Klaveness Commercial Management - Marine Money

Klaveness Commercial Management 

‐ 

spot earnings and asset management

The Torvald Klaveness Group 

A leading dry bulk company for more than 60 years 

� Founded in 1946 by Mr Torvald Klaveness 

� Owned and managed Tom Erik and Trond Harald Klaveness 

� A history of partnerships, joint ventures and pools 

� Industry focus with emphasis on transparency 

and knowledge sharing 

Three business units: 

� Klaveness Commercial Management 

� Klaveness Maritime Logistics 

� Klaveness Investments 

KLAVENESS COMMERCIAL MANAGEMENT INTRODUCING NEW OPPORTUNITIES IN THE DRY BULK MARKET 

KLAVENESS COMMERCIAL MANAGEMENT INTRODUCING NEW OPPORTUNITIES IN THE DRY BULK MARKET


Baumarine Pool: 

Bulkhandling Pool: 

Panamax 

Handymax 

Panamax vessels 

Supramax/Handymax vessels 

Facts and figures (2009) 

Number of employees 60 

Fleet under 

management 

Average fleet age 6 years 

About 60 standard bulk carriers 

Main cargo carried Iron ore, coal, grain and bauxite 

Cargo lifted About 33 million tonnes 

Number of vessel 

fixtures 

Number of freight 

derivative transactions 

465 

620 



250 000,00 

200 000,00 

150 000,00 

100 000,00 

50 000,00 

0,00 

The dry bulk market from 2000 till today 

04.01.2000 

04.05.2000 

04.09.2000 

04.01.2001 

04.05.2001 

04.09.2001 

Main characteristics: 

• Low volatility 

• Stable trading patterns 

• Long term contracts 

04.01.2002 

04.05.2002 

04.09.2002 

04.01.2003 

04.05.2003 

04.09.2003 

04.01.2004 

04.05.2004 

04.09.2004 

04.01.2005 

04.05.2005 



04.09.2005 


• High volatility 

• High liquidity 

• Changing trade patterns 

04.01.2006 

04.05.2006 

04.09.2006 

04.01.2007 

04.05.2007 

04.09.2007 

04.01.2008 

04.05.2008 

04.09.2008 

Market collapse 

04.01.2009 

04.05.2009 

04.09.2009 

04.01.2010 

P 4 T C , S p o t 

S 6 T C , S p o t 

C 4TC , Spot 


• High volatility 

• Increasing liquidity 

• Short term contracts

The drybulk 

Successful shipowners 

market in 2010 

� Record volatility makes timing of fixtures crucial 

� Changing sourcing strategies and trade patterns 

� Tactical pricing moves by the major iron ore and coal players 

� Increasing derivatives trading and psychology driving the market 

� The tonnage supply is highly uncertain 

� Over‐reported orderbooks and non‐performing shipyards 

� Lacking port logistics creates congestion 

� The Counterpart risk remain high 

utilize the opportunities of a volatile market ! 



$60 000 

$50 000 

$40 000 

$30 000 

$20 000 

$10 000 

The spot market has been a good strategy… 

$0 

Pool Result Panamax 

2004 2005 2006 2007 2008 2009 

‐ Net earnings per day to Owner ‐ 

$60 000 

$50 000 

$40 000 

$30 000 

$20 000 

$10 000 

Average earnings years 2004‐2009: 

Panamax: 

34,600 $/day 

Handymax: 28,900 $/day 

…paying 10 MUSD more than a TC strategy 

(fixing a Panamax vessel on 1 year TC at the start of each of these years) 

Pool Result Handymax 



$0 

2004 2005 2006 2007 2008 2009

The Pools have delivered full market upside 

$30 000 

$25 000 

$20 000 

$15 000 

$10 000 

$5 000 

$0 

$30 000 

$25 000 

$20 000 

$15 000 

$10 000 

$5 000 

$0 

‐ Net earnings per day to Owner ‐ 

Pool result Baumarine 

Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 

Pool result Bulkhandling 

Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 



Cashflow, Asset Management and Knowledge 

Steady 

cashflow 

Asset 

management 

Knowledge 

sharing 

�Get the full benefit of the spot market, with low operational risk 

�Timely payment every 15 days regardless of vessel position 

�Possibility of converting to fixed rate TC at predefined levels 

�A strong competence base on our operations desk 

�Extensive use of port captains 

�Optimized vessel positioning to cater for owners’ needs 

�Commercial and operational meetings 

�Dedicated operator PIC makes ship owning easier 

�Weekly spot market updates 



Steady cashflow 

� Full benefit of the spot market, with reduced operational risks 

� Timely payment every 15 days regardless of vessel position 

The Value is created through 

◙ Chartering desks in Beijing, Singapore and Oslo 

◙ A global network of first class charterers 

◙ Optimized vessel utilization through market knowledge, large fleet 

and deal‐flow 

◙ Reduced geographical, operational and counterpart risk 

◙ Close follow up of outstanding freight and demurrage 



Owner’s option to convert to TC 

P4TC ‐ Level P4TC ‐ Daily change 

$6 000 

$4 000 

$2 000 

$0 

‐$2 000 

‐$4 000 

‐$6 000 

$100 000 

$80 000 

$60 000 

$40 000 

$20 000 

$0 

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 

� The daily volatility can 

challenge a presumably 

good time to fix the ship 

� Conversion to TC can be 

done irrespective of the 

vessel’s physical position 

� With a predefined rate 

level, we can utilize the 

volatility to the benefit 

of the ship owner 



The shipowners 

we do business with: 

� Share Klaveness view on counterpart risk 

� Want to gain further market access and knowledge 

� Value the Klaveness flexibility and risk management approach 

� Use the Klaveness operations department to further improve their 

vessel’s performance 



Access to new market 

opportunities 




The Bulkhandling Handymax Fleet 

Vessel Owner Built Dwt. 

