British 3i (competing
with Baltic Ferry Development) a share
of 20 per cent, with the other 80 per cent
divided between Baltic Ferry Development
and the Allianza Group. This compromise
was turned down by the latter two, which
are the preferred buyers of Scandlines
according to the German part owner
Deutsche Bahn. A rather strange situation,
as companies are normally sold to gain
and services share not only their ancestry,
but also most of the challenges. They all
draw heavily on the base of human competence,
on equipment and technology,
on entrepreneurship and innovation. The
nature of the challenges does, however,
differ from one sector to the other, and we
should be aware of this.
The regional transport/logistic business is
embedded in the overall EU transport policy
and integrated in road or rail structures.
The sector has been undergoing simplification
and consolidation, the building of systems
for high volumes of units or tailored
for the individual industry group. There
are still opportunities for innovation, but
the main challenges are clearly related to
the environment, both as to emissions,
congestion and other strain imposed on
the community. This is clearly the area that
attracts the widest political interest.
The maritime offshore sector, which
ranges from service and supply ships to
drilling vessels and production/storage
ships, has been subject to strong technological
development for a couple of
decades, and more so as offshore oil production
is being confined to automated
cells on the ocean floor and in deeper
waters. Here, environmental protection is
the keyword, but also cut in emissions.
Politically, this is a hard issue, as the burn-
profit for the owners, but not in this case.
Many experts have tried to find a reason
for the trouble within the company, but
have not yet found anything in particular.
It is more likely the result of a range of differences
between the two cultures in Germany
and Denmark. Germans have a completely
different management style, far
stricter than the looser Danish style.
Former CEO of Scandlines Ole Rendbæk
once gave me a good example of the cultural
clash: One day at the office in
Warnemünde, he decided to get a cup of
coffee and went for it himself. This
rather shocked the staff and his secretary.
It is highly unusual for a CEO to pick up
the coffee himself. In a more Danish
office style he would have asked the sec-
EDITORIAL
ing of oil and gas is the main source of
greenhouse gases.
In contrast, international shipping relies
on mature technology; safety and operational
standards ensured by certified systems.
This is the area of commercial networking
and entrepreneurship. It is also an
area ruled by international rules and regulations.
Few politicians know anything
about it, and fewer still care, except when
an accident or oil spill happens.
The message is: The maritime transport
and service industry reacts and adapts to
commercial, technical and political influences.
The biggest challenge for the industry
is to make the political level understand
its complexity, importance and potential.
The tools and objects may vary from Finland
to Denmark, from Estonia to Norway,
but basically a finely-tuned maritime transport
policy is needed, based on the EU
guidelines on transport,
labour and taxation.
As will be shown
by the following
articles, our industry
offers a lot in
importance and
potential.
dag bakka jr
Editor, Norway
Phone: +47 55 32 17 47, E-mail: dag@shipgaz.com
retary, if she (or he) wanted a cup as well!
From my point of view it is awful the
way two owners are playing games with
the future of several hundred employees.
On the other hand, they are making
tons of money every day for the benefit of
the company. It is a pity that an idea to
join two ferry operators (DSB Rederi and
Deutsche Fähr) into a strong combined
company turns out to be such a hopeless
case. On paper the idea looked great, with
great enthusiasm from the employees even
though several thousand of them would
lose their jobs. At this stage we can establish
the fact that the distance from Denmark
to Germany is greater than the 45
minutes of sailing between Rødby and
Puttgarden. Where will this story end?
bent mikkelsen
SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007 11

We get the job done,
wherever you need us!
Industrial and Ship Cleaning Hans Langh is the leading Scandinavian company in
the ship cleaning industry. Thanks to our special equipment, we are able to carry
out most cleaning tasks – also during the voyage. Typical jobs for us are cleaning
of bilges, cleaning up heavy oil contamination from ballast tanks and decks, cleaning
of engine shafts, cargo holds and cargo decks, etc. Cleaning and conservation of
engine rooms subsequent to marine accidents form our other core area of expertise.
We also carry out chloride measurements. No matter what your cleaning problem
is, call us. Backed by our expertise and know-how built up during over 30 years in
the business, we promise that we can get the job done!
SERVICE
+358 2 473 4105
Industrial and Ship Cleaning Services
Alaskartano, FIN-21500 PIIKKIÖ, FINLAND, Tel. +358 2 477 9400, Fax +358 2 479 6222, Service 24 h +358 2 473 4105, www.langh.fi

SHIPSPOTTING.COM
Anchor Handling Tug Supply (AHTS) vessel the Bourbon Dolphin seen here entering Lervick on the Shetland Islands
last month, just before being deployed on anchor-handing duties northwest of Shetland when she capsized.
Anchor handling –
fraught with danger
When the anchor handling
tug supply (AHTS) vessel
Bourbon Dolphin
capsized and later sank,
85 nautical miles northwest
of Shetland last month, she was conducting
one of the most demanding and
inherently dangerous operations in the
marine service industry, anchor handling.
The stress of long hours, foul weather and
wires under strain are only some of the
more obvious hazards.
As the vessel sank in 1,100 metres of
water and probably never will be raised,
many questions will be left unanswered.
The first court enquiry, not unexpectedly,
gave only a few pointers as to why the vessel
capsized.
Commission appointed
A royal commission, recently appointed by
the Norwegian government, is headed up
by a judge, Mrs Inger Lyng, and will scrutinize
the events that led to the accident,
which cost eight people their lives. In the
brief to the commission it says that its
members shall investigate the coordination
between the vessel, Bourbon Dolphin, and
the rig, Transocean Rather, who’s anchor
the vessel was handling.
Furthermore the commission members
are asked to look into the ship’s operation,
construction and certification (DNV). And
finally, the commission will look to see if
anyone, individuals or companies, can be
held responsible.
Early days
At this early stage, it is impossible to know
exactly what led to the accident, but, as we
noted above, there are a few pointers. A
series of misunderstandings, mishaps and
bad luck seem to have caused the capsize.
It is far too easy to pre-judge in maritime
accidents. The first court enquiry heard evidence
from surviving crewmembers. It is
perhaps typical of the sequence of events
that the surviving first mate, Geir Syvertsen,
recalled that the master of the Bour-
bon Dolphin, seconds before the capsize
asked the assisting vessel, the AHTS Highland
Valour, whether she new the difference
between northwest and southeast.
The sarcastic remark fell after the Highland
Valour pulled the anchor chain in the
wrong direction.
Experts have also questioned whether or
not the Bourbon Dolphin was sufficiently
powerful for the job in hand to move the
rig’s 300-tonnes anchor and chain. But,
that is for the experts in the royal commission
to find out.
The anchor handling operation
In order for an AHTS vessel, like the Bourbon
Dolphin, to operate safely and efficiently,
certain procedures have to be followed.
Even so, every operation is different,
albeit with the same operational pattern.
All rigs are equipped with an anchor
chain to which is attached a chaser wire
with a chaser ring around the anchor chain.
When the AHTS backs up to the rig, the
rig’s crane will transfer chaser wire, which
in turn is fastened to the AHTS’s winch.
The vessel is now attached to the anchor
chain via the chaser wire and ring. The
SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007 13

anchor-handler now starts to move away
from the rig dragging the chaser wire and
rig along the anchor chain toward the
anchor on the seabed. When the ring
reaches the rigs anchor, the AHTS starts to
heave in the anchor with the chaser wire
connected to the ships main winch until
the anchor is on the aft deck of the AHTS.
Thereafter the rig can be moved to the
appropriate location before the anchor is
again deployed. Of course, the Bourbon
Dolphin never got to this stage. Se was
grappling to control the 300-tonnes
anchor and chain, when the accident happened.
Raising the Bourbon Dolphin
Owners of the Bourbon Dolphin are
insured with Gard, the protection and
indemnity club, against legal liabilities.
That would also include raising the wreck if
the British government demands it. Such
an operation is said to cost around USD
100 million, at least. Underwriters led by
Gjensidige and the Norwegian Hull Club
has insured the vessel itself for USD 50
million. Lately Gard, one of the richest of
the big P&I clubs with USD 500 million in
free reserves, has come under increasing
pressure to finance the raising of the Bourbon
Dolphin.
Experts’ opinion
London Offshore Consultants (LOC),
leaders in their field, were consulted by
Gard on the technical aspects of raising the
wreck and they have advised the following:
The Bourbon Dolphin is currently at an
extreme depth (1,100 metres) and has sunk
in a location that is exposed to difficult
wind, wave and current condition. The
greatest depth from which any ship has
been raised previously is about 600 meters.
That ship was much smaller and lighter
than the Bourbon Dolphin.
The condition of the vessel on the
seabed is unknown. The hull may have suffered
serious damage as it sank and hit the
Kockum Sonics - our strength is your benefit
Kockum Sonics- your supplier of TYFON ® , LOADMASTER ® , LEVELMASTER ® level gauging
system , SHIPMASTER ® flexible cargo & ballast system and sound cleaning tools.
KOCKUM SONICS, Tel:+46 40 671 88 00, Fax: +46 40 21 65 13, www.kockumsonics.com
The figure shows an
anchor chain
arrangement with a
permanent chaser and
below a standard
mooring arrangement
with chain and anchor.
The illustration is
extracted from
“OLF/NSA Guidelines
for Safe Anchor
Handling and Towing”.
seabed, it may have also become partly
buried on the bottom. The enormous
water pressure at this depth, as well varying
currents at different depths of water, represent
additional problems. The location in
the North Atlantic Ocean is remote and
hostile and will only allow for operations
in the summer months, and even then any
activities are likely to incur significant
weather downtime.
LOC has concluded that it is extremely
uncertain that it is technically possible to
raise the ship. Any method that could be
attempted would, by its very nature, be
untried and would require a significant
period of time for research, engineering
and planning. From a legal perspective, the
state that has jurisdiction over the ocean
area where a ship has sunk can order it to
be removed if it poses a danger to navigation
or the environment, neither of which
appears to be the case with the Bourbon
Dolphin.
petter arentz
14 SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007

At OSM we realise that who we are is not about how many ships we operate or how many offices we
have. Those are only numbers, and the heart and soul of OSM is not about size. It´s about people!
We believe that we will continue to grow and strengthen our position as long as we always remember
our mission: To make our customers successful.
OSM employs more than 5000 people around the world, delivering the best service money
can buy in the following fields: Ship Management, Offshore Rig Management, Crew Management
and Engineering.
It´s all about people!
We are looking for experienced
and competent officers
We have vacant positions for all officer categories to man our growing fleet
of LNG, LPG, Oil and Chemical Tankers, as well as our Offshore Vessels
(PSV, AHTS, Cable, FPSO, FSO, etc)
We are looking for people who enjoy the challenges of operating sophisticated
tonnage in a multicultural environment.
Fore more information please contact our personnel department.
Cvs can be sent to applications@osm.no, or you may register your
application at www.osm.
The New Generation
in Ship Management
The OSM Group, Svinoddveien 12, 4857 Arendal, Norway. Tel. +47 37 07 38 00, www.osm.no
www.tvers.no, photo: Arild de Lange Nilsen

The Tenna Kosan owned by Lauritzen Kosan, 4,000 cbm LPG carrier.
Nearly 80 Liquefied Petroleum
Gas (LPG) carrier owners
worldwide are grappling
with deteriorating market
conditions and lower export
volumes. Only 23 per cent of the total
LPG production is shipped by sea, and
this seaborne trade is forecast to grow to
68 million tonnes by 2010 and to as much
as 98 million tonnes by 2015. However,
since Ocean Shipping Consultants (OSC)
made this forecast in 2005, the growth in
demand for LPG products has slowed. One
might have assumed that retail consumers,
environmentally conscious as they should
be, would switch more to LPG from other
fuels, but that has not been the case.
According to Poten & Partners, well
known for its LPG reporting and forecasts,
LPG trading started this year on a sombre
LPG: Substantial
carrier scrapping
necessary
An orderbook of 47
per cent of the existing fleet
should be the writing
on the wall for any owner.
note, even though LPG freight remained
at very depressed levels and butane and
propane prices are as usual following the
oil prices. Owners are also faced with a
total orderbook of 7.3 million cubic metres
(cbm), or some 47 per cent of the existing
fleet. The orderbook is dominated by the
80,000 cbm capacity or bigger and most of
the deliveries are due in 2008 and 2009.
An orderbook of 47 per cent of the existing
fleet should be the writing on the wall for
any owner and large scale scrapping will be
necessary. The biggest current segment, the
70,000–79,000 cbm, has a total of 83 units
with an average age of only 15.8 years, but
with a total capacity of 6.3 million cbm.
The biggest owner of LPG tonnage is
BW Gas with 1.89 million cbm of capacity.
BW Gas is totally dominant in the Very
Large Gas Carrier (VLGC) segment, but
15 of the big vessels are between 20 and
30 years old. Ranged behind BW Gas are
Naftomar Shipping, Mitsui OSK Lines,
Yuyo Shipping, Sanko Steamship, Solvang,
Kawasaki Kisen Kaisha, Kuwait Petroleum
and CMB. The older vessels are likely to
be scrapped in the next two to three years.
Scrapping policies and vetting
As with most other types of tonnage, different
owners adopt different scrapping
16 THE SCANDINAVIAN SHIPPING GAZETTE • MAY 21 2007
LAurITZEN KoSAN

strategies, depending on the area of trade,
whether or not the ships are chartered to
third party or if the owners have newbuildings
for delivery.
Other elements are the companies’ longterm
policy or whether they are publicly
listed. In that case a sale of a vessel would
bolster the balance sheet. Owners also tend
to assess the risk of scrapping tonnage differently,
but this time around there is little
risk that the market will improve and owners
will not forego a business opportunity
by not scrapping.
Both oil majors and charterers do vet
LPG carriers at regular intervals, but their
policy vary a great deal and some are flexible
in assessing the standard of the owner,
management and crewing.
LPG freight developments
Spot freight for the VLGCs and the medium
range vessels has fallen quite dramatically
in the past 12 months. A year ago a 75,000
cbm carrier commanded USD 1,050,000
per month, while that rate in the beginning
of May was only USD 565,000, nearly
halved in a mere 12 month. During the
past 12 months the freight reached a low of
LPG carrier freight
(USD '000 per month – spot) ■ 75,000 cbm ■ 57,000 cbm ■ 115,000 cbm
2,000
1,500
1,000
500
0
Quarter 1 ‘06
Q 2 ‘06
USD 220,000 during week 4 through week
6 and a high of USD 1,550,000 per month
last summer. The 57,000 cbm LPG carrier
fared a little better, but still fell from USD
1,230,000 per month to USD 990,000 in
Source: Fearnresearch
a space of one year. The rate hit a high of
USD 1,650,000 per month in week 18 last
year and a low of USD 825,000 per month
towards the end of the year. Freight for
the 15,000-cbm semi-refrigerated LPG car-
THE SCANDINAVIAN SHIPPING GAZETTE • MAY 21 2007 17
Q 3 ‘06
Q 4 ‘06
Q 1 ‘07
Q 2 ‘07

The Sigas Mariner, a 1,600 cbm LPG carrier owned by Eitzen Gas.
rier fell moderately from USD 840,000 per
month to USD 760,000 in the period, with
a high of USD 900,000 per month and a
low of USD 740,000.
LPG products
Liquefied Petroleum Gas is principally
hydrocarbons comprising propane and
butane. Roughly speaking it is produced in
three different ways; by removing volatile
components from crude oil, as impurities
removed from natural gas, and finally by
distillation or cracking. LPG is used as petrochemical
feedstock to produce gases like
ethylene, propylene and ammonia. Only a
small portion of LPG for household use is
transported at sea.
LPG prices are directly proportional to
oil prices. Since the beginning of 2006 propane
and butane prices – FOB North Sea
bENT MIKKELSEN
LPG carrier freight
(USD per tonne – FOB North Sea)
650
600
550
500
450
400
Quarter 1
Q 2
Q 3
Q 4
■ Propane
■ Butane
2006 2007
Q 1
Q 2
Source: Fearnresearch
– have remained relatively high. High/low
for propane was USD 611.00/USD 447.00
per tonne and for butane USD 585.00/
USD 441.50.
petter arentz
V E R I STAR

A new name is launched
Today, Trygg-Hansa Marine works with colleagues in Codan Marine
Denmark, CMS Norway and Phjola Marine in Finland. The crew remains
the same but the name is new. From the 14th of May we will all operate
under the common name of Codan Marine Services.
• www.codanmarineservices.com • +46 31 339 47 30 • sweden@codanmarineservices.com •
Images © Magnus Rietz

Herning Shipping is up for
sale. Not in the normal sense
where a buyer can take it all,
but more in the discrete way
by an exchange of shares in
the company. Herning Shipping has never
been better financially or fleet-wise, with a
huge renewal programme and the lowest
average age in the fleet ever. Therefore it
Herning shipping
Preparing
for the next
generation
The Else Theresa, built in 2002, owned in Stockholm by Norwegian K/S with charter back to Herning.
could be the perfect time for a change in
ownership or change of generation within
the ownership. The process is already being
surveyed in the market by several external
consultants hired by Herning Shipping,
but with no final answer yet.
As of today, most of the share capital in
Herning Shipping or Tankskibsrederiet
Herning is owned by Vitta Theresa Lys-
gaard. She has turned 75 years of age and
wants to find another owner for part of her
shares and part of the company, which was
founded in 1963 by her late husband Peder
Lysgaard. She took over the senior management,
when her husband died in 1968. In
the following years she gradually helped
her oldest son Knud Lysgaard to take over,
becoming CEO in 1985. In 2001 Knud
How many dollars per ton are you losing today?
Keep wondering where your company is leaking money? We believe that in many cases the leak can
be traced back to the bunker purchase department and the lack of information traders have at their
disposal when deciding on what and when to buy bunkers. Can you honestly say that the bunker
traders at your company have the right risk management tools? Visit www.mabux.com and we will
tell you all you need to know to spend less and save more money when buying bunkers.
Visit www.mabux.com
Get a 14 day free trial
20 SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007
ZEE-PHOTO

Our main goal is to keep
Herning Shipping sailing
and make a difference
in the market.
Lysgaard died and Vitta Lysgaard had to
take over once again. After all these hard
years she has now decided not to take part
in the management any more.
New owners
“There is no plan to sell the company and
its fleet outright”, says Lars Vang Christensen,
who in 2005 took over the senior
management after a 25-year long career in
A.P. Møller-Mærsk. “But it is obvious that
Vitta Lysgaard, in view of her age, is looking
for somebody who can take over the
shares and thereby the ownership of the
company”, Lars Vang Christensen explains.
“We have no preferred owner or any preferred
constellation to buy the shares. Our
main goal is to keep Herning Shipping sailing
and make a difference in the market in
the product tanker segment”, says Lars
Vang Christensen.
It is basically a scheme that will prepare
the company and Vitta Lysgaard’s family
for the day when she passes away. She
wants to make everything ready and not
leave the company in the doldrums without
an owner who can give the management
directions for the future.
Strong company today
Herning Shipping is today a strong company
with a healthy financial basis and a fleet
of product tankers with an average age of
Engine Protection Partner AS
Schaller Automation’s Oil Mist Detector systems
P.O. Box 2668 Møhlenpris,
NO-5836 Bergen, Norway
Phone: +47 55 30 19 00
Fax: +47 55 30 19 01
www.epp.no
BENT MIKKELSEN
After several sales, the Annelise Theresa is one of the smallest and oldest in the Herning fleet,
built in 1990 and on 2,440 DWT.
less than seven years. The fleet consists of 37
ships in a mix of owned vessels and vessels
on long term contracts to Herning Shipping.
The fleet will expand even more in the
coming years with several ships on order
from shipyards in China. Recently Herning
Shipping exercised an option for a further
two tankers of 13,000 DWT size, which will
be the largest units in the Herning fleet.
The 13,000 DWT ships will be far from
the start in 1963, when Peder Lysgaard was
an independent retail seller of petrol for
private cars. The oil majors did not like his
interference in their core market and made
a lot of obstructions for Peder Lysgaard’s
oil company, called Uno-X. One of them
was to make owners of tankers afraid and
scare them from sailing for Uno-X. So Peder
Lysgaard decided to build his own
The next generation. Lars Vang Christensen,
CEO of Herning Shipping.
tanker. It was the Vitta Theresa, named by
his wife and after his wife, and Tankskibsrederiet
Herning was born.
bent mikkelsen
Schaller Automation’s repair and service department
– come directly to us, save time & money!
➢ repair centre – max 2 days repair time
➢ main stock for spare parts – 1 day delivery time
➢ sales of new and reconditioned VISATRON O.M.D.
➢ open 24 hours/7 days a week
➢ exchange unit service for all VISATRON systems
➢ overhaul and service of the following system series:
VN /79, VN /82, VN /87 & VN /93
SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007 21
HERNING SHIPPING

First Class tankers: a new perspective
Germanischer Lloyd Aktiengesellschaft
Vorsetzen 35 · 20459 Hamburg/Germany
Phone +49 40 36149-0 · Fax +49 40 36149-200
headoffice@gl-group.com · www.gl-group.com
See you at NorShipping 2007
June 12-15, Stand No. D03-21
Tankers are like a work of art – the more quality they offer, the more
valuable they are. Welcome to GL, your First Class partner in improving
the operational safety and profitability of your tankers!

SHIPPING AND
SHIP MANAGEMENT Editor:
The blue Range . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Manning: Shortage must be solved by the business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Clipper Group diversifies the recruitment of seafarers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Look out for 2-navigator vessels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Turning a new page in Finnish shipping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
DENMARK Looking towards a prosperous maritime future . . . . . . . . . . . . . . . . . . . . . . . 42
ESTONIA Estonian shipping suffocating in the embrace of politicians . . . . . . . . . . . . 46
FINLAND Small owners coming on strong . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
GERMANY Up-and-down German sector tackles personnel crisis . . . . . . . . . . . . . . . . . 56
LATVIA New Latvian ships come from Marshall Islands . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
LITHUANIA Large companies carry Lithuanian flag . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
NORWAY Prevailing pragmatism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
POLAND Positive signs on the Polish shipping scene . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
SWEDEN Owners frustrated over tonnage tax delay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
Dag Bakka Jr
SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007 23
BENT MIKKELSEN

SHIPPING AND SHIP MANAGEMENT
The blue Range
In a globalized industry, Singapore has become a stronghold for the Nordic shipping community.
It was the late Kaj Rehnström who
invented the idea of the NBSR –
the Nordic Baltic Sea Range – that
waterlogged northern region of
Europe.
In a global perspective, the NBSR is a
region of large and diversified maritime
activities, in fact one of the major clusters
of marine business in the world.
Maritime transport accounts for a high
proportion of the cross-border trade in the
region, and the trade flows to and from
the NBSR are essential to the European
shipping market. The region accounts for
almost a fifth of the global fleet, and the
range of service providers hold a substantial
global market share.
There is probably no other sector in
which the NBSR region exerts a stronger
impact on the global economy than the
maritime.
A diversified cluster
The total involvement in maritime-related
activities across the region may be diverse
and varying, the background and challenges
different, but the people involved are all
grappling with the same task: To support
and generate seaborne transportation.
There are the same basic dimensions:
• the regional trade flows of great complexity,
involving ports, traffic supervision,
logistic providers, ferry and cargo services,
the distribution of dry bulk and oil products
within the European market,
• the involvement in the global shipping
industry, with commercial networks and
ship operations worldwide,
DAG BAkkA jr
Shipping inveStment
in the nordic mArket
(billion USD)
new orders Secondhand
2001 3.6 1.1
2002 3.8 0.8
2003 4.0 1.8
2004 12.7 1.9
2005 8.8 3.7
2006 17.7 5.7
Source: SSG-Bergen
• the provision of services to shortsea and
deepsea shipping, from supplies of all kinds
to financial and insurance services, and
• the maritime technology industry, ranging
from ship design, shipbuilding, equipment
to research & development.
24 THE SCANDINAVIAN SHIPPING GAZETTE • MAY 21 2007

