Features: - Tanker Operator

INDUSTRY - FOCUS ON GERMANY
technical advisory board of Germanischer
Lloyd.
Explaining this involvement, he said; "It is
vital to be in the front line with all the rules
coming up. We have to join together to
present a good image and have to be
proactive. We cannot just lean back and forget
about what is happening. Everybody has to
participate. If something comes up, don't fight
it, but discuss it, otherwise we will loose
credibility," he added.
To ensure adequate repair and maintenance is
carried out, Essberger has a repair shop in
Dordrecht, Holland, which came with the Broere
buyout. The company also uses the Hamburg
shipyard Norderwerft among others for its tanker
fleet. Buelow said that he did not believe in
outsourcing too many activities, but rather keep
them in-house to better monitor costs.
18
GTS opts for Lindenau tankers
Another major German tanker player is
Bremen-based German Tanker Shipping
(GTS), which now controls 12 product
tankers averaging 3.5 years old with one
newbuilding still to come.
Eight of the earlier product tankers are of
the Kiel-based Lindenau 32,000 dwt class,
while the newer four are of 40,600 dwt.
Another vessel due for delivery in March of
next year will be slightly larger at 43,000
dwt, but still built to the Lindenau design.
All the vessels were built by Lindenau
Shipyard. Ten are in the KG system while the
other two are wholly-financed by the
company. All the activities connected with
the ships are handled in-house by just
18 people.
The vessels fly the German flag and are
German tonnage tax explained
Introduced in 1999, the German
tonnage tax scheme has been
by and large welcomed by the
German shipping community.
So much so, that moves are afoot to reach
the target of 500 vessels under the German
flag by the end of this year, otherwise it
could be scrapped or amended, according to
the German authorities.
If the target is reached then the tonnage
tax stays in place for the foreseeable
future, and all the signs are that this will
happen as the German shipowners
interviewed by TANKEROperator were
considering putting at least some of their
vessels under German flag.
Basically, the scheme allows companies
to elect to have their taxable profits from
shipping activities determined at fixed rates
with reference to their ship sizes for 10
years at a time, hence the call for more
tonnage by the beginning of next year to
start the next decade of fixed rates.
Graduated Tariff
Up to 1,000 nt = Eur0.92 per 100 nt
per day
1,000 - 10,000 nt = Eur0.69 per 100 nt
per day
10,000 - 25,000 nt = Eur0.46 per nt per
day
More than 25,000 nt = Eur0.23 per nt per
day
As an example given by the Hamburg
Metropolitan Region, a graduated tariff is
imposed on the net tonnes, which is then
One of the Lindenau class
32,000 dwt product tankers,
managed by German Tanker
Shipping.
classed by GL. Managing partner Frank
Jungmann described the flag as "of very
good quality", but said the process of
registration could do with improvement as
at present several different authorities
become involved.
"We need a central department in Germany
for registration and a simple, efficient
administration," he said. Other German
companies spoken with by TANKEROperator
voiced the same opinion.
Being under the German flag, all GTS'
officers are German, while the ratings are
from the Philippines. Jungmann agreed
with other German owners requiring
German officers that for the future, the pot
was empty.
GTS' vessels normally trade in the spot
market, however, there a few charters
multiplied by the number of days a vessel
is in operation.
In the case of a 40,000 nt vessel, the
calculation is based on an assumed profit
of Eur174.80 per day. For 365 days of
operation, this is calculated at Eur63,802,
on the basis of which taxes will be
charged independently of the actual annual
profit.
Assuming the equity capital totals
Eur21.6 mill, the calculated profit is 0.3%
of the equity capital per annum, which is
claimed to be of minor relevance. In
accordance with the current Income Tax
Act, the amount - assuming that the
economic development of the vessel
operations will be positive - indicates a
largely tax free capital gain. �
TANKEROperator � August/September 2008