The Annual Report of the Hanseatic Lloyd Reederei on the Business ...

<strong>The</strong> <strong>Annual</strong> <strong>Report</strong> <strong>of</strong> <strong>the</strong> 

<strong>Hanseatic</strong> <strong>Lloyd</strong> <strong>Reederei</strong> 

on <strong>the</strong> Business Year 

2008

<strong>The</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> Group 

Competence in <strong>the</strong> 

International Shipping Market 

<strong>The</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> Group is a group <strong>of</strong> 

companies with long experience <strong>of</strong> management 

in shipping, <strong>the</strong> development <strong>of</strong> ship 

projects and <strong>the</strong> raising <strong>of</strong> finance under 

<strong>the</strong> KG system in <strong>the</strong> German financial markets. 

<strong>The</strong> entire management <strong>of</strong> <strong>the</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> 

Group is a team <strong>of</strong> shipping and financial experts 

with vast experience in <strong>the</strong> tramp, tanker 

and liner shipping and financial markets. <strong>The</strong> 

main shareholder <strong>of</strong> <strong>the</strong> group <strong>of</strong> companies 

is now <strong>the</strong> community <strong>of</strong> heirs – <strong>the</strong> Kniffka 

family. <strong>The</strong>ir shares are administered through 

<strong>Hanseatic</strong> <strong>Lloyd</strong> AG, Uttwil/Switzerland. Also 

<strong>the</strong> community <strong>of</strong> heirs holds 50 % <strong>of</strong> shares in 

<strong>the</strong> Hansa Mare <strong>Reederei</strong>, Bremen/Germany, 

which operates 18 container vessels. <strong>The</strong>se 

shares are administered through <strong>Hanseatic</strong> 

<strong>Lloyd</strong> Holding, Bremen/Germany. 

<strong>The</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> Group consists 

<strong>of</strong> <strong>the</strong> following Companies: 

<strong>Hanseatic</strong> <strong>Lloyd</strong> AG 

Uttwil/Switzerland 

Developing and initiating international ship 

projects; main shareholder <strong>of</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> 

companies worldwide. 


GmbH & Co. KG, Bremen/Germany 

Developing and initiating ship projects and 

raising finance under <strong>the</strong> KG system in <strong>the</strong> 

German financial markets. 

<strong>Hanseatic</strong> <strong>Lloyd</strong> Schiffahrt 


Exists as a former trading company with roots 

way back to 1864. Responsible as ship operator 

and manager for <strong>the</strong> technical and nautical 

management <strong>of</strong> <strong>the</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> vessels. 

<strong>Hanseatic</strong> <strong>Lloyd</strong> Chartering 

GmbH & Co. KG, Hamburg/Germany 

Employment <strong>of</strong> <strong>the</strong> 24 container vessels <strong>of</strong> 

<strong>Hanseatic</strong> <strong>Lloyd</strong> and Hansa Mare as well as 

<strong>of</strong> fur<strong>the</strong>r future newbuildings. 

<strong>Hanseatic</strong> <strong>Lloyd</strong> (Singapore) Pte Ltd 

Container chartering in <strong>the</strong> Far East. 

<strong>Hanseatic</strong> <strong>Lloyd</strong> Holding 


Management/administration <strong>of</strong> <strong>the</strong> 50 % 

share holding in Hansa Mare <strong>Reederei</strong>; 

financing <strong>of</strong> new projects and o<strong>the</strong>r 

investments. 

<strong>Hanseatic</strong> <strong>Lloyd</strong> Handel 


Inhouse brokers for marine insurance for ship 

projects; management <strong>of</strong> investments in non- 

<strong>Hanseatic</strong> <strong>Lloyd</strong> related companies. 

Welcome on Board.

<strong>The</strong> <strong>Annual</strong> <strong>Report</strong> <strong>of</strong> <strong>the</strong> 


2008

Contents 

<strong>The</strong> <strong>Annual</strong> <strong>Report</strong> . . . . . . . . . . . . . . . . . . .02 

<strong>The</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> Group . . . . . . . . . . .03 

<strong>The</strong> Management . . . . . . . . . . . . . . . . . . . .13 

Greetings from <strong>the</strong> 

<strong>Hanseatic</strong> <strong>Lloyd</strong> AG . . . . . . . . . . . . . . . . . .14 

Foreword <strong>of</strong> <strong>the</strong> 

<strong>Hanseatic</strong> <strong>Lloyd</strong> <strong>Reederei</strong> . . . . . . . . . . . .16 

<strong>The</strong> market . . . . . . . . . . . . . . . . . . . . . . . . . .18 

<strong>The</strong> global economy 

<strong>The</strong> global merchant fleet 

Container shipping 

Tanker shipping 

Tax basics . . . . . . . . . . . . . . . . . . . . . . . . . .33 

Income tax 

Tonnage tax 

Trade tax 

Turnover tax 

Inheritance tax and gift tax 

<strong>The</strong> course <strong>of</strong> business in 2008 . . . . . . . .38 

<strong>The</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> <strong>Reederei</strong> in 

<strong>the</strong> shipping and capital markets 

Secondary market for ship’s shares 

Example portfolio 

Value <strong>of</strong> <strong>the</strong> placed ships 

<strong>The</strong> fleet operated, supported and/or 

chartered out by <strong>Hanseatic</strong> <strong>Lloyd</strong> . . . . . .45 

Overview <strong>of</strong> <strong>the</strong> fleet . . . . . . . . . . . . . . . . .46 

Data <strong>of</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> . . . . . . . . . . . . . .48 

Performance assessment principles . . .49 

Individual review <strong>of</strong> <strong>the</strong> fleet . . . . . . . . . .50 

<strong>The</strong> auditor’s certificate <strong>of</strong> <strong>the</strong> 

PricewaterhouseCoopers 

Aktiengesellschaft 

Wirtschaftsprüfungsgesellschaft, 

Hamburg . . . . . . . . . . . . . . . . . . . . . . . . . . . .66 

Individual reports <strong>of</strong> <strong>the</strong> Hansa Mare 

fleet exclusively chartered out by 

<strong>Hanseatic</strong> <strong>Lloyd</strong> . . . . . . . . . . . . . . . . . . . . .67 

Imprint . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75 

1

<strong>The</strong> <strong>Annual</strong> <strong>Report</strong> 

Financial involvement always means having to 

make investment decisions which primarily aim 

at obtaining <strong>the</strong> best return on <strong>the</strong> invested 

capital. <strong>The</strong> crucial factor is <strong>the</strong> argument <strong>of</strong> 

<strong>the</strong> “earning capacity”. This has in <strong>the</strong> past 

gained more and more in importance so that 

<strong>the</strong> economic efficiency <strong>of</strong> a capital investment 

in a ship has steadily improved. In view <strong>of</strong> <strong>the</strong> 

large number <strong>of</strong> different forms <strong>of</strong> capital in - 

vestment to choose from, it is advisable for 

each investor to acquire a portfolio that takes 

account not only <strong>of</strong> his present financial and tax 

situation but also <strong>of</strong> his position in <strong>the</strong> future. 

What is important in this connection before 

making any investment decision is to clearly 

analyse <strong>the</strong> parameter conditions <strong>of</strong> <strong>the</strong> eco - 

nomic environment and to view <strong>the</strong>se in <strong>the</strong> 

light <strong>of</strong> one’s own interests. 

2 

As an experienced shipping company, <strong>the</strong> 

<strong>Hanseatic</strong> <strong>Lloyd</strong> Group concentrates exclusively 

on <strong>the</strong> ship as a capital investment vehicle. 

Our experience gained in 38 ship projects since 

1992 with more than 6,000 private and institutional 

investors is applied to each new ship 

project. A large number <strong>of</strong> <strong>the</strong> investors have 

<strong>the</strong>refore invested again and again in our ships. 

By <strong>the</strong> end <strong>of</strong> 2008, we at <strong>Hanseatic</strong> <strong>Lloyd</strong> 

and Hansa Mare were able to place a total <strong>of</strong> 

EUR 513 million <strong>of</strong> equity capital in <strong>the</strong> German 

investment market. Substantial shares held by 

<strong>the</strong> shipping group itself demonstrate <strong>the</strong> high 

consensus <strong>of</strong> interest between <strong>the</strong> investors 

and <strong>the</strong> initiators <strong>of</strong> <strong>the</strong> ships. 

In all projects <strong>of</strong> <strong>the</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> <strong>Reederei</strong>, 

<strong>the</strong> company HLL Treuhand AG represents and 

safeguards <strong>the</strong> interests <strong>of</strong> <strong>the</strong> investors. This 

ensures optimum support <strong>of</strong> all ship’s shares 

as well as making sure that <strong>the</strong> money is only 

being used as stipulated. 

Ship’s shares are globally active capital investments; 

<strong>the</strong>y are directly related to <strong>the</strong> crystal - 

lising developments in <strong>the</strong> various economic 

zones. For this reason, in our <strong>Annual</strong> <strong>Report</strong> 

we describe in detail developments in <strong>the</strong> 

various market economies and <strong>the</strong>ir effects 

on merchant shipping. 

<strong>The</strong> economic development <strong>of</strong> <strong>the</strong> fund ships 

initiated by <strong>Hanseatic</strong> <strong>Lloyd</strong> (performance 

figures <strong>of</strong> <strong>the</strong> one-ship companies) that is 

attested by independent auditors summarises 

characteristic and fundamental information in 

a target/performance comparison. Fur<strong>the</strong>rmore, 

we provide information about <strong>the</strong> employment 

<strong>of</strong> our own ships as well as <strong>of</strong> those <strong>of</strong> <strong>the</strong> 

fleet <strong>of</strong> <strong>the</strong> Hansa Mare <strong>Reederei</strong> which are 

exclusively chartered out by <strong>Hanseatic</strong> <strong>Lloyd</strong>. 

Our <strong>Annual</strong> <strong>Report</strong> primarily serves to provide 

information to interested investors and <strong>the</strong> 

general public with regard to <strong>the</strong> development 

<strong>of</strong> funds that have already been initiated and 

<strong>the</strong> pr<strong>of</strong>essionalism <strong>of</strong> our company – also in 

respect <strong>of</strong> future investment decisions. Our 

investors are periodically informed in detail 

throughout <strong>the</strong> lifetime <strong>of</strong> <strong>the</strong> corresponding 

investment company in all fund-related, economic 

and tax questions by means <strong>of</strong> <strong>the</strong> annual 

financial statements, <strong>the</strong> half-yearly reports <strong>of</strong> 

<strong>the</strong> management board and various circular 

letters concerning <strong>the</strong> current status <strong>of</strong> <strong>the</strong> 

corresponding one-ship company. 

Bremen, 25th May 2009

<strong>The</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> Group

<strong>The</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> Group 

4 

<strong>The</strong> company 

<strong>The</strong> medieval ”Hanse” organization was an 

international alliance <strong>of</strong> merchant cities around 

<strong>the</strong> North Sea and <strong>the</strong> Baltic Sea. Reliability 

and a spirit <strong>of</strong> enterprise caused its persistent 

success. Important companies <strong>of</strong> our group are 

located in traditional <strong>Hanseatic</strong> cities, serving 

to <strong>the</strong> growing needs <strong>of</strong> international trade 

shipping. 

Its name ”<strong>Hanseatic</strong> <strong>Lloyd</strong>” stands for trust 

and fairness, for economic and technical competence, 

for success through thoughtful action 

in a courageous enterprise. <strong>The</strong>se values 

determine <strong>the</strong> collaboration <strong>of</strong> all those who 

contribute to <strong>the</strong> excellence <strong>of</strong> our company 

and pr<strong>of</strong>it from it. 

We extend our hand to you, <strong>of</strong>fering active 

partnership to work with us in that same spirit. 

<strong>The</strong> handshake <strong>of</strong> a “<strong>Hanseatic</strong>” entrepreneur 

is valid.

<strong>The</strong> principle <strong>of</strong> <strong>the</strong> shared risk 

<strong>The</strong> transport <strong>of</strong> goods is an elementary pre - 

requisite for trade and commerce. This particularly 

applies to <strong>the</strong> transport <strong>of</strong> goods by sea. 

Here readiness to shoulder risks wedded with a 

sense <strong>of</strong> responsibility, imagination, as well as 

careful planning have always proved to be <strong>the</strong> 

key to success. This has held well in <strong>the</strong> past 

just as much as it applies in <strong>the</strong> present. 

Over 250 years ago <strong>the</strong> part ownership was set 

up as a team <strong>of</strong> merchants who jointly built, 

equipped and ran a ship following <strong>the</strong> principle 

<strong>of</strong> a shared risk. If <strong>the</strong> vessel returned from its 

in those days <strong>of</strong>ten dangerous voyages laden 

with spices, silk and o<strong>the</strong>r exotic goods, <strong>the</strong> 

pr<strong>of</strong>its from <strong>the</strong> sale <strong>of</strong> <strong>the</strong> ship and its cargo 

were split up proportionally. If <strong>the</strong> vessel went 

missing, <strong>the</strong> partners in <strong>the</strong> shipping company 

likewise shared <strong>the</strong>ir losses on a proportional 

basis. In all, even in those days our forefa<strong>the</strong>rs 

achieved success through <strong>the</strong> principle <strong>of</strong> a 

shared risk. So <strong>the</strong> principle <strong>of</strong> <strong>the</strong> shared risk 

is absolutely nothing new. All <strong>the</strong> investors 

benefit from this traditional and ever successful 

concept. <strong>The</strong> element <strong>of</strong> <strong>the</strong> risk is spread out 

widely and <strong>the</strong> experienced partners <strong>of</strong> <strong>the</strong> 

shipping company work hard to ensure safety 

and prosperity on a long-term basis. 

Capital on <strong>the</strong> high seas 

<strong>The</strong> increasing globalisation process also 

entails a growth <strong>of</strong> global trade. <strong>The</strong> global 

economy has expanded more than six-times 

from 1950 until today. At <strong>the</strong> same time, how - 

ever, <strong>the</strong> volume <strong>of</strong> global trade has increased 

twenty-times. Nowadays more than 95 % <strong>of</strong> 

intercontinental trade is conducted by sea. <strong>The</strong> 

progressive globalisation and liberalisation <strong>of</strong> 

<strong>the</strong> markets will continue in future to ensure a 

steady increase in <strong>the</strong>se international flows <strong>of</strong> 

goods. 

<strong>The</strong>re are many ways in which you can invest 

capital on a pr<strong>of</strong>it-minded basis. But an investment 

in international shipping gives <strong>the</strong> opportunity 

to benefit from <strong>the</strong> advantages <strong>of</strong> <strong>the</strong>se 

global activities. Not only institutional investors 

but also private ones are <strong>of</strong>fered individual 

possibilities for acquiring equity shares in <strong>the</strong> 

various national and international capital 

markets. 

In <strong>the</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> Group you can rely on a 

partner who is distinguished by many years <strong>of</strong> 

experience not only in <strong>the</strong> shipping business 

but also in <strong>the</strong> capital market and who con - 

vinces through competence. 

5

<strong>The</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> Group – Project Development and Coordination 

6 

Analysis pays <strong>of</strong>f 

Shipping is an international business. Pros pec - 

tive thinking as well as <strong>the</strong> constant analysis 

<strong>of</strong> risks and opportunities is absolutely crucial. 

This starts well before <strong>the</strong> planning and construction 

<strong>of</strong> a new ship with <strong>the</strong> analysis <strong>of</strong> 

future economic developments and <strong>of</strong> <strong>the</strong> re - 

quirements and parameter conditions <strong>of</strong> <strong>the</strong> 

transport markets. This is accompanied by <strong>the</strong> 

ongoing, careful observation <strong>of</strong> supply and 

demand in <strong>the</strong> charter and freight markets as 

well as by regular talks with reliable charterers 

worldwide. 

It is only <strong>the</strong> entirety <strong>of</strong> <strong>the</strong>se analyses that produces 

a clear and dependable picture <strong>of</strong> <strong>the</strong> 

shipping market and reveals promising market 

niches that open up possibilities <strong>of</strong> employment 

for new ships. In this context care is our foremost 

criterion, after all that is <strong>the</strong> only way to 

be sure that <strong>the</strong> ship can still be successfully 

operated or sold in 10, 15 or more years time. 

Projects by experts 

In-depth analyses and calculations finally de - 

cide whe<strong>the</strong>r an idea for a new ship will turn 

into a concrete project that <strong>the</strong>n enters upon 

<strong>the</strong> planning and construction phase or that 

is also available in <strong>the</strong> market as first-class 

second-hand tonnage. 

A ship is not <strong>the</strong> work <strong>of</strong> an individual, but <strong>of</strong> 

a team that cooperates closely and with great 

concentration throughout <strong>the</strong> planning and 

construction phase. Here <strong>the</strong> experienced 

employees <strong>of</strong> <strong>the</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> Group are 

additionally supported by leading experts in all 

phases up to <strong>the</strong> time <strong>of</strong> putting <strong>the</strong> vessel into 

service. We work according to strict rules and 

arrange to have ourselves regularly examined 

by experts, trustees as well as auditors on a 

voluntary basis.

<strong>The</strong> pr<strong>of</strong>it lies in <strong>the</strong> purchasing price 

<strong>The</strong> focus is on people – also in <strong>the</strong> shipping 

business. <strong>The</strong>ir knowledge and <strong>the</strong>ir skills are 

crucial for <strong>the</strong> successful planning, construction 

and operation <strong>of</strong> a ship. Even before <strong>the</strong> planning 

<strong>of</strong> technical details and <strong>the</strong> construction 

<strong>of</strong> a new ship, <strong>the</strong> know-how <strong>of</strong> <strong>the</strong> experts is 

especially important: when selecting <strong>the</strong> type 

<strong>of</strong> ship and <strong>the</strong> shipyard, price comparisons and 

intensive negotiations with <strong>the</strong> shipyards can 

lead to substantial differences in price for a 

ship <strong>of</strong> <strong>the</strong> same type and <strong>the</strong> same quality, 

so that enormous savings are possible for <strong>the</strong> 

company and its investors. 

Decisive factors 

Ships can have a service lifetime <strong>of</strong> more than 

20 years, so that <strong>the</strong> choice <strong>of</strong> <strong>the</strong> right shipbuilders 

is a crucial decision. Here <strong>Hanseatic</strong> 

<strong>Lloyd</strong>’s own shipyard database, which permanently 

indicates <strong>the</strong> order situation as well as 

<strong>the</strong> technical specifications <strong>of</strong> <strong>the</strong> major shipyards, 

is <strong>of</strong> enormous value. 

As a fundamental principle, <strong>the</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> 

Group only orders vessels from shipyards which 

comply with its high standards <strong>of</strong> quality. But 

apart from this, <strong>the</strong> decisive factors for placing 

<strong>the</strong> order are also <strong>the</strong> price, punctual delivery 

and <strong>the</strong> fulfilment <strong>of</strong> all technical requirements. 

<strong>The</strong>se requirements are not only defined by <strong>the</strong> 

decision in favour <strong>of</strong> an existing ship design <strong>of</strong> 

leading manufacturers worldwide. In fact <strong>the</strong> 

<strong>Hanseatic</strong> <strong>Lloyd</strong> Group and its experienced partners 

invest additional work in <strong>the</strong> technical 

optimisation <strong>of</strong> <strong>the</strong> ship and thus contribute 

<strong>the</strong>ir practical experience to <strong>the</strong> final design <strong>of</strong> 

<strong>the</strong> ship – to produce a vessel that will stay 

competitive in <strong>the</strong> long term. 

From <strong>the</strong>ory to practice 

On <strong>the</strong> basis <strong>of</strong> <strong>the</strong> shipbuilding price that can 

be achieved, <strong>the</strong> final economic decision in 

favour <strong>of</strong> or against <strong>the</strong> realisation <strong>of</strong> a project 

is <strong>the</strong>n taken and <strong>the</strong> planning phase is ended. 

This is <strong>the</strong> moment when <strong>the</strong>ory turns into practice. 

<strong>The</strong> ship concept, contracts and deadlines 

are fixed, <strong>the</strong> keel <strong>of</strong> <strong>the</strong> ship is laid. In half a 

million hours <strong>of</strong> work, <strong>the</strong> finished ship is produced 

from <strong>the</strong> plans. <strong>The</strong> experienced supervision 

<strong>of</strong> <strong>the</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> Group monitors <strong>the</strong> 

quality <strong>of</strong> <strong>the</strong> work performed and <strong>the</strong> materials 

used in all phases <strong>of</strong> construction. After all <strong>the</strong> 

quality <strong>of</strong> <strong>the</strong> product is <strong>the</strong> foundation for <strong>the</strong> 

success <strong>of</strong> <strong>the</strong> investment. 

7

<strong>The</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> Group – Financial Services 

Ship shares & financing 

Besides o<strong>the</strong>r shareholdings, <strong>the</strong> company 

<strong>Hanseatic</strong> <strong>Lloyd</strong> Holding also possesses 50 % 

<strong>of</strong> <strong>the</strong> shares in <strong>the</strong> Hansa Mare <strong>Reederei</strong>. 

Besides <strong>the</strong> management <strong>of</strong> <strong>the</strong>se sharehold - 

ings, <strong>the</strong> holding company toge<strong>the</strong>r with <strong>the</strong> 

<strong>Hanseatic</strong> <strong>Lloyd</strong> <strong>Reederei</strong> provides <strong>the</strong> neces - 

sary financing for new projects. Within <strong>the</strong> 

German organisation, <strong>the</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> 

<strong>Reederei</strong> is responsible for <strong>the</strong> development, 

initiation and financing <strong>of</strong> ship projects as well 

as <strong>the</strong> founding <strong>of</strong> one-ship companies which 

purchase and operate <strong>the</strong> ships. <strong>The</strong> <strong>Hanseatic</strong> 

<strong>Lloyd</strong> <strong>Reederei</strong> has been active in <strong>the</strong> German 

capital investments market since 2001. <strong>The</strong> 

fully-paid in limited partnership capital <strong>of</strong> 

<strong>the</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> <strong>Reederei</strong> amounts to 

EUR 5.0 million. 

Sound financing 

Shipping is a capital-intensive business. <strong>The</strong> 

<strong>Hanseatic</strong> <strong>Lloyd</strong> Group follows <strong>the</strong> principle <strong>of</strong> 

sound financing policies for <strong>the</strong> whole fleet that 

it operates and supports. To <strong>the</strong> benefit <strong>of</strong> <strong>the</strong> 

investors, we at <strong>Hanseatic</strong> <strong>Lloyd</strong>, but also at 

<strong>the</strong> Hansa Mare <strong>Reederei</strong> in which we hold a 

50 % share, work with various international 

and national banking consortia made up <strong>of</strong> 

state, private and ship mortgage banks on a 

basis <strong>of</strong> mutual trust that has grown up over 

<strong>the</strong> years. 

8 

As <strong>of</strong> <strong>the</strong> end <strong>of</strong> 2008, our financial partners 

have granted ship mortgage loans totalling 

EUR 813 million for <strong>the</strong> ships <strong>of</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> 

and <strong>of</strong> <strong>the</strong> Hansa Mare <strong>Reederei</strong>. 

In this way <strong>the</strong>y have decisively contributed to 

<strong>the</strong> financing <strong>of</strong> <strong>the</strong> fleet with a total capital 

spending volume <strong>of</strong> more than EUR 1.37 billion. 

<strong>The</strong> borrowed capital ratio is 59.2 % and thus 

reflects our ra<strong>the</strong>r conservative financing policy. 

<strong>The</strong> fleet will also continue to grow in <strong>the</strong> future. 

For <strong>the</strong> financing, we set <strong>the</strong> same standards 

that have been applied in <strong>the</strong> case <strong>of</strong> <strong>the</strong> projects 

initiated in <strong>the</strong> past. Continuity and reli - 

ability here have top priority. 

Attractive capital investments 

Ship’s shares are long-term, promising capital 

investments for private and institutional inves - 

tors. As an experienced shipping company, <strong>the</strong> 

<strong>Hanseatic</strong> <strong>Lloyd</strong> Group concentrates exclusively 

on this form <strong>of</strong> capital investment. 

<strong>The</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> <strong>Reederei</strong> also <strong>of</strong>fers o<strong>the</strong>r 

shipping companies its services in <strong>the</strong> shipping 

and capital markets – a business segment that 

is destined to grow fur<strong>the</strong>r in <strong>the</strong> future. 

As compared with <strong>the</strong> tax advantages from 

depreciation known in <strong>the</strong> past, ship investments 

today focus far more on long-term economic 

efficiency and pr<strong>of</strong>itability. This form 

<strong>of</strong> investment in a business enterprise gains 

additional attraction through <strong>the</strong> tonnage tax 

that is already granted in many countries – 

a lump-sum determination <strong>of</strong> net income for 

shipping companies – which makes <strong>the</strong> income 

earned virtually tax-free. 