The NBSR maritime communities are distinctly different,
each with its characteristics. The Finnish maritime cluster
has an emphasis on its national export and import trade,
with a strong shipbuilding sector.
Sweden has a large element of shipping logistics by ferry
and cargo services, but also a thriving group of tanker
owners and some world-class shipping names.
Denmark has a core of large and diversified companies,
but above all a global trading network with Copenhagen
as the centre.
Traditionally a cross-trader nation, Norway is still strong
in niches and with an extensive cluster of maritime industries
including shipbuilding and financial services.
Russia, which is a genuine party to the NBSR, is important
by its vast resources and trade flows. Much of the
shipping activities have been taken international, in management
and chartering, but the current upturn is benefiting
the regeneration of the fleet.
Estonia, Latvia and Lithuania have been rebuilding a new
Although the emphasis may be different,
there are also similar kinds of operation
across the region. Shortsea bulk operators
are found everywhere, product tanker
owners in most countries, aframax owners
likewise, ferry companies, logistic providers,
container terminals, repair yards. And
so on.
There are important fields of cross-fertilization:
Baltic shipyards servicing Scandinavian
ships, Norwegian shipbuilders
relying heavily on steel work from Polish,
Baltic and Russian subcontractors, Baltic
and Polish seafarers hired by Scandinavian
shipowners. The strength of such
cooperation is a sharpened competitive
edge to the Scandinavians; markets, giving
jobs and competence building in return to
the southern shore of the Baltic Sea.
The political changes in the early 1990s
have indeed opened new bridges and tradeflows,
brought new opportunities and generated
massive investment, much of which
with a maritime aspect.
Spanning the world
The shipping communities across the Nordic
Baltic region are extensive and diverse,
with strong service sectors. Traditionally,
the maritime cluster has been divided into
national spheres, which makes it hard to
grasp its totality.
Our region boasts some of world-class
names in liner shipping, A.P. Møller-Mærsk
and Wallenius Wilhelmsen, tanker owners
like Frontline, Maersk, Torm, Stena Bulk,
Concordia, Nordic American, Lundqvist,
Prisco, Novoship, Norden, etc. Knutsen
SHIPPING AND SHIP MANAGEMENT
The characteristic communities of NBSR
LArgeSt nBSr fLeetS By JAnuAry 1, 2007:
Number of vessels DWT
Denmark 684 21,251,000
Norway 1,424 47,971,000
Russia 1,523 16,907,000
Sweden 327 6,244,000
Source: ISL-Bremen
maritime industry from the old state-owned giants, with a
score of smaller companies coming up in the shortsea sector
and a good number of service providers in shiprepair, etc.
The Polish shipbuilding industry has been going
through a difficult period, although the smaller yards are
thriving and Polish maritime labour have long been being
exported to Scandinavia.
Germany, which may in part be considered a NBSR
party, has been going through an expansion of dramatic
proportion, the fleet being more than doubled in ten
years, and with a thriving cluster of related industries.
OAS and Teekay Norway are the leading
in shuttle tankers. Many of the leading
chemical tanker operators are found in
the NBSR, Odfjell Seachem, JO Tankers,
Eitzen Chemical, Broström, Lasco and
Bryggen.
In the smaller range of products and
chemicals there are operations like Clipper-
Wonsild, Uni-Tank, Nordtank fronting several
Swedish owners, Herning, Tärntank,
Utkilen, Stenersen, and gas carrier operations
by BW Gas, Maersk, Solvang, Eitzen
Gas, Lauritzen, Norgas, etc.
Strong presence
The presence in dry bulk is particularly
strong, with the majority of the tonnage
owned elsewhere; Clipper, Norden, Klaveness,
Golden Ocean, Lauritzen Bulkers,
THE SCANDINAVIAN SHIPPING GAZETTE • MAY 21 2007 25

SHIPPING AND SHIP MANAGEMENT
Eitzen Bulk, Western Bulk, etc. The openhatch
forest products market is dominated
by Gearbulk and Star Shipping, the reefer
market by NYKLauritzenCool and Swan
Shipping (with a Norwegian link), and
Limarko, Holy House and Green Reefers as
important players. K G Jebsen is the leading
cement transportation company in the
world. Stena Line, DFDS, Transatlantic,
UECC, Unifeeder and the Rettig group are
among the leading unit freight operators
in Northern Europe. The offshore support
sector has a strong Scandinavian participation.
Even foreign shipping companies have
seen the potential in the NBSR community.
World-Wide and Teekay have taken
strong positions in Norway, Grimaldi taking
ACL and Finnlines, Wagenborg buying
Transfennica, Esco going to Norwegians
and Lisco to DFDS. French and American
owners have taken stakes in the Norwegian
offshore fleet.
Also in sectors like ship management,
crewing, ship supply and port agencies,
companies of Scandinavian origin or
ownership hold strong international positions.
Among the shipping banks DnB and
Nordea rank as the leading; the Scandina-
vian position in marine insurance is even
stronger, some 20–25 per cent of the global
market.
commercial position
Building on the available information on
the domicile of the shipping companies,
which hold severe discrepancies, as much
as 85 million DWT of ships may be attributed
to Nordic owners. In addition, large
fleets of foreign-owned ships are being
operated commercially on time charter
or pool basis, particularly by the bulk and
product tanker groups. Together, at least
150 million DWT is being controlled by
Nordic-related companies; about 15 per
cent of the global fleet.
Over the last three years, Nordic owners
have invested an approximate of USD
50 billion in new and secondhand ships,
according to our own records. These testify
to bold ambitions.
visible owners
Much of the strength in the shipping infrastructure
in our area is the entrepreneurial
factor, the strong involvement by visible
owners and the comparatively open access
to a dynamic market. The combination of
Improved maritime equipment
Noreq AS develops, produces and delivers maritime equipment all over the world. Our experience
from the maritime industry and the close contact with customers is refl ected in improved products.
Life-saving equipment
Totally/partially enclosed lifeboats,
freefall lifeboats, rescue boats, davits
www.noreq.no
Phone : +47 53 46 47 50 Fax : +47 53 46 47 51
P.O.Box 144, N-5480 Husnes, Norway E-mail: noreq@noreq.no
Marine and offshore cranes
Knuckle/telescopic, telescopic boom,
stiff-boom, jib (knuckle), pipe-handling, yacht
Different equipment in stock.
the worLd’S Shipping regionS
By JAnuAry 1, 2007
(mill DWT)
Greece 170
rest-EU 160
Japan 150
China/Hong Kong 115
SE Asia/Korea 110
Others 110
Nordic 85
Middle East 35
USA/Canada 50
Source: ISL-Bremen (adjusted)
large integrated groups with medium-sized
companies and a fair undergrowth of aspiring
owners promises well for the continued
growth of the shipping industry.
And most importantly, the newfound
cooperation across the NBSR has been a
tremendous stimulant for our maritime
industries. It has opened new trade flows,
access to low-cost production and labour
as well as a market for products and jobs.
Much has been achieved in 15 years; more
is to be achieved by using the networks for
the further development in the future.
dag bakka jr
Visit us at stand D08-45
Pneumatic rubber fenders
Sizes from 0.3 m dia. x 0.6 m length
– up to 4.5 m dia. x 9.0 m length.
Fi-fi units
Various capacities.
Standard size 1200 m 3 /h at 12.5 bar

Think local. Act global.
PureBallast deals with both sides of the issue.
IMO’s ballast water treatment standards apply world-
wide, but it’s your compliance on board that matters.
That’s why Alfa Laval’s PureBallast has been proven
in three years of full-scale trials at sea. Without chemi-
cals, PureBallast neutralizes organisms of all sizes –
including those smaller than 50 microns.
www.alfalaval.com/pureballast
By choosing Pure Ballast, you also choose Alfa Laval’s
world-class backing. Having supplied the marine
industry for more than a century, we offer a full global
network of harbour support. No matter where your
ship sails, we can provide you with the parts, service
and true peace of mind you need.
HIL A NDERS

SHIPPING AND SHIP MANAGEMENT
Henrik Edwinsson, middle, organised the annual Career days at Kalmar Maritime Academy together with
Lars Larsson and Fredrik Strömbäck.
Manning in the shipping industry
Shortage must be solved
by the business
The problem of manning the growing
commercial fleet has been an issue
for more than a decade. International
organisations ranging from the EU to
Bimco and the ISF claim there is a shortage
of up to 10,000 officers, and rising to close
to 30,000 in the years to come.
“In the next two years we need 230 experienced
officers”, says Rolf Axelsen, director
of Marine human resources at Teekay
Marine Services AS.
Well-known solution
The problem of finding sufficient numbers
of qualified and experienced officers has
been a fact for a long time and the solution
has virtually been the same for just as long:
Get young people into the Naval academies
through information campaigns,
show the benefits a job at sea offers with
good salaries and long shore leaves, make
sure there are enough positions onboard
vessels for officers in training and promote
possibilities of a land based career after a
few years at sea.
The European Union wrote this in 2001
and again in 2005. A number of organisations
have said the same things over and
over again.
“It is the shipowners themselves who
must prove to the young people that there
is a career in shipping. But having said
that, it is also up to the politicians. For us
here in Norway the situation has been very
unstable. With every new government we
have had a new set of rules and regulations.
And of course we need the same rules
throughout Europe”, says Rolf Axelsen at
Teekay, who recently visited Career days at
Kalmar Maritime Academy to try to find
future employees.
During the winter there were reports of
FPSO masters being offered salaries of
USD 22,000 per month and “poaching” –
shipowners entering the market offering
very high salaries to recruit officers from
established companies – has become a reality.
In a situation like this one would
expect graduates from the naval academies
to be able to pick and choose from companies
willing to employ them.
Easy to attract companies
“I think it has been easier to attract companies
from abroad this year, especially from
Norway”, says Henrik Edwinsson, student
at Kalmar Maritime Academy, who together
with two fellow students organised the
annual Career days, which attracted over
50 exhibitors from all over Scandinavia.
During the career days some students
got job offers and some allegedly signed
contracts, but Henrik Edwinsson still men-
28 SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007
PAUL GUNNSTEDT

The Estonian example
No hinders
so far
❯
The labour shortages affecting many
spheres in Estonia have not yet hindered
shipping. But the small population
increase in the early 1990s is now beginning
to affect the number of entrants to
the Estonian Maritime Academy and that
is why the country could experience
shortages of seafarers some time during
the next decade.
New career opportunities
As more passenger vessels appear, the
career opportunities for seafarers improve.
While before the appearance of
the new Tallink ships under the Estonian
flag one could often witness a young captain
with the first officer of the same age
and without much hope of a promotion,
now several dozen officers can look forward
to new career opportunities. For
instance, when the Superfast ferries were
brought under the Estonian flag, six new
tions the most common way of getting a
job:
“I think most students try to get a job at
the company where they had their last
practical training period.”
Cadet positions
This underlines the necessity of making
sure there are sufficient numbers of positions
for cadets in the merchant fleet.
“Our problem is over supply of cadets,
and therefore a big problem of getting
cadets onto ships for practical training”,
says Adolf Wysocki, secretary general of the
Polish Shipowners’ Association.
“But what is also very important is that
young people are still considering it a
future career opportunity to work at sea,
and they are still applying to our academies.”
In the booming Norwegian oil and gas
MADLI VITISMANN
sector the problem is partly the same, but
the shortage more acute.
“In the next two years Teekay needs 230
experienced officers, in 2007 we have 210
places for cadets in our fleet. But our problem
lays in the fact that it will take ten
years before these cadets can take up the
positions we need them to fill right now”,
says Rolf Axelsen at Teekay in Grimstad.
Brain drain
With the great difference in wage costs
between eastern and western Europe and
not enough experienced officers in the
western parts of the continent, there is a
risk that Poland and other eastern nations
would suffer from brain drain when companies
from the west can offer higher
salaries.
“We do not suffer that much from that,
but of course the most efficient and most
SHIPPING AND SHIP MANAGEMENT
Matriculation ceremony for the new students at the Estonian Maritime
Academy last autumn.
captains were required immediately, as
well as countless other crewmembers.
However, the general labour shortages
may tend to limit the number of seafarers.
Crew members are often motivated
not only by the salary, but by the work in
two-week shifts on the proximity lines,
leaving them sufficient leisure time.
On cargo vessels owned by Estonian
shipping companies but carrying foreign
flags, one can see not only Estonian seafarers,
but also crew members from Russia,
Poland, Latvia and Lithuania, and as
long as no certain net wages for seafarers
have been enforced, one should not
expect to see Estonian ships worked
exclusively by Estonian seafarers.
madli vitismann
It will take ten years before
these cadets can take up
the positions we need them
to fill right now.
educated officers are
not working for Polish
companies anymore.
We have had a problem
with the language,
and what we see now
is foreign companies
coming in to offer
cadets a position and
even language training
if they sign longer contracts”,
says Adolf
Wysocki.
Rolf Axelsen,
head of Human
Resources at
Teekay.
SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007 29
PAUL G UNNSTEDT

SHIPPING AND SHIP MANAGEMENT
The Danish example
Too few young people
❯
In Denmark the maritime industry as
a whole is working very hard with the
recruitment issue. Last year they all joined
up in a DKK 12 million campaign in
order to target a large number of the
youngsters that were about to make a
career choice. The second stage of the
campaign has just been launched with
commercials on national television.
Fairly good result
This comes after a seven months campaign
attending job fairs, education days at high
schools and special arrangements in certain
cities throughout the country. So far the
campaign has given a fairly good result, but
not good enough as it has not met the goal
for maritime personnel in the years to
come. The maritime cluster and the World
Careers campaign are competing with all
the other career lines over a smaller than
usual number of young people. Back in the
1980’s – 18 to 22 years ago – the birth rate
was historically low. It was close to half of
the rate of the good years in the 1960’s,
when around 85,000 children were born
annually. This is part of the main problem
for the maritime cluster today: Too few
young people to pick from. The maritime
cluster has even harder pressure on the
campaign as the parliament has granted the
industry a series of financial privileges
against a higher intake to maritime education.
In fact it will be double up to nearly
400 per year with the latest agreement.
The capacity of education is at present
220 at Simac (Svendborg International
Maritime Academy). The January classes
this year started with 50 students instead
of the 110 possible. Marstal Navigationsskole
has one class of 25 students, but has
the capacity to open another class if needed.
On the engineering side the numbers
are much higher. There are at present
1,000 students giving a full house at all
schools educating engineers for both land
jobs and seafaring jobs.
bent mikkelsen
Even though the lack of officers was created
in different ways in different parts of
Europe – in Sweden, for instance, the shipping
industry was almost wiped out and
nobody could ask anybody to start a career
at sea, which was not the case in other parts
of Europe – it has not been hard to come
to a mutual understanding that something
must be done.
Done their part
“We in Ecsa have been very good at finding
a consensus, and the issue of manning
has been with us for a long time. I think we
have done our part throughout the economical
upswing we have had for quite
some time now”, says Lennart Simonsson,
president of Ecsa (European Community
Shipowners’ Association) and continues:
“But then it all comes back to having
neutral competition between nations within
the European Union, and here I must
say that if the EU and the Commission,
has been good for anything it has been
good for shipping. They understood at an
early stage the importance of shipping.”
Changing perspective from his role as
president of Ecsa to his role as CEO of
Swedish shipping group Broström, Lennart
Simonsson makes the point of creating a
30 SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007
BENT MIKKELSEN

If the EU, and the
Commission, has been
good for anything it has
been good for shipping.
complete career for those who choose a
career at sea.
“Our challenge in the industry is to
make sure that we are the best alternative
when any of our seamen wants to continue
their career ashore. Then later, after a couple
of years when they have raised their
families, or what ever their reason to find
work ashore was, perhaps they want to go
back to sea again.”
Personal development
This is also what student Henrik Edwinsson
thinks is just as important as the common
arguments of high salaries and long
shore leaves: possibilities for personal
development.
“I think many who go to the Marine
Academy start because they have heard
about high salaries and long shore leaves.
The genuine interest in working at sea
comes after a couple of years. And therefore
I think most of us who are considering
future employment really also consider
❯
Since the mid 1990’s, Norwegian officers
and crews have made out a quarter
of the seafarers in the foreign-going fleet.
The exact number has varied in accordance
with the fleet; from 13,100 in 1994 to 15,765
in 2000 and down to 12,000 in 2005. Since
then, the number has been on an upward
trend; the latest figure from the Norwegian
Shipowners’ Association is 13,100. In addition,
there are some 7,000 seafarers employed
in the coastal and ferry fleet.
There is a schism throughout the industry,
as the companies involved in the
deepsea bulk and tanker trades have long
ago turned to international manning, supplied
by crew managers using Filipino,
Indian, Russian or other maritime labour.
Shipowners involved in the chemical
“We in the industry must show that there is
a future career in shipping”, says Bimco
president Lennart Simonsson.
what career opportunities or courses and
education the companies offer.”
Rolf Axelsen at Teekay is already facing
the problem of finding people for their
land based job opportunities. Often it is
persons with experience from the sea he is
looking for, but cannot find.
“This is a global organisation so we can
still find people within the organisation
but perhaps we cannot get them to take a
job in for example Norway.”
fredrik davidsson
The Norwegian example
Better conditons for foreign seafarers
trades and other demanding trades have
retained an element of Norwegian or West
European officers, whereas the offshore
service industry has been dependent on
Norwegians.
Net-wage and subsidies
The net-wage system introduced in 2003
has largely strengthened this segregation.
Vessels in the NOR register and NIS-vessels
with a Norwegian safety manning are
eligible for the net-wage system. For every
seafarer under the net-wage system, a small
fee is paid to a fund managed by the Norwegian
Maritime Competence Foundation.
This year, the fund will spend NOK 44
million to practice positions for trainees,
cadets and junior officers. Also, each ship
SHIPPING AND SHIP MANAGEMENT
under the system has to provide two training
positions. This arrangement has solved
a previous scarcity.
The looming global shortage of seafarers
at a time when the world fleet is growing vigorously
has been a wake-up for shipowners
and management companies. There is now a
strong focus on how to keep the Filipino
and Indian seafarers, by offering benefits like
family insurance schemes, higher wages and
– inevitably – shorter service periods.
Companies with a good number of West
European officers have started to look at
combinations of shore and sea service periods
to be able to keep them. There is now a
strong interest in taking on trainees, cadets
and even junior officers.
dag bakka jr
SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007 31
BROSTRÖM
The Finnish example
Shortage
of engineers
❯
According to Finnish Maritime
Administration there were some
11,400 professional seafarers in Finland
in 2005. Expressed in the amount
of work one person manages to carry
out in one year, the number was 8,900,
of which 3,050 on deck and 1,700 in
the engine department.
There are problems recruiting engineers
and there is an acute shortage of
electricians. Regarding the vacancies
deck, the supply and demand in general
is in better balance. The supply of
young watchkeeping officers is even
larger than the demand, some of the
surplus working as ordinary seamen on
deck. There is a certain shortage of
experienced senior deck officers.
On Åland the admission places for
master mariners and engineers respectively
are filled up with students. In Finland
the admission places are fully utilized
for master mariners but roughly
50–60 per cent in the programmes for
watchkeeping officers and engineers.
pär-henrik sjöström

Clipper Group
diversifies
the recruitment
of seafarers
The Clipper Group, with headquarters
in Nassau on the Bahamas and commercial
offices on the Copenhagen
waterfront in a building called Harbour
House, is highly diversified – in many
ways. Ships are owned in various constellations,
they fly a number of national flags
and the crews also come from several different
countries. Even the management on
the technical side is diversified to several
companies in the world. By having diversified
technical management the Clipper
Group pulls all strings. This is needed in a
situation where there is a strong need for
seafarers from all corners of the maritime
sector. So by contracting with an outside
operator Clipper is able to find crew from
other sources than by recruiting by themselves.
The technical management
Clipper also handles its own technical
management, as in the Clipper Wonsild
Tankers. The commercial department operates
65 ships, but of this fleet only 28
are in technical management under Crescent
Marine Service. They are again
divided in the two companies. Ten of the
28 ships are managed technically from
The Clipper Bordeaux is one in a series of UK-flagged tankers from Rousse Shipyard in Bulgaria.
the Southampton office, which was originally
the Crescent Tankers’ office. The
rest, 18 units, are managed from Copenhagen.
Still looking into the Clipper Wonsild
Tankers’ fleet, there are five units in the
fleet under Danish technical management.
Not by Crescent Marine, but under the
colours of EMS Ship Management. This
company is the former Tesma in the Tschudi
& Eitzen Group, but now renamed EMS
Ship Management.
It handles the management of the trio
the Clipper Nelly, the Clipper Nadja and
the Clipper Nora along with the two newbuildings
from Korea, the Clipper Inge and
Clipper Marianne, which has recently been
renamed from the Inge Wonsild and the
Marianne Wonsild. All five ships fly the
Danish flag and are manned with Scandianvian
officers and crew from the Baltic
countries (Latvia, Lithuania and Estonia).
EMS Ship Management has since the
early days of the 1990s an extensive contact
with Estonia, as Estonia Shipping
Company (Esco) originally was a part of
the Tschudi & Eitzen Group. After the
divorce between the Norwegian partners,
Esco ended as part of the Tschudi Shipping
SHIPPING AND SHIP MANAGEMENT
BENT MIKKELSEN
Group. The five ships engage some 19
Scandinavians onboard in a pool of 35
officers in EMS. There are many Baltic seafarers
in the EMS group, 1,155 persons of
which 704 are onboard 75 ships.
On the other Danish flagged tankers in
Clipper Wonsild (the Clipper Helle, the
Elle Wonsild, the Lone Wonsild and the
Anna Johanne) the mix of the crew is
almost similar: Danish or Scandinavian
officers with Baltic crews.
The Bahamas flagged ships in the fleet
are manned differently. Often with Russian
officers with a Philippino crew, but other
combinations are also used to man a ship.
Again, skill is one of the major factors in
hiring a crew for a certain ship.
Special services for the staff
Like anyone else in the maritime sector the
Clipper Group aims to engage high-class
skilled seafarers in all positions onboard.
Good quality seafarers are the words used
in their own goal for the future to secure a
sound and progressive ship owning organisation.
A salary at the higher end of the
scale is one of the ways to attract seafarers
of a certain standard.
Also the land-based crews in the offices
SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007 33

SHIPPING AND SHIP MANAGEMENT
Clipper’s distinctive logo on the funnel of
Clipper Helle.
need attention in order to attract the necessary
growth in personnel. On a world wide
basis the Clipper Group employs 500 people,
indicating that a large number of seafarers
are employed elsewhere (like in agencies
or crewing companies). The land-based
crews in Copenhagen are cared for in many
ways. There is a special canteen service
with healthy low fat food and if anybody
has a weight problem, there is a special
BENT MIKKELSEN
Weight Watchers service ready at his or her
disposal. The health sector also contains a
stop-smoking programme as the office is a
non-smoking building (the same as for several
tenants in the building). Part of the
office facilities in Harbour House is also a
wellness facility and sauna. Working at
Harbour House also gives the opportunity
to join the Clipper Staff Club, which
makes cultural arrangements, runs an art
club and several other activities. On the
more “hardcore” side is an attractive salary
in combination with a good pension
scheme and an individual development
plan for the job.
The fleet
In the Clipper Group the fleet contains a
total of 250 ships, when it comes to ships
operated by Clipper. Of these many ships,
the Clipper Group owns 100. The total
fleet includes ships in three segments: Clipper
Bulk, Clipper Elite Carriers (multipurpose
heavy lift carriers) and Clipper Wonsild
Tankers (product and chemical
tankers). Furthermore the fleet contains
Very Large Crude Carriers (VLCC) in cooperation
with Hong Kong based Univan
Shipping. There are cruise vessels, reefers,
ro-pax vessels (like the Sea Truck Ferries,
running from Warren Point to Heysham
on the Irish Sea).
The Clipper Group will need more seafaring
personnel in the future, looking at
the orderbook in the group: Clipper Wonsild
Tankers have 24 units under construction.
Clipper Bulk has also a number of vessels
under construction. The number is not
known, at least 30, but more likely close to
50 units from shipyards in China and India.
History
The Clipper Group was founded in 1972
under the name Armada Shipping, when
the founder Torben Gulner Jensen was a
partner with Jørgen Dannesboe. The two
partners split up the group in the early
1990s, changing it to the Armada Group
(now situated in Switzerland) and the Clipper
Group with its head office in Nassau,
Bahamas.
As the Group’s main office is in the
Bahamas, all the ships flying the Bahamian
flag are not considered as flag-of-convenience
ships by the unions worldwide.
bent mikkelsen
34 SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007

Visit the professionals at Nor-Shipping
Hall C, stand C03-16
For more information and your free demo CD send an e-mail to: information@transas.com
Transas Group is one of the worlds leading developers of transport safety systems with over
1200 employees, agents and distributors in over 120 locations throughout the world. Transas
delivers a broad range of software, hardware and integrated solutions to both the Aviation
and Marine Transport industries including onboard and land-based systems.
Transas Scandinavia AB Datavägen 37, SE-436 32 ASKIM, Sweden
Tel:+46 31 769 56 80, Fax: +46 31 69 41 84, sales@transas.se, www.transas.se
Transas Norge AS. Verftsporten, Karljohansvern, Nedre Vei 8, N-3183 Horten, Norge
Tel: +47 33 04 20 10, Fax: +47 33 04 20 11, sales@transas.no, www.transas.no
Transas International Headquarters: 10 Eastgate Avenue, Eastgate Business Park, Little Island,
Cork, Ireland, Phone: +353 (0) 21 4 710 400, Fax: +353 (0) 21 4 710410, infornation@transas.com
• Onboard Systems
ECDIS, S-VDR, AIS, RADAR, Integrated Navigation Systems,
Chart Services
• Simulation Systems
Ship handling, Engine Room, Liquid Cargo Handling, GMDSS
and Crisis Management Training Solutions
• Vessel Traffic Services
Ports and Harbour systems, Traffic Monitoring & Communications
• Transas World-wide Service and Support Network