Agia Filothei Klaveness 2010 58 923 

Anarchos Klaveness 1996 46 676 

AS Victoria Ahrenkiel 2009 57 000 

AS Virginia Ahrenkiel 2009 57 000 

CMB Jialing Bocimar 2010 55 000 

Dubai Faith Emarat Maritime 1996 45 681 

Dubai Fortune Emarat Maritime 1995 46 638 

Frederike Selmer Oskar Wehr 2009 57 000 

Genco Predator Genco 2005 55 407 

Livanita Klaveness 1997 45 426 

Monica P Eurobulk 1998 46 667 

New Venture Klaveness 2008 53 411 

Ocean Bridge Mitsubishi 1998 45 766 


Ocean King Yamamoto Kaiun 2001 47 314 

Port Moresby Stella Marine 2002 53 553 

Port Nelson Stella Marine 2006 53 553 

Prisco Abakan Prisco Bulk 2009 57 327 

Prisco Udokan Prisco Bulk 2009 57 327 

Sanmar Phoenix Sanmar 2008 54 682 

Spar Cetus Spar Shipholding 1998 45 700 

Spar Gemeni Klaveness 2007 52 000 

Svenner Scantank 2010 57 000 

TBN Dolphin 57’ Klaveness 2010 57 000 

TBN Dolphin 57’ Klaveness 2010 57 000 

Tai Hawk Klaveness 2004 52 686 

Triton Eagle Klaveness 2003 52 579 

Triton Lark Klaveness 2006 56 024 



The Baumarine Panamax Fleet 


Aeolian Breeze Klaveness 2001 74 255 

Agios Nikolas Klaveness 2004 76 390 

Andrea D’Amato D’Amato di Nav. 2008 76 619 

Anna Seaarland 1999 75 592 

Arabella Marwave 2001 75 592 

Atlantic Breeze Klaveness 2004 76 267 

Bottiglieri Ambition Cargoship Maritime 2010 92 500 

CIC Piraeus Klaveness 2001 76 296 

Erica Klaveness 2009 83 000 

Genco Leader Klaveness 1999 73 941 

Glyfada I Klaveness 2009 75 639 

Goya Klaveness 2008 75 754 

Irini Euroseas 1988 69 734 

Lian Hua Feng Klaveness 2002 73 901 


MBA Giovanni Michele Bottiglieri 2010 92 500 

Nordelbe Reederei NORD 2001 75 323 

Nordems Klaveness 2001 75 323 

Nordmosel Reederei NORD 2001 75 323 

Nordtrave Reederei NORD 2001 75 323 

Pacific Breeze Blenheim 2004 76 343 

Primrose Klaveness 2001 74 710 

Ruby Crest Klaveness 1997 73 300 

Sanmar Paragon Sanmar 1996 73 080 

Sea Breeze Blenheim 2009 91 800 

Triton Hawk Klaveness 2010 78 000 

Atalanta Klaveness 2010 83 000 

Tiare Marwave 2009 83 000 

Torm Anholt Klaveness 2004 74 195 



Cargo carried 2009 – 

Grain 

Bulkhandling (Supramax) 

Coal 

Iron ore 

1.COAL (34%) 



2.IRON ORE (13,9%) 

3.GRAIN (5,5%) 

4.PETCOKE (6,4%) 

5.CLINKER (5,8%) 

6.SCRAP (4,2%) 

7.SUGAR (3,3%) 

8.OLIVINE SAND (2,9%) 

9.BAUXITE (2,9%) 

10.AGGREGATES (2,3%) 

11.ALUMINA (2,1%) 

12.SALT (1,7%) 

13.CONCENTRATES (0,9%) 

14.DAP (0,9%) 

15.GYPSUM (0,8%) 

16.CEMENT (0,8%) 

17.FERTILIZER (0,7%) 

18.POTASH (0,7%) 

19.SAND (0,5%) 

20.NICKLE ORE (0,5%) 

21.BARYTES (0,5%) 

22.SULPHUR (0,4%) 

23.GENERAL CARGO (0,4%) 

24.SLAG (0,3%) 

25.HBI (0,3%)

Cargo carried 2009 –Baumarine (Panamax) 

Bauxite 

Iron ore 

Coal 

1. COAL (50,3%) 

2. IRON ORE (12,8%) 

3. BAUXITE (7,2%) 

4. SOYA BEANS (6,7%) 

5. PETCOKE (6%) 

6. CORN (4,6%) 

7. GRAIN (3,4%) 

8. SOYA BEAN MEAL (1,5%) 

9. BARYTES (1,2%) 

10. WHEAT (1,1%) 

11. PHOSPHATE (1,1%) 

12. OLIVINE SAND (0,7%) 

13. PIG IRON (0,6%) 

14. MANGANESE ORE (0,6%) 

15. SUGAR (0,6%) 

16. ALUMINA (0,6%) 



17. HEAVY HSS (0,6%) 

SODA SORGHUM (0,6%) 

18. PHOSROCK (0,5%)

Klaveness Group ‐ 

key 

figures 

All figures MUSD 2009 2008 2007 2006 2005 

Gross operating revenue 562 1,462 1,959 1,338 1,466 

Profit before tax 58 (48) 224 85 129 

Total assets 1,064 1,094 1,387 1,007 1,089 

Total equity 678 602 686 583 513 

Number of 

vessels 2009 2008 2007 2006 2005 

Vessels owned/controlled 120 144 137 126 98 

Vessels operated 61 78 120 146 150

Klaveness Commercial Management - Marine Money

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