Guaranteeing an optimum tax, contractual and 

economic concept for <strong>the</strong> investors has high 

priority. <strong>The</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> <strong>Reederei</strong> works 

exclusively with well-known auditors, tax 

consultants and lawyers with experience in 

<strong>the</strong> shipping business. Fur<strong>the</strong>rmore, technical 

advisors support <strong>the</strong> project development work. 

In all projects <strong>of</strong> <strong>the</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> <strong>Reederei</strong>, 

<strong>the</strong> company HLL Treuhand AG represents 

and safeguards <strong>the</strong> interests <strong>of</strong> <strong>the</strong> investors. 

This guarantees all those involved that <strong>the</strong>ir 

interests are being looked after properly and 

that <strong>the</strong> money is only being used as stipulated. 

Quality and experience 

<strong>The</strong> complexity <strong>of</strong> this form <strong>of</strong> investment 

necessitates corresponding counselling. For 

this reason, <strong>Hanseatic</strong> <strong>Lloyd</strong> <strong>Reederei</strong> only co - 

operates with a limited circle <strong>of</strong> qualified and 

pr<strong>of</strong>essional sales partners. As a classical shipping 

company, within <strong>the</strong> framework <strong>of</strong> ongoing 

sales training measures it <strong>of</strong>fers <strong>the</strong>se partners 

not only detailed product information as <strong>the</strong> 

basis for objective and efficient customer 

counselling but also provides comprehensive 

background information on <strong>the</strong> shipping business 

itself.

<strong>The</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> Group – Chartering 

Wide knowledge <strong>of</strong> <strong>the</strong> market 

Competition in <strong>the</strong> global charter market is very 

fierce. A fundamental prerequisite for successful 

chartering out in this market are ships <strong>of</strong> a 

high technical quality that can be used universally. 

Besides <strong>the</strong> quality <strong>of</strong> <strong>the</strong> tonnage, an 

acknowledged quality <strong>of</strong> service and <strong>the</strong> per - 

sonal competence <strong>of</strong> <strong>the</strong> suppliers <strong>of</strong> charter 

tonnage as well as <strong>the</strong> most exact knowledge 

<strong>of</strong> <strong>the</strong> market make a crucial contribution to 

high customer satisfaction. 

To realistically visualise future developments 

and to use <strong>the</strong>se as a basis for <strong>the</strong>ir own deci - 

sions is one <strong>of</strong> <strong>the</strong> most important tasks <strong>of</strong> <strong>the</strong> 

chartering team at <strong>Hanseatic</strong> <strong>Lloyd</strong>. <strong>The</strong> internal 

“Container Chartering Data Base” <strong>of</strong> 

<strong>Hanseatic</strong> <strong>Lloyd</strong> is <strong>the</strong> key to this knowledge. 

Important ship's information relating to charter 

parties and newbuilding activities worldwide 

are compiled and constantly updated in this 

data base. <strong>The</strong> analysis <strong>of</strong> all available information 

provides a comprehensive overview <strong>of</strong> market 

developments and liner service structures. 

We also set standards in <strong>the</strong> highly competitive 

charter market through intensive contacts with 

liner shipping companies and shipbrokers 

throughout <strong>the</strong> world as well as through a constant 

exchange <strong>of</strong> information with all our partners. 

This quality is achieved in particular be - 

cause <strong>Hanseatic</strong> <strong>Lloyd</strong> Chartering concentrates 

exclusively on <strong>the</strong> container shipping market. 

In contrast to containerships, which almost 

exclusively find employment for time charter 

periods in order to <strong>the</strong>n be operated in regular 

liner services, tankers are predominantly chartered 

for individual trips. <strong>The</strong>y are mostly contracted 

in <strong>the</strong> “spot market”, i.e. charter parties 

for tankers are concluded independently <strong>of</strong> <strong>the</strong> 

size and range <strong>of</strong> equipment for individual consignments 

– whe<strong>the</strong>r it is a question <strong>of</strong> a full 

load for a ship or <strong>of</strong> several part loads. 

Besides <strong>the</strong> big oil companies, so-called operators 

also act as charterers. <strong>The</strong>se for example 

charter tankers for short periods in order to 

<strong>the</strong>n carry out cargo contracts for <strong>the</strong>ir own 

account or for o<strong>the</strong>rs. <strong>The</strong> products-/chemicalstankers 

<strong>of</strong> <strong>the</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> Group are 

chartered out on a long-term basis to our 

contract partner Mega Chemical Tankers, 

which operates <strong>the</strong> ships in <strong>the</strong> MCT pool. 

Success on behalf <strong>of</strong> third parties 

In future o<strong>the</strong>r shipping companies and shipowners 

can benefit from <strong>the</strong> comprehensive 

know-how <strong>of</strong> <strong>the</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> Chartering 

team – <strong>Hanseatic</strong> <strong>Lloyd</strong> Chartering also <strong>of</strong>fers 

its complete range <strong>of</strong> services to outside companies. 

In this way interested parties can benefit 

from our detailed knowledge <strong>of</strong> <strong>the</strong> markets 

and our experience concerning <strong>the</strong> worldwide 

structures and developments <strong>of</strong> liner services. 

9

<strong>The</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> Group – Fleet Management 

<strong>The</strong>re from <strong>the</strong> outset 

In all technical and nautical questions regarding 

<strong>the</strong> fleet, <strong>Hanseatic</strong> <strong>Lloyd</strong> Schiffahrt is <strong>the</strong> competent 

contact partner. In <strong>the</strong> case <strong>of</strong> new ship 

projects, besides external specialists our own 

experienced employees act as technical con - 

sultants from <strong>the</strong> very beginning. <strong>The</strong>y prepare 

documentation and construction specifications 

based on <strong>the</strong> latest technical developments and 

on our own practice-oriented examinations. 

<strong>The</strong>y also steer <strong>the</strong> support and supervision <strong>of</strong> 

<strong>the</strong> construction work on <strong>the</strong> newbuilding that 

is so important for <strong>the</strong> quality <strong>of</strong> <strong>the</strong> ship. 

Always ready to go 

Our Fleet Management looks after <strong>the</strong> mainte - 

nance and repair planning and spare parts logis - 

tics as well as all billing for <strong>the</strong> fleet in service 

so as to ensure economically optimised readiness 

for operation. <strong>Hanseatic</strong> <strong>Lloyd</strong> Schiffahrt 

coordinates <strong>the</strong> manning <strong>of</strong> <strong>the</strong> ships in collab - 

oration with experienced crewing agencies. 

Certification work in connection with <strong>the</strong> clas - 

sification and national flags <strong>of</strong> <strong>the</strong> ships also 

number among <strong>the</strong> duties <strong>of</strong> <strong>the</strong> Fleet Manage - 

ment. For example <strong>the</strong> development and implementation 

<strong>of</strong> <strong>the</strong> company’s internal quality 

management and environmental management 

in conjunction with <strong>the</strong> international ISM certification 

for <strong>the</strong> whole fleet and <strong>the</strong> shore organisation 

<strong>of</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> make a vital contribution 

to <strong>the</strong> very good condition <strong>of</strong> <strong>the</strong> ships 

and its performance. <strong>The</strong> company <strong>Hanseatic</strong> 

<strong>Lloyd</strong> Schiffahrt that is responsible for opera - 

tion <strong>of</strong> <strong>the</strong> ships is certified to ISO 9001, and 

10 

<strong>the</strong> introduction <strong>of</strong> <strong>the</strong> environmental protection 

system ISO 14001 is in preparation. New national 

and international safety regulations that are 

binding for shipping such as C-TPAT and ISPS 

are also implemented on board and in <strong>the</strong> shore 

organisation by <strong>the</strong> Fleet Management and 

compliance with <strong>the</strong>se regulations is permanently 

monitored in <strong>the</strong> interests <strong>of</strong> safe operation 

<strong>of</strong> <strong>the</strong> ships. Round <strong>the</strong> clock, 365 days a 

year experienced employees are available to 

ensure smooth operation <strong>of</strong> <strong>the</strong> vessels. <strong>The</strong>y 

thus bear responsibility for <strong>the</strong> complete nautical 

and technical support <strong>of</strong> <strong>the</strong> ships and make 

sure that <strong>the</strong> ships operate faultlessly to <strong>the</strong> 

satisfaction <strong>of</strong> <strong>the</strong> charterers and owners and 

also preserve <strong>the</strong>ir long-term value. 

Ship Management 

Also third party shipping companies and ship - 

owners can in future benefit from <strong>the</strong> comprehensive 

know-how <strong>of</strong> <strong>the</strong> Fleet Management – 

<strong>Hanseatic</strong> <strong>Lloyd</strong> Schiffahrt also <strong>of</strong>fers its complete 

spectrum <strong>of</strong> services to third party companies. 

Here prospective users <strong>of</strong> <strong>the</strong>se services 

can benefit from our observation and experience 

<strong>of</strong> global developments in <strong>the</strong> fields <strong>of</strong> 

ship types, ship and cargo technologies. 

Competence on board 

<strong>The</strong> quality <strong>of</strong> service and <strong>the</strong> safe transport <strong>of</strong> 

<strong>the</strong> goods at sea depend solely on <strong>the</strong> people 

on board. Despite modern technology, it is still 

<strong>the</strong> people who count. Here <strong>the</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> 

Group places its faith in experienced, international 

crews with a high level <strong>of</strong> training. 

Regular training schemes for <strong>the</strong> systematic 

implementation <strong>of</strong> new internal and external 

regulations in matters relating to quality and 

environmental management as well as to compliance 

with international safety regulations for 

<strong>the</strong> protection <strong>of</strong> <strong>the</strong> crew, <strong>the</strong> ship, <strong>the</strong> cargo 

and <strong>the</strong> ports are part <strong>of</strong> everyday life on board. 

In this way, <strong>the</strong> crews in close collaboration 

with Fleet Management ensure smooth opera - 

tion <strong>of</strong> <strong>the</strong> ships at all times. <strong>Hanseatic</strong> <strong>Lloyd</strong> 

makes demands on and promotes <strong>the</strong> employ - 

ees on board. Special achievements are corres - 

pondingly rewarded. We pursue <strong>the</strong> objective 

<strong>of</strong> winning good new personnel for <strong>Hanseatic</strong> 

<strong>Lloyd</strong> in <strong>the</strong> long term with our own, practical 

training <strong>of</strong> cadets on board <strong>of</strong> our fleet. 

Environmental commitment 

Responsible action characterises not only <strong>the</strong> 

behaviour and service <strong>of</strong> <strong>the</strong> crews on board <strong>of</strong> 

all <strong>Hanseatic</strong> <strong>Lloyd</strong> ships, but also <strong>the</strong>ir awareness 

<strong>of</strong> environmental issues. Following this 

principle, <strong>the</strong> newly built ships <strong>of</strong> <strong>Hanseatic</strong> 

<strong>Lloyd</strong> are fitted with low-pollution engines 

according to <strong>the</strong> IAPP Code. All <strong>the</strong> residues 

arising in <strong>the</strong> course <strong>of</strong> operating <strong>the</strong> ship are 

handled in strict compliance with <strong>the</strong> pertinent 

international guidelines. Thus <strong>the</strong> most up-todate 

waste water treatment plants, <strong>the</strong> pos - 

sible reduction and strict separation <strong>of</strong> ship’s 

waste on board as well as <strong>the</strong> proper and pr<strong>of</strong>essional 

disposal <strong>of</strong> residues in <strong>the</strong> ports are 

things that go without saying.

<strong>The</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> Group – Social Commitment 

Focus on people 

Long-term economic success in hotly contested 

markets determines <strong>the</strong> activities <strong>of</strong> <strong>Hanseatic</strong> 

<strong>Lloyd</strong>. However, reaching entrepreneurial objectives 

is not <strong>the</strong> work <strong>of</strong> a single individual, but 

is much more <strong>the</strong> result <strong>of</strong> intensive and constant 

teamwork. After all, it is still people who 

are at <strong>the</strong> centre <strong>of</strong> all business activities. 

<strong>Hanseatic</strong> <strong>Lloyd</strong> very consciously faces up to 

<strong>the</strong> responsibility that this fact involves – with 

a pronounced and daily lived understanding <strong>of</strong> 

community and team spirit as well as open and 

honest dealings with employees, customers 

and partners. 

Over and above our business activities, we also 

assume social responsibilities with personal 

and financial commitment. <strong>Hanseatic</strong> <strong>Lloyd</strong> is, 

like <strong>the</strong> whole <strong>of</strong> <strong>the</strong> shipping business, dependent 

on excellently trained next-generation 

staff. On shore we <strong>the</strong>refore train people as 

shipping businessmen and business administrators 

for transport and logistics (BIVL). To counter 

a shortage <strong>of</strong> qualified specialists on board, 

<strong>Hanseatic</strong> <strong>Lloyd</strong> provides <strong>the</strong> students pursuing 

<strong>the</strong> course <strong>of</strong> studies “Naval Architecture and 

Ocean Engineering” with <strong>the</strong> necessary places 

on board <strong>of</strong> its fleet to carry out <strong>the</strong>ir halfyearly 

term <strong>of</strong> practical training. 

Besides promotional measures relating to maritime 

institutions – such as for example <strong>the</strong> 

Haus Seefahrt, <strong>the</strong> German Lifeboat Associa - 

tion or <strong>the</strong> German Shipping Museum – we 

support Mo<strong>the</strong>r and Child houses in Bremen/ 

Germany and in Weinfelden/Switzerland as 

well as <strong>the</strong> international children’s relief organ 

isation <strong>the</strong> World CHILDHOOD Foundation, 

which looks after <strong>the</strong> weakest links in society: 

young, single mo<strong>the</strong>rs and children in need. 

11

<strong>The</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> Group – Development <strong>of</strong> <strong>the</strong> Company 

2001: <strong>The</strong> corporate structure is established in 

January. <strong>The</strong> head <strong>of</strong>fice <strong>of</strong> <strong>the</strong> Group holding 

company, <strong>Hanseatic</strong> <strong>Lloyd</strong> AG, is domiciled in 

Switzerland. Subsidiary companies are founded 

in Bremen, Hamburg, Singapore and London. 

Two newbuildings, each with a container carrying 

capacity <strong>of</strong> 4,713 TEU, are ordered, a third 

ship with a capacity <strong>of</strong> 4,565 TEU is taken over 

in December as a second-hand project. <strong>The</strong> 

placed equity incl. premium amounts to 

EUR 12.5 million. 

2002: A total <strong>of</strong> EUR 27.5 million (incl. premium) 

are placed in <strong>the</strong> capital market for <strong>the</strong> ship’s 

share funds MV “HLL Atlantic” and MV “HLL 

Baltic”. <strong>The</strong> newbuildings “HLL Atlantic” and 

“HLL Pacific” are delivered by <strong>the</strong> shipyard in 

December and put into service. 

12 

2003: <strong>The</strong> step to diversification is accomplish - 

ed in <strong>the</strong> second quarter: Four products-/chemicals-tankers 

with stainless steel cargo tanks 

and a deadweight tonnage <strong>of</strong> 19,800 tdw 

(terms <strong>of</strong> deadweight tonnage) each are order 

ed. In <strong>the</strong> last quarter, four second-hand 

products-/chemicals-tankers with a deadweight 

tonnage <strong>of</strong> 19,990 tdw each are taken over 

and <strong>of</strong>fered for placing in <strong>the</strong> capital market 

as HLL Tanker-Flottenfonds I. In 2003, a total 

<strong>of</strong> EUR 18.5 million (incl. premium) are 

placed. 

2004: Until June a total <strong>of</strong> EUR 30.7 million 

(incl. premium) are placed in <strong>the</strong> capital market 

for <strong>the</strong> HLL Tanker-Flottenfonds I. From <strong>the</strong> 

middle <strong>of</strong> <strong>the</strong> year, four container ships <strong>of</strong> <strong>the</strong> 

Panmax class as well as four products-/chemicals-tankers 

are ordered. 

2005: For <strong>the</strong> first time a joint enterprise project 

is initiated with <strong>the</strong> shipping company partner 

W-O. In this co-operation, <strong>the</strong> company 

<strong>Hanseatic</strong> <strong>Lloyd</strong> <strong>Reederei</strong> is responsible for <strong>the</strong> 

KG market and <strong>the</strong> placing <strong>of</strong> <strong>the</strong> equity capital. 

W-O Shipping, as <strong>the</strong> authorised ship operator, 

is responsible for ship operation for <strong>the</strong> products-/chemicals-tanker 

MT “W-O Noroc” with 

a deadweight tonnage <strong>of</strong> 16,456 tdw. 

2006: <strong>The</strong> Panmax tanker MT “W-O Sharon 

Sea” with a deadweight tonnage <strong>of</strong> 73,400 tdw 

is initiated with <strong>the</strong> shipping company partner 

W-O and by mid-November equity capital in <strong>the</strong> 

amount <strong>of</strong> EUR 20.3 million (incl. premium) is 

placed. This is followed by <strong>the</strong> start <strong>of</strong> selling 

shares for <strong>the</strong> sister ship MT “W-O Ashley 

Sea”. 

2007: <strong>The</strong> end <strong>of</strong> April sees <strong>the</strong> full placement 

for <strong>the</strong> ship’s share fund MT “W-O Ashley Sea”. 

<strong>The</strong> equity capital placed for this Panmax 

tanker totals EUR 18.7 million (incl. premium). 

2008: <strong>The</strong> Panmax newbuildings MV “HLL 

Arctic” and MV “HLL Caribic” are delivered 

from <strong>the</strong> shipyard in April and put into service. 

<strong>The</strong>y are followed in June by <strong>the</strong> identical 

sister ships MV “HLL Pacific” and MV “HLL 

Adriatic”. <strong>The</strong> whole amount <strong>of</strong> placed equity 

capital is EUR 122.3 million (incl. premium). 

2009: On 16th March, <strong>the</strong> Founder and 

Chairman <strong>of</strong> <strong>the</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> Group as 

well as <strong>the</strong> co-founder and shareholder <strong>of</strong> 

<strong>the</strong> Hansa Mare <strong>Reederei</strong>, Harro Kniffka, dies 

after a short, severe illness and only a few 

days after his 53rd birthday. <strong>The</strong> majority 

partner <strong>of</strong> <strong>the</strong> group <strong>of</strong> companies is now, 

indirectly through <strong>Hanseatic</strong> <strong>Lloyd</strong> AG, 

Uttwil/Switzerland, <strong>the</strong> community <strong>of</strong> heirs 

<strong>of</strong> <strong>the</strong> Kniffka family. Via <strong>the</strong> company 

<strong>Hanseatic</strong> <strong>Lloyd</strong> Holding, <strong>the</strong> community <strong>of</strong> 

heirs continues to be a 50 % shareholder <strong>of</strong> <strong>the</strong> 

Hansa Mare <strong>Reederei</strong>, which operates 18 container 

ships. <strong>The</strong> business <strong>of</strong> <strong>the</strong> <strong>Hanseatic</strong> 

<strong>Lloyd</strong> Group will henceforth be conducted by 

<strong>the</strong> present management board <strong>of</strong> many years 

standing as well as by his oldest son, 

Justus Kniffka.

<strong>The</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> Group – <strong>The</strong> Management 

Founder Harro Kniffka † 16th March 2009 

<strong>The</strong> shipowner Harro Kniffka founded <strong>the</strong> 

<strong>Hanseatic</strong> <strong>Lloyd</strong> Group in January 2001. 

Before that Mr Kniffka had worked for wellknown 

shipping companies in New York and 

Hamburg for more than 30 years. In 1992, 

toge<strong>the</strong>r with o<strong>the</strong>r partners he founded <strong>the</strong> 

Hansa Mare <strong>Reederei</strong>, Bremen, <strong>of</strong> which 

<strong>the</strong> community <strong>of</strong> heirs, <strong>the</strong> Kniffka family, 

continues to indirectly be a 50 % shareholder 

via <strong>the</strong> company <strong>Hanseatic</strong> <strong>Lloyd</strong> Holding in 

Bremen. 

Christian Jäkel 

Managing Director <strong>of</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> Chartering, 

Hamburg. Mr Jäkel has worked for <strong>Hanseatic</strong> 

<strong>Lloyd</strong> for five years and is responsible for chartering 

out <strong>the</strong> container ships <strong>of</strong> <strong>the</strong> <strong>Hanseatic</strong> 

<strong>Lloyd</strong> <strong>Reederei</strong> and <strong>of</strong> <strong>the</strong> Hansa Mare <strong>Reederei</strong>. 

He has worked in <strong>the</strong> shipping business for 

more than two decades, for many years as a 

Competitive Broker. 

Henner Lothar 

Chairman and Chief Executive Officer <strong>of</strong> 

<strong>Hanseatic</strong> <strong>Lloyd</strong> AG, Uttwil/Switzerland. 

Mr Lothar has worked for <strong>Hanseatic</strong> <strong>Lloyd</strong> 

since <strong>the</strong> year <strong>the</strong> company was founded. 

Prior to that he was a member <strong>of</strong> <strong>the</strong> Board <strong>of</strong> 

Management <strong>of</strong> an international ferry shipping 

company. Having been employed in various 

management positions, Mr Lothar is familiar 

with <strong>the</strong> international liner shipping business 

in <strong>the</strong> sectors <strong>of</strong> containers and Ro-Ro. 

Thorsten Mackenthun 

Managing Director and co-founder <strong>of</strong> <strong>the</strong> companies 

<strong>Hanseatic</strong> <strong>Lloyd</strong> <strong>Reederei</strong> and <strong>Hanseatic</strong> 

<strong>Lloyd</strong> Schiffahrt, both with <strong>the</strong>ir head <strong>of</strong>fices in 

Bremen. Mr Mackenthun is a qualified shipping 

businessman and business administrator. He 

is responsible for marketing, sales and ship 

management <strong>of</strong> <strong>the</strong> German subsidiary companies. 

Mr Mackenthun is also Managing Director 

<strong>of</strong> <strong>the</strong> Hansa Mare <strong>Reederei</strong>, Bremen. Since 

July 2007, Thorsten Mackenthun has been <strong>the</strong> 

Chairman <strong>of</strong> <strong>the</strong> shipowners’ association, 

Bremer Rhederverein. 

Justus Kniffka 

Member <strong>of</strong> <strong>the</strong> Board <strong>of</strong> Directors <strong>of</strong> <strong>Hanseatic</strong> 

<strong>Lloyd</strong> AG. Justus Kniffka is a qualified shipping 

businessman with <strong>the</strong> special subject <strong>of</strong> liner 

shipping and he joined <strong>the</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> 

Group in February 2009. Prior to that he worked 

in Asia for a lengthy period as a Competitive 

Broker. 

Burkhard Rösener 

Managing Director and co-founder <strong>of</strong> <strong>the</strong> companies 

<strong>Hanseatic</strong> <strong>Lloyd</strong> <strong>Reederei</strong> and <strong>Hanseatic</strong> 

<strong>Lloyd</strong> Schiffahrt, both with <strong>the</strong>ir head <strong>of</strong>fices in 

Bremen. Mr Rösener is a qualified banker and 

holds a master’s degree in business administration. 

He is an acknowledged expert in tax and 

financial questions and plays a decisive role in 

<strong>the</strong> planning and designing <strong>of</strong> projects for <strong>the</strong> 

German capital market. He is responsible for 

<strong>the</strong> fields <strong>of</strong> finance, controlling and organisation. 

13

Greetings

Dear business friends, 

“If I knew that <strong>the</strong> world would end tomorrow 

I would still plant my little apple tree today.” 

This sentence, which originates from <strong>the</strong> church 

reformer Martin Lu<strong>the</strong>r, also applied to Harro 

Kniffka, <strong>the</strong> Founder and Chairman <strong>of</strong> <strong>the</strong> 

<strong>Hanseatic</strong> <strong>Lloyd</strong> Group, who died far too early. 

We will always keep <strong>the</strong> memory <strong>of</strong> him in our 

hearts and will continue to run and expand his 

life’s work, <strong>the</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong>, in <strong>the</strong> way he 

would have wished. We have lost a leader, a 

friend, a benefactor, a sponsor and a valuable 

human being. <strong>The</strong> loss hits us during one <strong>of</strong> <strong>the</strong> 

most severe crises <strong>of</strong> <strong>the</strong> global economy, and 

one which has long also reached shipping. 