SHIPPING AND SHIP MANAGEMENT
Look out
for 2-navigator vessels
There are about 20,000 vessels below
5,000 tons deadweight in the world
merchant fleet. Of the vessels in
this segment that trade in European
waters, a majority is operated as
2-watch vessels, manned with two
navigators working six hours on, six
hours off, seven days a week. Studies
show that these vessels are overrepresented
in casualty statistics, and
this has been highlighted by the IMO.
April 26, 2007. In the early hours
of the day, a coaster grounds off
Brännö in the Southern archipelago
of Göteborg. Luckily, the incident led
to no harm for either people or environment.
The accident is being investigated,
but preliminary findings suggest that the
major cause was fatigue.
November 24, 2005. The Hondurasflagged
coaster Allora grounds in Lake Vänern
after the master having fallen asleep.
He had worked 18 hours that day and had
been signed-on for six months, working in
a six-hours-on-six-hours-off scheme, seven
days a week.
These are just two examples of accidents
involving vessels operated by two navigators,
the master and a chief officer.
Prone to accidents
2-navigator vessels are more prone to
accidents than other vessels. In 2003, the
Swedish Maritime Safety Inspectorate
conducted a study on 32 vessels involved
in accidents in Swedish waters. Based on
data from the accidents that occurred during
1997–2002, a “typical” fatigue related
grounding/collision emerged. The vessel
concerned had a tonnage of 1,000–4,000
GT and was built in the 1970’s. The vessel
had a crew of 3–8 people. At the time of
the accident, just one officer manned the
bridge, and in half of the cases it was by the
master. A dedicated helmsman was rarely
used, and a lookout, if any, was engaged in
work somewhere else than on the bridge.
2-navigator vessels were in a clear majority.
84 per cent of the accidents occurred
in the night, between 23.00 and 08.00 and
more than half between 04.00 and 08.00.
The accidents also occurred in heavily trafficked
areas.
A year later, the British Marine Accident
Investigation Branch (MAIB) carried out a
study on 66 accidents in British waters. 23
were groundings and in nine cases, fatigue
was considered to be a contributing factor.
Again, a study showed that 2-navigator vessels
were overrepresented, as eight of the
nine vessels were navigated only by the
master and a chief officer.
On the IMO table
Led by Sweden and United Kingdom, the
issue has been raised in IMO.
“Something has to be done”, says Johan
Franson, head of the Swedish Maritime
Safety Inspectorate and chairman of the
IMO Council.
“It’s not only a question of safety for the
individual vessel, fatigued officers constitute
a risk for all traffic and the environment”,
says Franson.
36 THE SCANDINAVIAN SHIPPING GAZETTE • MAY 21 2007
Pär-HENrIk SjöSTröM

He is also of the opinion that in some
cases this is not only a safety issue, it also
means a ruthless exploitation of crews.
Review of IMO guidelines
The MAIB report concluded that “manning
levels, fatigue and a master’s ability to discharge
his duties are major causal factors in
collisions and groundings”. As a result, the
MAIB recommended its “sister” authority,
the British Maritime and Coastguard Agency,
to demand a review of the IMO guidelines
on safe manning to ensure that all merchant
vessels over 500 GT have a minimum of a
master and two navigational officers.
The 2-navigator issue has landed on the
table of the IMO STW (Standards of Training
and Watchkeeping) sub-committee.
Sweden hopes for the introduction of a rest
period log, to be kept on the vessels. This
should be worked out in a way that makes
it possible to compare the entered data with
the information in the ship’s logbook. If a
port state control officer (PSCO) finds dis-
Mall.qxd 07-05-08 11.24 Sida 1
crepancies, this could be a cause for detention
to give the crew a chance to sleep.
“This would be a way for port states
and flag states to protect themselves from
Star
Maintenance
Software designed to reduce offhire
and maintain vessel value.
A stand-alone product that can
be integrated in the total fleet
management suite: Star IPS.
Manage
All your data in one database
Gather
Certificates and specifications
Control
Budgets and costs
Schedule
Maintenance and key jobs
Organise
Spare parts and purchasing
Execute
Jobs and reporting
Follow-up
Register and evaluate
Fatigued officers
constitute a risk
for all traffic
and the
environment. johan Franson.
a safety risk”, says Franson. According to
him, there have been a few cases in Sweden
when a vessel has been detained on
the grounds of apparent fatigue among the
crew. A rest period log would however give
the PSCO a better foundation for a decision
to detain a vessel.
Controversial issue
If the operation of a vessel cannot be managed
within the available working time
limits, the shipowner/manager faces two
options in practise: either to increase the
number of crew or to relieve the crew from
work tasks by handling them in the shorebased
organisation.
The 2-navigator issue is controversial.
SHIPPING AND SHIP MANAGEMENT
Any suggestions on increased crew sizes
are met by opposition from member states
with large coaster fleets, as Germany, Holland
and Denmark in Northern Europe.
For smaller vessels, and especially older
ones, manning costs constitute a major
stake of the daily running costs, and mandatory
rules on increased manning is seen
as a competitive disadvantage for high
labour cost countries.
There is also another aspect to consider
when discussing increased manning of vessels.
Each day, coasters by the thousands
ply European waters. In these days of a
looming officer shortage crisis, where to
find the additional extra thousands of navigators
needed to man the coasters?
As more and more information is gathered
supporting the opinion that these
vessels constitute a larger risk to maritime
safety than other vessels, action must and
will be taken.
It’s a complex issue, but whatever path
the IMO chooses to follow, it will be at
least a couple of years before a final decision
is taken on how to tackle the 2-navigator
safety problem.
rolf p nilsson
No wonder he's smiling...
He just aced an audit with Star Maintenance
,,
Who:
Ketil Melvik
What:
Chief Engineer
Assignment:
DNV audit on
Teekay Petrojarl-I FPSO
Duties:
Full engine room
responsibility
When I get audited by DNV, the Norwegian Petroleum Directorate or Statoil, I have no problem
to find answers to the inspectors' control questions. Feedback from our controllers praise our
maintenance systems as the best and most user-friendly.
Come and see us at Nor-Shipping
the Norwegian Pavilion Stand C03-22-C
w w w . s i s m a r i n e . c o m
THE SCANDINAVIAN SHIPPING GAZETTE • MAY 21 2007 37

Crisis Manager
One step ahead
Join the next generation at www.intrapoint.com

Turning
a new page
in Finnish
shipping
Shipping has been allocated increased
significance in the programme of the
new Finnish government. Managing
Director Mika Nykänen of the Finnish
Shipowners’ Association thinks that
the preconditions for a successful
Finnish shipping policy have not for a
long time been as good as they are
now.
Prime Minister Matti Vanhanen’s second
Cabinet has specified shipping
as a distinct part of its Government
Programme. It has stated that the competitiveness
of Finnish shipping shall be
improved to the same level as that of the
main competitors by the support forms
approved by the EU. It is specifically mentioned
that the tonnage tax legislation will
be revised to be more competitive and that
also the use of general funding will be
looked into.
The aim of the Finnish shipping policy
will be to ensure a positive development of
the Finnish merchant fleet as well as the
employment of Finnish seafarers and a sufficient
transport capacity even in a crisis.
“The Government Programme corre-
PÄR-HENRIK SJÖSTRÖM
Managing Director Mika Nykänen of Finnish Shipowners’ Association thinks that the new
government of Finland has a positive approach to shipping and understands the urgent need
to renovate the shipping policy.
sponds to the goals of the interest groups
within shipping and forms an excellent
base for further preparations within the
government,” says Mr Nykänen. “The terminology
in the programme shows that it
is clearly target-oriented and presents a
number of possibilities.”
Mr Nykänen was called as an expert
when the content of the Government Programme
was negotiated between the participating
political parties. If the issues are
prepared briskly, but still in a realistic way,
Mr Nykänen thinks that a new page will be
turned in Finnish shipping.
“We could improve our own competitiveness,
both regarding logistics and
Finnish shipping. Personally I am satisfied
with the way the new government has started
dealing with issues about shipping.”
Renewal of legislation
The renewal of the tonnage tax legislation
was started by the previous government,
and the new programme confirms that the
present government intends to continue
and finish the reform too.
Mr Nykänen thinks that there are two
main issues that must be dealt with as soon
SHIPPING AND SHIP MANAGEMENT
as possible. In addition to the tonnage tax,
a renovation and modernisation of the legislation
related to the so called “parallel
register”.
“A work group is preparing this matter
and has until the end of June to present its
report,” Mr Nykänen informs.
He thinks that the government will present
its proposal for a renovation of the
parallel register legislation during the
autumn of 2007.
“It is of the utmost importance to maintain
the competitiveness of the Finnish
flagged merchant fleet.”
An important issue in the upgraded law
will be to make the net salary system for
passenger vessels permanent, but there are
also a lot of details related to cargo vessels.
There are a number of other issues too, for
example support to training and change of
crews and extended use of mixed crews.
“In general we hope that the legislation
will be clarified as it has now become indistinct
and out of date in certain details. We
also hope that the present support and its
applications will be improved. Above all, it
is about making this legislation better for
shipping, not weaker. Still, it goes without
SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007 39

SHIPPING AND SHIP MANAGEMENT
saying that Finland has to act within the
framework of EU guidelines”, states Mr
Nykänen.
“Regarding mixed crews we hope that
the possibility to use them will be extended.
Thereafter it is normal procedure to
negotiate about the application of the law
with the employees’ organisations.”
More concrete
Compared to the previous Government
Programme, Mr Nykänen thinks that the
new one is one step more concrete regarding
its shipping policy.
“This goes especially for the issue of the
tonnage tax and I am therefore very optimistic
that a reform will take place in this
matter.”
In general Mr Nykänen thinks that the
attitudes towards shipping have changed in
Finland in recent years.
“Long-term background work is now
starting to bear fruit and create proper preconditions
for analyzing what matters are
of real importance to the branch. After this
decisions are based on knowledge and
facts.”
An important reason for this, he thinks,
TM Master
Marine Software
Software Solutions for Shipping:
TM Master
Planned maintenance and spare part system
TM Crew
Crew on board management
TM PO
Centralized purchase and ordering
system for shipping companies
TM Consumables
On board purchasing system for
consumables and provision
Tero Marine AS
Damsgårdsveien 163 A
N-5162 Laksevåg
NORWAY
sales@teromarine.no
Phone +47 55 94 24 60
Fax +47 55 94 24 61
is that both employers’ and employees’
organisations agree about the guidelines on
how to develop shipping. They also give
common statements about shipping as a
growth business.
“We have strong economic growth in the
Baltic Sea area and we are in the middle of
this area. Finnish shipping companies and
seafarers possess advanced know-how,
which the decision makers have begun to
realise. I have noticed that the knowledge
about the branch has clearly developed in a
positive way.”
Growing branch
Mr Nykänen thinks that in Finland shipping
perhaps is also starting to be seen as
www.teromarine.no
It is of the utmost
importance to maintain
the competitiveness
of the Finnish flagged
merchant fleet.
a branch with potential to develop and
grow in importance. In Finland, as in
many other European countries, a lot of
effort has been put into finding new
growth areas to compensate for old
declining branches. Here Mr Nykänen
thinks that shipping might have an important
role, but he calls for a change of attitude.
“Perhaps information technology is not
the only business with growth potential in
our country. Maybe also a traditional
branch such as shipping could be a growing
one. I think that the potential of shipping
has not been noticed or exploited to
even near its full extent in Finland so far.
With our high know-how we may offer a
growing number of jobs and bring positive
development.”
However, Mr Nykänen does not see any
possibilities for Finnish flagged shipping to
compete world-wide. Nor is this the ambition
of Finnish ship owners today. Instead
the key word is quality.
“We will never be a low cost alternative
on the global market, so we have to focus
on know-how and quality”, he concludes.
pär-henrik sjöström
Offshore Developments, the June issue from
Scandinavian Shipping Gazette
Read about:
Harsh Environment Jack-Up’s, Semi-submersible rigs, Især
Norway, West Coast offshore base in Esbjerg, Ågotnes,
Stavanger, what happens in the North Sea? and much more.
Publishing day: June 18, 2007 Deadline for space: June 1, 2007
Lars Adrians +46-31 62 95 71
Odd-Einar Reseland +47-47 33 29 96
Stig-Johan Lundström +358-45 13 24 499
www.shipgaz.com
40 SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007

We know
what counts
Modern ships – Transatlantic is constantly improving its fl eet
Variation – we can offer job rotation between Atlantic traffic,
European traffic, Offshore or Ashore
Good leadership – a management that cares and involves
Direct customer contact – no middle men, you’re part of
our customer relations and act as our Ambassador
Welcome to join us!
www.rabt.se

SHIPPING AND SHIP MANAGEMENT
Svitzer has just enlarged their fleet with around 200 tugs in the purchase of Adsteam.
The Danish maritime cluster (Det Blå
Danmark) can look back on 2006 as a
year with great prosperity and a
number of golden opportunities. If
they have time in today’s shipping,
they can look both back and forward
to see a market for mergers and
acquisitions in the presently golden
market.
DENMARK
The Danish maritime cluster has taken
advantage of this to gain more
business for each particular shipping
company, but also to meet the national
goal for the years to come: To be the leading
maritime nation in Europe. The Minister
of Business Affairs, Bendt Bendtsen,
who is also responsible for the shipping
industry, has set up the goal. The parliament
has given the industry further tools
to work with to keep in line with the 2015
goal.
Part of this is a better tonnage tax-
Looking towards
a prosperous
maritime future
scheme, giving the Danish operator a large
number of time chartered and bareboat
chartered vessels under the scheme. Earlier
only a few ships more than the owned vessels
were allowed into the scheme, but as
the business is growing rapidly the parliament
has, in co-operation with the Danish
Shipowners Association, increased the
opportunities to four times the previous
limit, with regard to ships sailing in pools.
Also the time limit for ships on time
charter with a purchase option has been
extended from five years to seven years by
staying under the tonnage tax system. For
all these benefits the owners have to pay a
price to society, and the owners have
agreed to admit 200 extra students annually
and even 75–100 training jobs for ship’s
assistants under the old training scheme.
Interesting position
The Copenhagen based J. Lauritzen is only
one of the Danish companies that have
manoeuvred into an interesting position in
the market. During the last couple of years
J. Lauritzen, under the command of Torben
Janholt, has been extremely profitable,
especially in the bulk division, which has
been in the right position with the right
tonnage mix to earn tons of money. Also
the company has sold off its older reefers
at the top of the market and the same goes
for Lauritzen Kosan.
The result is a company with a historically
large orderbook with some 35 units
under construction in a mix of owned vessels
and vessels that will go to Lauritzen on
charter or commercial management, but
still under control from Copenhagen.
Apart from this position J. Lauritzen
also has a very strong financial position
with several billions of Danish kroner
ready for the right purchase. Something is
already under consideration – at least so
say rumours from the galley.
In the market there is talk about J. Lauritzen
being more than interested in taking
over the Great White Fleet, the transport
division of the Chiquita Banana Brand.
The rumour is that the banana growing
42 SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007
BENT MIKKELSEN

company will concentrate on growing
bananas in Central America and will sell
off the transport part of the company to J.
Lauritzen with more than 80 years’ experience.
Aquisition of the decade
The rumours on J. Lauritzens plans for the
future come shortly after Dampskibsselskabet
(Steamship company) Torm made the
acquisition of the decade. It was in fact the
biggest tanker deal in ten years. Torm took
over the Stamford-based OMI Corporation
in a joint (and friendly) attack with
Vancouver-based Teekay Shipping. The
action gave Torm a fleet of 27 product carriers,
all with a low average age and a
superb reputation in the market. Teekay
got a fleet of 13 aframax carriers and several
product carriers. Torm also got 260 new
employees and its first American branch
office.
Torm spent some of the money they got
from selling a share of 33 per cent of
Dampskibsselskabet “Norden” in Copenhagen.
Torm purchased the shares in 2001
for a sum of DKK 350 million and sold
them in April 2007 for DKK 3.5 billion to
add to the profit gained every year from
the healthy business of “Norden”. Torm
tried to take over “Norden” to merge the
companies into a tanker division (Torm)
and a bulk division (“Norden”), but the
idea did not suit the other main shareholders
of “Norden”, so Torm’s 33 per cent has
been useless apart from earning money for
Torm.
Talking about “Norden”, they continue
their especially profitable bulk business,
sending Japanese money to sail under commercial
management at “Norden”. Bulk
carriers, built at Japanese shipyards for
Japanese companies flying Panama or
Philippine flags, have been sailing in large
numbers for “Norden” since the beginning
of this century. “Norden” then takes the
bulk carriers home under Danish flag
(some of them) in a fixed deal with a purchase
option at an interesting price level.
“Norden” runs 154 bulk carriers of capesize,
panamax and handysize.
New ships for Erria
Erria A/S, the new name for Fabricius-BR
Marine A/S, and the former Fabricius Rederi
A/S, recently launched the first newbuilding
from Saigon Shipbuilding Industry
Company (SSIC). It was a 2,900 DWT
container-coaster for Erria’s Vietnamese
joint venture Sea Saigon Shipping. The
ship was named the Erria Vietnam and had
local attention at the launching as they had
the former Miss Vietnam, Ngoc Khanh, as
sponsor on the ship, which will be delivered
in July this year.
The new ship follows the purchase of a
new tanker from Tuzla in Turkey and the
option on a second tanker from the same
shipyard. The company is also disposing of
some of the older units, and recently the
Sea Flower, a coaster built in 1982 of 2,200
DWT, has been sold off to India and
become the Vamsee.
Ups and downs for Mærsk
The world’s largest privately owned shipping
company is still working hard on the
integration of Royal P&O Nedlloyd, which
was taken over last year. The merger of the
two systems for containers, tracking of
these along with the integration of a completely
new ETP system, has given the
management grey hairs, but according to
the same management Maersk Line is back
on track and more than up to date in the
process.
The huge group works on several other
lines as well. New ships, especially from
SHIPPING AND SHIP MANAGEMENT
There is a steady need of maintenance, also
on modern ships.
Chinese and Korean shipyards, are added
to the fleet constantly. From China there
are VLCCs from Dalian and chemical
tankers from Guangzhou, while Korean
shipyards deliver container carriers.
Hyundai delivers standard vessels of the Gclass
to Safmarine in South Africa; also
Hyundai is about to start delivery of six
container carriers of a new S-class, the first
will be named the Maersk Seletar. The
ships will form an 8,000 TEU series and
will go into transpacific service.
In the tanker segment there are continual
rumours of A.P. Møller-Mærsk looking
for opportunities in the LNG-business. The
company wants to grow in the up and
coming market and want to do it by acquisition.
Upsizing Clipper
The Clipper Group continues to expand in
all segments: cruise (just purchased the
SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007 43
BENT MIKKELSEN

SHIPPING AND SHIP MANAGEMENT
An important part of maintenance is painting to avoid corrosion.
small ice strengthened cruise ship the Disko
II), chemicals, bulk (several segments) and
in ferry service as financial back-up to the
Bornholmstrafikken bid for the Samsøservice.
The Clipper Group is part of the
Nordic Ferry Service, which has the contract
for the Hou–Sælvig service as from
October 2008. The latest power-shopping
(as the employees call it when the owner
Torben Gulner-Jensen has been to China to
sign up for another ten handy-size bulk carriers,
as he did a couple of weeks ago) was a
bunch of at least ten new handy-size bulk
carriers from a Shanghai shipbuilder.
Quieter among the rest
In the rest of the Danish maritime cluster
things are quieter. Svendborg-based Nor-
Marine Insurance
Specialists
»More information on
www.alandia.com
Competence
Commitment
Reliability
Stability
HULL & MACHINERY, DISBURSEMENTS, LOSS OF HIRE, WAR RISKS, CARGO, SEAMEN´S ACCIDENT, P&I INSURANCE A.O
Alandia-Bolagen, PB 121, AX-22101 Mariehamn, Åland Tel. +358 18 29 000, marine@alandia.com
dane Shipping has built up a business as
the ISM manager for smaller owners, but
the business is drying out as the owners sell
off the tonnage. This particular business
has also given the company a trial on its
hands as the CEO, Niels Højlund, has
been taken to court as responsible for the
Karen Danielsen’s collision with the Great
Belt bridge. Nordane Shipping was the
ISM responsible for the ship when the
accident occurred.
C. J. Helt of Svendborg has sold off the
Othonia, the last Husum-built coaster
under Danish flag, but rather unusually
replaced it with a more modern coaster,
incidentally built in Husum as well.
New tug company
In the small segment with tugs, two people
have started their own business, Dan Tug
A/S, by purchasing two tugs from Jens
Alfastsen in Horsens. He sold the Susanne
A, a 40 tons bollard pull tug and the small
tug Sanne A, built in 1908, with five tons
bollard pull. The small tug is often used in
salvage operations for pleasure crafts and
repair work on fixed links over waters.
bent mikkelsen
44 SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007
BENT MIKKELSEN

The worlds leading
shipbuilding fair
23 – 26 sept. 2008
Anne-Marie Hagström-Hirschberg
Phone: +46 380 134-50, -51 · am.hh@locationscandinavia.se
shipbuilding · machinery &
marine technology
international trade fair · hamburg
www.smm2008.com

SHIPPING AND SHIP MANAGEMENT
Estonian shipping suffocating
in the embrace of politicians
On April 11, the Star entered a liner service between Tallinn–Helsingfors. It is the first ferry in the Tallink Shuttle concept.
Estonian politicians, having in this
century already participated in the
delivery parties of four new large
passenger vessels, remain deaf to the tireless
explanations of the Estonian Shipowners
Association that shipping in Estonia
needs financial support worthy of an EU
member-state.
ESTONIA
No support seems to be necessary as, for
instance, an Estonian shipping company
was able to purchase a Finnish passenger
shipping company last summer. The liberal
government ideology just allows all to cope
on their own. So the Estonian shipowners
cope – but not under the Estonian flag.
Dazzling Tallink
The politicians are dazzled by Tallink’s success
in establishing and maintaining shipping
lines on the Baltic Sea and even more
by Tallink’s new ships. It is paradoxical, but
an ordinary politician, like any ordinary
person in this coastal country, only comes
into direct contact with shipping when, as
a simple passenger, travelling on a ship to
Helsinki or Stockholm or taking along the
car and going to the islands. That is why
when mainland-to-island shipping issues
are discussed, the primary issue is about car
queues and not about passenger comfort.
Passengers of international line ferries are
also oblivious to the shipowners’ concerns.
The Estonian Shipowners Association
made two attempts to gather at the round
table representatives of all parties represented
at the Estonian parliament in order
to explain to them once again the need to
provide support to domestic shipping. The
result was that two sides were distinctly
outlined – on the one hand there were the
shipowners, well aware of the shipping
concerns, and on the other hand there
were the party representatives who failed to
comprehend why any commercial enterprise
type should have economic conditions
different from those available to other
types. A fellow party member (with maritime
education) of the then Minister of
Economic Affairs was the representative of
the only party that had at least discussed
maritime issues and even adopted a programme
of its own.
Nonexistent merchant fleet
Many are not even entertaining the idea
that ship carrying the Estonian flag might
participate in transportation of tens of millions
of tons of cargo moved to or from
the Estonian ports. Thus the situation as of
the start of 2007 is such that only six cargo
vessels with GT of more than 1,000 still
carry the Estonian flag, three more under
bareboat charter. The average age of the
vessels has decreased – four of them were
built in the 1990s.
However, the Estonian Ship Register has
40 passenger vessels with a total of over
22,000 passenger places. Thus the register
entries display a steep “angle of roll”
towards passenger vessels and smaller
ships. A total of 175 ships carry the Estonian
flag and their total GT is 486,000 but
only ten per cent of these are cargo vessels.
But just because the Estonian Ship Register
has few cargo vessels we should not
assume that there are indeed few cargo vessels
in Estonia. Several shipping companies
have increased and, to some extent, updated
their fleets, but these companies might
as well be viewed as operators because the
owner companies are located in the countries
the flags of which the vessels carry. For
instance, the Estonian Shipping Company
(Esco) operates in its company network
eleven former Esco ships, with only two of
them still under the Estonian flag. Amisco
has five ships, two of them are container
vessels, with two more container vessels
being built, but none of them carries the
Estonian flag. Hansa Shipping’s three iceclass
multipurpose cargo carriers built in
the 1990s are temporarily under the Maltese
flag and the list goes on. So several
dozens of Estonian cargo vessels and their
crews are operating under foreign flags.
Government does not take notice
The government on two occasions discussed
the shipping support programme
developed at the Ministry of Economic
Affairs. The Ministry of Economic Affairs
justified the need to provide financial support
by the fact that the Estonian shipping
sector’s position is unequal to that of the
shipping sectors in the neighbouring countries
because they support their shipping
while Estonia does not. The programme
contained a warning: if things remained
the same, no cargo vessel would be left carrying
the Estonian flag in three years’ time.
It was also stated that in a few years’ time
the cost of labour for a vessel under the
Estonian flag will be higher than that for a
vessel under the Finnish or Swedish flag
46 SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007
MADLI VITISMANN

due to the labour force taxes – and even at
the time of the programme’s compilation
the cost of labour was higher than, for
example, in Latvia.
The state aid planned in the shipping
support programme was moderate and it
would have been covered by half of the
social tax paid by the employers. EEK 129
million (EUR 8.2 million) would have
been allocated for that purpose in the
national budget for this year. In accordance
with the programme, the financial support
The programme contained
a warning: if things
remained the same,
no cargo vessel would be
left carrying the Estonian
flag in three years’ time.
sum for the year 2010 would have been
EEK 209 million (EUR 13.4 million), i.e.
half of what was promised to the shipping
companies in compensation for relinquishing
the tax-free transition period. The aid
proposals involved both the merchant and
the passenger fleet.
Although the programme listed how the
state would benefit from providing support
to shipping, mainly with an improved
employment rate and boosted export revenue,
the proposals put forward by the
ministry still did not enjoy the unanimous
backing of the government members on
either of the two occasions.
One zero missing
A tiny step was made towards supporting
shipping as the previous year ended. The
government examined the previous year’s
supplementary budget and found a possibility
to provide EEK 30 million (EUR 1.9
million) for shipping. The same sum has
been allocated for this year. The sum is
meant only for cargo vessels carrying the
Estonian flag and only for when they transport
international cargo. The aid payment
procedure stipulates that the shipowner
must submit the aid application regarding
the previous year’s social tax per crew member,
deducting the ship waiting days. When
all applications of the shipping companies
are collected, the aid sum will be proportionally
distributed between the applicants.
MADLI VITISMANN
Therefore, based on the time limit of the
proceedings, the shipowner will receive the
requested aid sum for the year 2006 in July
or August of this year.
The annual aid sum is so small compared
to the shipping companies’ salary
expenses that the companies view it mainly
as manifestation of good will. Despite the
ice of the confrontation cracking, the
Estonian Shipowners Association faces
lengthy explanatory work before something
comparable to the seafarers’ net
wages is achieved. The hope to gain understanding
is reinforced by the fact that the
newly elected parliament includes two
members with a nautical education.
As the government has not even made
any promises to the passenger fleet, it is
hardly surprising that the Vana Tallinn,
switching to the Riga–Stockholm line in
late April, will carry the Latvian flag.
Fleet growing younger
The largest new vessel under the Estonian
flag is Tallink’s the Star built at the Aker
Yards in Finland and it has heralded in the
new Tallink Shuttle concept – a year-round
and fast ship link between Tallinn and
Helsinki. A similar vessel construction has
begun at the Fincantieri Shipyard in Italy
and it will be completed early next year.
Prior to the launch of the Star, Tallink sold
two mono-hull fast ferries.
The Galaxy’s sister ship will be completed
next year and another sister ship has already
been commissioned and it will be complet-
SHIPPING AND SHIP MANAGEMENT
ed in 2009. It is not yet clear on which line
the new cruise ferries will be used. The Fantaasia
and the Meloodia, no longer needed
for Tallinn traffic, are now chartered on
Mediterranean shipping lines. The transfer
of the Vana Tallinn to the Riga–Stockholm
line enables daily departures from both
ports.
The Saaremaa Shipping Company is
about to commission three new vessels from
Fiskerstrand in Norway, the latter set to
build them in cooperation with the BLRT
Group. An ice-class ferry is now being
designed that would suit the western Estonian
archipelago and travel faster than the
previous ones without needing to turn
around in the port and with double-lane car
loading and unloading facilities. The Saaremaa
Shipping Company sold four of its best
ferries to Euro Shipping but continues operating
them.
PKL has acquired new tugboats. Three
smaller tugboats with 35 t bollard pull were
built in Gdansk last year and this year the
Castor escort tugboat is being built with 63 t
bollard pull in Mykolayiv and then the company
will have ten ships built this century
from a total of ten vessels in Estonia and five
in Latvia. PKL is prepared for mandatory
escorting of tankers but this is not yet
required in Estonian territorial waters.
Albeit other shipping companies exist in
the shadow of Tallink due to its sheer size,
none of the passenger shipping companies
has so far withdrawn from the current lines.
As the purchase of Silja did not include the
Linda Line’s the Merilin, built in 1999, is twice the size of its predecessor the Laura.
SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007 47

SHIPPING AND SHIP MANAGEMENT
The Estonian Shipowners Association is trying to explain their point of view to the politicians
around the round table.
SuperSeaCat ferries, Sea Containers
detached them under the SuperSeaCat
trademark from the Silja reservations and
sales network and created its own reservations
system for the Tallinn–Helsinki line.
Thus, all six previous passenger vessel
companies are still present on the
Tallinn–Helsinki line. Tallink added the
Helsinki–Tallinn travel direction for the
Superfast ferries, opening direct access
from Tallinn to the Rostock–Helsinki line.
Linda Line purchased the Merilin catamaran
(ex Cat No 1, built in 1999) to replace
the Laura hydrofoil ferry (built in 1993).
The Baltic Scandinavian Lines is planning
to acquire a second ro-pax ship for
the Paldiski–Kapellskär line, having rented
the Gute under the Swedish flag as a temporary
solution. The Saaremaa Shipping
Company is considering opening another
international line in addition to the Sillamäe–Kotka
and Mõntu–Ventspils lines.
Uniting structures and cultures
Tallink’s purchase of Silja resulted in the
need to unite the parallel structures of the
two shipping companies in three countries.
Yet, its ships operate under four different
flags and the crews are employed in accordance
with the laws of four different countries.
This has motivated the Finnish,
Swedish and Estonian seafarers’ trade
unions to establish the European Work
Council at the company to ensure that all
employees have access to information and
consultations.
Other shipping companies operate
abroad, too. PKL has had a branch in Latvia
for five years and the company asserts that it
is the leading tugboat service provider in
Riga. Two of the five tugboats are only 3–4
years old. The company has also two tugs in
St Petersburg. NT Marine that began
bunkering in St Petersburg in 1999 also considers
itself to be one of the strongest service
providers there. Two of the company’s four
ships operate from St Petersburg. The Saaremaa
Shipping Company’s foreign lines have
resulted in the restoration of the passenger
terminal in Kotka and a few new passenger
terminals have even been constructed in
some ports that did not previously have passenger
traffic.
madli vitismann
48 SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007
MADLI VITISMANN

- your
logistic
partner
www.cmport.com
C O P E N H A G E N M A L M Ö P O R T
CMP is the largest port and terminal operator in
the Øresund Region and serves the large Nordic
market and the countries around the Baltic Sea.
Copenhagen Malmö Port AB · Containervej 9 · P.O. Box 900
DK-2100 · Copenhagen Ø · Phone +45 35 46 11 11

SAFE PASSAGE WITH FINNPILOT ON BOARD
Under the guidance of our pilots, every year tens of thousands of vessels arrive at, and depart from,
the ports along the Finnish coastline and in Saimaa. In addition to national pilotage services, Finnpilot
provides and develops other related services in support of maritime safety and operational requirements.
The foundations of Finnpilot’s operations lie in its deep-rooted, uncompromising safety-oriented culture
and its sound professionalism. This represents our way of ensuring that shipping is safe for crews,
the vessels themselves and the environment.
A PILOTAGE EX

PERT ON BOARD
FINNPILOT – FIRMLY ON THE FAIRWAY
Finnish State Pilotage Enterprise | P.O. Box 520, FI-00101 Helsinki
Tel. +358 (0) 207 54 611 | E-mail: luotsausliikelaitos@fi nnpilot.fi | www.fi nnpilot.fi

SHIPPING AND SHIP MANAGEMENT
The Finnlady is the third newbuilding for Finnlines’ service between Helsinki and Travemünde.
Small owners
coming on strong
Last year it was again the smaller
shipowners that were the most active
with regard to a renewal of tonnage
in Finland. Although several secondhand
vessels were added to the fleet,
only one shipping company took
delivery of two newbuildings to be
placed under Finnish flag.
FINLAND
There is a new generation of shipowners
now active in developing Finnish
coastal shipping to new standards,
thanks to purchases of proportionately new
vessels. If the owners were granted the same
premises to work under as for example their
competitors in the Netherlands, this sector
would no doubt be extremely successful.
These energetic entrepreneurs are, like their
predecessors from previous generations,
mostly seafarers themselves. In this way
they succeed to stay in business despite
strong competition from other flags.
Activities on a new level
One of the most expansive in the new generation
of short sea shipping companies is
Prima Shipping Oy Ab, situated in Borgå
(in Finnish Porvoo). The Grönqvist family
has for decades been involved in coastal
shipping, but during the last few years the
activities have been taken to a new level
with the expansion of the fleet. Successful
co-operation has also been established with
one-ship owners, where Prima Shipping
may provide chartering or management.
With a sufficiently large fleet on its hands,
Prima Shipping is better able to negotiate
about shipment contracts for bulk cargoes
such as grain and gravel, as well as employing
the vessels on the spot market.
Last year Prima Shipping added two vessels
to its fleet. The company bought the
2,627 DWT dry cargo vessel Marta in April
and renamed her the Carissa. Before that
she had been sailing under the Lithuanian
flag and operated by Forsa in Klaipeda. She
52 SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007
PÄR-HENRIK SJÖSTRÖM

was built to ice class 1B specifications by
B.V. Scheepswerf Damen Bergum in the
Netherlands and delivered in 1998.
Last year’s other new entry in the Prima
Shipping fleet is the 1,280 DWT dry cargo
ship Heron, which was bought by SAL Ship
Oy Ab in Pargas (Parainen) and renamed
the Celia. She sails under Prima Shipping’s
management. The Celia replaced SAL
Ship’s smaller dry cargo carrier the Tower
Julie, which was sold. The Celia continues
in the same traffic as the Tower Julie transporting
gravel, for instance, from Finland to
Estonia. The Finnish merchant fleet already
has two vessels of the same type, Wega Shipping’s
the Josefine and the Nathalie.
The expansion of the fleet of Prima
Shipping has continued also in 2007, when
the new shipping company Gran Ship Oy
Ab bought the Carisma, built in 1985, (ex
Beetpulp Trader) and put her under Prima
Shipping’s management.
Management and chartering
Meriaura in Turku is another interesting
and expanding group of companies. Ship
management is handled by VG-Shipping
while Meriaura provides the transport solutions,
including chartering and operation
of the ships.
Last year the Sabina was added to the
Meriaura fleet. The vessel is owned by
Helmer Lundström Oy Ab, who replaced
the old Sabina with a larger vessel carrying
the same name. The new Sabina has a
deadweight of 2,723 tons and her former
name was the Atula. She was built in Germany
in 1986.
In this year Vidar Shipping Co bought
the 1,901 DWT dry cargo vessel Frida (ex
Scot Pioneer), built in 1985, which also is
operated by Meriaura.
Further, a multipurpose deck cargo vessel
to be named the Aura is being built by
the Polish shipyard Remontowa S.A. The
vessel is designed for carrying heavy project
cargoes on deck, and will also be employed
in shipments of steel sections for the
Finnish shipyards.
New on the wood chip trade
On the Åland islands, Rederi Ab Lillgaard
in Mariehamn has expanded its activities
for several years. Last year the company
bought the Antigua & Barbuda-flagged dry
cargo vessel Christa. Her deadweight is
2,700 tons and she was built in Germany in
1983. She continued trading for Rederi Ab
Lillgaard under her former name.
PÄR-HENRIK SJÖSTRÖM
The company also sold its 1,596 DWT
dry cargo vessel the Lillgaard to Egypt. The
Lillgaard was renamed the Joy 5 by her new
owner. She was replaced by the Christa on
the wood chip run between Åland and Gävle
in Sweden, but the Christa is also deployed
on other trades. The Lillgard was delivered
from Germany in 1973 as the Gabriella and
joined the Lillgaard fleet in 1988.
Another Åland shipping company, Birka
Cargo Ab Ltd, bought in 2006 the ro-ro
vessel Norcliff, which entered the Finnish
merchant fleet after the turn of the year as
the Baltic Excellent. She is on time charter
to Holmen Paper.
Ronja Marin Ltd Ab in Pargas bought its
second vessel in spring 2007. The 1,083
DWT former Triton Elbe was built in 1988
and will be renamed the Riona.
New tugs
Last year the Rauma based company
Kaplaaki Oy bought the tug Sirius from
Estonia. She is now renamed the Priitta.
Kaplaaki also finished a domestic newbuilding
project when the tug Janet
became operational. The tug was built in
Rauma. Both the Janet and the Priitta are
operated by the Rauma-based company
Finnish Sea Service Oy.
The shipping company Rosita Oy in
Kaarina near Turku acquired the Icelandic
645 GT passenger vessel Baldur, now
renamed the Eivor, for the route between
Pärnäs and Utö in the Turku archipelago.
SHIPPING AND SHIP MANAGEMENT
Rederi Ab Lillgaard’s dry cargo vessel the Christa in her home port Mariehamn. The vessel was
bought in 2006 and she was built in Germany in 1983. She is mainly carrying wood chip from
Åland to Sweden.
The traffic is operated on behalf of the
Finnish Maritime Administration.
Two fishing vessels and a barge were also
brought to Finland from abroad during the
year. In addition, the fishing vessel Silva
was delivered to Hellströms Fisk Ab in
Kaskö by Karstensens Skibsværft A/S in
Denmark.
Large newbuildings
The only larger newbuildings to be added
to the Finnish merchant fleet in 2006 were
the sister vessels the Finnstar and the Finnmaid.
They were handed over to Finnlines
by the Italian shipyard Fincantieri and put
into service on the Helsinki–Travemünde
trade. The third new vessel on this route,
the Finnlady, was delivered in 2007.
The Finnstar-class vessels are among the
largest ro-pax vessels in the 4,000-plus lane
metres size. With a service speed of 25
knots they are also among the fastest of
this size. A further two vessels are included
in this class, the Europalink and Nordlink,
both employed by Finnlines’ subsidiary
Nordö-Link between Sweden and Germany
under Swedish flag. The Europalink
has been delivered, while the Nordlink is
due for delivery in July.
Another newbuilding handed over last
year was the tanker Penelop. This ice
strengthened (ice class 1A) Aframax tanker
vessel is owned by the Åland company
Lundqvist Rederierna, but sailing under
the Bahamas flag.
SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007 53

SHIPPING AND SHIP MANAGEMENT
The Carissa is one of several second hand vessels bought for Baltic Sea and North Sea trading
by smaller Finnish owners in 2006. The Carissa, built in 1988, is owned by Prima Shipping Oy
Ab in Borgå.
Other additions to the foreign flagged
fleet were Crystal Pool’s Korea built,
11,340 DWT chemical tankers the Crystal
Diamond and Crystal Topaz. Hollming has
since then sold all its chemical tankers and
the Crystal Pool traffic to Euroceanica
(UK) Ltd.
Together with Rederi AB Donsötank of
Sweden, ESL Shipping Oy entered the
bulk carrier Credo in its fleet. The ship is
jointly owned by the two companies and
sails under Swedish flag. ESL Shipping also
has two bulk carriers on order in India for
delivery in 2008 and 2009.
Neste Shipping Oy operates two Finnish
flagged 74,940 DWT product carriers, jointly
owned by Neste Shipping and Stena
Bulk. The Stena Poseidon was delivered in
Guaranteed to keep you going
Low sulphur products
All grades available
PÄR-HENRIK SJÖSTRÖM
2006 and the Palva in 2007 from Croatia.
In 2007 Langh Ship Oy Ab in Pikis took
delivery of the 907 TEU container vessels
Linda and Aila from the J.J. Sietas Shipyard.
Godby Shipping Ab in Mariehamn has
two ro-ro vessels under construction at the
same yard for delivery in autumn 2007.
Bore orders newbuildings
The Rettig-owned shipping company Bore
continues its expansion after the acquisition
of Bror Husell Chartering and Rederi
Ab Engship, which at the beginning of the
year were merged into the company.
In 2007 Bore ordered two large ro-ro vessels
from the German Flensburger shipyard
to be delivered in May and August 2011
respectively. They will have an initial
capacity of 2,900 lane m and can accommodate
double-stacked containers on mafis
on all decks.
Furthermore, Bore bought the 3,714
DWT dry cargo vessel Liamar, which was
renamed the Nordgard. She is a sister vessel
to the other “compass” vessels in the
fleet, Sydgard, Westgard and Ostgard. The
vessel is trading under the Dutch flag.
pär-henrik sjöström
A SHELL-COMPANY
Sannes AB
Your marine fuel & lubricant supplier
Phone: +46 31 733 06 00 (24 hrs)
marine-sannes@shell.com
www.shell.com/marine

Lean machine
For many people, our ships evoke romantic images of seamanship
and life in foreign ports. But however much we also like this image,
we see our vessels primarily as smooth tools that are perfectly adapted
to Broström’s production system.
As a vital part of our logistics services, our vessels are under
constant development – regarding equipment as well as procedures
and personnel skills. In a business environment where time is money,
this sharpens the competitive edge of our logistics services and
enables us to off er safe and reliable transports over and over again.
So whatever the occasion, we will always be there – just in time.
www.brostrom.se
56º10,05N 06º02,28E

SHIPPING AND SHIP MANAGEMENT
It has been an “up-and-down”, year for
German shipping, if generally a better
one than some had predicted a year ago.
Three major owners have had difficulties,
just to remind them how fickle the market
remains, as all hands come to grips with the
serious shortage of shipping personnel.
GERMANY
Generally, framework conditions for
German shipowners have worsened.
Bunker prices have gone through the roof,
rates cause concern and experts still differ
on whether the influx of new ships will
mean saturation or not.
Merkel assured delegates
Worries that the government of Angela
Merkel might not be as totally devoted to
the maritime sector as was her predecessor
Gerhard Schroeder have, at least, been dispelled.
Merkel turned out with a full
entourage in Hamburg at the Fifth National
Maritime Conference in December to
demonstrate Berlin’s continued support for
the industry.
She assured delegates Berlin would
remain a reliable and accessible partner of
the maritime sector and keep promises
made by her predecessor. That specifically
included sticking to the popular tonnage
tax system. Prior to her re-dedication,
many Germans had spoken of “uncertainty
in the maritime sector” and had expressed
fears Berlin support might be waning and
that the government might change or abolish
tonnage tax. A federal audit office
report had in fact concluded the tax had
cost Berlin a billion Euros in revenue in
2004 without halting flagging out.
Ready to flag back
Merkel paid tribute to shipping companies
who had, in the two years up to the end of
2005, increased the number of Germanflagged
vessels by 100 to 400 in return for
government support for shipping. In
response to her pledge of continued support,
the shipowners said they were ready
to continue flagging back and would
increase the number of ships returning to
the German flag by another hundred to
500 by 2008 and to 600 by 2010.
It has been a difficult
but satisfactory year
for Hamburg Süd.
Up-and-down German sector
tackles personnel crisis
German shipping
companies will continue
to benefit from
the container boom
and make big profits.
The latest of many shipping companies
to flag back has been Reederei NSB, which
has just brought home 13 ships. NSB, one
of Germany’s biggest owners/ship managers,
said the 8,073 TEU Ever Champion
and twelve earlier ships were all Contifinanced.
Berlin’s re-dedication to tonnage tax has
not been the only thing to reassure
shipowners doubting government intentions
of late. Another has been the
appointment, just before the Hamburg
conference started, of Parliamentary State
Secretary Dagmar Wöhrl as Germany’s first
woman Maritime Co-ordinator.
Merkel’s earlier failure to fill that job, a
56 SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007

unique interface position between industry
and government, had been seen as another
sign of waning Berlin support for the maritime
sector.
Last year was a positive year for German
shipping, despite “many a pessimistic
prophecy”, said Heinrich Nöll, head of the
shipowners’ association VDR.
His organisation, with more than 200
members, does not agree with those who
say a decline in shipping fortunes is now
likely. VDR spokesman Max Johns has said
“all the indications are that German shipping
companies will continue to benefit
from the container boom and make big
profits”.
Ten per cent rise
The number of ships in the German merchant
fleet rose ten per cent last year to
almost 3,000 vessels of more than 50 million
GT. That will soon pass or has already
passed the 60 million GT mark. Hundreds
of mainly big container
ships are also on order
or being built for German
owners. As of
December there were
727, the VDR said.
It does not believe
they will saturate the
Heinrich Nöll
of VDR.
market. Nöll said owners
were considering
slower speeds to coun-
teract bunker costs and suggested there
could, in fact, be too few ships to meet
demand, rather than too many.
Others, however, among them Burkhard
Lemper at the Bremen Institute of Shipping
Economics and Logistics (ISL),
believe some overcapacity could well result
from the many new ships entering service.
Slower speeds are apparently not the
Angela Merkel paid tribute to shipping companies for flagging back, at the Fifth National
Maritime Conference in December.
only way of minimise the burden of rising
bunker costs, which the VDR says mean an
additional USD 50,000 a day for big boxships.
A novel solution being embraced
this year by Bremen owner Beluga Shipping
is SkySails, a kite towing system which
is said to reduce fuel costs by 10–15 per
cent.
Bunker costs remain a serious issue but
the biggest threat to German shipping, one
which could wipe out all the recent gains,
is the chronic lack of personnel. Big bucks
are now being spent to solve that particular
problem.
Combating lack of staff
The VDR has said about 650 new seafarers
are needed each year as the fleet gets bigger
and older personnel retire. Last year about
150 graduates were produced and this year
You win !
SSPA reduces
your energy
consumption
The picture shows:
A hull parameter optimisation
SHIPPING AND SHIP MANAGEMENT
the figure will be 200. “Combating this is a
priority target for shipowners and the politicians
in the interest of Germany as a shipping
location”, said the VDR.
An unprecedented and concerted effort
is now underway at all levels to win
recruits and provide more facilities to train
them, before the shortage brakes shipping
growth. Berlin, Germany’s coastal states,
shipping companies, the VDR and the
unions have all thrown their weight
behind it.
The VDR and its members have
pledged EUR 3 million over the next three
years to support the expansion of study
places and facilities in the coastal states.
Backing that is a pledge by the federal
states themselves to increase study places
from 357 to 430 this year and by another
187 up to 2009.
SSPA Sweden is an independent
consulting company
providing services in the
areas of ship design and maritime
operations.We focus
on developing efficient, safe,
and environmentally friendly
maritime solutions.
www.sspa.se
SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007 57

SHIPPING AND SHIP MANAGEMENT
SkySails is a kite towing system that is said to reduce fuel costs by 10–15 per cent.
Many shipping companies meanwhile
have increased their own intakes of trainees
and created new training facilities on ships.
Among those to announce expanded training
of late have been Hamburg Süed, Beluga
and Reederei NSB. Reederei Gerd Bartels
has donated modern engine parts to a
local training establishment so that students
can use up-to-date equipment.
Problems the past year
Three of Germany’s biggest shipping companies
have faced problems this past year.
Hapag-Lloyd experienced losses, Hamburg
Süd reported difficulties and Senator Lines
saw service and job cutbacks.
Hapag-Lloyd, with 141 container ships
of more than 480,000 TEUs, has had a
downhill struggle with its integration of CP
Ships, posting a loss of EUR 106 million in
2006 after two years of record earnings.
Declining rates and CP integration costs
led to the loss, which contrasted with a
profit of EUR 319 million in 2005.
Increased bunker, landside logistics and
charter rate costs also cut profits, Hapag-
Lloyd parent TUI reported. At the same
time however turnover was up 63.1 per
cent to EUR 6.3 billion in 2006 because of
the CP acquisition and volume rose from
4.8 to 6 million TEUs.
Now that integration is complete,
resilient Hapag-Lloyd can surely look forward
to a restoration of fortunes. TUI predicted
an operating profit of EUR 400–500
million for shipping next year.
It said it expected an 8–9 per cent
increase in container shipping volume this
year and in 2008 with sales of up to seven
billion Euros in fiscal 2007. It also says
expected synergy savings of some EUR 220
million from CP will kick in this year.
A good step towards better business has
been made this year by Hapag-Lloyd with
a strengthened China-Red Sea service and
a new Asia-Black Sea service. Stiffening the
Europe-Far East fleet are two new 8,750
TEU ships with the Grand Alliance, the
first of five. Hapag-Lloyd’s Adolf Adrion
speaks for all: “China is the engine of the
world economy and globalisation and thus
also drives ocean shipping”.
Speculation about Hapag-Lloyd ownership,
however, given the current ups, and
earlier downs, of TUI, continues to fuel the
fantasies of commentators.
No takeover
There was a time when a merger between a
dominant Hapag-Lloyd and Hamburg
Süed looked possible. Now August Oetker
has been quoted as saying his Group, the
parent company of Hamburg Süd, has no
interest in a take-over of Hapag-Lloyd.
The German reefer specialist has however
moved in other directions to strengthen
its position. It has intensified co-operation
with Maersk on north-south America container
services and with Maersk and NYK
in Asia–South America service. It has also
doubled the capacity on its new Trident
service between Europe/Australia–New
Zealand.
Hamburg Süd has predicted handling
this year of 1.9 million TEUs, including
about 210,000 reefer containers, after what
Board Member Joachim Conrad described
as a “difficult” but “still satisfactory” year.
Volume in 2006 rose 21 per cent, or
more than twice the market average, to
1.84 million TEUs from 1.52 million TEUs
in 2005. Conrad acknowledged that two
thirds of the growth came from acquired
Russian shipping firm Fesco.
Turnover in 2006 rose 5.2 per cent to
EUR 3.2 billion, 85 per cent of which
came from liner trades which showed
‘only’ eight per cent growth last year after
a much bigger increase in 2005. One main
reason for the decline was rates, which
Hamburg Süd said came under considerable
pressure.
Hamburg Süd liner shipping slot capacity
grew slightly to 201,000 TEUs in 2006
and the company operated 88 container
ships by year’s end, in a total fleet of 139
ships also including 51 bulk carriers and
product tankers.
Digesting huge costs
In addition to the ten Monte Class 5,500
and 5,900 TEU newbuildings for delivery
in 2008, Hamburg Süd has just this year
also ordered six more 6,300 TEU Santa
Class ships. Reportedly costing EUR 380
million, they are due into service from
2009.
As usual, Hamburg Süd revealed no
profit figures. It indicated however that
German shipping future? Experts differ.
58 SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007