<strong>The</strong> shipping market depends like no o<strong>the</strong>r on 

<strong>the</strong> global flows <strong>of</strong> goods and thus also on <strong>the</strong> 

growth trends and trade trends in <strong>the</strong> global 

economy. Since 1960, global production has 

increased some six-fold in real terms. This 

development was temporarily interrupted by 

<strong>the</strong> oil crises <strong>of</strong> <strong>the</strong> 1970s, <strong>the</strong> Asian crisis in 

1997/1998, <strong>the</strong> terrorist attack on <strong>the</strong> 11th <strong>of</strong> 

September 2001 or <strong>the</strong> bursting <strong>of</strong> <strong>the</strong> New 

Economy bubble. 

Stabilisation measures have in <strong>the</strong> past how - 

ever always helped <strong>the</strong> economies to recover, 

so that after <strong>the</strong> crises had been overcome <strong>the</strong> 

dynamic growth process continued at almost 

undiminished speed – in particular with <strong>the</strong> 

ongoing globalisation process. We are convinc - 

ed that <strong>the</strong> current, simultaneous financial and 

economic crisis, which has no longer been seen 

in this form since 1928, will also not permanently 

apply <strong>the</strong> brakes to <strong>the</strong> long-term trend 

<strong>of</strong> economic growth. <strong>The</strong> economic stimulus 

programmes initiated throughout <strong>the</strong> world will 

also this time contribute to <strong>the</strong> recovery <strong>of</strong> <strong>the</strong> 

markets. In <strong>the</strong> medium term, <strong>the</strong> globalisation 

process, and with that also <strong>the</strong> growth <strong>of</strong> <strong>the</strong> 

global economy will continue in a positive 

sense. 

Shortly before <strong>the</strong> global recession set in, <strong>the</strong> 

charter rates for container ships reached peak 

values. Over <strong>the</strong> last few years this has led to 

a significant expansion <strong>of</strong> <strong>the</strong> global merchant 

fleet through newbuildings. In 2008, <strong>the</strong> order 

books <strong>of</strong> <strong>the</strong> shipyards worldwide reached a 

peak <strong>of</strong> more than 6.75 million TEU. With <strong>the</strong> 

flagging global economic activity since <strong>the</strong> 

autumn <strong>of</strong> 2008, world trade has also greatly 

decreased. This has resulted in a drastic cutback 

in <strong>the</strong> demand for transport capacity. 

More than 530 container ships are currently 

without employment, that is more than 10 % 

<strong>of</strong> <strong>the</strong> world container ship fleet – and <strong>the</strong> 

trend continues upwards. 

Against <strong>the</strong> background <strong>of</strong> this supply glut in 

transport capacity, <strong>the</strong> current recession and 

<strong>the</strong> decline in global trade have led to a drastic 

downturn in charter rates. <strong>The</strong>re are some indications 

that <strong>the</strong>se will persist at a very low 

level for a certain period and will only start 

to make a gradual recovery after <strong>the</strong> global 

economic crisis has abated. 

Such a recovery would be supported by <strong>the</strong> cancellation 

<strong>of</strong> newbuilding orders due to <strong>the</strong> lack 

<strong>of</strong> financing and employment as well as by 

postponements <strong>of</strong> <strong>the</strong> deliveries <strong>of</strong> new ships. 

<strong>The</strong> scrapping <strong>of</strong> older tonnage on <strong>the</strong> o<strong>the</strong>r 

hand makes only a relatively minor contribution. 

<strong>The</strong> products-/chemicals-tanker shipping business 

was only affected by this development 

after some delay. In some trades, <strong>the</strong> level <strong>of</strong> 

charter rates declined, in some cases by as 

much 45 %. Here too, a substantial number <strong>of</strong> 

newbuildings are entering <strong>the</strong> market, but this 

should however be somewhat mitigated by 

upcoming IMO regulations that set age limits 

and as a result <strong>of</strong> which more and more singlehull 

tankers will have to be taken out <strong>of</strong> <strong>the</strong> 

market. 

We are convinced that, after this crisis has 

been overcome, global trade will also grow 

dynamically again and thus also boost <strong>the</strong> 

volume <strong>of</strong> transport. We expect to see <strong>the</strong> 

downward trend already bottom out from 

2010 and thus initiate a turnaround in <strong>the</strong> 

market. <strong>The</strong> doubling <strong>of</strong> global trade by 

2025 that is predicted by market experts is 

still seen by us as a realistic probability. 

Our circumspect business policy <strong>of</strong> not invest - 

ing in new ship projects for <strong>the</strong> time being in 

<strong>the</strong> light <strong>of</strong> <strong>the</strong> way in which <strong>the</strong> markets and 

construction prices are developing has proved 

to be correct. Today we are benefiting from <strong>the</strong> 

decisions which we took in <strong>the</strong> past – and also 

from our chartering out policy that is based on 

long-term sustainability. <strong>The</strong> economic crisis 

is leading into unknown waters full <strong>of</strong> shoals 

which now have to be crossed. Our current task 

is to guide our ships, our crews and <strong>the</strong> com - 

pany safely through this storm. This also means 

that <strong>Hanseatic</strong> <strong>Lloyd</strong> will continue to grow in 

<strong>the</strong> future – with sensible projects initiated 

after careful examination, on a sound basis and 

with sustained prospects <strong>of</strong> success. After all, 

every crisis also entails chances and in <strong>the</strong> current 

crisis we see decidedly good possibilities 

<strong>of</strong> preparing <strong>the</strong> ground for new ventures. 

Our thanks go to you who have supported us in 

our business philosophy as well as to <strong>the</strong> whole 

<strong>Hanseatic</strong> <strong>Lloyd</strong> team. 

Uttwil/Switzerland, May 2009 

<strong>The</strong> Board <strong>of</strong> Directors 

Henner Lothar 

Chairman 


Member <strong>of</strong> <strong>the</strong> Board <strong>of</strong> Directors 

15

Foreword 

Dear Reader, 

Ships connecting people and markets. Without 

sea transport, <strong>the</strong> worldwide and cross-frontier 

transportation <strong>of</strong> goods would be inconceivable. 

Ocean shipping also makes a major contribution 

to Germany’s status as <strong>the</strong> “Export World 

Champion”. 

In view <strong>of</strong> <strong>the</strong> upswing <strong>of</strong> <strong>the</strong> global economy, 

in particular in <strong>the</strong> years 2003 until mid-2008, 

as well as <strong>the</strong> strong increase in global sea - 

borne trade and <strong>the</strong> boom in <strong>the</strong> demand for 

shipping space, <strong>the</strong> maritime economy developed 

into a dynamic growth market – with all its 

chances and <strong>the</strong> now perceptible risks. After a 

slight delay but with full severity, <strong>the</strong> slow - 

down in global trade has now reached <strong>the</strong> shipping 

business – to an unprecedented extent. 

We are currently faced with <strong>the</strong> most serious 

global economic crisis since <strong>the</strong> 2nd World 

War, and one which has hit container shipping 

in particular with full force, and <strong>the</strong> intensity <strong>of</strong> 

which has surprised all <strong>the</strong> market players. It is 

now our task to think beyond <strong>the</strong> present financial 

and economic crisis. 

16 

What goes down, will come up: shipping has 

been accustomed to cyclical economic fluctua - 

tions for centuries: at present we are seeing 

<strong>the</strong> 22nd recession phase since 1741 – and as 

every time before, this time too we will pass 

through <strong>the</strong> pit <strong>of</strong> <strong>the</strong> slump and see <strong>the</strong> 23rd 

boom. 

Not only German merchant shipping with a 

fleet <strong>of</strong> approx. 3,500 ships – currently <strong>the</strong> 

second-biggest in <strong>the</strong> world – but also <strong>the</strong> 

whole <strong>of</strong> <strong>the</strong> German maritime economy have 

good prerequisites for holding <strong>the</strong>ir own in 

international competition. Important aspects 

here are research, development and innovation, 

training and ensuring <strong>the</strong> recruitment <strong>of</strong> nextgeneration 

personnel, but also a leading role in 

climate control and environmental protection. 

Shipping continues to be a growth industry. 

With a work force <strong>of</strong> some 500,000 people in 

Germany who achieve a turnover <strong>of</strong> approx. 

EUR 54 billion, it numbers among <strong>the</strong> econo - 

mically most important and most progressive 

industries. <strong>The</strong> German merchant fleet is today 

by far <strong>the</strong> youngest with an average age <strong>of</strong> <strong>the</strong> 

ships <strong>of</strong> only eight years and <strong>the</strong>refore numbers 

among <strong>the</strong> most modern fleets in accordance 

with <strong>the</strong> latest ship safety and environmental 

protection standards. Especially with regard to 

global trade, <strong>the</strong>re is no substitute for ships: 

ocean-going ships carry enormous loads and 

can bring goods to <strong>the</strong>ir destinations over long 

distances at relatively low cost. <strong>The</strong> oceangoing 

ship is today already <strong>the</strong> most energyefficient 

means <strong>of</strong> transport. According to a 

recent IMO study, ships contribute only 2.7 % 

to global CO2 emissions although more than 

95 % <strong>of</strong> intercontinental freight traffic goes by 

sea. That makes <strong>the</strong>m <strong>the</strong> cleanest means <strong>of</strong> 

transport and maritime transport an ecologically 

sensible proposition. 

<strong>The</strong> worldwide transport <strong>of</strong> organisms through 

ballast water is made possible by <strong>the</strong> fact that 

ships have to take on board water from <strong>the</strong> 

environment to stabilise <strong>the</strong>ir centre <strong>of</strong> gravity 

when <strong>the</strong>y are unladen or only partially laden. 

In <strong>the</strong> distant port <strong>of</strong> call, <strong>the</strong> organisms are 

released into <strong>the</strong> new environment when <strong>the</strong> 

ballast water is pumped out. This threat to <strong>the</strong> 

ecological balance <strong>of</strong> <strong>the</strong> oceans is in future to 

be prevented by <strong>the</strong> use <strong>of</strong> new ballast water 

cleaning systems on board. <strong>The</strong> Ballast Water 

Convention passed by <strong>the</strong> IMO in 2004 de - 

mands that step by step from 2010 and at <strong>the</strong> 

latest by 2016 ship newbuildings and existing 

ships must use ballast water treatment systems 

on board. Preparatory measures are now being 

initiated for all <strong>Hanseatic</strong> <strong>Lloyd</strong> ships and <strong>the</strong>se 

will be implemented within <strong>the</strong> framework <strong>of</strong> 

<strong>the</strong> scheduled dry dock overhauls. In <strong>the</strong> field 

<strong>of</strong> environmental protection, all ships <strong>of</strong> <strong>the</strong> 

<strong>Hanseatic</strong> <strong>Lloyd</strong> fleet correspond to <strong>the</strong> legal 

MARPOL Annex IV and VI regulations (contamination 

through effluents and exhaust gases). 

<strong>The</strong> future prospects for training and employment 

in <strong>the</strong> maritime economy continue to be 

very good. Independently <strong>of</strong> <strong>the</strong> effects <strong>of</strong> <strong>the</strong> 

current crisis, in future <strong>the</strong>re will still be a huge 

need for qualified personnel both on board and 

in <strong>the</strong> shore organisations. One <strong>of</strong> our tasks is 

<strong>the</strong>refore to provide training capacities that are 

in line with <strong>the</strong> requirements. We will need 

properly trained colleagues when <strong>the</strong> economy 

picks up again. In 2007 <strong>Hanseatic</strong> <strong>Lloyd</strong> began 

training young people as qualified shipping 

businessmen and as business administrators 

for transport and logistics. To counter a short - 

age <strong>of</strong> qualified specialists on board in both 

<strong>the</strong> technical and in <strong>the</strong> nautical field, <strong>the</strong> 

training <strong>of</strong> fur<strong>the</strong>r personnel on our ships is 

being intensified.

In order to retain <strong>the</strong> tonnage tax, <strong>the</strong> German 

shipowners had entered into an obligation visà-vis 

<strong>the</strong> political powers to bring a fur<strong>the</strong>r 

100 ships (a total <strong>of</strong> at least 500 ships) under 

<strong>the</strong> German flag by <strong>the</strong> end <strong>of</strong> 2008, i.e. on 

average for each shipping company 17 % <strong>of</strong> 

<strong>the</strong>ir fleets or every sixth ship. <strong>Hanseatic</strong> <strong>Lloyd</strong> 

has fulfilled its obligation and in December 

2008 it changed <strong>the</strong> flag <strong>of</strong> <strong>the</strong> container ship 

MV “HLL Baltic” as well as switching four 

fur<strong>the</strong>r container ships <strong>of</strong> its fleet to <strong>the</strong> 

Bremen-based pool “German Flag”. <strong>The</strong> 

German shipowners will keep <strong>the</strong>ir promise 

to additionally bring ano<strong>the</strong>r 100 ships under 

<strong>the</strong> German flag “if <strong>the</strong> economic situation 

regains its former level by <strong>the</strong> end <strong>of</strong> 2010”. 

Our safety-oriented corporate policy to rapidly 

redeem <strong>the</strong> debts <strong>of</strong> a ship must be seen as 

correct, especially in turbulent times like <strong>the</strong>se. 

This also entails in particular finding <strong>the</strong> right 

balance between dividend distributions to limit - 

ed partners and <strong>the</strong> provision <strong>of</strong> liquidity in <strong>the</strong> 

company. Ships that have adequate financial 

reserves and that are chartered out to wellknown 

names on a long-term basis so that <strong>the</strong>ir 

revenues are secured in <strong>the</strong> long term, such as 

is <strong>the</strong> case at <strong>Hanseatic</strong> <strong>Lloyd</strong>, will survive <strong>the</strong> 

current difficult market phase without major 

injury. 

In <strong>the</strong> reporting year it was possible to distribute 

dividends in a total amount <strong>of</strong> EUR 9.25 million 

to <strong>the</strong> investors. This corresponds to a rise <strong>of</strong> 

4.8 % as compared with <strong>the</strong> previous year and 

an average dividend quota <strong>of</strong> 7.7 %. Despite <strong>of</strong> 

<strong>the</strong> financial crisis, substantially increased ship 

operating costs as well as <strong>the</strong> ongoing weak - 

ness <strong>of</strong> <strong>the</strong> US Dollar, this is a very encouraging 

overall result. <strong>The</strong> six equity share projects can 

fur<strong>the</strong>rmore point to a redemption advantage in 

a total amount <strong>of</strong> USD 9.7 million at <strong>the</strong> end <strong>of</strong> 

2008. Our restrained investment policy in <strong>the</strong> 

past is paying <strong>of</strong>f today. We did not order ships 

beyond our means. 

Market predictions are currently considered to 

be somewhat less reliable than <strong>the</strong> wea<strong>the</strong>r 

forecast. How <strong>the</strong> global economy will develop 

in <strong>the</strong> months to come cannot be said with any 

certainty. It will very much depend on how fast 

and how comprehensively <strong>the</strong> various economic 

stimulus programmes help to reverse <strong>the</strong> trend. 

<strong>The</strong> expansive monetary and fiscal measures 

are unlikely to fail to achieve <strong>the</strong>ir minimum 

target, namely to stabilise <strong>the</strong> economy in <strong>the</strong> 

course <strong>of</strong> <strong>the</strong> year. Fur<strong>the</strong>rmore, <strong>the</strong> G20 meet - 

ing agreed on a joint plan <strong>of</strong> action and promis - 

ed to provide approx. 1,000 billion US Dollars to 

combat <strong>the</strong> crisis. In Germany, too, a third economic 

stimulus package cannot be excluded. On 

<strong>the</strong> o<strong>the</strong>r hand it is not possible to reckon with 

a “kickstart” such as <strong>the</strong> one we witnessed 

through <strong>the</strong> surprisingly strong leap forwards 

<strong>of</strong> <strong>the</strong> Chinese economy after <strong>the</strong> turn <strong>of</strong> <strong>the</strong> 

millennium. 2009 is likely to be a difficult year. 

However, as soon as <strong>the</strong> economy gets going 

again this will also leave its positive mark on 

<strong>the</strong> shipping business. 

Our special thanks go to all investors and business 

partners as well as to our employees at 

sea and ashore for <strong>the</strong>ir confidence in us and 

<strong>the</strong>ir co-operation. <strong>The</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> Group 

will also in future pursue <strong>the</strong> target <strong>of</strong> develop - 

ing successful projects with you and for you in 

<strong>the</strong> long term. 

Bremen, May 2009 

<strong>The</strong> Management Board 

Thorsten Mackenthun 


17

<strong>The</strong> Market

<strong>The</strong> Market – General 

<strong>The</strong> global economy 

<strong>The</strong> aftermath <strong>of</strong> <strong>the</strong> real estate crisis that 

started in <strong>the</strong> USA in <strong>the</strong> summer <strong>of</strong> 2007 and 

<strong>of</strong> <strong>the</strong> financial crisis which developed from this 

led to a decline in global economic growth in 

<strong>the</strong> year 2008. Whereas <strong>the</strong> experts <strong>of</strong> <strong>the</strong> 

International Monetary Fund (IMF) were still 

forecasting an increase <strong>of</strong> 4.1 % at <strong>the</strong> beginning 

<strong>of</strong> 2008, <strong>the</strong>y had to correct this figure to 

3.2 % at <strong>the</strong> end <strong>of</strong> <strong>the</strong> year. For <strong>the</strong> current 

year 2009, we even have to consider a de - 

crease <strong>of</strong> 1.3 %. <strong>The</strong> economic pundits do not 

expect to see a gradual recovery until 2010, 

for which <strong>the</strong>y <strong>the</strong>n predict a rise <strong>of</strong> 1.9 %. 

How uncertain predictions are today is illustrat 

ed by <strong>the</strong> following example: Whereas in 

January <strong>of</strong> this year <strong>the</strong> economists <strong>of</strong> <strong>the</strong> IMF 

were still expecting to see a decline in global 

trade in 2009 <strong>of</strong> 2.8 %, on 24th March 2009 <strong>the</strong> 

OECD was already predicting a 9 % decline in 

global trade and updated this assessment only 

a week later to 13.2 %. 

20 

Economic growth 

(GDP) in % 2008 2009* 2010* 

USA + 1.1 - 2.8 0.0 

China + 9.0 + 6.5 + 7.5 

Japan - 0.6 - 6.2 + 0.5 

India + 7.3 + 4.5 + 5.6 

Russia + 5.6 - 6.0 + 0.5 

Brazil + 5.1 - 1.3 + 2.2 

Europ. Union + 0.9 - 4.2 - 0.4 

Germany + 1.3 - 5.6 - 1.0 

Whole World + 3.2 - 1.3 + 1.9 

Source: IMF Database, World Economic Outlook, April 2009 

* forecast 

<strong>The</strong> confidence <strong>of</strong> <strong>the</strong> American people in a 

swift upturn <strong>of</strong> <strong>the</strong>ir economy is waning in <strong>the</strong> 

light <strong>of</strong> a series <strong>of</strong> negative reports. <strong>The</strong> economic 

data show a corresponding picture. Also in 

<strong>the</strong> real estate market, which is where <strong>the</strong> global 

economic crisis started, things are not settling 

down. At <strong>the</strong> end <strong>of</strong> <strong>the</strong> year 2008, <strong>the</strong> dramatic 

drop in real estate prices accelerated and 

fell by more than 18 % on average as compared 

with <strong>the</strong> prior year. Many Americans link hopes 

<strong>of</strong> a termination <strong>of</strong> <strong>the</strong> crisis to <strong>the</strong> inauguration 

in <strong>of</strong>fice <strong>of</strong> <strong>the</strong> new American President, Barack 

Obama. <strong>The</strong> new US government is working on 

two economic stimulus programmes. In concrete 

terms, <strong>the</strong> first programme envisages investments 

totalling more than 780 billion US Dollars 

in <strong>the</strong> health system and <strong>the</strong> infrastructure, 

such as for example roads, bridges and schools. 

In <strong>the</strong> second economic stimulus programme, 

with a volume <strong>of</strong> approx. one trillion US Dollars, 

<strong>the</strong> government intends to set up investment 

companies with private capital in order to buy 

from <strong>the</strong> banks as many negative items on <strong>the</strong> 

balance sheets as possible deriving from “bad” 

mortgage transactions. <strong>The</strong>se measures are 

intended to “detoxify” <strong>the</strong> balance sheets <strong>of</strong> 

<strong>the</strong> banks and to restore <strong>the</strong> urgently needed 

trust for money-market dealings among <strong>the</strong> 

banks. To contain <strong>the</strong> state deficit deriving from 

<strong>the</strong>se measures, <strong>the</strong> US President wishes to 

push through higher taxes for <strong>the</strong> wealthy as 

well as savings in <strong>the</strong> costs for <strong>the</strong> military 

interventions in Iraq and Afghanistan. 

For <strong>the</strong> year 2009, <strong>the</strong> IMF expects to see a 

decline in economic development in <strong>the</strong> USA <strong>of</strong> 

2.8 %, whereas growth <strong>of</strong> 1.1 % was still being 

calculated for 2008. 

Stimuli for a recovery <strong>of</strong> <strong>the</strong> global economy are 

expected to come from <strong>the</strong> big Asian national 

economies, here in particular those <strong>of</strong> China 

and India. Compared with <strong>the</strong> values <strong>of</strong> <strong>the</strong> 

prior years, however, <strong>the</strong> growth rates <strong>of</strong> <strong>the</strong>se 

states are also tailing <strong>of</strong>f. In <strong>the</strong> past few 

months, many Chinese factories have had to be 

closed because <strong>of</strong> <strong>the</strong> economic crisis and this 

led to mass dismissals <strong>of</strong> personnel. To re-in vigorate 

<strong>the</strong> economy, <strong>the</strong> government in Beijing 

had already announced an economic stimulus 

programme worth <strong>the</strong> equivalent <strong>of</strong> 453 billion 

Euro in November 2008. This money was to 

be used above all to build up and expand <strong>the</strong> 

infrastructure. 

In <strong>the</strong> year 2008, growth <strong>of</strong> <strong>the</strong> Chinese economy 

reached a figure <strong>of</strong> 9.0 %; <strong>the</strong> prediction 

for <strong>the</strong> current year is 6.5 %. For <strong>the</strong> Indian 

subcontinent, a rise in <strong>the</strong> economy <strong>of</strong> 7.3 % 

was calculated for 2008 and growth <strong>of</strong> 4.5 % 

is expected for 2009.

1.60 

1.40 

1.20 

1.00 

0.80 

0.60 

0.40 

0.20 

0.00 

<strong>The</strong> south-east Asian community <strong>of</strong> states 

“Asean” intends to counter <strong>the</strong> biggest economic 

crisis since its foundation by setting up a 

common domestic market on <strong>the</strong> model <strong>of</strong> <strong>the</strong> 

European Union. Fur<strong>the</strong>rmore <strong>the</strong> member 

countries agreed to harmonise <strong>the</strong>ir national 

economic stimulus packages and to avoid 

measures that would act to <strong>the</strong> detriment <strong>of</strong> 

<strong>the</strong> economies <strong>of</strong> o<strong>the</strong>r Asean states. Due to 

<strong>the</strong>ir dependence on exports, <strong>the</strong>se countries 

are badly hit by <strong>the</strong> global recession. <strong>The</strong> reason 

for <strong>the</strong> decision to expand Asian domestic 

trade is that <strong>the</strong>se states do not initially expect 

to see a fast economic recovery <strong>of</strong> <strong>the</strong>ir most 

important trading partners, <strong>the</strong> USA, Europe 

and Japan. 

Economic performance <strong>of</strong> <strong>the</strong> Eurozone was, at 

0.9 % in <strong>the</strong> year 2008, slightly higher than in 

<strong>the</strong> prior year. Although a decrease in economic 

performance <strong>of</strong> 4.2 % is predicted for <strong>the</strong> current 

year, even in times <strong>of</strong> a recession <strong>the</strong> 

member states <strong>of</strong> <strong>the</strong> European Union are 

sticking to <strong>the</strong> principle <strong>of</strong> free trade and reject 

national solo attempts to protect <strong>the</strong> economy. 

Status and preview <strong>of</strong> shipbuilding orders 

in million TEU 

2007 

Source: AXS-Alphaliner, April 2009 

Despite <strong>the</strong> economic crisis, protectionist measures 

are to be avoided, as <strong>the</strong>se would impede 

an economic upswing. All members must keep 

to <strong>the</strong> rules <strong>of</strong> <strong>the</strong> European domestic market 

and no national economic stimulus programme 

may damage any o<strong>the</strong>r EU state. 

Due to <strong>the</strong> heavy dependence on international 

trade, this year <strong>the</strong> IMF economists are reckon - 

ing with a decline in <strong>the</strong> German economy <strong>of</strong> 

5.6 %. 