Eastern
Landbridge

SHIPPING AND SHIP MANAGEMENT
profit was made, despite the rate and cost
pressures, but that it was lower than in
2005. Conrad said Hamburg Süd had to
digest enormous cost increases in 2006.
He said the fleet consumed 1.6 million
tons of fuel costing EUR 500 million,
twice as much as in 2005.
Hamburg Süd predicted more global
high growth ahead and the danger of tonnage
saturation. Like the VDR however, it
noted plans by shipping companies to
reduce ship speeds to cut bunker consumption
and concluded that “a general
overcapacity in the market is not to be
expected”.
Cut-backs for Senator Lines
Last September Senator Lines announced
service and job cutbacks in response to a
“continuously problematic market situation”,
along with declining rates and operational
cost increases on Europe–Asia
routes.
It closed six loss-making liner services
and re-structured around a new profitable
schedule with twelve liner services while
retaining its Europe–Asia speciality.
The cut-backs came after three profit-
making years for Senator in the wake of a
decade of losses. Declaring 2006 also a loss
The best investment for your vessel - Puts your diesel ahead
We also carry out the work, in-situ or in our workshops
Worldwide sales and service network
For 2-stroke & 4-stroke engines
Valve seat grinding/machining
Valve spindle grinding
Cylinder liner honing
Sealing surfaces grinding/machining
Portable lathes for various purposes
Special machines for workshops
Senator’s CEO Hans-Hermann Mohr.
For diesel engine
maintenance
www.chris-marine.com
year, Senator’s CEO Hans-Hermann Mohr
said “we have to assume that the rate pressure
will last in the coming years and will
even increase after new mega container
ships have been introduced”. He said
recent Senator results could not compensate
for what he called “this unacceptable
development”.
Weekly links
The new concept went into effect at the
start of this year and already Senator is
expanding again, adding a new Europe–
South America ESX service to the current
schedule of twelve regular services.
Six 2,700 TEU container ships are now
offering weekly links between northern
Europe and the east coast of South America
and Senator is co-operating with K-Line,
China Shipping, Hatsu Marine and Maruba.
CEO Mohr said ESX was “not just a further
service for our customers: it also indicates
that we are off to a flying start again
and that, following our internal reorganisation,
we can concentrate fully on the market
and on our services”.
tom todd
Chris-Marine ® Head Offi ce
and Subsidiaries
SWEDEN
Chris-Marine AB
Tel: +46 - 40 671 2600
Fax: +46 - 40 671 2699
info@chris-marine.com
NORWAY
Chris-Marine Norge A/S
Tel: +47 - 3279 8590
Fax: +47 - 3279 8509
steinar.olsgard@chris-marine.com
SINGAPORE
Chris-Marine (S) Pte. Ltd.
Tel: +65 - 6268 8611
Fax: +65 - 6264 3932
chrism@chris-marine.com.sg
P.R. OF CHINA
Chris-Marine Rep Offi ce Shanghai
Tel: +86 - 21 5465 3756
Fax: +86 - 21 6415 2081
lanny.chen@chris-marine.com
RUSSIA
Chris-Marine Rep Offi ce St. Petersburg
Tel: +7 - 812 3292 599
Fax: +7 - 812 3292 597
andrey.egerev@chris-marine.com
INDIA
Chris-Marine Rep Offi ce India
Tel: +91 - 712 645 1155
sunil.vaidya@chris-marine.com

Dry dock
195m x 34m x 7m
Crane capacity
Öresundsvarvet AB
Box 701
261 27 Landskrona
Sweden
– Always at your disposal
50, 30 and 20 tonnes
Crane Capacity
West Quay 130 and 90 tonnes
The 130 tonne crane also serves
the South Quay
Phone +46 418 565 80
Fax +46 418 565 89
info@oresundsvarvet.se
www.oresundsvarvet.se
Floating dock
105m x 20m x 5,5m
Crane capacity
10 and 5 tonnes
Telephone (outside offic hours)
Phone +46 (0) 70 565 80 68
+46 (0) 70 565 80 15
+46 (0) 70 565 80 97
+46 (0) 73 765 65 01
www.oresundsvarvet.se

SHIPPING AND SHIP MANAGEMENT
The naming ceremony of Lasco’s the Kraslava was held at Hyundai Mipo Dockyard. Her sistership,
the Kantava, will arrive in May.
New Latvian ships come
from Marshall Islands
At the time when the Estonian flag
was replaced with the Latvian flag
on the Vana Tallinn, new Latvian
ships, i.e. Lasco’s tankers will hoist the flag
of the Marshall Islands.
LATVIA
It appears that not only the shipowner
but a bank may determine the home port
of a ship. Thus, the Latvian Ship Register
has not recorded any remarkable growth in
the number of ships.
Modernising the fleet
Five of the new tankers ordered under the
fleet modernisation programme of the Latvian
Shipping Company (Lasco) have
already been received from the Croatian 3.
Maj Shipyard and the sixth has been
launched. The first out of four tankers
The Ance was the first vessel to be launched
in a series ordered from 3. Maj Shipyard in
Croatia.
ordered from the South Korean Hyundai
Mipo Dockyard has been finished and the
second one will follow in May.
The Ance, the Jurkalne, the Puze, the
Targale and the Ugale made in Croatia and
the Kraslava made in South Korea already
sail under the flag of the Marshall Islands
and they will probably be followed by the
other ships, such as the Usma coming from
Croatia and the Kantava, which is due to
arrive from South Korea in May. The reason
is that according to the terms of Lasco’s
loan of over USD 360 million taken
from foreign banks, the banks want the collateral
to be registered in countries the legislation
of which is known to them well
and where they “feel comfortable”. The
Marshall Islands are one of them.
Lasco will restructure its fleet, focussing
on medium-sized product tankers. Therefore
the panamaxes Latgale and Zemgale
were sold at the beginning of the year.
According to the fleet modernisation program,
two older tankers will be sold, but
some tankers have been modernised as well.
Lasco has two older tankers, both LPG carriers
and its only dry cargo vessel, which sail
under the Latvian flag. Some tankers and all
five reefers sail under the Maltese flag and
62 SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007
MARITA OZOLINA-TUMANOVSKA
LASCO

some tankers also under the Liberian flag.
The Latvian flag was hoisted on the Vana
Tallinn at the end of April, which started
travelling on the Riga–Stockholm route
along with the Regina Baltica. In this way
Tallink, an Estonian shipping company,
presents the Latvian flag abroad. The Latvian
passenger shipping company did not
cope with this as Freeport of Riga, which
bought the Baltic Kristina out of the bankruptcy
estate of Riga Sea Line, managed to
sell the ferry, which stood at a berth and
made losses for approximately 18 months
to a German company.
Shipowners are pleased
Andris Kljavins, the President of the Latvian
Shipowners Association, can recommend
that his Estonian colleagues do more
explanatory work. Latvian shipowners are
pleased because politicians have heard
them and established taxation laws pleasing
the shipowners. Increasing the tonnage
of the fleet has increased the tonnage-based
membership fee in the European Community
Shipowners Association so much that
the Latvian Shipowners Association was
forced to suspend its membership, because
MADLI VITISMANN
it was unable to pay the membership fee.
According to Mr Kljavins, the development
of the Latvian shipping industry has not
been very strong, because the prices of ships
have risen steeply, and Latvian shipowners are
not very big and cannot purchase more ships.
For instance, all four cargo vessels of Riga
Shipping sail under the Latvian flag.
John Nurminen provides customerdriven
high-quality logistics services
in the Baltic Sea region. The company’s
services are based on an
understanding of the customer’s
operations and on specialised
logistics expertise.
SHIPPING AND SHIP MANAGEMENT
The Vana Tallinn got the Latvian flag in Tallinn at the end of April, before the start of the
liner service Riga–Stockholm.
The DFDS Tor Line and Scandlines (on
the Mermaid II Riga–Lübeck route and Tor
Neringa Brevik–Immingham route) on
their ro-pax ships as well as the Fellow (on
the Ventspils–Karlshamn route) enjoy the
advantages of sailing under the Latvian
flag.
madli vitismann
Customer driven logistics
We offer the following services
Cargo Handling and Value-Added Services – cargo handling,
warehousing and value-added services and chemical
logistics.
Customs Clearance Services – tailored forwarding services
for import and export.
Healthcare Logistics – non-emergency transport of patients.
Rail Services – comprehensive and cost-efficient railway and
customs clearance, forwarding and terminal services for
railway traffic in Finland, Russia and the CIS countries.
Ship Agency Services – ship agency services in Finnish and
Baltic sea ports.
Special and Heavy Transports – logistics services for large
and heavy transports.
John Nurminen Oy
Pasilankatu 2
FI-00240 Helsinki
www.johnnurminen.com

SHIPPING AND SHIP MANAGEMENT
The 17,504 DWT sisterships the Voruta and the Romuva, built in 1998, were Lithuanian Shipping Company’s
second-last acquisitions.
Large companies
carry Lithuanian flag
When Lithuanian shipowners will
start ordering new ships from
shipyards depends, to a substantial
extent, on the parliament’s decision
concerning the taxation of shipping companies.
Until such a decision is made the fleet is
being renewed with second-hand ships,
which implies that while the number of
registered vessels is decreasing the aggregate
tonnage is increasing.
LITHUANIA
The Lithuanian parliament is expected
to pass an act on the tonnage tax before its
summer holiday, Vytautas Lygnugaris, president
of the Lithuanian Shipowners Association,
explains. For years the association
has explained the need to alter the social
tax that is paid on the wages of seamen.
Hopefully, a decision will soon be made
according to which, on an average, 1.5
times the pension insurance premium
would be made for seamen; the amount of
the premium will be roughly equal to the
social tax calculated on threefold the minimum
salary.
“While large shipping companies carry
the Lithuanian flag, smaller companies
which own 20–30 per cent of Lithuanian
vessels sail under foreign flags. Thus, one
should not think that the Lithuanian flag is
very good for a shipowner”, Mr Lygnugaris
states.
Renewing fleet
The Lithuanian Shipping Company (LJL)
is renewing its fleet. At present, ships built
in the 1990s prevail in the fleet. Some
recent purchases include the Clipper Falcon
(1995) and the Clipper Eagle (1994)
with a DWT of 16,900. Two vessels of the
Kapitonas type were put on sale and one of
them, the Kapitonas Simkus, has been
sold. Five ships of the Kapitonas type
remain. LJL plans on purchasing more
ships, but it is still too early to talk about
64 SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007
LISCO

placing orders for completely new vessels.
LJL’s tramp carriers mostly operate outside
Europe.
The Limarko Shipping Company (LLK)
has bought a reefer named the Capella
(built in 1993 in Japan) with a DWT of
8,045. The maximum speed of the new
ship is 18 knots and the ship is one of the
largest vessels in LLK’s fleet. The company
Thus, one should not think
that the Lithuanian flag
is very good for a shipowner.
also bought the Siuita, a dry cargo vessel,
from the parent company. The Siuita and
the Serenada, a container vessel, are the
company’s only ships classified as “other
type” besides 14 reefers. However, LLK
intends to expand its activities to maritime
transport spheres other than reefer transport.
LLK plans to buy a reefer and a dry
cargo vessel or a container vessel this year.
Until now the company has been primarily
engaged in the carriage of refrigerat-
ed articles of food. For example, a contract
was entered into with Excelban for transportation
of bananas from Ecuador to
Europe on two fast ships. Over two years,
Limarko’s main transportation region has
shifted from Africa to Europe. The relative
importance of Europe as a transportation
region has grown from 39 per cent in 2004
to 68 per cent in 2006. At the same time,
the African share has decreased from 49
per cent to 25 per cent. The relative share
of both Asia and America as transportation
regions is a couple of per centage points.
Under new names
Lisco Baltic Services changed its name to
DFDS Lisco last summer. In addition to
the rail ferry Klaipeda and the ferry Palanga,
which were sold at the beginning of last
year, the company also has sold the Tor
Neringa that, after the change of flag, is
chartered on DFDS Tor Line’s Immingham
line. Successful cargo traffic on the
Klaipeda–Karlshamn line, as well as the
Klaipeda–Copenhagen–Fredericia line, was
handed over to the parent company.
Kursiu Linija, a container vessel operator,
lost its name after having been bought
www.tarntank.se for effi ciency and environment
TÄRNTANK
SHIPPING AND SHIP MANAGEMENT
by Icelandic Eimskip. Then the Kursiu Linija,
a company that operates four container
lines, was merged with Containerships and
the former offices of Kursiu Linija were
renamed as Containerships Lithuania and
Containerships Latvia.
Three-level maritime education
In Klaipeda professional maritime qualifications
can be obtained at the Maritime
Institute of Klaipeda University, the
Lithuanian Maritime College and the
Klaipeda Maritime School. While there
are still plenty of those wishing to study
maritime specialties at the university, the
same cannot be said about the Maritime
School.
There are still more Lithuanian seamen
than jobs on Lithuanian vessels. Then
again, the renewal of the fleet will not
increase the number of jobs, even though
the aggregate tonnage has grown. As of the
beginning of this year, 68 cargo and passenger
vessels were registered with the
Lithuanian Ship Register with a total GT of
399,762. Reefers represent one third of the
aggregate number of vessels.
madli vitismann
REDERI AB
Donsö Hamnväg 24 I 430 82 Donsö I Sweden
Tel +46(0)31 972000 I Fax +46(0)31 972003

The Ultimate
Fouling Protection
SeaQuantum, recognised to be the
world’s most advanced selfsmoothing
and selfpolishing antifoulings. You have a
choice of SeaQuantum solutions designed
to ensure you achieve optimum hull
performance for your vessel.
Excellent Fouling
Release Control
No matter which direction you choose,
we provide you with optimum hull performance
Sales Office Sweden
Jotun Coatings
Jotun Sverige AB
P.O. Box 151, SE-421 22 Västra Frölunda, Sweden
Phone +46-(0)31-69 63 00, Fax +46-(0)31-69 63 97
www.jotun.se
SeaLion fouling release coating for fast and
high activity vessels, keeps hulls, propellers
and rudders free from fouling without
releasing any biocides.
A very smooth surface enables higher vessel
speed and/or reduced fuel consumption.
Jotun A/S, P.O.Box 2021, 3248 Sandefjord, Norway. Tel:+47 33 457 000 Fax:+47 33 464 613
For detailed information: www.jotun.com

DAG BAKKA JR
Nordic American Tanker Shipping, Bermuda-based but operating from Sandefjord, has built a fleet
of suezmax tankers, like the Nordic Voyager.
Prevailing pragmatism
After a decade of frustration over
political conditions at home, the
shipping industry seems at last to
have regained ambition, fuelled by profit
and opportunity. Despite a nagging concern
over being too late in the business
cycle, Norwegian shipowners have on the
whole put out their necks, indeed, with
investment in 2006 exceeding all historical
precedence.
NORWAY
Ten years after the 1996 shipping whitebook,
which promised a new deal for the
industry, political wrangling by every government
crushed the hope for stable and
competitive conditions. Even though the
present “red-green” government has gone a
long way in outlining a stable regime, the
Norwegian fortune tax will remain as a specific
burden on private ownership and
large family holdings.
This decade of wrangling, as witnessed
by a 25 per cent decline in the Norwegian
fleet at a time when other maritime
nations have been growing vigorously, has
left a pragmatic attitude throughout the
SHIPPING AND SHIP MANAGEMENT
shipping industry: A desire to remain in
Norway for as long as possible, but also to
take advantage of any favorable arrangement
offered in Cyprus, Singapore or elsewhere.
Norwegian shipping investment
Excl. drilling rigs. Billion USD ■ New orders ■ Secondhand purchases
20
15
10
5
0
1995
1996
1997
SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007 67
1998
1999
2000
2001
2002
2003
2004
2005
2006

SHIPPING AND SHIP MANAGEMENT
The car carrier the Höegh Dehli fitting out at the Uljanik shipyard for P D Gram & Co,
for operation by Höegh Autoliners.
Those who advocated a national policy
for the maritime industry appear to have
resigned as far as international shipping is
concerned. It may still be possible to save
the maritime offshore technology cluster
for Norway, but it will take political com-
mitment and consensus to ensure competitive
conditions.
Basically, the label “Norwegian” is still a
rather hazily defined phenomenon in the
shipping industry.
Is it the 40 million DWT of ships as giv-
SINISA JAKSIC
SPOS®
“MASTER” THE WEATHER
onboard weather routing
over 1000 subscribers
en by the Norwegian Shipowners’ Association
(NSA) statistics, or does it also include
foreign-owned operations carried out in
Norway? Or commercial management of
ships on time charter/purchase options? Or
foreign-domiciled companies owned by
Norwegian citizens or companies, like
Belden Shipping in Singapore?
Why do the NSA and ISL-Bremen statistics
include Höegh, BW Gas, a bit of Teekay
and Nordic American – all formally owned
by Bermuda-registered entities, but not
Frontline or SeaDrill, similarly Bermuda-registered?
And what about commercial operations
conducted by Norwegians abroad and
with management at home, like Gearbulk?
The changes in the industry have seen
Norwegians investing in companies abroad
– like Eitzen and K G Jebsen – as well as
foreign owners taking over companies in
Norway – like Teekay, Sohmen, etc. In
addition, entrepreneurs like John Fredriksen,
Arne Blystad, P D Gram, Stolt-Nielsen
and others are operating from international
domiciles with various degrees of ties to
Norway. Some of this may be rightly
included in the statistics, other parts not.
For example, J B Ugland Shipping in Oslo
...“We have found it extremely helpful in planning our voyage and more
importantly staying out of bad weather areas”...
...”on this voyage we used 87,4 metric tonnes of HFO less”...
T: +31 317 399 800
MeteoConsult
A MeteoGroup Company
www.SPOS.eu
68 SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007

operates a fleet of 41 ships, mainly bulk
and gas carriers, of which only one qualifies
as “Norwegian”.
If the term “Norwegian” were defined to
shipping operations with corporate, commercial
or technical management in the
country, the NSA figures could be doubled.
That would also give a much more
realistic impression of what is going on in
the shipping community.
Everything is possible
The shipping industry has become more
attractive to young people over the last
years.
A new generation of shipping professionals
are coming up through the ranks;
often well-educated people not burdened
by the trauma of the shipping crisis; people
with an international outlook who see the
opportunities – not the problems – of
operating out of Norway.
Here is everything: Brokers and consultants,
investors and shipping banks, competence
and network; none of which particularly
expensive. There is a different sentiment
around: Everything is possible.
When did you last hear that song?
SHIPPING AND SHIP MANAGEMENT
Norwegian fleet
MDWT ■ Foreign registered ■ NIS ■ NOR
60
50
40
30
20
10
0
1990
Typically, YoungShip, an organization of
young shipping professionals up to the age
of 35, has grown to 800 members in
Bergen and Oslo over three years. Of these,
a third are women.
Compared to finance and offshore, shipping
appears to have regained much of its
lost ground. Shipping companies are
reporting of motivated and qualified applicants
to every position offered, while students
are flocking to bachelor courses in
shipping, logistics and international trade.
High investment
Source: NSA
Riding on a business cycle that seems to go
on and on, many owners have been
SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007 69
1995
2000
2005
2007

SHIPPING AND SHIP MANAGEMENT
The Bourbon Peridot was completed by Ulstein Verft in 2005 as a platform supply vessel, but
converted for subsea support for Amerada-Hess off Equatorial-Africa.
wrestling with the dilemma of investing
now, rather late in the cycle and at high
prices, or miss the boom altogether. Trusting
the proverb of striking when the iron is
hot, the shipping industry at large has
Proposal
overruled
❯
The much-publicized official
report on taxation of shipping
companies by a working group headed
by professor Guttorm Schjelderup,
launched in March last year, was quickly
condemned to the political shredding
machine. As may be recalled, the
group recommended that all tax benefits
to shipowners and seafarers be
repealed, the tax credit paid and all
arrangements for foreign-based ventures
effectively plugged. The capital
and human resources should rather be
employed in the domestic economy.
This rather radical and perhaps not
very wise conclusion – given Norway’s
ever-stronger dependency on the oil
industry – reveals the ill effects of academic
oversimplification and economic
theory. When presenting the agenda
for the new policy for the maritime
industries to the NSA general meeting,
the Minister of Trade, Dag Terje
Andersen, mentioned specifically that
the Schjelderup proposal had been
shelved.
played along when investors and banks are
willing to finance new equipment.
Compared to the estimated value of the
trading fleet of USD 32.9 billion (NSA figures),
investment in orders and secondhand
vessels went from USD 10 billion in
2005 to USD 16.7 billion last year –
drilling rigs not included.
The new orders in 2006 amounts to 231
ships of USD 12.1 billion, of which 53 per
cent is for cargo vessels – mostly tankers,
45 per cent for offshore vessels and the rest
for passenger vessels and specialized units.
The volume of second-hand purchases
reached 194 ships of USD 4.6 billion, a figure
not seen since 1988/1989. A heady
USD 6.8 billion in drilling rigs may be
added on top, as it draws largely from maritime
community and financial market.
There is, however, little reason to expect
a larger Norwegian fleet – the 231 vessels
will have a tonnage of 8.1 million DWT,
against 27.5 million DWT ordered by
Greek owners at a cost of 16.6 billion. The
trend from the 1980s is still prevailing:
Smaller and more expensive vessels.
Polarization
What has been unique about the Norwegian
maritime industry is its broad range,
from every aspect of international shipping
to a strong offshore sector with support
vessels, subsea and FPSO (Floating production,
storage, off-loading) units. Unlike for
example the US maritime offshore sector,
the Norwegian is strongly related to the
shipping industry from which it evolved.
The maritime offshore sector draws on
much of the same infrastructure in opera-
tion, manning, financing and organization;
although it has also given the rise to a
strong technological cluster.
The strategy of Maritimt Forum and particularly
the NSA since 1990 has been to
wedge political goodwill from the importance
of the entire maritime cluster. This
has paid off well in theory, as reflected by
the shipping whitebook rhetoric of 1996
and 2005, but not in reality. The offshore
sector carries the largest political weight;
hence the supply ships were given a net
wage system in 2004.
The resignation to pragmatism by the
companies in international shipping, as
witnessed by Wilh Wilhelmsen taking its
ships to UK registry and management, is
bound to widen the gap between shipping
and offshore. In all probability the maritime
sector will become more bi-polar in
the future. This means that the shipping
community will adapt to the commercial
realities in a wider world, whereas the maritime
offshore industry will develop as an
integral part of a technology cluster with a
stronger foothold in Norway.
This may be inevitable for more reasons
than one, but the wobbly and ever-changing
conditions offered by Norwegian politicians
have indeed been a contributing factor.
On the move
There is no doubt that the shipping activities
carried out from Norway have been
strengthened over the last few years. The
most conspicuous deals have been driven
by entrepreneurs only partly considered as
Norwegian, like John Fredriksen, Arne
Blystad and Axel Eitzen, and partly by a
broader range of offshore entrepreneurs.
But the advances are driven by more
people than these; in fact the majority of
the 300 shipping companies have in some
way played the opportunities of a dynamic
market to profit, invest and prepare for the
future. Perhaps not as spectacular as the
Greeks and Germans, the Norwegians have
still shown a healthy appetite for tonnage
and deals.
Even more promising is the entry of a
new generation; for better or worse without
the shell-shock of the shipping crisis, but
with an international outlook and ambition.
The shipping industry is generally
considered important and desirable; to the
extent that low-marginal sea transport can
be interesting in a country that is often
seen as the richest in the world.
dag bakka jr
70 SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007
BOURBON OFFSHORE NORWAY

Ask DNV about …
Shipping and the Global Environment
DNV’s objective is “To safeguard Life, Property and the Environment”. As a leading international ship
classification society, we provide several services to the shipping industry.
Do you wish to communicate your environmental performance and efforts to the market? Increasingly,
leading companies understand the need to do this. As evidence of your company’s focus on environmental
issues, documentation proving that environmental issues are incorporated into your ships is necessary.
Assigning an environmental class notation such as CLEAN or CLEAN DESIGN will give such documentation
from an independent source.
Please visit us at Nor-Shipping 2007
12–15 June – DNV Stand No. D02-04
Det Norske Veritas, Oslo
tel +47 67 57 99 00
Det Norske Veritas, Stockholm
tel +46 8 587 940 00
www.dnv.com
Det Norske Veritas, Helsinki
tel +358 9 681 691
Det Norske Veritas, Copenhagen
tel +45 39 45 48 00
Det Norske Veritas, Gdansk
tel +48 58 5115 000

SHIPPING AND SHIP MANAGEMENT
The Polish bulk carrier the Solidarnosc.
Positive signs on the Polish
shipping scene
The Polish merchant fleet has for a
number of years been registered
under numerous flags, but the Polish
flag has been one of the more rare ones.
The number of merchant vessels flying the
Polish flag in recent years can be counted
in one-digit numbers.
POLAND
This is something the Polish government
wants to change, and one important step
towards a more competitive national environment
for Polish shipowners is the introduction
of a tonnage based tax system
from January 1 this year. A shipowner may
now choose the general corporate income
taxation or the tonnage-based scheme,
which is to be binding for not less than five
consecutive taxation years. Ships over 100
GT in international traffic are eligible for
tonnage taxation. The tax is calculated at a
flat day rate of EUR 0.50 per GT upp to
1,000 GT, EUR 0.35 between 1,001–
10,000 GT, EUR 0.20 between 10,001–
25,000 GT and EUR 0,10 per GT from
25,001 GT. The tonnage income is then
taxed at a flat rate of 19 per cent.
The Polish government is also considering
changes in the personal income tax for
seafarers sailing under Polish flag to create
an incentive for shipping companies to
operate on the Polish market.
The Polish shipping industry has for
years complained about the government’s
way of handling shipping policy issues.
“Too much talk, too less action” has been
the general meaning within shipping circles.
Now, there is however other initiatives
suggesting that shipping is heading towards
a positive future in Poland, and that the
industry’s importance for the nation is
beginning to be recognized. One important
decision by the government is to
establish a separate ministry for shipping,
which also will be handling issues also on
ports, river traffic and fisheries.
One important institution within the
Polish shipping cluster has also regained
much of its somewhat dented reputation.
When Polski Rejestr Statków S.A., or the
Polish Register of Shipping, celebrated its
70th birthday on December 15 last year,
the Polish classification society was in
much better shape than it was a few years
ago. At the end of September last year, PRS
was approved by the EC Commission and
thus joined the classification societies
approved in the EU. PRS has succeeded in
pulling through its worst crises and earlier
plans to sell the society to a competitor
have been shelved.
Improving environment
When foreign companies establish themselves
in Poland, this could be an indicator
that the shipping environment is improving.
Phoenix Reederei has opened an office
in Szczecin and will employ around 500
persons, of which some 50 persons repairing
engines, generators and deck equipment.
Phoenix has a fleet of container feeder
72 SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007
KRZYSZTOF BRZOZA

vessels and will sign on about 500 Polish
seafarers and officers as well as collaborate
with Polish repair yards.
Another foreign player is Star Reefers
that has moved some of its technical management
and manning operations from
London to Gdynia.
Substantial investments
Polish shipowners are investing substantially
in their fleet renewals and expansion
plans. Polsteam has launched an ambitious
fleet renewal programme which stretches
until 2015, covering 34 new vessels, mainly
bulk carriers ranging from 34,000 DWT to
76,000 DWT. The total investment is calculated
to USD 700–800 million. Ten handysize
bulkers have been ordered from Xingang
Shipyard in China and the last units
will be delivered during 2009. Six more
have been ordered from Hantong Shipyard
in China.
At the start of the year, Polsteam had a
fleet of some 75 vessels. The company
employs 2,700 seagoing staff and 260
shore-based employees.
Last year, the company’s bulk vessels car-
ANCHORS
& CHAINS
One of the largest stockists of
anchors and chains in Europe
with approx. 10 000 tonnes of
brand new and second hand
anchors and chains in our yards
in Norway, Scotland and The
Netherlands.
Tel: +47 56 32 68 50
Fax: +47 56 32 68 60
Email: marine@sotra.net
Web: www.sotra.net Vindenes, 5363 Aagotnes, Norway
ried 26.6 million tons of cargo, up by two
million compared to the year before.
Also Chipholbrok, the Sino-Polish jointventure,
has launched a major ship investment
programme covering six new 30,000
DWT multipurpose heavy-lift vessels. The
series has been ordered from the Hantong
shipyard near Shanghai in China. Two
high-capacity cranes will be able to handle
heavy and over-dimensioned cargo units
up to 640 tons. The order is worth USD
296 million and deliveries are expected
during 2008–2011.
Also Euroafrica, established as a result of
privatisation in 1991 and today the second
largest shipping company in Poland, has
decided to modernise its fleet. The company
operates in liner services to West Africa,
UK, Finland and Sweden. The company is
in the second-hand market for a number of
ships.
The company has modernised its container
carrier Gdynia and upgraded it to
also carry 45 ft containers.
Polish ferry shipping is growing rapidly.
Late last year, Polferries took delivery of its
second-hand ro-pax Baltivia; the vessel op-
SHIPPING AND SHIP MANAGEMENT
Unity Line have ordered two newbuildings.
erates on the Gdansk–Nynäshamn run
together with the ro-ro passenger ferry
Scandinavia.
Unity Line’s launch of its Swinoujscie–
Trelleborg run became an immediate success.
The company transported close to
7,000 cargo units between the two ports in
March, the first full month of the service,
compared with about 8,000 units on the
Ystad–Poland route. The company is now
in the market searching for an additional
ferry for passengers and cargo and has also
confirmed an order for two ro-pax ferries
to be built by SSN in Szczecin. The 3,000lane
metre vessels will be delivered in
2010/2011 and the deal also comprises
options for a further two vessels.
rolf p nilsson
MOTOR-SERVICE
SWEDEN AB
– Worldwide spare part deliveries for ships –
– Please contact us
for prices & delivery times
MOTOR-SERVICE SWEDEN AB
Address Mölna Fabriksväg 8, SE-610 72 Vagnhärad, Sweden
Telephone +46-(0)156 340 40 Telefax +46-(0)156 209 40
e-mail sales@motor-service.se Website www.motor-service.se
SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007 73

SHIPPING AND SHIP MANAGEMENT
The Stena Primorsk at the heart of Sweden’s capital Stockholm.
Swedish shipowners have lost
patience with the new Swedish
government. The lack of a proposal
for a tonnage based tax scheme has
triggered industry representatives to
make things plane – no tonnage tax,
no new vessels under Swedish flag.
SWEDEN
The year 2006 was a good year for
most Swedish shipowners. Reports
show healthy results and positive
outlooks for the coming year, or even
years. The belief in the future is also reflected
in one, for Sweden, large orderbook
with some 40 newbuildings to be delivered
this year and next year.
By the end of last year, the Swedish merchant
fleet consisted, according to the
Göteborg based Institute of Shipping
Analyses, of 602 vessels aggregating 12.5
million deadweight tons and 11.4 million
GT. Of those, 222 vessels of 2.45 million
DWT and 3.8 million GT flew the Swedish
flag. The renewal of the Swedish-flagged
fleet continued during 2006. At year-end,
the average age for the Swedish-flagged
Owners
frustrated over
tonnage tax delay
fleet was 16.1 years, while the foreignflagged
fleet is slightly younger. During the
year, 27 vessels left the Swedish registry,
while 24 entered. While a small fall in
numbers, the new entries often replaced
older, smaller units, leading to an increase
in deadweight.
Black clouds
There is however some black clouds on the
horizon, one being the absence of a
Swedish tonnage tax issue. This is rather
hard to understand. The question was first
raised in the parliament ten years ago.
Since then, some 30 bills have been passed,
proposing the introduction of the tonnage
tax, or at least to investigate the matter.
The former red-green government also
launched an investigation that filed its
findings more than a year ago. The proposal,
favouring an introduction of a tonnage
tax, has been circulated for consideration
of parties concerned and scrutinized by the
Ministry of Finance. Still there is no sign of
a proposal.
What makes it even more confusing is
that the question is absolutely uncontroversial.
A Swedish tonnage tax system is
SHIPS ON ORDER
CONFIRMED FEB 1, 2007
Ship type Number
Tankers 33
PCTCS/LCTCS 6
Ro-paxes 5
AHTS 2
Bulkers 1
Ro-ros 1
Country of build Number
Croatia 10
Russia 9
China 6
South Korea 6
Turkey 6
Germany 5
Norway 2
Spain 2
Finland 1
Netherlands
Total: 48 vessels of about 1.4 MDWT
1
Source: Scandinavian Shipping Gazette
supported by all parties in the parliament,
where the current government also is in
majority, and the leading conservative party
in time of opposition also filed a bill
74 SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007
ROLF P NILSSON

advocating the introduction of a tonnage
tax system.
“We want a strong Swedish shipping
industry and we will introduce a tonnage
tax during this period of office” (which in
Sweden is four years), said minister of
infrastructure Åsa Torstensson from the
new centre-right government at the
Swedish Shipowners’ Association’s AGM
earlier this year. This didn’t impress the
audience.
“It’s not enough, we are frustrated”, said
Lennart Simonsson”, CEO of the tanker
operator Broström. “The last 14 months,
Broström has entered eight newbuildings
into the Swedish ship registry. Until we get
a decision from the government, we will
instead invest in our activities abroad”.
Simonsson, who also chairs the European
Community Shipowners’ Associations
(Ecsa) has claimed that the understanding
of shipping is far better in other
EU states than in Sweden, that is almost
the only member state without a tonnage
tax scheme.
He also stressed that tonnage tax is
favoured by the European Commission as
a measure to strengthen the competitiveness
of member state merchant fleets.
“We have delivered”
Also Dan Sten Olsson, owner and CEO of
Stena and the current chairman of the
Swedish Shipowners’ Association expressed
his concern at the AGM. He asked the minister
to urge the government to take action.
“We have delivered”, said Olsson, pointing
at the renewal of the Swedish-flagged
fleet since the introduction of the net wage
system for seafarers, environmental initiatives
from the industry and the Lighthouse
venture, a maritime education, research
and development institution formed by
the Chalmers University of Technology
and the Göteborg University, in which the
ROLF P NILSSON
On the move. Swedish shipowners, led by Transatlantic’s Håkan Larsson and Stena’s Dan Sten
Olsson, heading for ECSA’s AGM, held in Stockholm 2006.
THE SWEDISH FLEET, JAN 1, 2007
(Above 300 GT)
Numbers MDWT
Swedish flag 222 2.45
Foreign flag* 380 10.07
Total 602 12.52
*including 4 MDWT on long-term
charter arrangements
AVERAGE AGE
Based on number Based on DWT
Swedish flag 16.00 12.00
Foreign flag 15.00 8.00
Source: The Institute of Shipping Analyses
Swedish Shipowners’ Association will
invest SEK 100 million (EUR 11 million)
the next ten years.
The new government has introduced a
number of major tax reforms, and comments
from the Minister of Finance, indicates
that tonnage tax is not a prioritised
issue. Sources also suggest that there is a
resistance against the tonnage tax at the
civil servant level within the ministry of
finance, with a fear of demands to spread
the system to other industry sectors being
ADVOKATFIRMAN
MORSSING & NYCANDER
Est. 1880
MARITIME LAW • LOGISTICS & MULTIMODAL • MARINE INSURANCE
ADMIRALTY & CASUALTY • PURCHASE & SALE • SHIP FINANCING
SHIPPING AND SHIP MANAGEMENT
Box 3299, 103 66, STOCKHOLM, Sweden, Tel: +46 8 58705100 (24-hour service), E-mail: info@mna.se, Fax: +46 8 58705120
www.morssingnycander.se
The Swedish fleet
Number of vessels, Jan 1, 2007
■ Swedish flag ■ Foreign flag
SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007 75
220
200
180
160
140
120
100
80
60
40
20
0
Bulker
Container
Dry cargo
Offshore
Passenger/ferry
Reefer
Tanker
Ro-ro
Misc
Source: The Institute of Shipping Analyses

SHIPPING AND SHIP MANAGEMENT
Broström’s Bro Distributor, a 14,500 DWT
state-of-the-art product tanker delivered in
October last year.
one of the main reasons of opposition. The
Swedish enterprise tax system is today
based on a principle of uniformity; the
same conditions should apply for all, irrespective
of the nature of earnings. That
keeping the shipping industry in endless
waiting for a decision could have significant
negative consequences for the development
of Swedish shipping has so far
seemed to have made little impression on
the government.
Swedish shipowners have around 50
confirmed newbuildings in their combined
Let Utsira Servicesenter AS help!
Leading Norwegian company in the field.
9000 Scandinavian seafarers in our databases
Permanent or temporary positions.
We are able to find candidates within 24 hours.
Contact us today!
orderbook. Of these, almost forty are
scheduled for deliveries this year and next.
How many of these that will be delivered
to sail under the Swedish flag remains to
be seen, but a government proposal for the
future shipping tax regime will definitely
have a significant impact on the future
development of the Swedish merchant
marine.
Recruitment efforts
An escalating problem for Swedish
shipowners, as for shipowners in most
shipping nations, is the mounting lack of
qualified seafarers. Foreign shipping companies
are increasing their recruitment
efforts at the two Swedish maritime academies
in Göteborg and Kalmar.
Also as in most countries the short supply
of experienced engineers is the most
acute problem. Swedish Shipowner’s
Employer Association, SEA, has launched
a number of initiatives at several levels.
A recruitment campaign to attract
youngsters to the maritime academies has
been launched and shore-gone marine
engineers are encouraged to return to sea
by an information campaign, and by ship-
ping companies paying for the refreshment
courses needed to renew certificates of
competence.
SEA has also initiated a project in which
one of Atlantic Container Line’s ro-lo carriers,
the Atlantic Cartier, trading on North
Atlantic routes, will be transformed to also
being a school vessel. Atlantic Cartier will
be rebuilt and equipped to cater for 12–15
future marine engineer students and their
teachers.
rolf p nilsson
Do you need experienced crew or
crew members to your ships/rigs?
Do you need a new job at sea/offshore?
www.utsira.com
ROLF P NILSSON
TOP 10 REGISTERS, JAN 1, 2007
Tonnage controlled by Swedish owners
(MDWT)
Sweden 2.45
Bahamas 1.57
Bermuda 1.31
Norway (NIS+NOR) 0.98
Panama 0.79
Liberia 0.63
Marshall Isl 0.46
Singapore 0.44
Italy 0.43
Kerguelen Isl 0.41
Source: The Institute of Shipping Analyses
Utsira Servicesenter AS
P.O. Box 104
5547 Utsira
Norway
Phone: +47 52 75 00 00
Fax: +47 52 75 00 01
Email: post@utsira.com

fleet news
Editor: Pär-Henrik Sjöström ~ Phone: +358 2 242 62 50 ~ E-mail: par-henrik@shipgaz.com
Another German museum freighter
The Old Lady at Hamburg with the museum coaster Hille alongside.
The Germans has done it again: They
added another old-timer to their fleet of
museum ships by the River Elbe.
The latest addition is named the Old
Lady and she returned to Hamburg in
German coaster
becomes Danish
The Danish coaster operator C. J. Helt &
Co of Svendborg still believes in working
in the old fashion way. Lately the company
sold their old Othonia to a Miami-based
operator for trading on the Caribbean as
the Fifita 500.
Hardly had the Fifita 500 left Svendborg
before the money earned from the selling
was re-invested in a more modern and larger
coaster Irmgard. She was purchased from
a Husum owner and renamed Dantic, the
vessel changed flag to St. Vincent &
Grenadines.
The Irmgard is on of five small coasters
built by the Husumer Schiffswerft in the
early 1980s as a last “we-still-believe-in-themarket”
test. They were built for local captain-owners,
but the idea turned out to be
not so good as they were to small already by
March. The vessel is now moored at the
Landungsbrücke in Hamburg together
with other pearls of the past, such as the
Cap San Diego, the Rickmers Rickmers
and the Scharhörn.
In Danish ownership the Irmgard has become the Dantic.
the delivery in 1980–1982. Only one experiment
building coasters of this size has been
carried out after that by the Danish Svendborg
Værft, building the advanced 1,200
DWT Riis-class.
However, by the years the Husum-built
The Old Lady is a typical representative
for German ships built in the 1950’s, delivered
by Werft Nobiskrug, Rendsburg in
1958 as the Bleichen. She is a geared
tweendecker with bridge and officers’
accommodation midships and engine
room and accommodation aft.
After being sold from Germany in 1970
she has been trading mostly in the Mediterranean
and the Black Sea. In February 2007
Stiftung Hamburg Maritim purchased the
vessel from a Turkish operator sailing it
under North Korean flag. The new owner
had it refitted and sailed her back to Hamburg
for the first time in several decades.
The ship is 93 metres overall with a beam
of 12.3 metres. She is still powered by the
original Deutz engine developing some
1,324 horsepower and providing a service
speed of 12 knots.
The Old Lady also joins the fleet of former
coasters being preserved for the future
in several cities along the Elbe, maintained
by unpaid enthusiast working on hobby
basis.
bent mikkelsen
quintet has been somewhat attractive on
the market as there were only a very few of
this size. C. J. Helt & Co runs a fleet of
coasters with names like Skantic, Dantic,
Uno Supidana and Celica.
bent mikkelsen
78 SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007
STEEN HAUGSTED
BENT MIKKELSEN

PÄR-HENRIK SJÖSTRÖM
The Astral, which was recently bought by Rederi AB Veritas Tankers.
Third Turkish sister
to Sweden
The Swedish shipping company
Rederi AB Veritas Tankers on the
small island of Donsö off Göteborg
has recently purchased the
11,317 DWT product carrier Astral
from Turkey. Delivered in October
2006 by the Turkish Torlak Shipyard
to the Turkish Besiktas Group,
the vessel traded as the Maltaflagged
Besiktas Finland on a charter
to Nordtank Shipping A/S
before the change of ownership.
The Besiktas Finland was handed
over to her new owner in Göteborg
on April 20, 2007. Renamed the
Astral, she entered service under
Swedish flag on April 27 after docking
and repainting at Götaverken
Cityvarvet AB. Now she is on a two
years time charter to Clearlake
Shipping and is operated by Alexia
Shipping Ltd in Finland.
Identical sisters
The Astral is an identical sister to
the same owner’s Astina. Also Sirius
Rederi AB’s the Scorpius is of
the same type. They were both
handed over in March 2006. They
were bought by the Swedish companies
from the Besiktas Group
while still under construction at
Torlak Shipyard.
Managing Director Ove Johnsson
of Rederi AB Veritas Tankers
says that the performance of the
Astina has fulfilled all expectations
and that the company therefore
wanted to buy the third sister vessel
too.
“When all details regarding the
financing were solved we were able
to close the deal,” he says.
According to Mr Johnsson there
are only a few things differing the
Astral from her older sisters. The
only visible difference is that the
windows of the bridge are larger on
the Astral.
“We and Sirius Rederi would
have liked larger bridge windows
on the first vessels too, but the
work had already proceeded so far
that it was not possible to a reasonable
cost. However the owner
appreciated the know-how of Donsö
and altered the window design
on the third vessel.”
The Astral has six pairs of epoxy
coated cargo tanks with a total volume
of 12,394 cbm with 98 per
cent filling. The vessel is powered
by a MAK 9M32 diesel engine
with an output of 4,300 kW at 600
rpm. The service speed is 13.5
knots at design draft and the fuel
consumption is 17 tons of heavy
fuel oil a day at 90 per cent MCR.
Strengthened for operations in
ice, the 129.75 m long and 19.6 m
wide vessel is classed to Bureau Veritas
rules and is built to the rules of
Finnish/Swedish ice class IA.
pär-henrik sjöström
PON POWER
- Your solution provider
Pon Power has a long history of distributing
and servicing CAT- and MaK marine products
throughout Scandinavia. As a true solution
provider in the marine business, you can
To be recognized as the best by our customers
we have established a dedicated
Caterpillar sales and service organisation
for the Swedish Marine market.
Pon Power offers complete systems
ranging from 6,4 to 16,200 kW, which are
used as propulsion and auxiliary engines,
primary power or emergency power. Our
delivery of spare parts and our maintenance
and operations programme, will deliver you
an exceptional operational reliability at the
lowest possible cost.
Contact information for your marine product:
Sales: 031- 606493
Parts: 031- 606494
Service: 031- 606495
E-mail: cat.marine.se@pon-cat.com
Pon Power A/S
Tagenevägen 25, SE-425 37 Hisings Kärra
Tlf: 031- 606490 / Fax: 031- 606491
www.pon-cat.com
SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007 79

We fly you to South Korea’s most important port city three times a
week via Munich. You travel in comfort in all classes and earn bonus
points with our program Miles & More. Discover Busan and our
expanding global network of other port destinations. For further
information and booking, please contact your travel agent or go to
www.lufthansa.com
The first European airline to fly to Busan.
With the best connections to Asia’s business centres.
We put you in the biggest ports of tomorrow.
All for this one moment.

technical news
Editor: Robert Hermansson ~ Phone: +46 40 15 61 44 ~ E-mail: robert@shipgaz.com
Anti glare screens reduce costs
The British company Solar Solve Marine
has been contracted by BP Shipping to
supply a series of 105,000 DWT aframax
crude oil tankers with Solasafe anti glare
roller sunscreens for all of the bridge windows.
The first vessel that has got the sunscreens
is the British Oak.
When anti glare screens are installed, the
air conditioning costs are reduced due to
the effective way in which the screens reject
heat that would otherwise accumulate in
the wheelhouse.
Other blinds
Beside the Solasafe, Solasolv is offering
products such as Casslite roller blinds suitable
for marine interior windows. Dammlite
fabric roller blinds provide privacy for
windows in many marine interior areas like
offices, passenger and crew cabins, meeting
rooms, lounges etc. The Litetite is a complete
blackout (99 per cent) fabric roller
blind, ideal for environments where blackout
conditions are required, like chart
rooms, control rooms and cinemas.
Varystop is a maintenance free cassette
system suitable for most windows onboard
and it withstands constant use by passengers
and crew.
The Varystop incorporates a spring roller
blind system with cassette and side guide
channels. It can be locked in any required
position and is suitable for standard and
sloping windows. It is available in a wide
range of flame retardant fabrics including
screen fabrics and blackout and can be fitted
inside the window recess or directly
onto the surrounding bulkhead or frame.
For more information, please contact:
John Lightfoot, phone: +44 191 454 8595
e-mail: john@solasolv.co.uk, info@solasolv.com
www.solasolv.com
Automatic calibration reminder service
The USA-headquartered Dickson
company offers a wide
selection of temperature,
humidity and pressure
recorders and data loggers.
An automatic enrolment of
NIST-certified instruments
obtained from the Dickson
company in the Calibration
Club was announced for 2007.
Now members of the Dickson
Calibration Club are able to
create an online database for all
their instruments and assets, such
that they receive an e-mail notification
when instruments and assets are due for
calibrations.
Unlike generic instruments that only
state that calibrations are within specifica-
tions, Dickson NIST-certified temperature
and humidity
recorders and data loggers
specify a particular unit’s serial
number along with the
date of original calibration,
the calibration reading and
the specific instrument used
to calibrate the unit.
The Dickson Calibration
Club service is designed
to help those with NIST-certified
instruments ensure their instruments retain
their original calibration specifications.
For more information, please contact:
Dickson customer service,
phone: +1 630 543 3747
e-mail: dicksoncsr@dicksonweb.com
www.dicksonweb.com
INTERIOR
INSULATION
VENTILATION
PIPING
ELECTRICAL
SCANMARINE GROUP OF SWEDEN AB
WWW.SCANMARINE.SE
Bäringe 1B, Annexet
SE-241 95 Billinge, Sweden
Phone: +46 (0)413-54 40 00
Fax: +46 (0)413-54 41 10
E-mail: scanmarine@scanmarine.se
SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007 81

finANCE & INSURANCE
Editor: Petter Arentz ~ Phone +47 33 40 12 00 ~ E-mail: petter@shipgaz.com
Fred. Olsen
secures facility
Fred. Olsen Production (FOP) has secured
a new ten-year, USD 500 million revolving
credit facility from banks led by DnB Nor,
Nordea and Fortis Bank. When we went to
press the final terms were not agreed and it
could be end May, early June before all is
agreed. Part of the facility will be used to
restructure an existing facility, the rest to
finance ongoing FSO/FPSO projects. FOP
has just announced a strategic cooperation
with the Japanese Marubeni Corporation
in East Asia.
OMI acquisition
Den Danske Bank and HSH Nordbank are
to raise the USD 1.4 billion in bridging
finance to cover the Teekay Shipping and
Torm purchase of OMI Corp. The arrangement
is that HSH Nordbank will provide
Teekay with USD 700 million for their 50
per cent share of the purchase and HSH
joins with Den Danske Bank to finance
Torm’s share of the purchase, Both loans
are secured at 0.50 per cent over Libor
(London Interbank Offered Rate) on 12
months terms.
Teekay Shipping will take OMI’s seven
suezmax tankers and eight product carriers,
while Torm acquires the remaining 26
product tankers. Torm is flush with cash
after selling its stake in Norden for USD
713 million last month. Eventually some
of that money will go towards the OMI
purchase, but Torm has also announced it
will buy back up to 15 per cent of its share
capital and propose a split.
Pragmatic view of 2007
Insurers are taking a pragmatic view of possible
claims in 2007. 2006 was a quite
benign year for natural catastrophes and
man-made disasters, after insurance losses
of USD 65.0 billion in 2005. Losses in the
London market alone were USD 6.0 billion
from the US hurricanes Katrina, Rita and
Wilma. Sigma recorded 53 shipping disasters
in 2006 mostly fishing boats, but we all
remember the ferry I-Salam Boccaccio with
1,026 dead.
Pressure to cut
dry bulk commissions
Dry bulk freight rates have reached new,
sizzling record highs in an upturn, which
began a year ago. Owners of dry bulk tonnage
are as delighted as the charterers are
dismayed. The main reason for the strong
capesize market is congestion in Australian
ports and higher Chinese demand. On
certain front haul routes for 170.000tonners
the capesize rates could reach
USD 140,000 per day.
Paid too much
The tanker market has not seen anywhere
near the same strong rates. Since tanker
prospects are considered to be weaker than
for dry bulk, tanker owners are working to
consolidate.
The Teekay Shipping and Torm move on
the tanker owner/operator OMI Corp is a
case in mind, even though many analysts
are saying they paid too much at 20 per
cent above the OMI fleet’s net asset value
(NAV).
Rising commissions
While the going is good dry bulk owners
see no reason to consolidate. Meanwhile
dry bulk charterers are grappling with
exceedingly high commission bills.
Currently brokers charge 1.25 per cent
Most ship owners will grumble about the
raise in cost of their liability insurance, but
such misgivings are not justified, according
Michael Butler, who is an insurance partner
at Moore Stephens.
Butler says to the firm’s newsletter
Bottom Line, that in most cases increased
P&I premiums are maintaining solvency in
the marine mutual market.
Main arguments for lower, or no
increases, are an improved investment
market and a good shipping market. Butler
argues that investment income should
never be used to massage underwriting
Capesize spot rates
in the Atlantic
Time Charter Equivalent. ‘000 USD/day
commission on longer deals, but are under
considerable pressure to lower their fee to
1.0 per cent or even lower. With commissions
running in excess of USD 1.0 million
on a five-year charter, no wonder charterers
are putting pressure on the brokers.
Owners to accept increased P&I cost
results. Most clubs are now well placed to
meet the Solvency II capital adequacy
regime, but the clubs still requires he
higher premiums to meet what they perceive
as a scenario of more vessels and, as a
consequence, more claims.
If the cost of claims increases, premiums
must come up; after all, the P&I clubs are
mutuals.
Owners want P&I clubs to be financially
healthy to be able to meet claims, even if it
means higher premiums. It is not justified
to resist those increases, says Michael
Butler.
82 SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007
120
110
100
90
80
70
60
50
40
30
20
10
0
2004
2005
2006
2007

SHIPPING
Our fleet consists of thirty five ice classed
vessels up to 8.000 tonne deadweight. To
keep pace with the changing needs of our
clients we also adapt and increase our fleet.
All our vessels are insured and classified by
reputable insurance companies and classification
societies. Due to our own operational
services and control Österströms is able to
actively involve ourselves in everything from
more efficient operation to the further education
of ships’ personnel.
w w w . o s t e r s t r o m s . c o m
Österströms Rederi AB
Box 44 (visiting address: Hotellgatan 5)
SE-601 02 Norrköping
Phone: +46 (0)11 196 200
info@osterstroms.se
LOGISTIC SOLUTIONS
Österströms provide total logistic solutions
containing optimal vessels, efficient land
transports, and supportive IT-systems. Our
ambition is to understand our customers’
transportation needs and to be a part of the
integrated supply chain. We have a network of
550 experienced and creative coworkers ashore
and onboard, represented in eight countries.
Together we aim for establishing long-term relationships
with our customers so we can help
them to increase their competitiveness.
CARGO HANDLING &
TERMINAL OPERATION
Österströms is heavily involved in increasing
the efficiency of the demanding loading and
discharging processes of short-sea shipping.
We are engaged in terminal and port
operations in Latvia, Poland, UK and Sweden.
By our own experience we developed
a helpful product for our operations. The
result is the MultiDocker CH65, one of the
market’s most versatile material handlers
for reliable and fast cargo handling.