<strong>The</strong> global merchant fleet 

More than 95 % <strong>of</strong> intercontinental trade 

moves by sea. At <strong>the</strong> end <strong>of</strong> 2008, a total <strong>of</strong> 

more than 52,924 ships were in service worldwide 

that are bigger than 100 gt and are not 

fishing vessels, tugs or o<strong>the</strong>r water craft. 

Across all ship types, <strong>the</strong> world merchant fleet 

grew by only 2.7 % as compared with <strong>the</strong> prior 

year a total deadweight tonnage figure <strong>of</strong> 

almost 1,155 million tdw. 

Preview on <strong>the</strong> basis <strong>of</strong> shipbuilding orders 

as <strong>of</strong> 1st April 2009 

2008 2009 2010 2011 2012 

World merchant fleet 2008 

by deadweight tonnage 

Tankers 37 % 

Container ships 14 % 

Ro/Ro general cargo vessels 9 % 

O<strong>the</strong>rs 4 % 

Bulk carriers 36 % 

Source: Clarkson Shipping Intelligence Weekly, April 2009 

<strong>The</strong> global merchant fleet has grown continuously 

in <strong>the</strong> past few years toge<strong>the</strong>r with <strong>the</strong> 

volume <strong>of</strong> cargo. From <strong>the</strong> first quarter <strong>of</strong> 2008, 

<strong>the</strong> quantities <strong>of</strong> cargo slowly started to shrink 

and <strong>the</strong>n fell drastically from <strong>the</strong> third quarter, 

especially in <strong>the</strong> container sector. <strong>The</strong> direct 

consequence <strong>of</strong> this was that since September 

2008 no more container ships have been or - 

dered from <strong>the</strong> shipyards (see chart below). In 

order to ease <strong>the</strong> problems in <strong>the</strong> charter market, 

a growing number <strong>of</strong> old ships are being 

scrapped, shipbuilding orders are being con - 

verted, delivery deadlines for newbuildings 

are being postponed or, if possible, orders are 

being completely cancelled. 

In terms <strong>of</strong> <strong>the</strong> number <strong>of</strong> ships, <strong>the</strong> tankers 

and bulk carriers account for <strong>the</strong> largest shares 

<strong>of</strong> <strong>the</strong> world merchant fleet. In terms <strong>of</strong> deadweight 

tonnage (tdw), tankers currently lead 

<strong>the</strong> fleet with 37 % (see chart above). 

Deliveries 

Orders 

Scheduled deliveries 

21

<strong>The</strong> Market – Container Shipping 

Container shipping 

In <strong>the</strong> past 30 years, it has in particular been 

container shipping that has benefited from 

globalisation and from <strong>the</strong> ongoing growth <strong>of</strong> 

transports in containers. In <strong>the</strong> past, <strong>the</strong> growth 

rates <strong>of</strong> container traffic have always been 

higher than those <strong>of</strong> <strong>the</strong> global economy and 

<strong>of</strong> global trade. 

22 

<strong>The</strong> annual growth rate <strong>of</strong> container traffic in 

<strong>the</strong> past 20 years averaged approx. 10 %. In 

<strong>the</strong> reporting year 2008, due to <strong>the</strong> flagging 

economy in <strong>the</strong> second half <strong>of</strong> <strong>the</strong> year, <strong>the</strong> 

rise was only some 5 %. For <strong>the</strong> current year, 

for <strong>the</strong> first time in <strong>the</strong> history <strong>of</strong> container 

traffic Clarkson is reckoning with a decrease 

<strong>of</strong> approx. 3 %. 

Global container turnover in <strong>the</strong> 

ports 1991 to 2009 

in million TEU 

96 

106 

116 

130 

145 

157 

174 

191 

210 

Source: Clarkson, Container Intelligence Monthly, April 2009 

* forecast 

Altoge<strong>the</strong>r <strong>the</strong> growth in container traffic in 

<strong>the</strong> reporting year still led to a fur<strong>the</strong>r increase 

in container handling figures in <strong>the</strong> world’s 

ports. Overall <strong>the</strong> number <strong>of</strong> containers handled 

rose as against 2007 to reach 498 million TEU 

(twenty foot equivalent unit); this corresponds 

to a plus <strong>of</strong> 26 million TEU. <strong>The</strong> forecast for <strong>the</strong> 

year 2009 is only 473 million TEU, which for <strong>the</strong> 

first time would correspond to a decline in <strong>the</strong> 

number <strong>of</strong> containers handled by 25 million TEU. 

In <strong>the</strong> first few months <strong>of</strong> <strong>the</strong> year 2008, large 

quantities <strong>of</strong> containers were still being transported 

worldwide, although <strong>the</strong>re were already 

signs <strong>of</strong> significant drops in trade with America. 

226 238 

‘91 ‘92 ‘93 ‘94 ‘95 ‘96 ‘97 ‘98 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 

275 

303 

344 

383 

426 

472 

498 

473 

‘09*

Top 20 <strong>of</strong> <strong>the</strong> container ports (in million TEU) 

2008 2007 changes in % 

1. Singapore 29,900 27,900 7 

2. Shanghai 28,000 26,150 7 

3. Hong Kong 24,250 23,880 1 

4. Shenzhen 21,400 20,900 2 

5. Busan 13,420 13,270 0 

6. Dubai 12,000 10,700 12 

7. Ningbo-Zhoushan 11,230 9,360 19 

8. Guangzhou 11,000 9,200 19 

9. Rotterdam 10,800 10,800 0 

10. Qingdao 10,320 9,460 9 

11. Hamburg 9,800 9,890 -1 

12. Kaohsiung 9,500 10,260 -6 

13. Antwerp 8,600 8,180 6 

14. Tianjin 8,500 7,100 20 

15. Port Kelang 7,970 7,120 12 

16. Los Angeles 7,850 8,360 -6 

17. Long Beach 6,500 7,320 -11 

18. Port Tanjung Pelepas 5,600 5,470 2 

19. Bremerhaven 5,600 4,890 14 

20. New York / New Jersey 5,270 5,300 -1 

Total Top 20 247,510 235,510 5 

Source: Dyna Liner, various issues 2009 

It was with some delay that <strong>the</strong> effects <strong>of</strong> <strong>the</strong> 

financial crisis also reached trades with Asia 

and Europe. <strong>The</strong> volume <strong>of</strong> goods transported 

stagnated at <strong>the</strong> beginning <strong>of</strong> <strong>the</strong> first half <strong>of</strong> 

<strong>the</strong> year and fell away sharply in September 

after <strong>the</strong> bankruptcy <strong>of</strong> <strong>the</strong> Lehman Bro<strong>the</strong>rs 

bank. 

In <strong>the</strong> development <strong>of</strong> container turnover in 

<strong>the</strong> Top 20 container ports, Dyna Liner predo 

minantly reports growth, but it must be re - 

membered that <strong>the</strong> figures here contain <strong>the</strong> 

good results <strong>of</strong> <strong>the</strong> first half <strong>of</strong> <strong>the</strong> year 2008. 

In <strong>the</strong> case <strong>of</strong> <strong>the</strong> container ports <strong>of</strong> Los Angeles 

and Long Beach, which e. g. have been affected 

by <strong>the</strong> financial crisis since <strong>the</strong> beginning <strong>of</strong> <strong>the</strong> 

year, <strong>the</strong> figures for <strong>the</strong> year show substantial 

decreases (see table above). 

<strong>The</strong> global container ship fleet 

<strong>The</strong> number <strong>of</strong> container ships in <strong>the</strong> globally 

operating fleet rose by a fur<strong>the</strong>r 421 ships in 

<strong>the</strong> year 2008 and as <strong>of</strong> 1st April 2009 across 

all size classes <strong>the</strong> figure stood at a total <strong>of</strong> 

4,687 ships. 

Size classes in container shipping 

(in TEU) 

Feeder up to 499 

Feedermax 500 to 999 

Handy-Size 1,000 to 1,999 

Sub-Panmax 2,000 to 2,999 

Panmax 3,000 to 5,099 

Post-Panmax 5,100 to 7,999 

Super-Post-Panmax more than 8,000 

With an overall capacity <strong>of</strong> 12.39 million TEU, 

this means an increase <strong>of</strong> 1.26 million TEU or 

11.3 % compared with <strong>the</strong> prior year. On con - 

dition that all <strong>the</strong> ships on order will actually 

be delivered, <strong>the</strong> prospect until <strong>the</strong> end <strong>of</strong> 

2012 is a fur<strong>the</strong>r rise in transport capacity to 

18.26 million TEU. 

In <strong>the</strong> current year, <strong>the</strong> scrapping quota in relation 

to global container ship tonnage is expect - 

ed to be only approx. 1.6 % (= 202,900 TEU). At 

times <strong>of</strong> heavy demand for shipping space and 

<strong>the</strong> correspondingly good charter rates, older 

ships were still being operated despite <strong>the</strong>ir 

high maintenance costs. Now, in times <strong>of</strong> overcapacities 

in <strong>the</strong> charter market, it is rapidly 

becoming uneconomical to keep this tonnage in 

service. For this reason, many market players 

and analysts are assuming that <strong>the</strong> scrapping 

quota will rise fur<strong>the</strong>r in <strong>the</strong> coming months. 

23


<strong>The</strong> charter market 

In <strong>the</strong> year 2008, <strong>the</strong> charter market for con - 

tainer ships was in decline. After <strong>the</strong> level <strong>of</strong> 

charter rates decreased in <strong>the</strong> first half <strong>of</strong> <strong>the</strong> 

year, <strong>the</strong> charter market went into a steep fall 

from <strong>the</strong> second half <strong>of</strong> September 2008. 

Freight traffic also dropped sharply in <strong>the</strong> wake 

<strong>of</strong> <strong>the</strong> Lehman Bro<strong>the</strong>rs bankruptcy and <strong>the</strong> 

overcapacity that was building up through deliv - 

eries <strong>of</strong> new container ships exerted additional 

pressure on charter rates. As a consequence, 

<strong>the</strong> more than five-year long boom in container 

shipping came to an end. <strong>The</strong> Howe Robinson 

Containership Index reflects in summary <strong>the</strong> 

development <strong>of</strong> charter rates for container ships 

up to and including <strong>the</strong> Panmax size class. Of 

<strong>the</strong> various ship size classes, not one was able 

to escape <strong>the</strong> overall negative trend. In general 

it can be said that <strong>the</strong> downturn <strong>of</strong> charter rates 

in <strong>the</strong> past few months increased with <strong>the</strong> ship 

size. 

24 

2.500 

2.000 

1.500 

1.000 

500 

0 

At present, some 500 container ships with a 

capacity <strong>of</strong> approx. 1,300,000 TEU are without 

employment, which corresponds to a total 

capacity in <strong>the</strong> fleet <strong>of</strong> 10.6 %. 60 % <strong>of</strong> <strong>the</strong> 

idle tonnage belongs to tramp shipping com - 

panies and 40 % to liner shipping companies. 

Laid-up ships with a charter contract are not 

included in <strong>the</strong>se figures. 

<strong>The</strong> Howe Robinson Containership Index started 

<strong>the</strong> year 2008 at 1,335 points and rose 

slight ly to 1,382 points by April. Since <strong>the</strong>n <strong>the</strong> 

index has steadily dropped lower and lower. On 

31st December 2008, <strong>the</strong> index stood at 487. 

Thus in a year-on-year comparison, it recorded 

a decline <strong>of</strong> almost 64 %. This trend has con - 

tinued until today. In view <strong>of</strong> large shipping 

space capacities and <strong>the</strong> significant decline in 

global trade it is not possible to reckon with 

any recovery <strong>of</strong> <strong>the</strong> rates to <strong>the</strong> prior year’s 

level in <strong>the</strong> near future. On 20th May 2009, 

<strong>the</strong> index had dropped to 357 points. 

Howe Robinson Containership Charter Hire Index 

<strong>of</strong> <strong>the</strong> last 8 years 

In <strong>the</strong> year 2008, <strong>the</strong> average length <strong>of</strong> <strong>the</strong> 

agreed charter periods across all size classes 

was 345 days in <strong>the</strong> first half <strong>of</strong> <strong>the</strong> year. This 

average figure fell to less than 175 days in <strong>the</strong> 

second half-year. In December <strong>the</strong> average was 

104 days. Since January 2009, initially longer 

charters were being contracted with an average 

<strong>of</strong> 120 days, but in February 2009 <strong>the</strong>se again 

dropped back to 90 days. <strong>The</strong> previous all-time 

low <strong>of</strong> average charter periods had been 125 

days in <strong>the</strong> year 2002. 

<strong>The</strong> development <strong>of</strong> charter rates 

As, in addition to chartering out <strong>the</strong> Panmax 

container ships owned by <strong>Hanseatic</strong> <strong>Lloyd</strong>, 

<strong>Hanseatic</strong> <strong>Lloyd</strong> Chartering is also exclusively 

responsible for chartering out <strong>the</strong> Hansa Mare 

fleet, <strong>the</strong> development <strong>of</strong> rates from <strong>the</strong> 

Panmax class down to <strong>the</strong> 1,000 TEU-class is 

looked at in detail in this charter market report. 

May ‘01 May ‘02 May ‘03 May ‘04 May ‘05 May ‘06 May ‘07 May ‘08 May ‘09 

Source: Howe Robinson, Containership Weekly update, May 2009

In <strong>the</strong> size class <strong>of</strong> <strong>the</strong> Panmax ships (3,900 to 

5,100 TEU), at <strong>the</strong> beginning <strong>of</strong> <strong>the</strong> year and 

until August 2008 charter periods <strong>of</strong> up to 

60 months were still being negotiated and 

<strong>the</strong> rates level fluctuated within a bandwidth 

between USD 29,000 and 30,500 per day. At 

<strong>the</strong> beginning <strong>of</strong> September, charters were 

still being contracted with a max. duration 

<strong>of</strong> 36 months and at a daily rate <strong>of</strong> approx. 

USD 27,000. Since <strong>the</strong>n, only charters with 

a duration <strong>of</strong> max. 24 months have been 

negotiated in this size class. 

Up to <strong>the</strong> end <strong>of</strong> <strong>the</strong> year, <strong>the</strong> level <strong>of</strong> <strong>the</strong> 

negotiated daily rate dropped – depending 

on <strong>the</strong> age <strong>of</strong> <strong>the</strong> ship – to a level <strong>of</strong> approx. 

USD 20,000, though no contract was actually 

concluded. <strong>The</strong> decline <strong>of</strong> rates accelerated in 

2009. In <strong>the</strong> spring, only one noteworthy charter 

contract for a Panmax container ship was concluded 

at a daily rate <strong>of</strong> USD 6,950 gross with 

a duration <strong>of</strong> 12 months and an option for a 

fur<strong>the</strong>r 12 months. 

Currently 574 ships in <strong>the</strong> size class 3,900 to 

5,100 TEU are in service worldwide, <strong>of</strong> which 

three ships are at present without a charter. 

Despite being chartered, today a large number 

<strong>of</strong> ships are lying idle at anchor. Out <strong>of</strong> 231 

newbuildings that are scheduled for delivery up 

to <strong>the</strong> year 2012, at present 54 ships are still 

without a charter contract. To ease <strong>the</strong> situa - 

tion in <strong>the</strong> charter market, as far as possible, a 

greater number <strong>of</strong> orders are being cancelled, 

later deliveries are being agreed or ships are 

being laid up directly after leaving <strong>the</strong> shipyard. 

25


<strong>The</strong> decline in global trade also led to a drastic 

drop in demand in <strong>the</strong> size segment <strong>of</strong> <strong>the</strong> 

2,400 to 2,999 TEU ships. Whereas <strong>the</strong> charter 

rates in this size class still managed to rise by 

as much as 30 % at <strong>the</strong> peak in <strong>the</strong> year 2007, 

in <strong>the</strong> course <strong>of</strong> <strong>the</strong> year 2008 <strong>the</strong>y underwent 

a significant correction. <strong>The</strong> rates level <strong>of</strong> 36month 

charter contracts that were concluded up 

to April 2008 remained at a constant level <strong>of</strong> 

approx. USD 27,000 per day during this time. 

26 

In May 2008, 24-month charter contracts 

were negotiated at a daily rate <strong>of</strong> approx. 

USD 25,500. <strong>The</strong> rates level for charter periods 

<strong>of</strong> 12 months that could be achieved from July 

until November 2008 fell sharply throughout <strong>the</strong> 

2nd half <strong>of</strong> <strong>the</strong> year 2008. Whereas daily rates 

<strong>of</strong> approx. USD 21,500 were still being reached 

in July, in November <strong>the</strong>se fell to approx. 

USD 12,000 per day. Moreover, <strong>the</strong> lengths <strong>of</strong> 

<strong>the</strong> charter periods shortened dramatically 

throughout <strong>the</strong> year 2008. <strong>The</strong> contract periods 

at 1.5 months as well as <strong>the</strong> charter rates at 

max. USD 6,000 per day reached <strong>the</strong>ir provi - 

sional lows in April 2009. This corresponds 

to approx. 60 to 70 % <strong>of</strong> <strong>the</strong> ship operating 

costs only. 

Currently 550 ships in <strong>the</strong> size class 2,400 to 

2,999 TEU are in service worldwide, <strong>of</strong> which 

58 ships are without a charter. Out <strong>of</strong> 73 new - 

buildings that are due for delivery up to <strong>the</strong> 

year 2012, no charter contracts have yet been 

concluded for 39 ships. 

Even smaller size classes such as <strong>the</strong> 1,700 TEUclass 

are reacting to <strong>the</strong> aftermath <strong>of</strong> <strong>the</strong> financial 

crisis and <strong>the</strong> associated effects on <strong>the</strong> 

shipping markets. From <strong>the</strong> beginning <strong>of</strong> <strong>the</strong> 

year until May 2008, besides charters with a 

duration <strong>of</strong> 12 months and with daily rates <strong>of</strong> 

approx. USD 18,000, also 24-month periods 

with rate levels <strong>of</strong> approx. USD 17,500 per day 

were being negotiated. In March and April, it 

was also possible to conclude contracts for a 

period <strong>of</strong> 36 months at <strong>the</strong> same rates level.

By September 2008, <strong>the</strong> level <strong>of</strong> charter rates 

for 12-month periods had fallen significantly 

to approx. USD 13,000 per day; 24-month charter 

periods were no longer agreed. In <strong>the</strong> last 

quarter <strong>of</strong> 2008, <strong>the</strong> charter periods shortened 

fur<strong>the</strong>r to six months and were recently only 

one to two months. At <strong>the</strong> same time <strong>the</strong> level 

<strong>of</strong> charter rates fell fast and <strong>of</strong>ten and is currently 

approx. USD 5,000 per day. This means 

that a level has been reached that is consider - 

ably lower than <strong>the</strong> ship operating costs. 

In <strong>the</strong> size class from 1,470 to 1,799 TEU, a 

total <strong>of</strong> 484 ships are in service, <strong>of</strong> which 

52 ships are currently without employment. Out 

<strong>of</strong> 63 newbuildings that are due for delivery up 

to 2012, to date 49 ships are still unchartered. 

In <strong>the</strong> segment <strong>of</strong> <strong>the</strong> 1,000 TEU ships, from <strong>the</strong> 

beginning <strong>of</strong> <strong>the</strong> year 2008 until September it 

was mainly contracts with a period <strong>of</strong> twelve 

months that were being negotiated. <strong>The</strong> level 

<strong>of</strong> freight rates for this charter period rose 

slightly from <strong>the</strong> beginning <strong>of</strong> <strong>the</strong> year with rate 

levels <strong>of</strong> approx. USD 10,500 per day until <strong>the</strong> 

spring <strong>of</strong> 2008 to reach a daily rate <strong>of</strong> approx. 

USD 11,250. From March 2008, <strong>the</strong> charter 

rates steadily developed downwards to reach 

approx. USD 10,000 per day in September. 

Since <strong>the</strong> failure <strong>of</strong> <strong>the</strong> Lehman Bro<strong>the</strong>rs bank 

and <strong>the</strong> financial crisis that this triggered <strong>of</strong>f, 

<strong>the</strong> rates have dwindled drastically. At <strong>the</strong> 

beginning <strong>of</strong> <strong>the</strong> last quarter <strong>of</strong> 2008, it was 

mainly charters with a period <strong>of</strong> less than six 

months that were being concluded. At <strong>the</strong> be - 

ginning <strong>of</strong> October <strong>the</strong>se were still being negotiated 

with daily rates <strong>of</strong> approx. USD 9,000, 

but by <strong>the</strong> end <strong>of</strong> December <strong>the</strong>se had fallen to 

approx. USD 5,000 per day. 

In March 2009, ships were being chartered for 

very short periods up to max. six months with 

options for a fur<strong>the</strong>r six months at a daily rate 

<strong>of</strong> under USD 4,000 gross. <strong>The</strong>se ships are 

<strong>the</strong>refore operating at rates that are signifi - 

cantly lower than <strong>the</strong> daily ship operating 

costs <strong>of</strong> approx. USD 6,500. 

<strong>The</strong> number <strong>of</strong> ships in service in <strong>the</strong> size class 

from 830 to 1,199 TEU is currently 752, <strong>of</strong> 

which 59 ships are at present without employment. 

Out <strong>of</strong> 93 newbuildings that are sche d - 

uled for delivery until 2012, so far 81 ships are 

still looking for a charter. 

Prospects 

<strong>The</strong> effects <strong>of</strong> <strong>the</strong> global financial crisis have 

hit almost all parts <strong>of</strong> <strong>the</strong> global economy and 

<strong>of</strong> global trade. Not only in <strong>the</strong> USA, Europe 

and Japan, <strong>the</strong> signs point to a recession. At 

present, <strong>the</strong> economic experts <strong>of</strong> <strong>the</strong> IMF are 

predicting that <strong>the</strong> global economy will rise 

again by 1.9 % starting from <strong>the</strong> year 2010, 

which appears ra<strong>the</strong>r optimistic. 

Since <strong>the</strong> spring <strong>of</strong> <strong>the</strong> year 2008, <strong>the</strong> shipping 

business has also departed from its path <strong>of</strong> 

dynamic growth. If <strong>the</strong> container turnover 

volumes <strong>of</strong> <strong>the</strong> first two months <strong>of</strong> 2009 are 

compared with those <strong>of</strong> <strong>the</strong> same period in 

2008 among <strong>the</strong> Top 10 container ports, this 

reveals declines <strong>of</strong> 15 to 29 %, with especially 

<strong>the</strong> seven Chinese terminals losing fast. On 

a worldwide basis <strong>the</strong> analysts predict decreases 

in container transports <strong>of</strong> between 

5 and 7.5 %. Shrinking volumes <strong>of</strong> cargo in <strong>the</strong> 

major trades and <strong>the</strong> glut <strong>of</strong> newbuildings preclude 

any easing <strong>of</strong> <strong>the</strong> situation in <strong>the</strong> charter 

market in <strong>the</strong> short and medium term. 

But in <strong>the</strong> end downswings are always again 

followed by upswings. In this context it is well 

to remember in <strong>the</strong> past ten years <strong>the</strong> recoveries 

after <strong>the</strong> Asia crisis (1999) as well as after 

<strong>the</strong> terrorist attacks <strong>of</strong> 11th September 2001. 

Although we today find ourselves in <strong>the</strong> middle 

<strong>of</strong> a crisis <strong>the</strong>re can be no serious doubt but 

that shipping, as an important part <strong>of</strong> <strong>the</strong> globalisation 

process, will in future continue to grow 

again in <strong>the</strong> long term. 

27

<strong>The</strong> Market – Tanker Shipping 

Tanker shipping 

Throughout <strong>the</strong> world liquid cargoes are <strong>the</strong> 

goods that, in terms <strong>of</strong> quantity, are transported 

most. To reduce costs, for example, crude oil 

is transported in tankers that are as large as 

possible. 

28 

In <strong>the</strong> transport context, as a rule <strong>the</strong> size <strong>of</strong> <strong>the</strong> 

ships steadily decreases from <strong>the</strong> producing 

country to <strong>the</strong> destination or after processing. 

On <strong>the</strong> o<strong>the</strong>r hand <strong>the</strong> requirements to be ful - 

filled by <strong>the</strong> equipment <strong>of</strong> a tanker when 

carrying already processed oil products are 

becoming more stringent. 

Over long distances, crude oil is transported in 

so-called ULCCs and VLCCs (= Ultra Large Crude 

Carriers and Very Large Crude Carriers). <strong>The</strong>se 

ships have a deadweight tonnage <strong>of</strong> 200,000 tdw 

and more. <strong>The</strong> medium transport distances are 

served by Suezmax (120,000 to 200,000 tdw) 

and Aframax ships (80,000 to 120,000 tdw). 

On <strong>the</strong> short-sea connections, Panmax tankers 

(60,000 to 80,000 tdw) and smaller types <strong>of</strong> 

ship (Handy-Size or Small-Handy-Size) are used.