Flexibility
FALKVARV – SERVICE SPECIALISTS FOR ALL TYPES OF TONNAGE
Two floating docks with
following dimensions
Dock 1 Dock 2
Max. ship length 120 m 155 m
Max. ship width 19 m 25 m
Lifting capacity 4,500 tons 7,500 tons
REPAIR QUAY
Length 250 m
Depth 7 m
Crane capacity 36 tons
• Rebuildings
• Class works
• Chocking of
main engines
• CAP-measuring
Falkvarv AB, Hamnvägen 12, S-311 32 Falkenberg, Sweden
Telephone +46 (0)346 - 141 50 • Telefax +46 (0)346 - 819 85
Falkvarv AB, situated on the
Swedish west coast between
the strait of Öresund and
Gothenburg, is a shipyard characterised
by high technical expertise
and solid long-term experience.
A well-developed network of
highly skilled sub-contractors and
collaboration partners enables us
to offer a high level of capacity at
short notice.
E-mail info@falkvarv.se www.falkvarv.se

KONGSBERG MARITIME
it & communications
Editor: Petter Arentz ~ Phone +47 33 40 12 00 ~ E-mail: petter@shipgaz.com
Kongsberg Maritime’s advanced Autonomous Underwater Vehicle (AUV) Hugin 4500 being
deployed from a survey vessel.
KM’s Hugin 1000 to India
India’s National Hydrographic Office has
ordered six new surveying vessels at the
shipyard Alcock Asdown in Gujarat and
they want advanced Kongsberg Maritime
subsea systems onboard. Kongsberg Maritime
is to deliver Kongsberg Maritime
Autonomous Underwater Vehicles (AUVs)
and subsea systems valued at approximately
MNOK 350.
“The core of our delivery to India will
consist of Hugin 1000 autonomous underwater
vehicles, which will be used for
seabed surveying. Hugin AUVs are a world
leader when it comes to detailed surveying
of the seabed, and Kongsberg Maritime has
been delivering Hugin AUVs for more than
ten years,” comments Sales & Marketing
Manager Roar Marthiniussen of Kongsberg
Maritime.
“This is by far the largest contract in this
field to date. In addition to Hugin, the
order includes subsea positioning equipment,
multibeam echosounders and underwater
cameras,” adds Marthiniussen.
Hugin was developed through collaboration
between the Norwegian Defence
Research Establishment, the Royal Norwegian
Navy, Statoil and Kongsberg Maritime.
Cooperation began in 1995, and the first
Hugin was put into commercial use a
decade ago, in 1997, in the North Sea.
Grimaldi uses Sperry Marine bridge systems
Five new roll-on/roll-off (ro-ro) vehicle carriers
being built for Grimaldi Group
Naples by Croatian Shipbuilding Corporation
at its Uljanik shipyard in Pula, Croatia,
for delivery in 2008–2009, will be fitted
with a complete suite of navigation and
communication systems to be supplied by
Northrop Grumman’s Sperry Marine business
unit in conjunction with Compania
Generale Telemar.
The navigation systems to be installed
on the five new ro-ro ships will be based on
Sperry Marine’s new-generation Vision-
Master FT technology. Grimaldi operates
one of the world’s largest fleets of modern
ro-ro vessels, mostly serving Europe, West
Africa and South America. The company is
also expanding its marine terminal business
with major new facilities around the world.
Sperry Marine provides smart navigation
and ship control solutions for the international
marine industry with customer
service and support through offices in 16
countries, sales representatives in 47 countries
and authorized service depots in more
than 250 locations worldwide.
Transas wins Sasmex award
Transas was a winner in the Training category
at Safety at Sea and Marine Equipment
(Sasmex) awards 2007 held in the UK
last month. The prize was presented for the
first ever distance simulation-based training
of oil spill and rescue response operations
based in Baltic region.
Thought to be the first of it’s kind in the
world, Russia, Finland and Estonia all
cooperated as part of an EU funded long
term project on Gulf of Finland Maritime
safety and marine Environment protection
Cooperation (Gofmec) which allowed crisis
response simulator training to take place
simultaneously in three educational establishments.
In order to achieve this, the maritime
educational institutes in these countries
were equipped with latest marine and crisis
management simulators from Transas’ simulation
division who interfaced Pisces II,
Navi-Trainer 4000, VTS and GMDSS simulators
to work as one unit in CMSC.
Telenor to service US agencies
Telenor Satellite Services, a subsidiary of
Telenor of Norway has received a General
Services Administration (GSA) Federal
Technology Service (FTS) contract to provide
a wide variety of mobile and fixed
satellite communications products and services
to the United States government.
Under the provisions of the indefinite
delivery, indefinite quantity contract, known
as Satcom-II, government agencies and
authorized government contractors can
continue to purchase services directly from
Telenor Satellite Services. A number of
Telenor’s service partners were also among
the companies awarded a GSA FTS Satcom-II
contract.
Sense Intellifield KM integrated
Sense Intellifield has become Kongsberg
Intellifield AS. The company will play an
important part in Kongsberg Maritime’s
commitment to developing new technology
solutions for Integrated Operations in
the oil and gas industry. Sense has offices
in Stavanger, Kristiansand, Oslo, Trondheim,
Houston and Aberdeen.
SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007 85

SCHOTTEL for the Shipping World
The Drive You Deserve
SRP
Elmer A. Sperry
Award 2004
SPJ
Outstanding manoeuvring characteristics
Compact construction
Low-noise and low-vibration operation
Superb smoothness and comfort
High efficiency and reliability
Simple maintenance
Worldwide sales and service network
Our product range comprises azimuth propulsion systems, manoeuvring and take-home
devices, and also complete conventional propulsion packages rated at up to 30 MW.
Through our worldwide sales and service network we offer economical and reliable solutions
for vessels of all kinds and sizes. So we can provide the right thrust for your vessel.
Visit us at Nor-Shipping 2007 · Hall C · German Pavilion
SCHOTTEL GmbH & Co. KG
Mainzer Str. 99 · D-56322 Spay/Germany
Tel.: + 49 (0) 26 28 / 6 10
Fax + 49 (0) 26 28 / 6 13 00
eMail: info@schottel.de · www.schottel.de
Sveadiesel AB · Tritonvägen 16
P.O.B. 1326 · SE-172 26 Sundbyberg
Tel.: +46 (0)8 - 7 64 66 10
Fax +46 (0)8 - 29 57 90
eMail: leif.nimander@sveadiesel.se
STP SCP
SCD
Bövik Marin AB · Hälleflundregatan 18
SE-426 58 V. Frölunda · Gothenburg
Tel.: +46 (0)31 - 29 00 75
Fax +46 (0)31 - 69 01 93
eMail: info@bovikmarin.se
STT
www.schottel.com

Scandlines sale on square one
ssg-ringkøbing. The sale of Scandlines is
facing yet another obstacle as the potential
buyers have declared that they will not
share the purchase with the others.
The Danish Ministry of Transport,
which holds 50 per cent of the shares, had
worked out a compromise between UKbased
3i and German-based Baltic Ferry
Development and Allianza to buy Scandlines
on a 40/40/20 basis. After four
months of negotiations, the buyers have
turned down this proposal. None of them
Study: Emission trading
beneficial for the environment
ssg-göteborg. An emissions trading system
for the Baltic Sea and the North Sea
would reduce the environmental impact by
several hundred tons of sulphur and nitrogen
oxides per year.
Low cost
According to a study carried out by the
Swedish Maritime Administration, the
Swedish Energy Agency, the Swedish
Environmental Protection Agency and
the Swedish Institute for Transport and
Communications Analysis on behalf of
the Government, the reduction could
also be achieved at a comparatively very
low cost.
The study shows that it is possible to
handle and administer a trading system.
Two models have been studied, one internal
model for the shipping industry and
one where sea and land can be linked.
Stena profit up 75 per cent
ssg-göteborg. The Stena Sphere, one of
Sweden’s largest privately owned industry
groups, reports a SEK 5.6 billion pre-tax
profit for 2006, an increase by almost 75
per cent compared to 2005. Revenues rose
by 14 per cent to SEK 45.8 billion. Stena
Drilling turned a small loss in 2005, to a
SEK 1.8 billion profit. The shipping investment
portfolio includes SEK 14 billion for
three drillships and orders for ferries and
tankers worth SEK six billion.
The Stena sphere owning family will
receive a SEK 630 million dividend.
PÄR-HENRIK SJÖSTRÖM
wants to give in to the other and none of
them wants to be the small partner in the
joint venture. So the sale of Scandlines is
more or less back at square one.
Heads leaving
Scandlines changed CEO on May 1, when
John Steen-Mikkelsen took over. Also on
May 1, Scandlines’ head of information
and spokesman Gert Jakobsen left Scandlines
for a similar position within the
DFDS Group.
Danish pilot strike avoided
ssg-ringkøbing. A strike by Danish pilots
has been avoided. Negotiations were in
progress and there was a risk of conflict,
but a mutual agreement was signed on
May 8 with the Ministry of Defence and
Maritime Leader, the union for the 130
Danish pilots.
The agreement is the first ever. Before
then, the Ministry of Defence had dictated
the salaries and working hours for pilots.
“It’s really a landmark”, says Frits
Ganzhorn, Maritime Leader, about the
agreement.
NEWS REVIEW
The new look of Sundbussarna.
SUNDBUSSARNA CHANGES NAME
The name Sundbussarna will disappear
during the summer and be replaced by
a new brand for the fast crossing from
Helsingør to Helsingborg. Sundbussarna
will change its name to ACE-link
and will be painted in a blue and white
hull and superstructure.
The name ACE comes from the first
letters in the owner’s name: Axel
Camillo Eitzen.
LOWER PROFIT FOR BROSTRÖM The
first quarter started of weakly in
Broström’s freight market, but imroved
gradually. The quarterly result was also
hit by storms and strikes in some European
ports.
The company posted a SEK 151 million
profit after tax, compared with
SEK 256 million for the same period
last year. The outlook, however, continues
to be favourable.
NEW FINLAND–POLAND SERVICE
Meriaura in Åbo is developing a new
liner service with conventional tonnage
between Åbo/Kotka and Szczecin. The
intention is to attract the marginal
goods flows that are not suitable for
roro-carriers.
Initially, Meriaura’s MD Matti-
Mikael Koskinen is calculating with
one departure every second or third
week, but the aim is to increase the frequency
in the future.
SAFETY MEETING IN COPENHAGEN
Denmark and Copenhagen will host
the next meeting of IMO’s Maritime
Safety Committee (MSC). It will take
place on 3–12 October.
The Maritime Safety Committee is
considered to be one of the most
important committees in the IMO and
according to DMA, a meeting in
Copenhagen will give extra credit to
Denmark’s work in IMO and the country’s
effort to become the leading maritime
nation in Europe.
SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007 87

NEWS REVIEW
EXPEDITION BACK IN COPENHAGEN
The expedition Galathea 3 has now
reached its last call, when the expedition
ship Vædderen – with the “artist name”
Galathea 3 – arrived at Langelinie in
Copenhagen. The ship left Copenhagen
on August 11, 2006, and has since sailed
99,000 kilometres around the world collecting
material for scientific research
from the sea. Throughout the expedition,
school pupils have been a part of
the team onboard and they have been
online, available for questions from other
pupils in Denmark. The largest number
of questions to the pupils onboard
during a single day is 250.
MERGED FERRY OPERATORS Stavangerske
and Tide Sjø will merge and
the operation will become part of the
Tide Group. The new company will be
the second largest ferry and fast ferry
operation in Norway after Fjord 1.
Stavangerske is a subsidiary of Det
Stavangerske Dampskibsselskap (DSD)
and it operates 18 ferries and fast ferries
in all. Tide Sjø is owned by Tide AS
and has 28 ferries and fast ferries.
WESTERN SHIPYARD DOUBLES PROFIT
Last year, Western Shipyard in Klaipeda
posted sales of LTL 210.1 million (EUR
60.85 million), up 1.7 per cent compared
with 2005. Its profit of LTL 11.9
million (EUR 3.45 million) was twice
as large as in 2005.
The Western Shipyard group consists
of 22 companies with 1,400 employees.
BLRT Grupp owns 92.84 per cent of
the shares in Western Shipyards.
ÖSTERSTRÖMS BUYS LATVIAN AGENT
The Swedish shipowner and logistics
company Österströms continues its
expansion in the Baltic states. On May
1, the company became the sole owner
of its agent in Latvia, Daugava Shipping
Services. The company will continue
its operations in Latvian ports as
before.
COCAINE SEIZED ON BANANA SHIP
SeaNews.ru reports that the Russian
customs has seized 13 kilos of cocaine
on the reefer Arctic Night in the port
of St Petersburg. The Arctic Night
(built in 1973) is registered on the Cayman
Islands and had arrived with a cargo
of bananas from Ecuador.
The conversion of the Africa Mercy took eight years.
The Africa Mercy
finally at sea
ssg-ringkøbing. The Africa Mercy, the
former Danish train ferry Dronning Ingrid,
managed to leave UK waters on time. The
ferry arrived in Rotterdam on May 5 en
route for Monrovia in West Africa. After a
24-hours stopover, the floating hospital
continued its voyage to Africa with a crew
of 400.
The conversion of the Africa Mercy took
ssg-tallinn. The municipality of St
Petersburg has given the container terminal
Moby Dick notice to terminate its lease on
5.5 hectares of land next to the container
terminal in Kronstadt. According to
SeaNews.ru and the business daily Vedomosti,
Moby Dick is the first foreign
investor to be forced to hand over land in
the St Petersburg region.
The area in question is used as storage
area in conjunction with the ongoing construction
of a dam. Moby Dick wants to
eight years on the River Tyne. Helsingør
Værft built the ferry in 1980 as the last ferry
to leave the shipyard, which closed
down in 1984. The ferry traded on the
Great Belt link until the opening of the
fixed link in July, 1998. Afterwards the ferry
was laid up until it was sold to Mercy
Ships thanks to a donation of DKK 45 million.
MIKOLAJ KOPERNIK TO TRANSPORT RAILWAY WAGGONS AGAIN Euroafrica Shipping
Lines Ltd, Szczecin and PKP Cargo have signed an agreement according to which the ferry
Mikolaj Kopernik will again transport railway waggons between Swinoujscie and Ystad.
The growing traffic, which also applies to railway waggons, means that the 33-year old ferry
is still needed.
Moby Dick and St Petersburg in land dispute
use the area to expand the terminal and St
Petersburg’s governor, Valentina Matvienko,
had earlier given guarantees that
the area would be returned to Moby Dick
when the dam project was completed.
Now, however, Mrs Matvienko is threatening
to take Moby Dick to court if the company
does not hand over the land. The area
is about a tenth of the size of the container
terminal, 50 hectares.
Moby Dick is a subsidiary of Finnish
Containerships.
88 SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007
PIET SINKE

TRUSTED WORLD WIDE
BRUNVOLL –
the single source supplier
of thruster systems
Refined and proven concepts
teamed up with supreme
technical solutions ensures
low life cycle costs
BRUNVOLL – manufacturer of
● Tunnel Thrusters
● Azimuth Thrusters
● Low-Noise Thrusters
● Thruster Control Systems
Another successful story...
The «Bourbon Mistral»
equipped with
- Brunvoll Tunnel Thrusters
- Brunvoll Retractable Azimuth Thruster
telephone + 47 71 21 96 00
fax + 47 71 21 96 90
e-mail: office@brunvoll.no
www.brunvoll.no

MARKET REPORTS
Newbuilding contracts in the Nordic market
Month Owner Nat Size Type Shipyard Delivery Value Remarks
April RCCL US 220,000* cruise Aker Yards Åbo 8.10 EUR 900 m 5,400 pax
Tallink Est 212 m ferry Aker Yards Rauma 5.09 EUR 180 m
Bore Fin 13,000 roro Flensburger SB 5.11 EUR 50 m
Bore Fin 13,000 roro Flensburger SB 8.11 EUR 50 m
Golden Ocean No 170,000 bulk Daehan SB 12.08 USD 74 m
Golden Ocean No 170,000 bulk Daehan SB 09 USD 74 m
Golden Ocean No 176,000 bulk Zhoushan 09 USD 74 m
Golden Ocean No 176,000 bulk Zhoushan 09 USD 74 m
Stolt-Nielsen Int 43,000 tanker SLS Shipbuilding 11 USD 85 m IMO I
Stolt-Nielsen Int 43,000 tanker SLS Shipbuilding 11 USD 85 m IMO I
Stolt-Nielsen Int 43,000 tanker SLS Shipbuilding 12 USD 85 m IMO I
Stolt-Nielsen Int 43,000 tanker SLS Shipbuilding 12 USD 85 m IMO I
Frontline No 156,000 tanker Jiangsu Rongshen 10.10 USD 72.5 m
Frontline No 156,000 tanker Jiangsu Rongshen 12.10 USD 72.5 m
Floatel International Swe semi-sub floatel Keppel Fels 10 USD 305 m 440 pers
Clipper Den 30,800 bulk Tsuji HI 10 USD 26 m
Clipper Den 30,800 bulk Tsuji HI 10 USD 26 m
Clipper Den 30,800 bulk Tsuji HI 10 USD 26 m
Clipper Den 30,800 bulk Tsuji HI 11 USD 26 m
Clipper Den 30,800 bulk Tsuji HI 11 USD 26 m
Clipper Den 30,800 bulk Tsuji HI 11 USD 26 m
Clipper Den 30,800 bulk Tsuji HI 11 USD 26 m
Clipper Den 30,800 bulk Tsuji HI 12 USD 26 m
Clipper Den 30,800 bulk Tsuji HI 12 USD 26 m
Clipper Den 30,800 bulk Tsuji HI 12 USD 26 m
Supply Service AS Far 4,000 supply Havyard/Fjellstrand 12.08 Havyard 832CD
Eitzen Chemical No 13,000 tanker Jinse SB 08 USD 23.6 m
Eitzen Chemical No 13,000 tanker Jinse SB 08 USD 23.6 m
Wisby Tankers Sw 7,000 tanker Peng Lai 09
Wisby Tankers Sw 7,000 tanker Peng Lai 09
Brøvig Rederi No 9,000 tanker Dong Fang 09 USD 20 m
Arne Blystad No 32,000 bulk Jinse SB 08 USD 29 m
Arne Blystad No 32,000 bulk Jinse SB 08 USD 29 m
Arne Blystad No 32,000 bulk Jinse SB 08 USD 29 m
Arne Blystad No 32,000 bulk Jinse SB 09 USD 29 m
Arne Blystad No 32,000 bulk Jinse SB 09 USD 29 m
Arne Blystad No 32,000 bulk Jinse SB 09 USD 29 m
Arne Blystad No 176,000 bulk Sundong 09 USD 70 m
Siem Offshore No 91 m supply Kleven 1q10 NOK 550 m
Siem Offshore No 91 m supply Kleven 2q10 NOK 550 m
SeaDrill No semisub dr rig Jurong 4.10 USD 531.5 m
Aker Capital No 3,000 supply Vietnam 10 NOK 250 m AH08
Aker Capital No 3,000 supply Vietnam 10 NOK 250 m AH08
Aker Capital No 3,000 supply Vietnam 11 NOK 250 m AH08
Aker Capital No 3,000 supply Vietnam 11 NOK 250 m AH08
Aker Capital No 3,000 supply Vietnam 12 NOK 250 m AH08
Aker Capital No 3,000 supply Vietnam 12 NOK 250 m AH08
Solvik Offshore No 4,000 supply Hellesøy 10.08 NOK 250 m VS485
Rem Con No 95 m supply Aker Brattvaag 1q10 NOK 700 m Aker AH12
Rem Con No 95 m supply Aker Brattvaag 2q10 NOK 700 m Aker AH12
May D/S Norden Den 115,000 bulk Shanghai-Chengxi 09 USD 56 m
D/S Norden Den 115,000 bulk Shanghai-Chengxi 09 USD 56 m
D/S Norden Den 115,000 bulk Shanghai-Chengxi 10 USD 56 m
D/S Norden Den 115,000 bulk Shanghai-Chengxi 10 USD 56 m
D/S Norden Den 38,400 tanker Guangzhou 09
D/S Norden Den 38,400 tanker Guangzhou 09
Nordcapital Ger 4,000 supply Aker Yards 3q09 NOK 340 m UT776CD
Nordcapital Ger 4,000 supply Aker Yards 1q10 NOK 340 m UT776CD
PetroProd Ltd No jack-up Jurong SY 7.10 USD 560 m
Golden Ocean No 176,000 bulk Zhousan Jinhaiwan mid-10 USD 72.5 m
Golden Ocean No 176,000 bulk Zhousan Jinhaiwan mid-10 USD 72.5 m
Väderötank Sw 2,000 tanker Turkey mid-08
Väderötank Sw 2,000 tanker Turkey end-08
* gross tons c = capacity in cubic meters
90 SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007