<strong>The</strong> tanker size classes 

in tdw 

ULCC > 350,000 

VLCC 200,000 to 350,000 

(typical 310,000) 

Suezmax 130,000 to 200,000 

(typical 150,000) 

Aframax 80,000 to 130,000 

(typical 105,000) 

Panmax 60,000 to 80,000 

“Handy” 30,000 to 60,000 

“Small-Handy” 10,000 to 30,000 

<strong>The</strong> tanker fleet breaks down into crude oil 

tankers, products tankers, chemicals tankers 

and gas tankers. But <strong>the</strong>re are no rigid demarcations 

for cargoes <strong>of</strong> a particular tanker type. 

Depending on <strong>the</strong> nature <strong>of</strong> <strong>the</strong> cargo hold <strong>of</strong> 

<strong>the</strong> ship, already “refined products” can also 

be transported. Here a distinction is made 

be tween “clean products” such as naphtha, 

kerosene, gas oil, diesel oil and “dirty products” 

such as heavy oils and bitumen. 

<strong>The</strong> charts on this page show <strong>the</strong> breakdown 

<strong>of</strong> <strong>the</strong> tanker fleet by major types as well as in 

terms <strong>of</strong> deadweight tonnage (tdw). As crude 

oil is a mass product, crude oil tankers account 

for <strong>the</strong> greatest share in terms <strong>of</strong> <strong>the</strong> deadweight 

tonnage <strong>of</strong> all tankers at 66 %. Ships 

with a large carrying capacity are especially 

in demand for transports from <strong>the</strong> producing 

country to <strong>the</strong> refinery. 

Transporting <strong>the</strong> already processed products is 

<strong>the</strong> job <strong>of</strong> products tankers, which feature special 

tanks as compared with crude oil tankers. 

In terms <strong>of</strong> number, <strong>the</strong> products tankers make 

up <strong>the</strong> largest share in <strong>the</strong> tanker fleet at 38 %. 

This type <strong>of</strong> ship can in many cases be used 

universally and is required for transports to <strong>the</strong> 

consumer countries. 

Approx. 2.8 billion tons <strong>of</strong> crude oil and oil products 

are transported in tankers each year. In 

<strong>the</strong> past, <strong>the</strong> transport volumes <strong>of</strong> <strong>the</strong>se liquid 

goods grew by an average <strong>of</strong> approx. 3.0 % a 

year (in 2008: + 1.2 %) in <strong>the</strong> wake <strong>of</strong> global 

economic growth. This increase was accounted 

for by current global crude oil consumption <strong>of</strong> 

some 4.2 billion tons a year (85.7 million barrels/ 

day). For 2009, for <strong>the</strong> first time since 2002 a 

decline in <strong>the</strong> volume <strong>of</strong> traffic with crude oil 

and oil products <strong>of</strong> 0.7 % is expected by <strong>the</strong> 

analysts due to <strong>the</strong> global economic crisis. 

World maritime traffic with important chemicals 

used to grow on average by approx. 3.6 % 

each year; <strong>the</strong> forecast for 2009 is a good 3 %. 

Number <strong>of</strong> tankers 

by types 

Source: VDR; Data <strong>of</strong> German Ocean Shipping, 2009 

Deadweight tonnage 

by types 

Crude oil tankers 66 % 

Products tankers 11 % 

Chemicals tankers 15 % 

Gas tankers 8 % 

Source: VDR; Data <strong>of</strong> German Ocean Shipping, 2009 

29


VLCC & ULCC Suezmax Aframax Panmax Handy Small-Handy 

Deadweight tonnage in tdw < 200,000 130,000-200,000 80,000-130,000 60,000-80,000 30,000-60,000 10,000-30,000 

Total number <strong>of</strong> tankers 518 363 783 369 1.609 1.278 

- <strong>of</strong> which with double hull 395 318 686 315 1.335 912 

- <strong>of</strong> which single-hull tankers 123 45 97 54 274 366 

Scrapping potential 24 % 12 % 12 % 15 % 17 % 29 % 

Order book 249 176 244 117 590 482 

Replacements 

Forecast class growth 

202 % 391 % 252 % 216 % 215 % 131 % 

until 2012 24 % 36 % 19 % 17 % 20 % 9 % 

Source: Clarkson Research Studies, Oil & Tanker Trades Outlook, January 2009 

<strong>The</strong> tanker fleet 

In <strong>the</strong> tanker fleet, <strong>the</strong> number <strong>of</strong> ships in <strong>the</strong> 

different size classes develops depending on 

<strong>the</strong> trade route and corresponding orders. In 

terms <strong>of</strong> <strong>the</strong> deadweight tonnage <strong>of</strong> <strong>the</strong> world 

merchant fleet, one third is accounted for by 

tankers. As <strong>of</strong> 31st December 2008 a total <strong>of</strong> 

12,388 ships with an overall deadweight ton- 

nage <strong>of</strong> 461 million tdw were in service. 

It can be seen from <strong>the</strong> current order book for 

tankers that newbuildings have been ordered in 

all size classes. At <strong>the</strong> same time <strong>the</strong> numbers 

<strong>of</strong> current orders vary enormously. As a consequence 

<strong>of</strong> <strong>the</strong> demand for transport over medium 

distances, <strong>the</strong> replacements in relation to <strong>the</strong> 

vessels due for scrapping among <strong>the</strong> single-hull 

tankers in <strong>the</strong> Suezmax and Aframax segments 

are <strong>the</strong> highest at 391 % and 252 % respectively. 

However, in general newbuilding orders exist 

for all sizes so that in <strong>the</strong> next few years <strong>the</strong> 

tanker fleet will be renewed on a large scale 

and will grow. 

30 

Despite <strong>the</strong> future effects <strong>of</strong> legal regulations 

(Phase-Out Program), ordering activity for new 

tonnage through to <strong>the</strong> year 2012 is slightly 

down on <strong>the</strong> prior year at 6 %. This relates in 

particular to <strong>the</strong> Aframax, Handy and Small- 

Handy size classes. <strong>The</strong> biggest scrapping 

potential for single-hull tankers is to be found 

in <strong>the</strong> Small-Handy size class at 29 %. As <strong>the</strong> 

older ships are mostly to be found in <strong>the</strong> smaller 

tanker size classes, this is where most ordering 

has been going on. 482 ships have been order ed 

in <strong>the</strong> class <strong>of</strong> <strong>the</strong> Small-Handy size tankers and 

590 in <strong>the</strong> Handy size class. 

When looking at <strong>the</strong> numerical increase in <strong>the</strong> 

individual sizes (ordered deliveries less scrapping 

<strong>of</strong> <strong>the</strong> single-hull tankers) until <strong>the</strong> year 

2012, it is striking that <strong>the</strong> percentage growth 

varies greatly. In <strong>the</strong> smallest class <strong>the</strong> increase 

is <strong>the</strong> smallest at 9 %, which indicates a rela - 

tively balanced relationship between scrapping 

and replacements <strong>of</strong> single-hull tankers. Corres - 

pondingly, <strong>the</strong> employment possibilities for 

ships <strong>of</strong> this size may be seen as good because 

a fur<strong>the</strong>r build-up <strong>of</strong> tonnage overhangs is not 

to be expected. <strong>The</strong> tankers <strong>of</strong> <strong>the</strong> <strong>Hanseatic</strong> 

<strong>Lloyd</strong> fleet all number among <strong>the</strong> Small-Handy 

size class. 

International regulations 

in tanker shipping 

<strong>The</strong> IMO (International Maritime Organization, 

a sub-organisation <strong>of</strong> <strong>the</strong> UNO) has in <strong>the</strong> past 

few years imposed increasingly stringent re - 

quirements on <strong>the</strong> construction and operation 

<strong>of</strong> tankers in international waters. <strong>The</strong> reason 

for tightening <strong>the</strong>se regulations was a series 

<strong>of</strong> tanker accidents which led to devastating 

environmental pollution on many coasts. <strong>The</strong> 

safety regulations <strong>of</strong> <strong>the</strong> IMO that evolved 

from this have led to <strong>the</strong> so-called “Phase-Out 

Program” under which <strong>the</strong> single-hull tankers 

are to be scrapped in <strong>the</strong> next few years. 

According to a ruling adopted by <strong>the</strong> IMO in <strong>the</strong> 

spring <strong>of</strong> 2001, taking account <strong>of</strong> certain age 

criteria single-hull tankers must be replaced 

by double-hull tankers by <strong>the</strong> year 2010. In <strong>the</strong> 

case <strong>of</strong> any damage it is assumed that <strong>the</strong> 

double hull will greatly reduce <strong>the</strong> risk <strong>of</strong> <strong>the</strong> 

cargo leaking out. At <strong>the</strong> same time <strong>the</strong> double 

hull contributes to a fur<strong>the</strong>r stiffening <strong>of</strong> <strong>the</strong> 

ship’s body and thus to a generally higher 

safety standard <strong>of</strong> <strong>the</strong> ship.

With <strong>the</strong> MARPOL Convention (framework res - 

olution <strong>of</strong> <strong>the</strong> European Council with reference 

to criminal law), a fur<strong>the</strong>r regulation for <strong>the</strong> 

protection <strong>of</strong> <strong>the</strong> marine environment and <strong>the</strong> 

avoid ance <strong>of</strong> pollution <strong>of</strong> <strong>the</strong> seas through ships 

that has worldwide applicability has now been 

passed. Here, contamination through harmful 

substances that are being transported in bulk 

as well as through operation <strong>of</strong> <strong>the</strong> ship is to be 

avoided. <strong>The</strong> greatest importance is attached to 

preventing contamination through oil. But not 

only oily residues should now be properly disposed 

<strong>of</strong> in suitably designed collecting facilities 

in <strong>the</strong> port; <strong>the</strong>se regulations have been 

extended to also cover cargo residues <strong>of</strong> 

chem icals tankers as well as household waste 

(Annex V). A fur<strong>the</strong>r important objective <strong>of</strong> <strong>the</strong> 

MARPOL Convention is <strong>the</strong> reduction <strong>of</strong> air 

emissions (Annex VI). 

<strong>The</strong> charter market for tankers 

Long-term charter contracts are seldom 

negotiated in <strong>the</strong> tanker market, so that <strong>the</strong> 

development <strong>of</strong> charter rates is more difficult 

to predict. As a rule, <strong>the</strong> rates are agreed for 

individual trips (spot market) or in short-term 

contracts. In addition, this market is influenced 

by <strong>the</strong> development <strong>of</strong> <strong>the</strong> oil market and for 

this reason <strong>the</strong> level <strong>of</strong> rates is mainly determined 

in <strong>the</strong> spot market. 

<strong>The</strong> weakening <strong>of</strong> <strong>the</strong> global economy and <strong>of</strong> 

global trade in 2008 also sparked <strong>of</strong>f sharp 

fluctuations in <strong>the</strong> world market prices for 

crude oil. Whereas at <strong>the</strong> end <strong>of</strong> January 2008 

a barrel <strong>of</strong> <strong>the</strong> leading grade <strong>of</strong> crude oil WTI 

still cost USD 88, in June 2008 <strong>the</strong> price was 

more than USD 144 and in December only 

USD 40. This development <strong>of</strong> <strong>the</strong> prices was 

not only exploited by private consumers in <strong>the</strong> 

second half <strong>of</strong> <strong>the</strong> year but also led to national 

oil reserves being stocked up again after this 

high-price phase. 

<strong>The</strong> USA, as <strong>the</strong> world’s biggest consumer <strong>of</strong> 

crude oil, topped up its national oil reserves 

to <strong>the</strong> highest level for 19 years in order to 

be largely immune to price fluctuations. This 

meant that, despite <strong>the</strong> lower consumption as 

a result <strong>of</strong> <strong>the</strong> economic crisis, <strong>the</strong> quantities 

transported did not decrease immediately but 

only tailed <strong>of</strong>f slowly. 

It was only after <strong>the</strong> direct requirements for 

inexpensive energy had been satisfied that 

overcapacities appeared in <strong>the</strong> tanker fleet 

and charter rates started to go down. Today, 

when even main transshipment centres such as 

Rotterdam cannot take on any more quantities 

from <strong>the</strong> market and when additional tonnage 

from commodity futures transactions (so-called 

CONTANGO business) is coming free again, 

<strong>the</strong>re is no longer enough work for <strong>the</strong> tanker 

fleet. 

We may here take as an example an overview 

<strong>of</strong> <strong>the</strong> development <strong>of</strong> <strong>the</strong> charter rates on <strong>the</strong> 

basis <strong>of</strong> <strong>the</strong> rates negotiated by <strong>the</strong> <strong>Hanseatic</strong> 

<strong>Lloyd</strong> Group in <strong>the</strong> year 2008 for <strong>the</strong> Small- 

Handy and Panmax size classes. 

<strong>The</strong> time charter market for Small-Handy size 

tankers (deadweight tonnage from 10,000 tdw 

to 30,000 tdw) for coated ships was relatively 

constant in <strong>the</strong> first half <strong>of</strong> <strong>the</strong> year between 

USD 16,000 and 17,000 per day for charter 

periods <strong>of</strong> up to six months. From <strong>the</strong> beginning 

<strong>of</strong> <strong>the</strong> third quarter, <strong>the</strong> charter rates declined 

until <strong>the</strong> end <strong>of</strong> <strong>the</strong> year to reach a level <strong>of</strong> 

USD 14,000 to 15,000 p.d. <strong>The</strong> spot rates <strong>of</strong> <strong>the</strong> 

Small-Handy size tankers also reacted to <strong>the</strong> 

developments in <strong>the</strong> year 2008. <strong>The</strong> spot rates 

in <strong>the</strong> charter market had a spread between 

USD 7,000 and 27,000 per day. Due to <strong>the</strong> 

downward development <strong>of</strong> <strong>the</strong> charter markets, 

in <strong>the</strong> current year 2009 we expect to see re - 

duced charter rates <strong>of</strong> USD 12,500 net per day. 

<strong>The</strong> number <strong>of</strong> ships <strong>of</strong> this size totalled 1,174. 

After <strong>the</strong> turn <strong>of</strong> <strong>the</strong> year 2007/08, <strong>the</strong> spot 

market rates <strong>of</strong> <strong>the</strong> Panmax class (deadweight 

tonnage from 60,000 tdw to 80,000 tdw) were 

unable to defend <strong>the</strong> January level <strong>of</strong> approx. 

USD 30,000 per day and slipped to approx. 

USD 21,000 per day by March. After that <strong>the</strong> 

charter rates rose again continuously until 

June and reached <strong>the</strong>ir peak with daily charter 

rates <strong>of</strong> up to USD 45,000. Until October, <strong>the</strong> 

rates <strong>the</strong>n again fell back to USD 38,000 per 

day and at <strong>the</strong> end <strong>of</strong> <strong>the</strong> year <strong>the</strong>y again 

dropped sharply to USD 28,000 per day. In 

<strong>the</strong> light <strong>of</strong> <strong>the</strong> downward development <strong>of</strong> <strong>the</strong> 

charter markets, we also expect to see reduced 

charter rates <strong>of</strong> USD 20,000 net per day in this 

segment in <strong>the</strong> current year 2009. In <strong>the</strong> year 

2008, a total <strong>of</strong> 374 tankers <strong>of</strong> this size class 

were in service. 

31


Prospects 

Analysts today believe that oil consumption will 

decline in 2009 worldwide and are predicting 

a drop <strong>of</strong> 1.5 %. This will have effects on <strong>the</strong> 

charter markets, and <strong>the</strong> tanker shipping business 

will no longer be unaffected by <strong>the</strong> global 

economic crisis. In individual trades, <strong>the</strong> level 

<strong>of</strong> charter rates has plummeted by up to 45 %. 

Moreover, an imbalance in <strong>the</strong> volumes <strong>of</strong> 

goods discharged and taken on board in <strong>the</strong> 

transport routes is having an impact on re - 

venues in <strong>the</strong> months <strong>of</strong> April and May. 

In <strong>the</strong> opinion <strong>of</strong> <strong>the</strong> experts, <strong>the</strong> forthcoming 

deliveries <strong>of</strong> tanker newbuildings as a consequence 

<strong>of</strong> <strong>the</strong> MARPOL regulations will be 

only partially compensated by <strong>the</strong> scrapping 

<strong>of</strong> single-hull tankers. A recovery in <strong>the</strong> global 

eco nomy and <strong>the</strong> resultant growth in global 

trade could eliminate <strong>the</strong>se imbalances and 

restore relatively normal market conditions. 

Fossil fuels are destined to retain <strong>the</strong>ir dominant 

position in <strong>the</strong> coming years. Global energy 

requirements until <strong>the</strong> year 2025 will still 

have to be covered by fossil energy sources to 

an estimated extent <strong>of</strong> 80 %. For <strong>the</strong> reasons 

stated above, <strong>the</strong> development and demand for 

tanker tonnage must certainly be seen as positive. 

<strong>The</strong> market researchers expect a fur<strong>the</strong>r 

increase in transports <strong>of</strong> crude oil and oil products 

by sea in <strong>the</strong> future. 

32

Tax Basics

Tax Basics 

Income tax 

Income from trade or business: 

As a rule, <strong>the</strong> equity investment companies 

initiated by <strong>Hanseatic</strong> <strong>Lloyd</strong> <strong>Reederei</strong> GmbH & 

Co. KG are founded with <strong>the</strong> legal form <strong>of</strong> a 

limited partnership. <strong>The</strong> investors acquire 

shares in this company as limited partners. 

In this way <strong>the</strong>y participate in <strong>the</strong> pr<strong>of</strong>its and 

losses as well as in <strong>the</strong> hidden reserves <strong>of</strong> <strong>the</strong> 

one-ship company (co-entrepreneurial risk). <strong>The</strong> 

collaboration <strong>of</strong> <strong>the</strong> shareholders in reaching 

major decisions is ensured not only through <strong>the</strong> 

partnership agreement but also by <strong>the</strong> trustee 

and business management agreement. <strong>The</strong>y 

possess – both directly but also indirectly via 

<strong>the</strong> advisory board – <strong>the</strong> voting rights, inspec - 

tion rights and rights to object to which a limit - 

ed partner is entitled under <strong>the</strong> HGB [German 

Commercial Code] (co-entrepreneurial initia - 

tive). <strong>The</strong> shareholders must <strong>the</strong>refore be re - 

garded as co-entrepreneurs; <strong>the</strong>y earn income 

from trade or business in accordance with § 15 

Sect. 1 No. 2 EStG [German Income Tax Law]. 

As far as <strong>the</strong> concept is concerned, it is normally 

assumed that <strong>the</strong> investors are exclusively 

natural persons who according to § 1 Sect. 1 

EStG are subject to unlimited tax liability. 

At <strong>the</strong> level <strong>of</strong> <strong>the</strong> company this income is 

uniformly and separately determined by <strong>the</strong> 

tax <strong>of</strong>fice in whose district <strong>the</strong> permanent 

establishment <strong>of</strong> <strong>the</strong> company is domiciled. 

<strong>The</strong>n <strong>the</strong> prorated results are taken into 

account in <strong>the</strong> income tax assessment for <strong>the</strong> 

investor by <strong>the</strong> local tax <strong>of</strong>fice for his residence 

or custom ary place <strong>of</strong> abode. Taxation at <strong>the</strong> 

level <strong>of</strong> <strong>the</strong> investor is applied at <strong>the</strong> individual 

rate <strong>of</strong> in -come tax. Since 2003, <strong>the</strong> top rate 

<strong>of</strong> income tax (plus <strong>the</strong> special solidarity tax 

surcharge in <strong>the</strong> amount <strong>of</strong> 5.5 % <strong>of</strong> <strong>the</strong> assessed 

income tax and plus any church tax) has 

developed as follows: 

34 

Year Top rate <strong>of</strong> tax 

2003 48.5 % 

2004 45.0 % 

2005 42.0 % 

2006 42.0 % 

2007 42.0 % (45.0 %) 

from 2008 45.0 % 

According to <strong>the</strong> “Tax Amendment Law 2007”, 

among o<strong>the</strong>r things a so-called “wealth tax” 

was introduced with effect from 1st January 

2007. Correspondingly, <strong>the</strong> peak rate <strong>of</strong> taxa - 

tion from an income <strong>of</strong> EUR 250,000 (single) or 

EUR 500.000 (joint assessment) was 45.0 %. 

Ins<strong>of</strong>ar as “pr<strong>of</strong>it income” (i.e. income from 

trade or business, agriculture and forestry as 

well as pr<strong>of</strong>essional/freelance activities) is 

included in <strong>the</strong> taxable income, until 31st 

December 2007 a relief amount <strong>of</strong> 3.0 % was 

granted on a pro-rata basis, so that <strong>the</strong> top 

tax rate for pr<strong>of</strong>it income in 2007 was de facto 

42.0 %. From 2008, <strong>the</strong> relief amount is no 

longer granted, so that <strong>the</strong> peak rate <strong>of</strong> taxa tion 

for this income now also amounts to 45.0 %. 

Total pr<strong>of</strong>it for tax purposes 

Business income is only recognised by <strong>the</strong> 

fiscal authorities if an intent to realise a pr<strong>of</strong>it 

exists. This is examined at <strong>the</strong> level <strong>of</strong> <strong>the</strong> company 

and <strong>of</strong> <strong>the</strong> shareholders on <strong>the</strong> basis <strong>of</strong> 

<strong>the</strong> total pr<strong>of</strong>it. In this context it is necessary to 

prove that <strong>the</strong> corresponding equity investment 

company will with a high probability earn a 

substantial increase in its company assets by 

<strong>the</strong> end <strong>of</strong> <strong>the</strong> planning period. In accordance 

with <strong>the</strong> principles <strong>of</strong> <strong>the</strong> decision <strong>of</strong> <strong>the</strong> BFH 

[German Federal Fiscal Court] dated 21st 

August 1990, <strong>the</strong> supposition <strong>of</strong> a lack <strong>of</strong> intent 

to realise a pr<strong>of</strong>it would thus be refuted. 

An investor who sells his equity share or 

who transfers it free <strong>of</strong> charge before he has 

achiev ed a total pr<strong>of</strong>it must reckon with his 

intent to realise a total pr<strong>of</strong>it being subjected 

to a spe-cial examination by <strong>the</strong> fiscal adminis - 

tration. Ins<strong>of</strong>ar as an equity investment company 

has opted for <strong>the</strong> tonnage tax (see also 

“Tonnage tax”) no tax is payable on <strong>the</strong> total 

pr<strong>of</strong>it for tax purposes. Taxation is oriented to 

<strong>the</strong> lump-sum tonnage-based net income. 

Depreciation and preliminary expense 

According to <strong>the</strong> current German AfA table 

for depreciation for wear and tear, new ships 

are written <strong>of</strong>f over a useful lifetime <strong>of</strong> twelve 

years. An alternative to <strong>the</strong> straight-line method 

<strong>of</strong> depreciation is to apply declining balance 

depreciation to assets that were acquired or 

produced before 31st December 2007. Here it 

is possible to write down twice <strong>the</strong> straightline 

depreciation for wear and tear (max. 20 % 

p.a.). According to <strong>the</strong> “Law to Promote Growth 

and Employment”, a declining balance method 

<strong>of</strong> depreciation up to three times <strong>the</strong> linear AfA 

depreciation amount (max. 30 % p.a.) can be 

applied to movable assets <strong>of</strong> <strong>the</strong> business 

assets that are acquired or produced after 

31st December 2005 and before 1st January 

2008. Accordingly, ships that are delivered 

during this period could according to <strong>the</strong> AfA 

depreciation table be written down at max. 

25 % p.a. Only <strong>the</strong> straight-line method <strong>of</strong> 

depreciation is possible for assets that were 

acquired or produced in <strong>the</strong> year 2008 or later. 

If a so-called “Loss Allocation Company” bases 

its own operating concept on a substantially 

longer actual period <strong>of</strong> use compared with that 

stated in <strong>the</strong> AfA tables, <strong>the</strong> period <strong>of</strong> use on 

which <strong>the</strong> operating concept is based must be 

applied (see <strong>the</strong> “General Preliminary Remarks 

to <strong>the</strong> AfA Depreciation Tables” as per <strong>the</strong> 

letter <strong>of</strong> <strong>the</strong> Federal Ministry <strong>of</strong> Finance dated 

6th December 2001).

According to <strong>the</strong> “5th Building Owner Decree” 

(see letter <strong>of</strong> <strong>the</strong> Federal Ministry <strong>of</strong> Finance 

[BMF] dated 20th October 2003) for tax pur - 

poses all project planning expense for an 

ocean-going ship must be stated under assets 

because as a rule <strong>the</strong> classical one-ship com - 

panies constitute so-called “buyer funds” 

without any appreciable possibilities for <strong>the</strong> 

investors to exert influence. Depreciation 

under <strong>the</strong> tax laws is applied over <strong>the</strong> actual 

period <strong>of</strong> use <strong>of</strong> <strong>the</strong> investment. 

Tax loss set<strong>of</strong>f 

According to <strong>the</strong> “Act to Restrict <strong>the</strong> Setting 

Off <strong>of</strong> Losses in connection with Tax Deferral 

Models” dated 22nd December 2005, losses 

from so-called “Tax Deferral Models” can only 

be set <strong>of</strong>f against later positive income from 

<strong>the</strong> same income source (§ 15b <strong>of</strong> <strong>the</strong> German 

Income Tax Law, EStG). This regulation applies 

to all “Tax Deferral Models” which <strong>the</strong> taxpayer 

joined after 10th November 2005. A “Tax Deferral 

Model” within <strong>the</strong> meaning <strong>of</strong> <strong>the</strong> law exists 

if, on <strong>the</strong> basis <strong>of</strong> a model-based design (prefabricated 

concept), tax advantages are to be 

achiev ed in <strong>the</strong> form <strong>of</strong> negative income. In so - 

far as <strong>the</strong> company has opted for <strong>the</strong> tonnage 

tax, § 15b EStG is not applicable. 

Tax treatment <strong>of</strong> dividend payments 

According to <strong>the</strong> tax laws, <strong>the</strong>se are with - 

drawals that are not subject to tax. Thus dividends 

are also not subject to <strong>the</strong> new final 

withholding tax as from 2009. <strong>The</strong> shareholder 

pays tax on his taxable share in <strong>the</strong> result from 

<strong>the</strong> one-ship company. If <strong>the</strong> dividend payment 

gives rise to a negative capital account in <strong>the</strong> 

tax balance sheet or if this is increased, tax 

must always be paid on <strong>the</strong> dividend payment 

in accordance with § 15a Sect. 3 EStG as well 

as on <strong>the</strong> share in <strong>the</strong> pr<strong>of</strong>it. 

Liability <strong>of</strong> <strong>the</strong> investor vis-à-vis creditors <strong>of</strong> <strong>the</strong> 

one-ship company comes into effect under <strong>the</strong> 

pre-conditions <strong>of</strong> §§ 171, 172 Sect. 4 HGB, 

among o<strong>the</strong>r things in <strong>the</strong> case <strong>of</strong> withdrawals 

at a time during which <strong>the</strong> capital account has 

fallen below <strong>the</strong> amount <strong>of</strong> <strong>the</strong> liability. <strong>The</strong> 

general meeting <strong>of</strong> <strong>the</strong> shareholders decides 

<strong>the</strong> amount <strong>of</strong> <strong>the</strong> dividend payment depending 

on <strong>the</strong> liquidity situation. 

Tonnage tax 

To adjust to European shipping law and to 

streng<strong>the</strong>n <strong>the</strong> competitiveness <strong>of</strong> German 

shipping companies, in 1999 <strong>the</strong> so-called 

“tonnage tax” was introduced within <strong>the</strong> 

framework <strong>of</strong> <strong>the</strong> Ocean Shipping Adjustment 

Law in <strong>the</strong> form <strong>of</strong> § 5a EStG. 

<strong>The</strong> tonnage tax is not a special kind <strong>of</strong> tax, 

but only a prescribed method <strong>of</strong> determining 

taxable income. <strong>The</strong> lump-sum pr<strong>of</strong>it from 

operation <strong>of</strong> ships that are registered in <strong>the</strong> 

German register <strong>of</strong> shipping including any earn - 

ings from <strong>the</strong> sale <strong>of</strong> <strong>the</strong> vessel are assessed 

on <strong>the</strong> basis <strong>of</strong> <strong>the</strong> ship size (net tonnage) if a 

corresponding application is filed by <strong>the</strong> equity 

investment company. <strong>The</strong>se positive results for 

tax purposes also arise if <strong>the</strong> equity investment 

company in fact achieved no positive results. A 

sliding-scale tariff is applied to <strong>the</strong> number <strong>of</strong> 

net tons and this is multiplied by <strong>the</strong> number <strong>of</strong> 

operating days <strong>of</strong> <strong>the</strong> ship in <strong>the</strong> business year. 

<strong>The</strong> sliding-scale tariff is as follows (amount 

per 100 net tons per day): 

- up to 1,000 net tons: EUR 0.92 

- over 1,000 to 10,000 net tons: EUR 0.69 

- over 10,000 to 25,000 net tons: EUR 0.46 

- over 25,000 net tons: EUR 0.23 

Opting for <strong>the</strong> tonnage tax is always possible 

with retroactive effect from 1st January <strong>of</strong> <strong>the</strong> 

current year. To be able to do this, in particular 

<strong>the</strong> following pre-conditions must be fulfilled: 

<strong>The</strong> ship must be registered in <strong>the</strong> German 

register <strong>of</strong> shipping for <strong>the</strong> greater part <strong>of</strong> <strong>the</strong> 

time, management <strong>of</strong> <strong>the</strong> ship must be carried 

out in Germany, <strong>the</strong> ship must be operated in 

international traffic, among o<strong>the</strong>rs. 

<strong>The</strong>re is no compulsion to fly <strong>the</strong> German 

flag. Within <strong>the</strong> framework <strong>of</strong> <strong>the</strong> “Maritime 

Alliance” between <strong>the</strong> maritime economy, <strong>the</strong> 

political powers and <strong>the</strong> labour unions, among 

o<strong>the</strong>r things <strong>the</strong> shipowners have undertaken to 

operate a part <strong>of</strong> <strong>the</strong>ir fleet under <strong>the</strong> German 

flag. Correspondingly, <strong>the</strong> political powers have 

undertaken to retain <strong>the</strong> tonnage tax. 

From <strong>the</strong> beginning <strong>of</strong> <strong>the</strong> fiscal year in which 

<strong>the</strong> option is exercised, an equity investment 

company is obliged to calculate <strong>the</strong> pr<strong>of</strong>it 

according to § 5a EStG for ten years. 

According to <strong>the</strong> Accompanying Budget Law 

2004, <strong>the</strong> application for <strong>the</strong> determination <strong>of</strong> 

net income in accordance with § 5a EStG can 

from <strong>the</strong> year 2006 only be filed in <strong>the</strong> year in 

which <strong>the</strong> ship enters service – or after that 

only after expiry <strong>of</strong> a fur<strong>the</strong>r ten years. Any pr<strong>of</strong>its 

earned before <strong>the</strong> ship enters service are 

not taxed; losses can be nei<strong>the</strong>r compensated 

nor netted. 

<strong>The</strong> law has envisaged <strong>the</strong> following provisional 

regulation: All ships that were ordered/ 

purchased by 31st December 2005 can declare 

by 31st December 2007 at <strong>the</strong> latest whe<strong>the</strong>r 

<strong>the</strong> lump-sum determination <strong>of</strong> net income 

according to § 5 a EStG is to be applied. <strong>The</strong>se 

so-called “already existing cases” could exer - 

cise <strong>the</strong>ir option within three years and <strong>the</strong>n be 

bound to this option for ten years. <strong>The</strong> period 

during which <strong>the</strong> option can be exercised began 

when “income from <strong>the</strong> operation <strong>of</strong> merchant 

ships in international traffic is achieved” for <strong>the</strong> 

first time, i.e. when <strong>the</strong> number <strong>of</strong> operating 

days under German registration exceeds <strong>the</strong> 

number <strong>of</strong> o<strong>the</strong>r operating days. Corresponding - 

ly, 2006 was <strong>the</strong> last tax assessment period in 

which losses could still be claimed against tax, 

in which case <strong>the</strong> claiming <strong>of</strong> losses is limited 

by § 15b EStG (cf information stated under 

“Income from trade or business”). 

35

Tax Basics 

In <strong>the</strong> case <strong>of</strong> <strong>the</strong> “combi-model” that was still 

possible until 2006 (normal taxation to begin 

with, later an option in favour <strong>of</strong> <strong>the</strong> tonnage 

tax), <strong>the</strong> hidden reserves existing at <strong>the</strong> time 

<strong>of</strong> <strong>the</strong> switchover must be transferred to a 

differential amount for <strong>the</strong> ship (“tonnage tax 

reserve”) as <strong>the</strong> difference between <strong>the</strong> part 

value and <strong>the</strong> book value. <strong>The</strong> differential 

amount must be dissolved among o<strong>the</strong>r things 

on selling <strong>the</strong> share or at <strong>the</strong> latest when <strong>the</strong> 

ship is sold and is subject to <strong>the</strong> normal per - 

sonal rate <strong>of</strong> tax. <strong>The</strong> differential amount is 

ascribed on a pro-rata basis to <strong>the</strong> shareholders 

who held a share at <strong>the</strong> time when <strong>the</strong> option 

was exercised. Besides <strong>the</strong> differential amount 

for <strong>the</strong> ship, a differential amount must, if appli - 

cable, also be formed for foreign-currency lia - 

bilities if <strong>the</strong> exchange rate prevailing at <strong>the</strong> 

date <strong>of</strong> <strong>the</strong> balance sheet is lower than <strong>the</strong> rate 

applied for tax valuation purposes at <strong>the</strong> time 

<strong>of</strong> switching over to <strong>the</strong> tonnage tax. <strong>The</strong> differ - 

ential amount for foreign-currency liabilities 

must be successively dissolved in parallel with 

<strong>the</strong> redemption payments made in each year, 

and <strong>the</strong> amount <strong>of</strong> <strong>the</strong> dissolution is added to 

<strong>the</strong> tonnage-based net income. Ins<strong>of</strong>ar as <strong>the</strong> 

option for <strong>the</strong> tonnage tax is exercised in <strong>the</strong> 

year <strong>of</strong> <strong>the</strong> purchase contract/building contract, 

no differential amounts can arise. 

<strong>The</strong> ship or <strong>the</strong> limited partner's equity share 

can be sold at any time. Any tax liability with 

regard to <strong>the</strong> pr<strong>of</strong>it or loss from <strong>the</strong> sale <strong>of</strong> 

<strong>the</strong> ship or <strong>of</strong> <strong>the</strong> shares by <strong>the</strong> shareholder is 

satisfied by <strong>the</strong> lump-sum pr<strong>of</strong>it calculated in 

accordance with § 5a EStG (i.e. it is tax-free), 

however all differential amounts must <strong>the</strong>n be 

dissolved and taxed. In <strong>the</strong> opinion <strong>of</strong> <strong>the</strong> fiscal 

administration, <strong>the</strong> amount <strong>of</strong> <strong>the</strong> dissolution is 

not eligible for preferential treatment according 

to §§ 16, 34 EStG. Besides <strong>the</strong> determination <strong>of</strong> 

net income in accordance with § 5a EStG, a tax 

balance sheet from <strong>the</strong> commercial balance 

sheet must still also be drawn up. This is decisive 

for assessing <strong>the</strong> intent to realise a pr<strong>of</strong>it 

at <strong>the</strong> level <strong>of</strong> <strong>the</strong> company and <strong>of</strong> <strong>the</strong> shareholder 

as well as for determining <strong>the</strong> loss compensation 

volume in accordance with § 15a 

EStG and until 2008 also for determining <strong>the</strong> 

values for <strong>the</strong> purposes <strong>of</strong> inheritance tax and 

gift tax (see also “Inheritance tax and gift tax”). 

36 

Special operating expenses <strong>of</strong> <strong>the</strong> shareholder 

(e.g. interest on borrowed financing funds, 

travel expenses) are not deductible within <strong>the</strong> 

framework <strong>of</strong> <strong>the</strong> tonnage tax. Exempted from 

this are expenses that are directly related to 

special business receipts and/or special re - 

munerations that according to § 5a EStG must 

be attributed to <strong>the</strong> pr<strong>of</strong>it. Special remunera - 

tions paid by <strong>the</strong> company to its shareholders 

are however not attributable to <strong>the</strong> pr<strong>of</strong>it ins<strong>of</strong>ar 

as it is a question <strong>of</strong> <strong>the</strong> remuneration for 

ship operation and management activities that 

is to be paid to <strong>the</strong> authorised ship operator if 

<strong>the</strong> authorised ship operator is himself a limit - 

ed partner in <strong>the</strong> equity investment company. 

In a letter <strong>of</strong> <strong>the</strong> German Ministry <strong>of</strong> Finance 

dated 31st October 2008 (new “Tonnage Tax 

Decree 2008”) it was resolved that, with effect 

from <strong>the</strong> tax assessment period 2008, only a 

remuneration for ship operation <strong>of</strong> up to 4 % <strong>of</strong> 

<strong>the</strong> gross freight rates is covered by <strong>the</strong> tonnagebased 

net income. Any chartering commission 

that is to be paid in addition to <strong>the</strong> remuneration 

for ship operation must always be attributed to 

<strong>the</strong> tonnage-based net income. 

Fundamentally, under <strong>the</strong> tonnage tax it will be 

advantageous to operate a pr<strong>of</strong>itable ship for a 

long time in order to be able to enjoy <strong>the</strong> tax 

advantages for <strong>the</strong> same length <strong>of</strong> time. 

Trade tax 

According to § 2 Sect. 1 GewStG [Trade Tax 

Law], an equity investment company is subject 

to trade tax as a commercially active partnership 

when all <strong>the</strong> pre-conditions <strong>of</strong> § 15 Sect. 2 

EStG are fulfilled. Preparatory acts within <strong>the</strong> 

meaning <strong>of</strong> Section 18 Par. 1 GewStR [Trade 

Tax Guidelines] are fundamentally not subject 

to trade tax. Accordingly, a one-ship company 

is liable to trade tax as a business establishment 

from <strong>the</strong> time when <strong>the</strong> ship was deli vered/taken 

over. 

Ins<strong>of</strong>ar as <strong>the</strong> pr<strong>of</strong>it is determined in accordance 

with § 5a EStG, according to § 7 GewSt 

this pr<strong>of</strong>it calculated as a lump-sum forms <strong>the</strong> 

basis for determining <strong>the</strong> amount <strong>of</strong> trade tax. 

<strong>The</strong> taxable trade earnings are finally arrived 

at after adding special remunerations and 

deducting <strong>the</strong> costs related to <strong>the</strong> latter and 

after deduction <strong>of</strong> <strong>the</strong> trade tax-free amount 

<strong>of</strong> EUR 24,500. <strong>The</strong>re are no fur<strong>the</strong>r trade tax 

additions and deductions to be taken into 

consideration. Correspondingly, <strong>the</strong> deduction 

regulation in accordance with § 9 No. 3 

GewStG for determining trade tax within <strong>the</strong> 

framework <strong>of</strong> tonnage tax is not applicable. 

Pr<strong>of</strong>its from sale or from abandonment are 

always exempt from trade tax ins<strong>of</strong>ar as <strong>the</strong>y 

accrue to natural persons who hold a direct 

share in <strong>the</strong> company. Fur<strong>the</strong>rmore <strong>the</strong> sale <strong>of</strong> 

<strong>the</strong> ship or <strong>the</strong> sale <strong>of</strong> <strong>the</strong> whole share by <strong>the</strong> 

shareholder forms part <strong>of</strong> <strong>the</strong> pr<strong>of</strong>it calculated 

as a lump-sum in accordance with § 5a EStG 

and to this extent <strong>the</strong> tax liability has already 

been satisfied. 

Ins<strong>of</strong>ar as <strong>the</strong> fiscal administration detects any 

positive “differential amounts” according to 

§ 5a EStG, <strong>the</strong>se would need to be dissolved 

subject to trade tax at <strong>the</strong> company level during 

<strong>the</strong> operating phase or when <strong>the</strong> ship is sold. 

This was decided by <strong>the</strong> Federal Fiscal Court in 

its ruling dated 13th December 2007. Until now 

<strong>the</strong> fiscal administration has granted a reduc - 

tion <strong>of</strong> <strong>the</strong> trade earnings in <strong>the</strong> amount <strong>of</strong> 80 % 

<strong>of</strong> <strong>the</strong> differential amount in accordance with 

§ 9 No. 3 GewStG on <strong>the</strong> basis <strong>of</strong> <strong>the</strong> “Tonnage 

Tax Decree 2002” (BMF letter dated 12th June 

2002). According to <strong>the</strong> new “Tonnage Tax 

Decree 2008” (letter <strong>of</strong> <strong>the</strong> German Ministry <strong>of</strong> 

Finance dated 31st October 2008), with effect 

from <strong>the</strong> tax assessment period 2008 <strong>the</strong> reduction 

<strong>of</strong> earnings regulation <strong>of</strong> § 9 No. 3 GewStG 

can no longer be applied to <strong>the</strong> dissolution <strong>of</strong> 

differential amounts. Corresponding accruals 

for trade tax were formed for all <strong>the</strong> relevant 

ships <strong>of</strong> <strong>the</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> fleet in 2007/2008. 

<strong>The</strong> shareholders are fundamentally entitled to 

<strong>of</strong>fset <strong>the</strong> trade tax according to § 35 EStG. 

However this regulation is not applicable to 

<strong>the</strong> lump-sum tonnage-based net income after 

opting for <strong>the</strong> tonnage tax. However, when differential 

amounts are dissolved in accordance 

with § 5a Sect. 4 EStG, in deviation from <strong>the</strong> 

usual procedure <strong>the</strong> tax reduction according to 

§ 35 EStG is to be applied (cf letter <strong>of</strong> <strong>the</strong> German 

Ministry <strong>of</strong> Finance dated 24th February 2009).

Fur<strong>the</strong>rmore, when dissolving differential 

amounts for <strong>the</strong> tax assessment period 2007, 

<strong>the</strong> tax tariff limitation to 42 % in <strong>the</strong> case <strong>of</strong> 

income from pr<strong>of</strong>its in accordance with § 32c 

EStG is to be granted. 

According to <strong>the</strong> “Corporation Tax Reform 

Law 2008”, with effect from 1st January 2008 

trade tax is no longer deductible as a business 

expense. At <strong>the</strong> same time, <strong>the</strong> trade tax index 

number was lowered to a uniform 3.5 % (until 

31st December 2007 <strong>the</strong>re was a sliding-scale 

tax index number up to 5 %). Within <strong>the</strong> framework 

<strong>of</strong> tonnage tax, <strong>the</strong> lowering <strong>of</strong> <strong>the</strong> trade 

tax index number leads to a lower trade tax 

burden, whereas <strong>the</strong> non-deductibility <strong>of</strong> trade 

tax as a business expense has no effect due to 

<strong>the</strong> lump-sum calculation <strong>of</strong> net income. 

Turnover tax 

<strong>The</strong> purchase <strong>of</strong> a ship is not subject to turn - 

over tax. According to § 4 No. 2 in conjunction 

with § 8 Sect. 1 UStG [Turnover Tax Law], <strong>the</strong> 

chartering <strong>of</strong> ships is exempted from turnover 

tax. According to § 15 Sect. 3 No. 1 a UStG, 

turnover-tax-free chartering out does not result 

in <strong>the</strong> exclusion <strong>of</strong> <strong>the</strong> possibility <strong>of</strong> deducting 

prior turnover tax ins<strong>of</strong>ar as <strong>the</strong> purchased 

items or services are connected with operation 

<strong>of</strong> <strong>the</strong> ship. 

According to <strong>the</strong> ruling <strong>of</strong> <strong>the</strong> German Federal 

Fiscal Court dated 1st July 2004 and a letter 

<strong>of</strong> <strong>the</strong> German Ministry <strong>of</strong> Finance dated 

4th October 2006, an equity investment com - 

pany is entitled to claim all prior turnover tax 

that was associated with <strong>the</strong> issuing <strong>of</strong> shares 

in <strong>the</strong> company. In <strong>the</strong> past <strong>the</strong> fiscal adminis - 

tration has in some cases failed to permit <strong>the</strong> 

deduction <strong>of</strong> prior turnover tax. Should prior 

turnover tax amounts not be deductible despite 

<strong>the</strong> ruling <strong>of</strong> <strong>the</strong> Federal Fiscal Court and <strong>the</strong> 

BMF letter, this would increase <strong>the</strong> acquisition 

cost and/or <strong>the</strong> business expenses. 

Inheritance tax and gift tax 

<strong>The</strong> acts <strong>of</strong> bequeathing or making a gift <strong>of</strong> 

assets are subject to inheritance tax and gift 

tax respectively. When it is a case <strong>of</strong> transferring 

shares in a commercial partnership up to 

<strong>the</strong> end <strong>of</strong> 2008 <strong>the</strong> law prescribes <strong>the</strong> follow - 

ing regulations: 

1. Shares are assessed at <strong>the</strong>ir tax balance 

sheet values. 

2. In addition to <strong>the</strong> personal tax-free amount, 

a fur<strong>the</strong>r tax-free amount <strong>of</strong> EUR 225,000 is 

allowed for business assets. <strong>The</strong> tax-free 

amount for business assets can be claimed 

once every ten years. 

3. 65 % <strong>of</strong> <strong>the</strong> figure remaining after deduction 

<strong>of</strong> <strong>the</strong> tax-free amount for business assets is 

liable to inheritance tax or gift tax. 

4. If <strong>the</strong> equity share is transferred to ano<strong>the</strong>r 

person, a relief amount is granted ins<strong>of</strong>ar as 

<strong>the</strong> beneficiary is not taxed in accordance with 

tax class I. <strong>The</strong> tariff relief amounts to 88 % <strong>of</strong> 

<strong>the</strong> difference between <strong>the</strong> prorated tax levied 

on <strong>the</strong> transferred share that is due in tax classes 

II or III and <strong>the</strong> prorated tax that would be 

due in <strong>the</strong> more favourable tax class I. 

<strong>The</strong> regulations Nos. 2 to 4 are only applicable 

ins<strong>of</strong>ar as <strong>the</strong> equity share is not sold within a 

period <strong>of</strong> five years after <strong>the</strong> inheritance or <strong>the</strong> 

making <strong>of</strong> <strong>the</strong> gift within <strong>the</strong> framework <strong>of</strong> anticipated 

succession (transfer <strong>of</strong> <strong>the</strong> whole equity 

share) or <strong>the</strong> company is not dissolved within 

this period. A fur<strong>the</strong>r prerequisite is that, until 

<strong>the</strong> end <strong>of</strong> <strong>the</strong> five-year-period, <strong>the</strong> heir or <strong>the</strong> 

recipient <strong>of</strong> <strong>the</strong> gift must not effect any withdrawals 

(= dividend payments) that exceed <strong>the</strong> 

sum total <strong>of</strong> his own paid-in contributions to 

capital and <strong>of</strong> his pr<strong>of</strong>it shares by more than 

EUR 52,000. 

According to <strong>the</strong> decree <strong>of</strong> <strong>the</strong> Ministry <strong>of</strong> 

Finance <strong>of</strong> Baden-Wuerttemberg dated 27th 

June 2005, <strong>the</strong>se tax advantages only apply in 

<strong>the</strong> case <strong>of</strong> investors who are registered in <strong>the</strong> 

commercial register (“direct limited partners”). 

<strong>The</strong> Law to Reform Inheritance Tax to Regulate 

<strong>the</strong> Valuation <strong>of</strong> Property (ErbStRG) dated 24th 

December 2008 introduced new regulations for 

inheritance tax and gift tax with effect from 

1st January 2009. In particular, <strong>the</strong> evaluation 

<strong>of</strong> <strong>the</strong> assets that are bequea<strong>the</strong>d or transferred 

by way <strong>of</strong> a gift was fundamentally chang - 

ed. Fur<strong>the</strong>rmore, <strong>the</strong>re were some not insignificant 

corrections, among o<strong>the</strong>r things to <strong>the</strong> 

tax-free amounts and rates <strong>of</strong> taxation. 

According to <strong>the</strong>se, transfers <strong>of</strong> shares without 

payment (gift or inheritance) relating to business 

assets must always be assessed at <strong>the</strong> 

fair market value. However, <strong>the</strong> inheritance tax 

reform law continues to provide for preferential 

treatment for business assets with regard to 

inheritance tax, namely <strong>the</strong> so-called “regular 

exemption” with a deduction <strong>of</strong> 85 % <strong>of</strong> <strong>the</strong> 

fair market value and a holding period <strong>of</strong> seven 

years or <strong>the</strong> so-called “exemption option”, 

under which <strong>the</strong> legal taxpayer must opt for a 

deduction <strong>of</strong> 100 % <strong>of</strong> <strong>the</strong> fair market value and 

a holding period <strong>of</strong> ten years. It must be noted 

that <strong>the</strong>se exemption regulations are also still 

only valid for “direct limited partners”. 