Newbuilding contracts in the Nordic market
MARKET REPORTS
Month Owner Nat Size Type Shipyard Delivery Value Remarks
Väderötank Sw 2,000 tanker Turkey 09
Väderötank Sw 2,000 tanker Turkey 09
Bømlo Brønnbåt No 1,000 fish crr Aas MV 4.09 NOK 100 m 1,200 cub
Bømlo Brønnbåt No 1,000 fish crr Aas MV 4.10 NOK 100 m 1,200 cub
Secondhand transactions in the Nordic market
Month Name DWT Built Type From Price Buyer Remarks/New name
March Dyvi Adriatic 39,187* 1988 car carrier J E Dyvi, Oslo USD 34 m Global Shipholding 1, Oslo
Dyvi Baltic 39,043* 1989 car carrier J E Dyvi, Oslo USD 34 m Global Shipholding 1, Oslo
Dokken 12,900 1992 tanker Bryggen Shipping, Bergen USD 3.3 m undisclosed
Ramform Victory 10,297* 1998 seismic PGS, Oslo USD 213 m Japan
Harmon 3,628 1991 dry cargo Fredocean, Bergen CS & Partnere, Copenhagen
Wachau 2,778 1985 dry cargo Österreichischer Lloyd, Vienna Berge Rederi, Trondheim
Andra 3,500 1983 dry cargo Reed Bockstiegel, Get2Sea, Fredericia
Atlantic Swan 11,000 1982 tanker Uni-Tankers, USD 5.9 m undisclosed
Jette Theresa 2,500 1996 tanker Rederiet Herning, Viborg USD 3.5 m Krabbeskär Rederi, Fiskeback
Maersk Pointer 109,325 2001 tanker A P Møller Maersk, Cph USD 61 m König & Co, Hamburg
Triton Elbe 1,150 1988 dry cargo Triton Schiffahrt, Leer Ronja Marin, Pargas
Kent Forest 14,931 1978 dry cargo Regal Agencies, Greece USD 5.5 m Stoneship Invest, Fredrikstad
Kent Mariner 14,931 1978 dry cargo Regal Agencies, Greece USD 5.5 m Stoneship Invest, Fredrikstad
Alsancak-4 22.5 m 2005 tug Turkish Taubåtkompaniet, Trondheim
Clipper Labrador 28,200 1998 bulk Clipper, Copenhagen USD 28 m China
Euro Fjord 800 1962 bulk Euro Ship, Tønsberg Odd M Stabben, Bergen
Cape Gris Nez 1990 reefer Seatrade, Groningen USD 9.3 m Green Reefers, Bergen
Green Nostalgic 5,175 1986 reefer Green Reefers, Bergen Seatrade, Groningen
Silver Ocean 11,000 2000 container Flora Shipping, Nassau KS Silver Ocean, Hals
Irmgard 1,100 1981 dry cargo Reederei Thordsen, Husum C J Helt, Svendborg
April Anne Bulker 26,400 1991 bulk Lauritzen Bulkers, Cph USD 21.5 m KS Danship 60, Cph
Titan Uranus 254,000 1992 tanker Blystad KS, Oslo Titan, Taiwan under bb tc
Bohai resale 174,000 2007 bulk Arne Blystad, Oslo USD 102.5 m Chang Myung, Korea
Ocean Caroline 1,500 1973 reefer Ocean Transport, Florø USD 1 m Greeks
ID Contender 11,783 1986 dry cargo KS Danship 31, Cph USD 7 m China
Hanseatic Spring 3,230 1993 dry cargo Hanseatic Schiffahrt, Bremen EUR 3.165 m Wilson ASA, Bergen
CEC Conway 8,874 1997 container Clipper Elite, Copenhagen German KG
CEC Challenge 8,874 1998 container Clipper Elite, Copenhagen German KG
Songa Anmaj 82,792 2007 bulk Arne Blystad, Oslo/NY USD 230 m Mercator, India
Songa Alicia 73,901 2005 bulk Arne Blystad, Oslo/NY en bloc Mercator, India
FD Cris de Angelis 74,500 2007 bulk Arne Blystad, Oslo/NY en bloc Mercator, India
FD Jacopo d’Amato 74,500 2006 bulk Arne Blystad, Oslo/NY en bloc Mercator, India
Normand Hunter 1,366 1982 supply Solstad Offshore, Skudenes NOK 40 m Forschungsschiffahrt, Hamburg
Normand Prosper 1,790 1983 supply Solstad Offshore, Skudenes NOK 71 m Simon Møkster Sh, Stavanger
Normand Ranger 1,790 1982 supply Solstad Offshore, Skudenes NOK 71 m Simon Møkster Sh, Stavanger
Nordpol 20,275 1994 container Klaus E Oldendorff, Lübeck USD 27 m CS&Partnere, Copenhagen
Sichem Copenhagen 12,800 2005 tanker Eitzen Chemical, Oslo USD 27 m Nordic Tankers, Copenhagen
Sichem Oslo 12,800 2005 tanker Eitzen Chemical, Oslo for 2×50% Nordic Tankers, Copenhagen
Sichem Palace 8,800 2004 tanker Japanese leasing USD 12.9 m Eitzen Chemical, Oslo
Nordasia 105,940 1998 tanker DS Norden, Copenhagen USD 59 m Vosco, Vietnam
Celiktrans resale 4,600 2007 tanker Turkish USD 16 m Erria Tankers, Svendborg
Celiktrans resale 4,600 2008 tanker Turkish USD 16 m Erria Tankers, Svendborg
May Geo Angler 3,080* 1998 seismic Rem Offshore, Fosnavåg Oceanfive, UK
Brøvig Fjord 12,800 2005 tanker Brøvig Rederi, Farsund USD 27 m Elmira Shipping, Greece
Brøvig Bay 12,800 2006 tanker Brøvig Rederi, Farsund USD 27 m Elmira Shipping, Greece
Brøvig Sea 12,800 2006 tanker Brøvig Rederi, Farsund USD 27 m Elmira Shipping, Greece
Brøvig Ocean 12,800 2006 tanker Brøvig Rederi, Farsund USD 27 m Elmira Shipping, Greece
ms Altair 64,120 1981 bulk Wenaas Shipping, Molde USD 16.5 m undisclosed
Marisp 7,100 2003 tanker Väderötank, Grebbestad Erik Thun/Broström, Göteborg
Mareld 7,100 2004 tanker Väderötank, Grebbestad Erik Thun/Broström, Göteborg
Crescent Connemara 2,802 2000 tanker Clipper Wonsild Tankers Väderötank, Grebbestad Vedrey Kattegat
Bow Singapore 9,900 2004 tanker Odfjell Tankers, Bergen bb back
Bow Asia 9,900 2004 tanker Odfjell Tankers, Bergen bb back
Silja Opera 25,600* 1980 cruise Sea Containers USD 49 m Louis Hellenic Cruises, Greece
* gross tons c = capacity in cubic meters
SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007 91

MARKET REPORTS
Rates and fixtures week 19
Shortsea dry bulk market report
Baltic. The number of spot/prompt open
ships throughout whole Baltic clearly indicates
that the market has softened somewhat
in regards to activity and momentum.
Owners are still obtaining decent rates out
of the Baltic to the Mediterranean and the
Continent, but some destinations are
down in region of EUR 1 p/mt in the
3,000 mt size. 3,000 mt grains 45’ from
German Baltic to ECUK has been fixed at
EUR 15 this week compared to EUR
16–16.50 a few weeks back. Still good
demand in the scrap sector and ships in the
4,000 DWT + are still very difficult to
attract for this type of business.
Activity level: Mixed
Scandinavia. It has been a surprisingly
quiet week with very limited re-let activity
along the coast of Norway. Little agri-product
movements combined with holidays
and the Copenhagen Shipbrokers dinner
naturally brought activity down especially
in the latter part of the week. There have
been an increasing number of spot units in
the area this week with several ships
remaining unfixed for up to two days.
Owners have been trying to hold out for
that relieving cargo, but in the end many
decided to bite the dust and get their ship
fixed ahead with mixed results.
Activity level: Mixed
UK/Continent. The UK/Continental market
remains fairly active in all sectors, but
the number of prompt positions is making
brokers believe that the market has stabilized
presently. Still a good deal of agriproduct
movements from ARAG to the
UK, Scandinavia and Baltic and brokers
continue to struggle to cover their requirements
without pushing rates higher.
Charterers have been looking to fix
1,500 mt soyameal 58’ from ARAG to Ire-
Earning estimates past 12 months
EUR/day ■ 1,000–1,500 DWT ■ 1,500–2,000 DWT ■ 2,000–3,000 DWT
■ 3,000–4,000 DWT ■ 6,000–7,000 DWT
5,000
4,000
3,000
2,000
1,000
20
25
EARNINGS ESTIMATES ON T/C
BASIS PER DAY (MODERN, BOX)
Size This week Last week
1,250 DWT EUR 1,950 EUR 1,950
1,750 DWT EUR 2,200 EUR 2,200
2,500 DWT EUR 2,700 EUR 2,800
3,500 DWT EUR 3,650 EUR 3,750
6,500 DWT EUR 4,700 EUR 4,800
land around the EUR 16–17 p/mt level,
but this is causing little excitement among
owners who still have multiple options to
choose from. UK scrap exports remain stabile
with Spain as main taker still, but brokers
are probably seeing better tonnage
supply as owners struggle to secure returns
from French Bay and Irish Sea.
Activity level: Active
Mediterranean. Whole Mediterranean
region continues to boil with activity in all
sizes and sectors. Charterers are struggling
to attract tonnage for both inter Med and
returns to Northern Europe resulting in a
continuous strong market for owners in
this region. 3,000 mt steel parcels from
Turkey to ARAG/UK are still covered
MARKET SNAPSHOT
This week Last week
Brent USD 66.01 USD 66.26
MGO Rotterdam USD 575.50 USD 581.00
IFO180 Rotterdam USD 343.50 USD 358.00
around the EUR 40 p/mt mark, but brokers
are reporting of little further upward
pressure on rates since last week. Western
Mediterranean continues to see a limited
tonnage supply resulting in an increase in
rates for backhauls to Northern Europe.
Going rate for 6,000 mt minerals SC Spain
to North Sea remains in region of USD
16–17 p/mt.
Activity level: Active
Fixtures
– 5,000 mt minerals WC Norway/German
Baltic fixed EUR 6.00 p/mt
– 2,500 mt minerals Poland/Hamburg
fixed EUR 15 p/mt
– 5,000 mt scrap DWT Lower Baltic/SC
Spain fixed EUR 29 p/mt
norbroker shipping & trading as,
flekkefjord, norway
25,000 shipping professionals read this ad.
What do you want to tell them?
Advertise in The Scandinavian Shipping Gazette!
(www.shipgaz.com for details and prices)
92 SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007
30
35
40
45
50
1
5
10
15
Week

MARKET REPORTS
Tank – volatile markets continue
❯
North Europe remains a very volatile
and unpredictable market for owners
of crude loader. The tanker surplus, particularly
of aframax and suezmax, is beginning
to tell. Admittedly aframax freight
firmed as we went to press, but there is little
prospect f more than WS 160 – WS 170
on the Primorsk and North Sea routes. The
past four weeks have been particularly for
owners of aframax tonnage.
A brief look at the headlines of our
weekly reports says it all. They read as follows:
Week 16 – “Volatile for crude loaders”,
week 17 – “Aframax/suezmax firmer”,
week 18 – “Aframax down in patchy trading”
and week 19 ended with firmer aframax
freight in both the North Sea and the
Baltic.
In our last report we made the point that
the order book for aframax tonnage of 29.6
million dwt is bound to have an effect on
the prospects. The bulk of the current aframax
order book is for delivery in 2008 (8.6
million dwt) and in 2009 (10.1 million
dwt). The suezmax order book is slightly
smaller. In any case, demand for suezmax
tonnage in the North Sea and the Baltic is
too patchy to influence the market.
Medium Range (MR) clean tonnage
breached the WS 300 mark in the past fortnight
to end up around WS280 on the
Trans-Atlantic (TA) westbound leg. Again
the MR order book in excess of 19.0 mil-
Wet bulk freight development
Worldscale ■ Suezmax North Sea–TA ■ Aframax NS– UKCont
600
500
400
300
200
100
0
Jul ’05
Oct ’05
lion dwt and for handysize 4,2 million dwt.
With this downturn the daily earning have
dripped below USD 30,000 per day. Other
relevant rates are WS 280 for 22,000 tonnes
Inter UK/Continent and WS 255 for
30,000 tonnes Baltic for UK/Continent.
Rates could fall further on slack demand.
94 SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007
Jan ’06
Apr ’06
Dry – capesize at all-time high
❯
Capesize freight has continued
upwards into unknown territory mainly
thanks to continued congestion in Australian
ports and firm Chinese demand for
ore tonnage. 172,000-tonner was booked
Brazil for China at USD 130,000 per day,
which is an all-time high. The voyage market
for iron ore from Brazil to China passed
through USD 51,00 per tonne. On the
Tubarao to Rotterdam iron ore route the
rate was close to USD 30.00 per tonne, an
improvement of USD 10.00 so far this year.
The Atlantic remained the stronger of the
main freight areas. The time charter equivalent
(TCE) of the Atlantic round voyage
rate improved USD 5,000 per day since
April to USD 110,000 per day. Similar tonnage
booked for an Australian round voyage
at a TCE of USD 106,000 per day.
The time charter market for panamax
dry bulkers reached record heights in May
and breached USD 60,000 per day for a
trip from Turkish Black Sea to Southeast
Asia. There was also talk of even higher
rates, for a kamsarmax from the Atlantic
for Asian destinations at USD 62,000 per
■ Aframax Primorsk–UKCont ■ Clean MR UKCont–TA ■ Clean Baltic–UKCont
day. Firmer rates were mainly due to
demand exceeding the supply, particularly
in the Atlantic, where Trans-Atlantic round
voyage rate improved to USD 52,000 per
day. Handy/handymax tonnage is in
chronic in short supply and freight keeps
firming. The Atlantic round voyage just
120,000
100,000
80,000
60,000
40,000
20,000
0
Jul ’06
Oct ’06
Jan ’07
Apr ’07
Source: SSG, May 10, 2007
breached the USD 50,000 per day mark,
up nearly USD 20,000 per day so far this
year. Good rates have been seen in the Far
East with USD 53,000 paid from Singapore
to India. India to China saw rates
close to USD 47,000 per day.
petter arentz
Dry bulk freight development
Atlantic round voyage,USD/day ■ Capesize ■ Panamax ■ Handymax
Jul ’05
Oct ’05
Jan ’06
Apr ’06
Jul ’06
Oct ’06
Jan ’07
Apr '07
Source: Fearnleys/SSG, May 10, 2007

Offshore market report May
❯
The strong offshore market is keeping
up its strength, with a dynamic spot
market and ample opportunities for longterm
business. So far, the 2007 rate level
has been somewhat below last year’s, but
the maritime offshore industry is keeping
up faith in the market. This is reflected in
the number of new orders; although much
appears now to be driven by Indian and
Far Eastern owners.
Looking at the offshore service industry
in a wider perspective, established and new
contenders continue to raise large amounts
of money, on projects from seismic data
collection to heavylift vessels, crane ships,
production vessels, drilling and accommodation
units. Norwegian-related interests
are said to be behind 58 of the 116 drilling
vessels on order worldwide, with a total
value of NOK 101.7 billion (USD 17 billion),
according to the business daily
“Dagens Næringsliv”.
Far Eastern focus
Several Norwegian supply ship owners have
used the recent boom to extend their activities,
in range as well as geography. Going
from anchorhandlers and platform vessels
into subsea support ships has enabled companies
like Farstad, Rem Offshore and others
to build a broader basis. A good number
of these expensive ships have been fixed for
longer periods in the Gulf of Mexico, West
Africa and other places.
Others are aiming for operations for Far
Eastern waters. Solstad and Nortrans are
joint owners of Nor Offshore in Singapore,
Havila in PACC-Havila with local partners
and Farstad has been working from its Australian
base for many years. PACC-Havila
recently increased its newbuilding program
in China from 6 to 8 smaller ahts.
The recent tie-up between Aker and
DOF in ordering 6+6 12,000 BHP
anchorhandlers from Aker Yards’ new facility
in Vietnam is a major step into the Far
Eastern market.
More contracts
Bourbon Offshore Norway is building four
PX105-type platform vessels at Zhejiang in
China for 2009/10 delivery. Siem Offshore
took another two MPSVs from Kleven for
2010, making it a series of eight mighty
28,000 BHP vessels at USD 90 apiece.
REM Con, an affiliate of REM Offshore,
has ordered two large units for deep-water
construction with 500-ton winch and
accommodation for 70 from Aker Brattvaag
at USD 115 million each.
The Faroese-based Pf Supply Service will
take a second PSV for Havyards, subcontracted
to Fjellstrand for end of 2008 delivery.
Also Solvik Offshore, based in Austevoll,
has declared its option for a second
VS485 PSV from Hellesøy, for delivery in
October 2008.
The German Nordcapital Holding has
140
120
100
80
60
40
20
0
20
MARKET REPORTS
returned to Aker Yards for two platform vessels
of the UT776CD design at USD 55 million
each, for 2009/10 delivery. This owner
has already six smaller UT755Ls on order.
As for the largest anchorhandlers so far,
the two ordered by Lewek Shipping of Singapore
from compatriot Pan United
Marine must surely rank amongst the
biggest, with engines of 30,000 BHP, of the
UT788CD design. Delivery is set for the
end of 2009 at USD 64 million each.
dag bakka jr
Offshore rate development
GBP 1,000 PSV: ■ 600/700 AHTS: ■ 15,000–16,000 ■ 20,000+
25
30
SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007 95
35
RECENT NORTH SEA TERM CHARTERS AND EXTENSIONS:
Charterer Vessel Type Operation
Statoil Beta ahts abt 100 days firm+ opt, May 2007
Statoil Toisa Independent psv pipehaul until July 25 + opt
Maersk O&G Edda Frende psv ext 1 year until May 2008
Saipem Highland Champion psv 90 days firm, late April
Shell UK Skandi Foula psv ext 3 years
Shell UK Skandi Rona psv ext 3 years
Peak Northern Chaser ahts 1+1 well support Byford Dolphin
Peak Northern Challenger ahts 1+1 well support Byford Dolphin
Island O&G Maersk Gabarus ahts 3 wells firm + opt, support Petrolia
Team Marine Volstad Viking psv 3 years firm, summer 2007
40
RECENT WORLDWIDE FIXTURES:
Charterer Vessel Type Operation
Petrobras Roman ahts 1 year firm, delivery May, Brazil
Petrobras Atrek ahts ext until August 2007, Brazil
British Gas Anchorman ahts 3 years firm, Tunisia
Total Normand Progress mpsv support Moho/Bilondo until July, Congo
Total Normand Mjolne ahts support Moho/Bilondo until July, Congo
ENI Sea Bear ahts 90 days support Celtic Sea, Brazil
ENI Sea Trout psv 3 years, Congo
ENI Sea Angler psv 3 years, Congo
Swiber Holding Sea Wolverine psv 2 years, Far East
45
50
1
5
10
15
Week
Based on information from R G Hagland Offshore, www.hagland.com

MARKET REPORTS
BUNKERS AND CRUDE OIL TRENDS
Week Rotterdam Bunkers Crude Oil
380 cSt, USD/t MDO, USD/t Brent, spot IPE, USD/brl
13 302 526 67.74
14 302 526 68.85
15 316 535 69.19
16 311 514 65.71
17 334 527 66.72
18 327 524 65.46
19 323 533 65.53
Quotations Friday each week. Source: Stockholm Chartering, www.stochart.com
CRUDE TANKER MARKETS
Size Route Week Worldscale Earnings
(USD/day)
VLCC Persian Gulf–UKC C/S 13 75.0 64,500
280,000 14 65.0 50,400
15 52.5 32,100
16 45.0 22,600
17 50.0 28,400
18 60.0 42,600
19 65.0 50,400
Suezmax Cross Med 13 220.0 107,100
130,000 14 140.0 57,600
15 110.0 38,200
16 115.0 41,600
17 180.0 80,500
18 115.0 40,700
19 135.0 53,300
Aframax North Sea–UKC 13 150.0 43,100
14 145.0 41,100
15 130.0 32,300
16 140.0 37,700
17 120.0 26,500
18 140.0 37,000
19 160.0 47,300
Quotations Friday each week. Source: Stockholm Chartering, www.stochart.com
Prosafe sign Australian
FPSO contract
ssg-tønsberg. Norwegian Prosafe is to
provide an Aframax-size FPSO for the Van
Gogh field off Australia in a seven-year deal
worth approximately USD 418 million.
There are options on another eight years.
Prosafe will be responsible for the engineering,
procurement, construction, installation,
commissioning and operation of the
FPSO. The vessel is expected to arrive at
the field in the fourth quarter of 2008. The
conversion will be based on the M/T
Kudam, an Aframax with double sides. The
FPSO will have a process facility of 150,000
barrels of fluids per day, a crude oil production
of 63,000 barrels of oil per day and an
oil storage capacity of 620,000 barrels.
Berge Larsen orders
world’s largest jackup
ssg-tønsberg. Norwegian investor and
industrialist Berge Larsen of Larsen Oil &
Gas has ordered the world’s largest jackup
rig at Jurong in Singapore for a staggering
USD 566.2 million. Delivery is scheduled
for July, 2010. USD 265 million is currently
being raised in the market – USD 80
million in equity and USD 185 via a bond
SHARE PRICE INDEX
Index 11/5 4/5
Broström Logistics* 110.79 112.70
OSE2030GI** 403.29 406.02
*Broström Logistics is a share price index that includes seven
Swedish as well as non-Swedish transportation and logistics
companies, publicly listed on European Stock Exchanges. For
further information, visit www.brostrom.se.
**OSE2030GI includes the shipping companies listed on the
Oslo Stock Exchange.
DRY CARGO MARKETS, LARGE CARRIERS
Size Route Week USD/t
Single voyages
Capesize Tubarao–Rotterdam 13 26.85
165,000 Iron Ore 14 27.25
15 27.50
16 27.60
17 28.80
18 29.50
19 29.80
Tripcharter Av. Earnings
(USD/day)
Panamax Cont–Far East 13 45,000
70,000 14 45,000
15 46,500
16 47,000
17 50,500
18 52,000
19 55,000
Handymax Transatlantic, round voyage 13 39,250
14 39,100
15 39,200
16 41,500
17 44,000
18 47,750
19 49,750
Source: Fearnleys, www.fearnleys.no
issue. Larsen Oil & Gas will provide USD
60 million of the equity.
Fred. Olsen to cooperate
with Marubeni
ssg-tønsberg. Norwegian operator Fred.
Olsen Productions has entered into a
strategic cooperation agreement with the
Japanese giant Marubeni Corporation in
order to identify and develop FSO/FPSO
projects in China, Vietnam, Cambodia and
Thailand. The cooperation with Marubeni
will ease Fred. Olsen’s market access to
these markets.
96 SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007

THE
TOOLS
you must have
Every working day, more than 100,000 operators in shipping
and forwarding rely on these tools for dependable, up-to-date
information: The Shipbrokers’ Register lists 15,000 shipbrokers,
shipping/liner and chartering agents worldwide.
The Shipbrokers’ Register Pocket Edition
In a handy format lists name, street
address, phone and after-office-hours
communication details.
The Shipbrokers’ Register Main Edition
Lists name, address, cable, telex, phone, fax and
additional information such as after-office-hours
communication details. A special
yellow section contains approx.
12,000 e-mail addresses.
“The Blue Book on the web”
The web will give you access to the Register’s
daily updated database on our Internet site
with the same information as on the CD-ROM.
CD-ROM
Included with the Main hardback
Edition, this CD gives additional
information such as e-mail
and web address, activity marks
and VAT number. Print-out facility
for address labels.
Multiuser CD-ROM
The Shipbrokers’ Register
CD-ROM is available for
multiusers (unlimited number).
This CD also gives users
access to the database on
our Internet site.
The Shipbrokers’ Register
Box 2 • SE-26122 Landskrona, Sweden
Phone: +46 418 766 60, Fax: +46 418 766 67
Telex: 72525 wram s
E-mail: info@wramfeltmaritime.se
www.shipbrokers-register.org

T
he ships of the Danish company
J. Lauritzen were well known visitors
to the icy Baltic area and a
number of ports in Finland until
January 31, 1967, when the company terminated
its service, sailing wood pulp
from Finland, mainly to UK destinations.
J. Lauritzen had sailed in the trade from
Finland since the early 1920s, when the
liner service made its first sailings.
One of these magnificent ships, with
the distinctive red hull, was the steamer
Silja Dan. It was built as late as 1951,
when diesel driven vessels were more common,
but shipowner Knud Lauritzen personally
decided that a cargo ship built for
the Finland trade would be better off with
a steam engine. So he ordered the ship
from his own shipyard, Aalborg Værft
A/S, with a steam engine.
When delivered in April 1951, it was not
the last steamship built for a Danish company,
but one of the last ones. The very
last one was the Harrildsborg from the
Sölvesborg shipyard in 1953 – at least
when writing about traditional steam
The last steamship
in the fleet
engines, which does not include turbine
engines.
At the time of delivery the Silja Dan
was painted grey, which was the usual hull
colour within J. Lauritzen, but as from
1956 it was decided to paint all the ships
red on the hull. The idea came from an
experiment with the polar vessel Kista
Dan, which took place in East Greenland
waters in the summer of 1955.
The Kista Dan had some of her masts and
lifeboat painted red, while they were on a
rescue mission for a Norwegian seal-catcher
in distress. The pilot on a Catalina
search and rescue aircraft saw the Kista
Dan’s red colour on the lifeboat at a distance
of 20 nautical miles, while the grey
painted seal-catcher became visible from a
distance of four nautical miles. Shortly
after this, the decision was made. Ever
since then, most of the fleet has been
dressed up in red.
Also the Silja Dan, which remained in
the fleet until July 1964. At that time the
vessel was sold to Lovisa Rederi AB and
handed over for the sum of DKK 2.8 mil-
HÅKAN SJÖSTRÖM
lion at the building yard at Aalborg. The
Silja Dan now became Finnish and got the
name Veli. As the Veli, the ship continued
in the trade from Finland with paper products
to the Continent and the Britsh Isles.
It never got any other name, but lasted
until January 22, 1971, when the crew left
the ship in the Baltic on a voyage from
Hamina to Pietarsaari. A fire broke out in
the engine room with oil-fired boilers and
got out of control. In fact, the fire
destroyed the whole accommodation
qurters midships and the ship was disabled.
However, it arrived at Rauma two
days later and was shortly after declared a
constructive total loss and sold for breaking
up.
In the last days of February 1972 the
remains of the Silja Dan, a steam powered
cargo ship, were cut up in the Finnish capital
of Helsinki. After the Silja Dan, J. Lauritzen
did not build any more steam driven
ships, and they sold off most of the
steamships. The Silja Dan was also the last
steamship in the fleet.
bent mikkelsen
98 SCANDINAVIAN SHIPPING GAZETTE • MAY 21, 2007

High value
Dependability
Maintenance
Market growth
Weather routing
Technology
Time matters
Safety regulations
Fuel consumption
Intermodal
Security
Transhipment
Life needs vision. We’re technology leaders in the classification of larger, highvalue
container ships, so we focus on the bigger picture. Our flexible hull and
machinery maintenance solutions help improve availability by limiting exposure to
downtime. As your business develops, you can rely on us when time matters.
LIFE MATTERS
www.lr.org
Lloyds Register EMEA
Första Långgatan 28B
SE-413 27 Göteborg
Sweden
Phone +46 (0) 31 775 48 00
Fax +46 (0) 31 12 12 18
Email gothenburg@lr.org
www.lloydsregister.se
Contacs:
Bo Dire, Country Manager
Mikael Jogvall, Account Manager
Services are provided by members of the Lloyd’s Register Group. Lloyd’s Register is an exempt charity under the UK Charities Act 1993.

POSTTIDNING B