In principle, <strong>the</strong> fair market value must be 

determined on <strong>the</strong> basis <strong>of</strong> recent sales between 

outside third parties. As an alternative, 

<strong>the</strong> fair market value can also be verified ac - 

cording to <strong>the</strong> simplified gross receipts method 

as per §§ 199-203 Valuation Law or <strong>of</strong> a 

method that is customarily applied in normal 

business transactions. In this context it may be 

noted that on <strong>the</strong> one hand at <strong>the</strong> moment no 

recent sales exist; on <strong>the</strong> o<strong>the</strong>r hand <strong>the</strong> simplified 

gross receipts method is based on past 

values <strong>of</strong> <strong>the</strong> last three years, which from to - 

day’s point <strong>of</strong> view results in unduly high and 

unrealistic values. For this reason, in <strong>the</strong> current 

market situation it would be advisable to 

apply a gross receipts method commonly used 

in normal business transactions that is based 

on future-oriented values and that, if necessary, 

could be carried out at least once a year by an 

independent third party. 

For inheritances, <strong>the</strong> new law optionally pro - 

vides for an application <strong>of</strong> <strong>the</strong> new regulations 

with retroactive effect for <strong>the</strong> legal taxpayer 

(with <strong>the</strong> exception <strong>of</strong> <strong>the</strong> new tax-free 

amounts) ins<strong>of</strong>ar as <strong>the</strong> tax obligation was 

incurred after 31st December 2006 and 

before 1st January 2009. 

If <strong>the</strong> concrete intention to make a gift exists, 

in each case a tax consultant should be called 

upon in order to avoid any unwanted tax consequences. 

37

<strong>The</strong> Course <strong>of</strong> Business in 2008

<strong>The</strong> Course <strong>of</strong> Business in 2008 

<strong>The</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> <strong>Reederei</strong> 

in <strong>the</strong> shipping and capital market 

As in <strong>the</strong> preceding years, <strong>the</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> 

<strong>Reederei</strong> also continued its positive trend <strong>of</strong> 

business in 2008. 

<strong>The</strong> four container ships <strong>of</strong> <strong>the</strong> Panmax size 

class ordered by <strong>Hanseatic</strong> <strong>Lloyd</strong> in <strong>the</strong> year 

2004 were delivered to <strong>Hanseatic</strong> <strong>Lloyd</strong> in <strong>the</strong> 

first half <strong>of</strong> 2008 and started <strong>the</strong>ir charters 

with APL (American President Line), Singapore, 

directly after leaving <strong>the</strong> shipyard. 

<strong>The</strong> performance <strong>of</strong> <strong>the</strong> existing one-ship companies 

can in <strong>the</strong> overall view be assessed as 

positive. <strong>The</strong> debt service with interest and 

repayments was met in full in <strong>the</strong> reporting 

year as anticipated in <strong>the</strong> prospectuses. 

40 

<strong>The</strong> safety and quality systems (ISM/ISPS) 

on <strong>the</strong> ships <strong>of</strong> <strong>the</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> and 

W-O Shipping fleet as well as in <strong>the</strong> shore 

organisation are continuously updated to fulfil 

<strong>the</strong> current requirements. When <strong>the</strong>se systems 

were subjected to inspections – by port state 

authorities and flag states authorities as well 

as by <strong>the</strong> classification societies – <strong>the</strong> ships 

always achieved good results. <strong>The</strong> ISM/ISPS 

audits carried out in <strong>the</strong> reporting year were 

completed without any major objections. <strong>The</strong> 

inspections <strong>of</strong> ships and <strong>of</strong> <strong>the</strong> shore organisation 

(“vettings”) that are carried out at regular 

intervals by big oil companies were also successfully 

completed. 

In <strong>the</strong> field <strong>of</strong> environmental protection, all 

ships <strong>of</strong> <strong>the</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> and W-O Shipping 

fleet correspond to <strong>the</strong> legal MARPOL Annex IV 

and VI regulations (contamination through ef - 

fluent and exhaust gases). At <strong>Hanseatic</strong> <strong>Lloyd</strong>, 

<strong>the</strong> introduction <strong>of</strong> <strong>the</strong> environmental protection 

system ISO 14001 is in preparation. 

<strong>The</strong> Ballast Water Convention passed by <strong>the</strong> 

IMO in 2004 demands that, step by step from 

2010 and at <strong>the</strong> latest by 2016, ship newbuild - 

ings and existing ships must use ballast water 

treatment systems on board. Preparatory 

measures are now being initiated for all 

<strong>Hanseatic</strong> <strong>Lloyd</strong> vessels and <strong>the</strong>se will be 

implemented within <strong>the</strong> framework <strong>of</strong> <strong>the</strong> 

schedul ed dry dock overhauls. 

Our involvement in <strong>the</strong> new business division 

inaugurated in 2005 that initiates joint projects 

toge<strong>the</strong>r with shipping company partners also 

proved to be a correct decision. In this way, <strong>the</strong> 

<strong>Hanseatic</strong> <strong>Lloyd</strong> <strong>Reederei</strong> <strong>of</strong>fers its know-how 

as a service provider via <strong>the</strong> capital market, 

looks after <strong>the</strong> ship’s shares market and is 

responsible for placing <strong>the</strong> equity capital. After 

<strong>the</strong> tankers “W-O Noroc” in 2005 and “W-O 

Sharon Sea” in 2006, in April 2007 it was pos - 

sible to successfully place <strong>the</strong> third partnership 

project with <strong>the</strong> MT “W-O Ashley Sea”. Since 

2001, equity capital including premium in a 

total (accumulated) amount <strong>of</strong> EUR 122.3 million 

has been placed. 

As a tramp owner that does not deploy its 

ships in its own liner services or own-account 

traffic but charters <strong>the</strong>se out to third parties, 

<strong>the</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> <strong>Reederei</strong> has designed <strong>the</strong> 

ships to match <strong>the</strong> needs <strong>of</strong> <strong>the</strong> market. 

Our primary market is <strong>the</strong> shipping market. 

That is why <strong>the</strong> ships that we order or take 

over must meet <strong>the</strong> exact requirements <strong>of</strong> <strong>the</strong> 

charterers who are our customers. 

For <strong>the</strong> container ships <strong>the</strong>se are mainly liner 

shipping companies, whose top priority is to 

keep to <strong>the</strong> established sailing schedule. On <strong>the</strong> 

basis <strong>of</strong> this schedule, <strong>the</strong> shippers (importers 

and exporters), who in turn are <strong>the</strong> customers 

<strong>of</strong> <strong>the</strong> liner shipping companies, can organise 

<strong>the</strong>ir production sequences and thus safeguard 

<strong>the</strong>ir own value-added process.

4.0 

3.5 

3.0 

2.5 

2.0 

1.5 

1.0 

0.5 

0.0 

Tankers on <strong>the</strong> o<strong>the</strong>r hand are in some cases 

chartered by so-called operators <strong>of</strong> a tanker 

pool or, if <strong>the</strong>y have a corresponding reputation, 

by oil companies directly. As a rule, individual 

part cargoes are <strong>the</strong>n transported within <strong>the</strong> 

framework <strong>of</strong> trip charters. 

Our experience gained in more than 38 ship 

projects since 1992 with over 6,000 private and 

institutional investors is applied to each new 

ship project. <strong>The</strong> conservative ordering policy <strong>of</strong> 

<strong>Hanseatic</strong> <strong>Lloyd</strong> that consists in only investing 

if, after careful analysis <strong>of</strong> <strong>the</strong> market, we are 

convinced <strong>of</strong> <strong>the</strong> long-term economic success 

<strong>of</strong> a project, will also set <strong>the</strong> tone for our future 

projects. 

Volume <strong>of</strong> placings 

for ship’s shares 

in billion EUR 

1.69 

1997 

1.48 1.48 

1.26 

1998 

1999 

2000 

1.49 1.47 

2001 

2002 

2.33 

2003 

2.91 

2004 

Source: Feri EuroRating Services – Overall Market Study <strong>of</strong> Equity Investment Models 2009 

After many successful years, in <strong>the</strong> year 2008 

<strong>the</strong> capital market for ship’s shares recorded 

a decline in sales as a result <strong>of</strong> <strong>the</strong> financial 

crisis, however this was not as severe as had 

been feared. In <strong>the</strong> reporting year, investor 

capital in an amount <strong>of</strong> almost EUR 3 billion 

was placed for ship’s shares. Although this 

corresponds to a decline <strong>of</strong> some -16.2 % compared 

with <strong>the</strong> prior year, it is still more than 

EUR 400 million higher than <strong>the</strong> result for 2006. 

In comparison with o<strong>the</strong>r asset classes, ship 

funds are one <strong>of</strong> <strong>the</strong> most interesting investment 

vehicles from <strong>the</strong> tax viewpoint due to 

<strong>the</strong>ir lump-sum determination <strong>of</strong> net income 

under <strong>the</strong> tonnage tax. Ship investments are 

volatile and reflect <strong>the</strong> emerging developments 

<strong>of</strong> <strong>the</strong> various economic zones. In <strong>the</strong> past few 

years, freight traffic has grown faster than <strong>the</strong> 

global economy. <strong>The</strong> process <strong>of</strong> globalisation 

is destined to continue and, as in <strong>the</strong> past also 

in <strong>the</strong> future, <strong>the</strong> flows <strong>of</strong> goods across <strong>the</strong> 

oceans will increase faster than <strong>the</strong> economy 

itself. Despite <strong>the</strong> current challenges, in <strong>the</strong> 

medium to long-term shipping will again return 

to <strong>the</strong> positive developments seen especially 

in <strong>the</strong> last few years. 

2.96 

2005 

2.55 

2006 

3.58 

2007 

2.99 

2008 

Ø = 2.18 

Secondary market for ship’s shares 

<strong>The</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> <strong>Reederei</strong> enables all 

investors to sell <strong>the</strong>ir limited partnership 

shares to interested third parties via an Inter - 

net trading platform set up for this purpose or 

to buy such shares from o<strong>the</strong>rs. By <strong>the</strong> end <strong>of</strong> 

May 2009, it had been possible to broker a 

sales volume <strong>of</strong> more than EUR 3.6 million. 

In addition, fur<strong>the</strong>r shares in an amount <strong>of</strong> 

EUR 8.3 million were brokered from/to existing 

investors. 

You can find fur<strong>the</strong>r information under 

www.hanseatic-lloyd.de/zweitmarkt. 

41



Name <strong>of</strong> <strong>the</strong> ship ”HLL Atlantic“ ”HLL Baltic“ HLL Tanker- 

Flottenfonds I 

”W-O Noroc“ ”W-O Sharon Sea“ ”W-O Ashley Sea“ 

Year <strong>of</strong> placing 

Limited partnership capital 

2001/2002/2003 2001/2002 2003/2004 2005 2006 2006/2007 

nominal in thousand EUR 28,750 15,000 29,200 9,655 19,355 18,300 

Paid in in % -105.0 -105.0 -105.0 -105.0 -105.0 -105.0 

Negative results for tax purposes actual -58.8 -57.7 -52.2 0.0 0.0 0.0 

accumulated until 2008 in % prospectus -63.7 -61.9 -53.5 0.0 0.0 0.0 

Positive results for tax purposes actual 9.8 29.9 2.7 0.4 0.5 0.4 

kumuliert bis 2008 in % prospectus 2.0 7.7 0.6 0.5 0.5 0.4 

Tax refunds actual 31.3 30.8 27.1 0.0 0.0 0.0 

accumulated until 2008 in % prospectus 33.9 33.0 27.8 0.0 0.0 0.0 

Tax payments actual 4.6 14.1 1.3 0.2 0.2 0.2 


Dividends actual 49.5 70.0 40.0 20.0 14.0 8.0 


Capital commitment actual -28.8 -18.3 -39.2 -85.2 -91.2 -97.2 

until 2008 in % prospectus -20.0 -4.7 -37.5 -83.2 -91.2 -97.2 

Capital reflux actual 76.2 86.7 65.8 19.8 13.8 7.8 

2008 in % prospectus 85.0 100.3 67.5 21.8 13.8 7.8 


In <strong>the</strong> business year 2008, <strong>the</strong> six equity 

investment projects hi<strong>the</strong>rto initiated by <strong>the</strong> 

<strong>Hanseatic</strong> <strong>Lloyd</strong> <strong>Reederei</strong> showed a positive 

development. <strong>The</strong> example portfolio shows 

for each one-ship company <strong>the</strong> capital commitment 

and capital reflux <strong>of</strong> an investor as <strong>of</strong> 

31st December 2008 as a percentage. <strong>The</strong> 

basis for <strong>the</strong> calculation is <strong>the</strong> top rates <strong>of</strong> 

income tax for <strong>the</strong> years 2001 until 2008 

(see also page 34). 

All <strong>the</strong> relevant payment transactions, i.e. paying 

in <strong>of</strong> capital contributions, tax payments 

from loss and pr<strong>of</strong>it allocations as well as dividends, 

are shown separately for each one-ship 

company, accumulated up to and including 

2008. <strong>The</strong> result <strong>of</strong> this overview is <strong>the</strong> capital 

commitment in each case, calculated as <strong>the</strong> 

sum total <strong>of</strong> all payment flows. <strong>The</strong> capital 

commitment in <strong>the</strong> year 2008 is compared with 

<strong>the</strong> budget figures as stated in <strong>the</strong> prospectus. 

Any tax repayments from <strong>the</strong> personal <strong>of</strong>fsetting 

<strong>of</strong> trade tax in accordance with § 35 EStG 

are not taken into account at <strong>the</strong> level <strong>of</strong> <strong>the</strong> 

investor. 

42 

<strong>The</strong> capital reflux in <strong>the</strong> case <strong>of</strong> MV “HLL 

Atlantic” is to date 8.8 percentage points 

lower than anticipated in <strong>the</strong> prospectus, 

in particular because <strong>the</strong> ship opted for <strong>the</strong> 

tonnage tax in 2004 a year earlier than planned, 

and in <strong>the</strong> following years income from 

<strong>the</strong> dissolution <strong>of</strong> differential amounts from 

foreign currency loans had to be dissolved subject 

to taxation. Apart from this, <strong>the</strong> one-ship 

company was able to distribute a dividend <strong>of</strong> 

7.0 % in <strong>the</strong> year 2008 (instead <strong>of</strong> <strong>the</strong> 9.5 % 

predicted in <strong>the</strong> prospectus). 

In <strong>the</strong> case <strong>of</strong> <strong>the</strong> MV “HLL Baltic”, <strong>the</strong> tax 

repayments were smaller due to better results 

in <strong>the</strong> years 2002 and 2003. In addition, from 

2004 higher differential amounts from foreign 

cur rency loans result under <strong>the</strong> tonnage tax, so 

that <strong>the</strong> tax payments are higher than calculat - 

ed. Moreover, in <strong>the</strong> year 2008 <strong>the</strong> ship’s share 

company was able to pay a dividend <strong>of</strong> 10.0 % 

(instead <strong>of</strong> <strong>the</strong> 11.0 % stated in <strong>the</strong> prospectus). 

Altoge<strong>the</strong>r <strong>the</strong> capital commitment hi<strong>the</strong>rto 

deviates from <strong>the</strong> figure stated in <strong>the</strong> prospectus 

by 13.6 percentage points. 

In <strong>the</strong> case <strong>of</strong> <strong>the</strong> HLL Tanker-Flottenfonds I, <strong>the</strong> 

capital commitment is practically as stated in 

<strong>the</strong> prospectus. 

Whereas in <strong>the</strong> case <strong>of</strong> MT “W-O Noroc” <strong>the</strong> 

capital commitment deviates from <strong>the</strong> figure 

named in <strong>the</strong> prospectus by 2.0 % due to <strong>the</strong> 

lower dividend payment in 2008, MT “W-O 

Sharon Sea” and MT “W-O Ashley Sea” have 

so far developed in line with <strong>the</strong> prospectus. 

In <strong>the</strong> business year 2008, <strong>the</strong> six ship’s share 

projects achieved gross charter revenues <strong>of</strong> 

EUR 45.7 million (<strong>of</strong> which MV “HLL Atlantic” 

EUR 7.2 million, MV “HLL Baltic” EUR 7.2 million, 

HLL Tanker-Flottenfonds I EUR 14.0 million, MT 

“W-O Noroc” EUR 3.7 million, MT “W-O Sharon 

Sea” EUR 6.8 million and MT “W-O Ashley 

Sea” EUR 6.8 million). For all one-ship companies, 

income in <strong>the</strong> revenue currency US Dollar 

was higher than anticipated in <strong>the</strong> prospectus, 

so that <strong>the</strong> development <strong>of</strong> liquidity is also 

correspondingly positive. 

In <strong>the</strong> reporting year 2008 it was possible to 

pay out dividends in a total amount <strong>of</strong> EUR 9.25 

million. This corresponds to an average dividend 

quota <strong>of</strong> 7.7 % on <strong>the</strong> limited partnership 

capital (prospectus average 8.6 %).

Against <strong>the</strong> background <strong>of</strong> <strong>the</strong> financial crisis, 

substantially higher ship operating costs (in 

particular for personnel and lubricants) as well 

as <strong>the</strong> ongoing weakness <strong>of</strong> <strong>the</strong> USD (in comparison 

with <strong>the</strong> figures assumed in <strong>the</strong> prospectuses), 

this is a very encouraging overall 

result. Apart from this, <strong>the</strong> six equity share 

projects can point to a redemption advantage 

(as compared with <strong>the</strong> bank financing plan) 

as <strong>of</strong> <strong>the</strong> end <strong>of</strong> 2008 in a total amount <strong>of</strong> 

USD 9.7 million. 

<strong>The</strong> overall investment volume <strong>of</strong> <strong>the</strong> placed 

fleet at <strong>the</strong> end <strong>of</strong> 2008 amounts to EUR 311.1 

million. In this context several banks have contributed 

to securing <strong>the</strong> overall funding by grant - 

ing ship mortgage loans in an amount equivalent 

to EUR 184.9 million. Altoge<strong>the</strong>r, limited 

partnership capital <strong>of</strong> EUR 122.3 million has 

been placed to date. 

Gross charter revenues 

in thousand EUR 

36,186 

43,282 

45,738 

‘06 ‘07 ‘08 

Capital structure <strong>of</strong> <strong>the</strong> 

placed <strong>Hanseatic</strong> <strong>Lloyd</strong> ships 

as <strong>of</strong> 31.12.2008 in thousand EUR 

(incl. premium) 

Total investment 194,120 

Borrowed capital 117,522 

Limited partnership capital 76,598 

- <strong>of</strong> which placed capital 74,099 

- <strong>of</strong> which <strong>Hanseatic</strong> <strong>Lloyd</strong> 2,499 

Placed limited partnership capital 

in each case as <strong>of</strong> 31.12. in thousand EUR 


2001 12,469 

2002 27,542 

2003 18,523 

2004 15,565 

2005 9,713 

2006 19,793 

2007 18,685 

2008 --- 

Total 122,289 

Operating results 


16,995 16,803 

21,156 

‘06 ‘07 ‘08 

Total redemption payments 

in thousand USD 

12,983 

15,308 

16,976 

‘06 ‘07 ‘08 

Capital structure <strong>of</strong> <strong>the</strong> 

placed partnership projects 

as <strong>of</strong> 31.12.2008 in thousand EUR 


Total investment 117,027 

Borrowed capital 67,351 

Limited partnership capital 49,676 

- <strong>of</strong> which placed capital 48,190 

- <strong>of</strong> which initiator <strong>Hanseatic</strong> <strong>Lloyd</strong> 436 

- <strong>of</strong> which co-initiators 1,050 

Redemption advantage 

as <strong>of</strong> 31.12.2008 in thousand USD accumulated 

(as compared with <strong>the</strong> bank financing plan) 

MV “HLL Atlantic” 366 

MV “HLL Baltic” 295 

HLL Tanker-Flottenfonds I 7,269 

MT “W-O Noroc” 1,198 

MT “W-O Sharon Sea” - 

MT “W-O Ashley Sea” 600 

Total 9,728 

Dividend payments 


7,000 

8,835 

9,258 

‘06 ‘07 ‘08 

43


Value <strong>of</strong> <strong>the</strong> placed ships 

<strong>The</strong> value <strong>of</strong> <strong>the</strong> fleet reflects <strong>the</strong> pr<strong>of</strong>itability 

<strong>of</strong> <strong>the</strong> individual ships. <strong>The</strong> basis for this is <strong>the</strong> 

favourable purchase price. To be able to gain in 

value during <strong>the</strong> following business years presupposes 

– besides routine maintenance and 

repair as well as reasonable ship operating 

costs – above all charter contracts on fair market 

terms. Fur<strong>the</strong>rmore, <strong>the</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> 

internal examination programme for routine 

inspections and overhauls <strong>of</strong> <strong>the</strong> ship in dry 

dock as well as compliance with <strong>the</strong> “Inter - 

national Safety Management” code (ISM) also 

contribute to maintaining <strong>the</strong> value <strong>of</strong> <strong>the</strong> fleet. 

44 

To obtain as exact an overview <strong>of</strong> <strong>the</strong> market 

as possible, in <strong>the</strong> past <strong>the</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> 

<strong>Reederei</strong> has commissioned evaluations <strong>of</strong> its 

own fund ships as <strong>of</strong> 1st January. As a rule, a 

total <strong>of</strong> three expert opinions were requested. 

<strong>The</strong> economic and financial crisis has led to a 

widespread collapse <strong>of</strong> <strong>the</strong> regular buying and 

selling markets for ships. Ship experts/ship’s 

valuers as well as buying and selling brokers 

for ships <strong>the</strong>refore see <strong>the</strong>mselves constrained 

to temporarily discontinue evaluations <strong>of</strong> ships. 

<strong>The</strong> few transactions in <strong>the</strong> recent past were as 

a rule based on emergency sales and could not 

be taken as a representative basis for a market 

trend in accordance with <strong>the</strong> comparative value 

method. 

<strong>The</strong> evaluation <strong>of</strong> our own fleet as <strong>of</strong> 

1st January 2009 <strong>the</strong>refore does not appear 

in this <strong>Annual</strong> <strong>Report</strong> 2008 <strong>of</strong> <strong>the</strong> <strong>Hanseatic</strong> 

<strong>Lloyd</strong> <strong>Reederei</strong>.

<strong>The</strong> fleet operated, 

supported and/or chartered out 

by <strong>Hanseatic</strong> <strong>Lloyd</strong>

Overview <strong>of</strong> <strong>the</strong> Fleet 

<strong>The</strong> fleet operated, supported and/or chartered out by <strong>Hanseatic</strong> <strong>Lloyd</strong> 

Container fleet 

46 

Name TEU/m 3 tdw Date <strong>of</strong> issue/investors In service since 

4,000 TEU-class MV “HLL Atlantic” 2 4,713 57,240 2001 - 2003/575 December 2002 

MV “HLL Baltic” 2 4,565 62,442 2001 - 2002/333 November 1995 

MV “HLL Pacific 1” 4 4,713 57,240 --- December 2002 

MV “HLL Adriatic” 4,730 55,738 --- July 2008 

MV “HLL Arctic” 4,730 55,738 --- April 2008 

MV “HLL Caribic” 4,730 55,738 --- May 2008 

MV “HLL Pacific 2” 4,730 55,738 --- June 2008 

MV “Mare Arcticum” 2 4,038 52,267 1999 - 2000/450 December 2000 

MV “Mare Atlanticum” 2 4,038 52,267 1999 - 2000/468 December 2000 

MV “Mare Britannicum” 2 4,038 52,267 2000/499 December 2000 

MV “Mare Caribicum” 2 4,038 52,267 2000/445 December 2000 

MV “Mare Lycium” 2 4,038 52,267 1999/420 December 1999 

MV “Mare Phoenicium” 2 4,038 52,267 1998 - 1999/348 August 1999 

MV “Mare Siculum” 2 3,987 52,329 1998/456 December 1998 

MV “Mare Superum” 2 3,987 52,329 1997 - 1998/406 October 1998 

3,000 TEU-class MV “Mare Africum” 2 2,959 34,630 1996 - 1997/321 April 1997 

MV “Mare Caspium” 2 2,959 34,630 1994 - 1995/317 November 1995 

MV “Mare Gallicum” 2 2,959 34,630 1995 - 1996/336 June 1996 

MV “Mare Internum” 2 2,959 34,630 1997/210 December 1997 

MV “Mare Ionium” 2 2,959 34,630 1996 - 1997/303 August 1997 

MV “Mare Thracium” 2 2,959 34,630 1996 - 1997/332 October 1997 

1,700 TEU-class MV “Mare Ibericum” 2 1,697 22,494 1993 - 1994/279 September 1994 

1,000 TEU-class MV “Mare Adriaticum” 2 1,054 12,721 1993/194 November 1993 

Tanker fleet 

MV “Mare Balticum” 2 1,054 12,576 1992 - 1993/193 April 1993 

MV “Mare Doricum” 2 1,054 12,705 1995/236 August 1995 

MV “Mare Hibernum” 4 1,016 12,500 1994 - 1995/217 May 1995 

MV “Mare Tuscum” 4 1,042 12,525 1995 - 1996/216 October 1996 

Small-Handy-Size MT “HLL Aegean” 3 22,883 19,990 July 1999 

MT “HLL Barents” 3 22,883 19,990 -- March 1999 

MT “HLL Indian” 3 2003 - 2004/530 

22,883 19,990 -- January 2000 

Initiated partnership projects/tanker fleet 

MT “HLL Ionian” 3 22,883 19,990 -- September 1999 

MT “HLL Arctic“ 4 23,000 19,800 --- --- 

MT “HLL Biscay” 4 23,000 19,800 --- --- 

MT “HLL Caspian” 4 23,000 19,800 --- --- 

MT “HLL Celtic” 4 23,000 19,800 --- --- 

MT “HLL Black Sea” 1 23,000 19,800 --- --- 

MT “HLL Red Sea” 1 23,000 19,800 --- --- 

MT “HLL White Sea” 1 23,000 19,800 --- --- 

MT “HLL Yellow Sea” 1 23,000 19,800 --- --- 

Panmax MT “W-O Ashley Sea” 2 85,300 73,400 2006 - 2007/423 June 2007 

MT “W-O Sharon Sea” 2 85,300 73,400 2006/447 December 2006 

Small-Handy-Size MT “W-O Noroc” 2 17,689 16,456 2005/198 February 2001 

1) Newbuildings, 2) Fund ships, 3) Fleet fund, 4) Sold ships, 5) Current, 6) in 2008, 

7) Unscheduled dry dock overhaul from 20.12.2007 to 29.1.2008 due to rudder damage 

8) In service since 2008

Charterer 5 Charter name 5 Trade 5 Operating days 6 Routine dry dock overhaul 

APL APL Peru Far East/Mexico 364 2012 

APL APL Costa Rica Far East/Red Sea 366 2010 

--- --- -- --- --- 

APL APL Atlanta Far East/US West Coast 167 8 2013 

APL APL Oakland Asia 254 8 2013 

APL APL Los Angeles Far East/US West Coast 238 8 2013 

APL APL Denver Far East/US West Coast 190 8 2013 

APL APL Chile Far East/Red Sea 365 2010 

MSC MSC Scandinavia Europe/South America West Coast 366 2010 

APL APL Kaohsiung Far East/US Gulf Coast/Jamaica 365 2010 

APL APL Argentina Far East/Red Sea 365 2010 

CSAV Libra Mexico US Gulf Coast/South America East Coast 366 2009 

CSAV Mare Phoenicium Middle East/Europe 366 2009 

„K“ Line Alvsborg Bridge Far East/North America West Coast 343 2008 

Maersk Line Maersk Tirana Far East/Eastern Mediterranean/Black Sea 343 2008 

PIL Kota Ekspres Far East/South Africa 365 2012 

CMA CGM CMA CGM Beirut Mediterranean 361 2010 

YANG MING YM Hiroshima Europe/US East Coast 365 2011 

KMTC Mare Internum Far East/India 366 2012 

--- --- In <strong>the</strong> roads <strong>of</strong>f Thailand 366 2012 

KMTC Mare Thracium Far East/India 365 2012 

PIL Kota Mawar South-East Asia/South Africa/Angola 365 2012 

KMTC Mare Adriaticum Korea/Vietnam 350 2013 

OEL Mare Balticum South-East Asia/Myanmar/India 362 2013 

MSC MSC Belize Caribbean Sea 365 2010 

--- --- --- --- --- 

--- --- --- --- --- 

MCT MCT Almak Worldwide 366 2009 

MCT MCT Altair Europe/US East Coast/Caribbean Sea 366 2009 

MCT MCT Arcturus Europe 338 2008 7 

MCT MCT Alioth Europe 366 2009 

--- --- --- --- --- 

--- --- --- --- --- 

--- --- --- --- --- 

--- --- --- --- --- 

--- --- --- --- --- 

--- --- --- --- --- 

--- --- --- --- --- 

--- --- --- --- --- 

Heidmar LLC W-O Ashley Sea North Atlantic/North Sea-Baltic Sea/Mediterranean 365 2013 

Heidmar LLC W-O Sharon Sea North Atlantic/North Sea-Baltic Sea/Mediterranean 365 2012 

W-O Marine W-O Noroc South-East Africa 366 2009 

last updated: May 2009 

47

Data <strong>of</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> 

<strong>The</strong> German <strong>Hanseatic</strong> <strong>Lloyd</strong> companies 

currently support, operate and/or charter out 

24 container ships (<strong>Hanseatic</strong> <strong>Lloyd</strong> 6 and 

Hansa Mare 18) in <strong>the</strong> size classes from 

1,000 to 4,700 TEU as well as eleven tankers 

(<strong>Hanseatic</strong> <strong>Lloyd</strong> 8 and W-O Shipping 3) with 

a deadweight tonnage from 16,500 tdw to 

73,400 tdw. <strong>The</strong> whole fleet in service that is 

supported, operated and/or chartered out has 

a deadweight tonnage <strong>of</strong> some 1.4 million tons 

and thus constitutes one <strong>of</strong> <strong>the</strong> biggest tramp 

shipowner’s fleets controlled in Bremen. 

48 

Data <strong>of</strong> <strong>the</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> fleet 

Development <strong>of</strong> <strong>the</strong> fleet: 2007 2008 

Ships in service, accumulated 6 10 

<strong>of</strong> which container ships, accumulated 2 6 

<strong>of</strong> which tankers, accumulated 4 4 

<strong>of</strong> which placed ships, accumulated 6 6 

Ships under construction 9 4 

<strong>of</strong> which container ships, accumulated 4 0 

<strong>of</strong> which tankers, accumulated 5 4 

Carrying capacity <strong>of</strong> ships in service, accumulated (in tdw) 200,182 423,134 

Capacity <strong>of</strong> container ships in service, accumulated (in TEU) 9,408 28,328 

Capacity <strong>of</strong> tankers in service, accumulated (in m³) 91,532 91,532 

Total investment volume (incl. newbuildings), 

accumulated (in thousand EUR) 1) 339,827 399,379 

Placed equity, accumulated (in thousand EUR) 1) 74,099 74,099 

Development <strong>of</strong> <strong>the</strong> results <strong>of</strong> <strong>the</strong> placed ships: 2007 2008 

Gross charter revenues p. a. (in thousand EUR) 29,650 28,425 

Operating results p. a. (in thousand EUR) 11,501 13,351 

Amortisation p. a. (in thousand USD) 11,124 10,601 

Special redemptions accumulated (in thousand USD) 6,901 7,930 

Dividend payments p. a. (in thousand EUR) 6,563 5,854 

Data <strong>of</strong> initiated partnership projects 


Tankers in service 3 3 

Ships under construction 0 0 

Carrying capacity <strong>of</strong> tankers in service, accumulated (in tdw) 163,256 163,256 

Capacity <strong>of</strong> tankers in service, accumulated (in m³) 188,289 188,289 

Total investment volume, accumulated (in thousand EUR) 1) 117,027 117,027 


Development <strong>of</strong> <strong>the</strong> results <strong>of</strong> <strong>the</strong> placed ships: 2007 2008 

Gross charter revenues p. a. (in thousand EUR) 13,632 17,314 

Operating results p. a. (in thousand EUR) 5,302 7,805 

Amortisation p. a. (in thousand USD) 4,184 6,374 

Special redemptions accumulated (in thousand USD) 1,600 1,798 

Dividend payments p. a. (in thousand EUR) 2,272 3,397 

<strong>The</strong> fleet <strong>of</strong> <strong>the</strong> Hansa Mare <strong>Reederei</strong> exclusively chartered out by <strong>Hanseatic</strong> <strong>Lloyd</strong> 


Placed ships, accumulated 20 20 

Ships in service 19 18 2) 

Carrying capacity, accumulated (in tdw) 700,516 687,945 2) 

Capacity, accumulated (in TEU) 55,831 54,815 2) 

Total investment volume, accumulated (in thousand EUR) 1) 857,520 857,520 


Gross charter revenues p. a. (in thousand EUR) 118,610 109,082 2) 

1) incl. premium 

2) not including “Mare Tuscum” (sold in Feb. 2006) and 

“Mare Hibernum” (sold in Oct. 2007)

Performance Assessment Principles 

<strong>The</strong> following performance assessment principles 

apply to all one-ship companies that were 

initiated by <strong>Hanseatic</strong> <strong>Lloyd</strong> <strong>Reederei</strong> GmbH & 

Co. KG, Bremen, and are shown in this <strong>Annual</strong> 

<strong>Report</strong>. 

<strong>The</strong> prospectus/actual comparisons were exa min - 

ed by <strong>the</strong> auditing firm, PricewaterhouseCoopers 

Wirtschaftsprüfungsgesellschaft. This examination 

was carried out on <strong>the</strong> basis <strong>of</strong> <strong>the</strong> corres - 

ponding annual financial statements <strong>of</strong> <strong>the</strong> oneship 

companies. Fur<strong>the</strong>rmore, each presenta - 

tion <strong>of</strong> <strong>the</strong> data <strong>of</strong> each fund contains descrip - 

tive information on <strong>the</strong> technical data, <strong>the</strong> current 

charter as well as <strong>the</strong> economic situation 

including <strong>the</strong> prospects for <strong>the</strong> future. 

Financing and investment 

<strong>The</strong> limited partnership capital represents <strong>the</strong> 

equity capital <strong>of</strong> <strong>the</strong> company and is made up 

<strong>of</strong> <strong>the</strong> shares <strong>of</strong> <strong>the</strong> outside investors, i.e. <strong>the</strong> 

limit ed partners, and <strong>of</strong> <strong>the</strong> founder members <strong>of</strong> 

<strong>the</strong> company. In addition to <strong>the</strong> limited partnership 

capital, as foreseen in <strong>the</strong> prospectus all 

limited partners have paid in a premium (5 % 

on <strong>the</strong> nominal limited partnership capital). 

Within <strong>the</strong> framework <strong>of</strong> project financing, this 

premium covers a part <strong>of</strong> <strong>the</strong> capital brokering 

costs. 

<strong>The</strong> borrowed capital is reported in Euro, although 

all ship mortgage loans are predominantly de - 

nominated in US Dollars (always 75 % or more) 

as well as in Japanese Yen and/or Swiss Francs. 

Valuation is carried out at <strong>the</strong> corresponding 

purchase exchange rates vis-à-vis <strong>the</strong> Euro. 

<strong>The</strong> limited partnership capital (plus premium) 

and <strong>the</strong> borrowed capital toge<strong>the</strong>r make up <strong>the</strong> 

investment sum <strong>of</strong> <strong>the</strong> project. A limited partnership 

capital that is higher than that stated in 

<strong>the</strong> prospectus serves to increase <strong>the</strong> liquidity 

reserve <strong>of</strong> <strong>the</strong> company. 

Operation 

<strong>The</strong> ratios “Days in service”, “Net charter 

revenues” and “Operating results” as accumulated 

figures are compared with <strong>the</strong> prospectus. 

<strong>The</strong>se ratios make major contributions to <strong>the</strong> 

operating success <strong>of</strong> <strong>the</strong> equity investment project. 

<strong>The</strong> net charter revenues are stated after 

deduction <strong>of</strong> fees and commissions for ship 

operation, chartering out or brokers. <strong>The</strong> ope r - 

at ing result is calculated from <strong>the</strong> net charter 

revenues less <strong>the</strong> operating costs (ship opera - 

tion and administration) and less <strong>the</strong> financing 

result. 

Fur<strong>the</strong>rmore, <strong>the</strong> dividend payments are shown. 

If dividends are paid as foreseen in <strong>the</strong> prospectus, 

<strong>the</strong>se result in differences in amount 

deriving from <strong>the</strong> difference between <strong>the</strong> limit - 

ed partnership capital stated in <strong>the</strong> prospectus 

and <strong>the</strong> actual figure. 

Loan level 

<strong>The</strong> redemption schedule corresponds to <strong>the</strong> 

original bank financing plan. <strong>The</strong> ship mortgage 

loans are divided into <strong>the</strong> different foreign currencies 

involved in <strong>the</strong> financing, in which case, 

besides <strong>the</strong> revenue currency US Dollar, parts 

<strong>of</strong> <strong>the</strong> financing are denominated in Japanese 

Yen or Swiss Francs. <strong>The</strong> “Sum total in USD” is 

calculated by converting all loans not financed 

in US Dollar to US Dollars at <strong>the</strong> purchase ex - 

change rate. A difference between <strong>the</strong> redemption 

schedule and <strong>the</strong> actual level <strong>of</strong> repayments 

constitutes <strong>the</strong> redemption advantage 

(or arrears) <strong>of</strong> <strong>the</strong> company. 

Tax results 

<strong>The</strong> tax results including <strong>the</strong> still provisional 

figures for 2008 are shown as an example for a 

limited partner who joined <strong>the</strong> one-ship company 

in accordance with <strong>the</strong> <strong>of</strong>fering prospectus 

and is entered in <strong>the</strong> Commercial Register. In 

this context, <strong>the</strong> figures are stated accumulated 

as a percentage <strong>of</strong> <strong>the</strong> corresponding limited 

partnership capital. 

If <strong>the</strong> one-ship company switched over from 

normal taxation to <strong>the</strong> tonnage tax, any hidden 

reserves have been calculated, which are 

shown as <strong>the</strong> differential amounts “Ship” 

and “Foreign currency loan” (see also “Tax 

basics”, page 36). 

Capital commitment/reflux 

<strong>The</strong> capital commitment and <strong>the</strong> tax results are 

shown based on a model for one limited partner. 

If <strong>the</strong> placing was carried out in several 

tranches over at least one turn <strong>of</strong> <strong>the</strong> year, in 

each case <strong>the</strong> first tranche is described. 

<strong>The</strong> basis <strong>of</strong> calculation for <strong>the</strong> tax payments 

and/or tax refunds are <strong>the</strong> following peak rates 

<strong>of</strong> income tax: 

· 2001 to 2003: 48,5 % income tax plus 

9,0 % church tax and 

5,5 % special solidarity tax 

surcharge 

· 2004: 45,0 % income tax plus 



surcharge 

· 2005 bis 2007: 42,0 % income tax plus 



surcharge 

(2007 not including <strong>the</strong> 

“Wealth tax” surcharge 

see “Tax basics “, page 34) 

· 2008: 45,0 % income tax plus 



surcharge 

49

Name <strong>of</strong> <strong>the</strong> ships: 

MV “HLL Adriatic” 

MV “HLL Arctic” 

MV “HLL Caribic” 

MV “HLL Pacific” 

Type <strong>of</strong> ship: 

Container ship 

Deadweight tonnage: 

55,738 tdw 

Length overall: 

267.20 m 

Moulded beam: 

32.20 m 

50 

Draught: 

13.00 m 

Container storage capacity: 

approx. 4,730 TEU 

(Twenty Foot Equivalent Unit) 

Speed 

25.0 kn 

Shipbuilders: 

New Century 

Shipbuilding Co. Ltd. 

in Jingjiang/China 

In service since: 

MV “HLL Arctic” 04/2008 

MV “HLL Caribic” 05/2008 

MV “HLL Pacific” 06/2008 

MV “HLL Adriatic” 07/2008 

MV “HLL Arctic” – MV “HLL Caribic” 

<strong>The</strong> ships 

With <strong>the</strong> construction <strong>of</strong> <strong>the</strong>se four container 

ships, <strong>the</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> <strong>Reederei</strong> GmbH & 

Co. KG realised a ship design which has been 

optimised in various areas by a large number 

<strong>of</strong> fur<strong>the</strong>r improvements and ongoing developments. 

<strong>The</strong> four sister ships are modern container 

ships <strong>of</strong> compact design with a nominal con - 

tainer storage capacity <strong>of</strong> approx. 4,730 twentyfoot 

containers and/or approx. 2,965 TEU <strong>of</strong> 

14 ts homogeneously. Propulsion is provided by 

a main engine <strong>of</strong> <strong>the</strong> type MAN B&W 8K98MC-C, 

and with 62,080 HP this makes for a service 

speed <strong>of</strong> approx. 25.0 kn at a design draught <strong>of</strong> 

12 m (90 % MCR incl. 15 % “sea margin”) and 

a consumption <strong>of</strong> some 185 t <strong>of</strong> heavy oil per 

day. Since <strong>the</strong>se ships were put into service, 

<strong>the</strong>y have <strong>the</strong>refore numbered among <strong>the</strong> 

fastest units in this size class. 

<strong>The</strong> four newbuildings incorporate a modern 

environmental management, e.g. a main engine 

is used that keeps fuel consumption and thus 

also <strong>the</strong> emissions <strong>of</strong> waste gas low. Besides 

<strong>the</strong> improved hull shape with a design draught 

<strong>of</strong> 12 m, <strong>the</strong>se ships also feature a maintenance-friendly 

spade rudder (a so-called Becker 

rudder). <strong>The</strong> steering gear leads to a fur<strong>the</strong>r 

reduction <strong>of</strong> fuel consumption. 

<strong>The</strong> result is four innovative ships <strong>of</strong> <strong>the</strong> 

<strong>Hanseatic</strong> <strong>Lloyd</strong> fleet that have been improved 

and optimised in accordance with <strong>the</strong> latest 

know-how in shipbuilding development in order 

to meet <strong>the</strong> increasingly exacting requirements 

<strong>of</strong> <strong>the</strong> big international liner shipping companies.

MV “HLL Pacific” – MV “HLL Adriatic” 

<strong>The</strong> charters 

Since entering service in <strong>the</strong> year 2008, <strong>the</strong> ships 

MV “HLL Arctic” (charter name “APL Oakland”), 

MV “HLL Caribic” (“APL Los Angeles”), MV “HLL 

Pacific” (“APL Denver”) and MV “HLL Adriatic” 

(“APL Atlanta”) have been operating for APL 

(American President Line), a subsidiary company 

<strong>of</strong> <strong>the</strong> Neptune Orient Lines Group (in short 

“NOL”) in Singapore, in which <strong>the</strong> city state <strong>of</strong> 

Singapore is <strong>the</strong> majority shareholder. <strong>The</strong> four 

container ships <strong>of</strong> identical design were in each 

case chartered out in <strong>the</strong> long term for periods <strong>of</strong> 

twelve years and at a daily rate <strong>of</strong> USD 27,500 

gross until 2020. <strong>The</strong> high reliability and speed <strong>of</strong> 

<strong>the</strong>se ships ensures exact compliance with sail - 

ing schedules and thus supports <strong>the</strong> planning <strong>of</strong> 

cargo handling <strong>of</strong> <strong>the</strong> shipping companies ashore, 

which can mean savings in terms <strong>of</strong> port time 

and port costs. 

Operating area 

After <strong>the</strong> ships entered into service on schedule, 

one after <strong>the</strong> o<strong>the</strong>r <strong>the</strong>y were deployed in <strong>the</strong> 

CMX service <strong>of</strong> APL between <strong>the</strong> Far East and 

<strong>the</strong> Middle East. Depending on <strong>the</strong> volume 

<strong>of</strong> cargo, this service calls at <strong>the</strong> ports <strong>of</strong> 

Singapore (Singapore), Jebel Ali (U. A. E.), 

Dammam (Saudi Arabia), Sharjah (U. A. E.), 

Nhava Sheva (India) and Colombo (Sri Lanka). 

As <strong>the</strong> volume <strong>of</strong> cargo from Asia to <strong>the</strong> North 

American West Coast is rising again, since 

March 2009 <strong>the</strong> ships MV “HLL Pacific”, MV 

“HLL Caribic” and since May 2009 also <strong>the</strong> 

MV “HLL Adriatic” have been assigned to <strong>the</strong> 

PS1 service <strong>of</strong> APL. This service connects <strong>the</strong> 

ports in Port Kelang (Malaysia), Singapore 

(Singapore), Laem Chabang (Thailand), Cai Mep 

(Vietnam), Yantian (China), Hong Kong (China), 

Shanghai (China), Seattle (USA) and Vancouver 

(Canada), Kobe and Yokohama (Japan), 

Kaoshiung (Taiwan) and Chiwan (China), and 

with <strong>the</strong>se ports it constitutes <strong>the</strong> longest 

rotation <strong>of</strong> any service between <strong>the</strong> Far East 

and <strong>the</strong> North American West Coast. 

51




57,240 tdw 


265.98 m 

Moulded beam: 

32.20 m 

Draught: 

13.00 m 

52 


4,713 TEU (Twenty 

Foot Equivalent Unit) 

Speed: 

24.6 kn 

Shipbuilders: 

Hanjin shipyard 

in Busan/South Korea 


December 2002 

MV “HLL Atlantic” 


<strong>The</strong> MV “HLL Atlantic” is operating at least 

until August 2013 at a charter rate <strong>of</strong> USD 

28,500 gross per day under <strong>the</strong> charter name 

“APL Peru” for <strong>the</strong> liner shipping company APL 

(American President Line). APL belongs to <strong>the</strong> 

Neptune Orient Lines Group (in short “NOL”), in 

which <strong>the</strong> city state <strong>of</strong> Singapore is <strong>the</strong> majority 

shareholder. <strong>The</strong> ship is deployed in <strong>the</strong> Trans- 

Pacific service between China/Japan and 

Mexico with ports on <strong>the</strong> North American West 

Coast. Altoge<strong>the</strong>r operation <strong>of</strong> <strong>the</strong> ship was to 

<strong>the</strong> full satisfaction <strong>of</strong> <strong>the</strong> charterer APL. In <strong>the</strong> 

year 2008, MV “HLL Atlantic” was “<strong>of</strong>f hire” 

(period during which <strong>the</strong> ship is technically not 

operable and thus cannot earn any revenues) 

for only two days. <strong>The</strong> service intervals on 

board are controlled by a special maintenance 

programme so that an optimum stock <strong>of</strong> necessary 

spare parts can be kept on board. 

At <strong>the</strong> beginning <strong>of</strong> 2008, a “Pulse Lubricator” 

was installed for <strong>the</strong> Wärtsilä/Sulzer main 

engine in order to reduce <strong>the</strong> consumption <strong>of</strong> 

cylinder lubricating oil. <strong>The</strong> costs <strong>of</strong> this investment 

were EUR 335,000. Depending on <strong>the</strong> 

sulphur/engine speed, <strong>the</strong> lubricator made it 

possible to reduce oil consumption by some 25 % 

(savings in <strong>the</strong> first year almost USD 85,000). 

Economic situation 

<strong>The</strong> operating result for 2008 is EUR 3.32 million, 

this being EUR 1.68 million lower than <strong>the</strong> figure 

calculated in <strong>the</strong> prospectus. <strong>The</strong> charter revenues 

at EUR 6.38 million are a total <strong>of</strong> EUR 2.15 

million lower than anticipated in <strong>the</strong> prospectus 

and, despite increased personnel costs, <strong>the</strong> 

ship operating costs (OPEX) at EUR 2.02 million 

are only EUR 0.12 million higher than <strong>the</strong> figure 

stated in <strong>the</strong> prospectus. As <strong>the</strong> ship is earning 

a higher daily charter rate <strong>of</strong> USD 28,500 gross 

than <strong>the</strong> prospectus forecast <strong>of</strong> USD 26,000 net 

and also <strong>the</strong> number <strong>of</strong> operating days at 364 

is 14 days more than <strong>the</strong> figure named in <strong>the</strong> 

prospectus, <strong>the</strong> deviation in <strong>the</strong> balance sheet 

currency “Euro” results exclusively from <strong>the</strong> 

depreciation <strong>of</strong> <strong>the</strong> US Dollar (on average 

EUR/USD 1.47 instead <strong>of</strong> 1.00 as assumed 

in <strong>the</strong> prospectus).

As regards <strong>the</strong> financing, after scheduled 

repayments <strong>the</strong>re was an arithmetical redemption 

advantage <strong>of</strong> some USD 365,000 as compared 

with <strong>the</strong> bank financing plan. Dividends 

in a total amount <strong>of</strong> 7.0 % on <strong>the</strong> limited partnership 

capital were distributed in 2008, this 

being 2.5 % less than predicted in <strong>the</strong> prospectus. 

<strong>The</strong> reason for this, despite <strong>the</strong> higher US 

Dollar charter rate, is primarily <strong>the</strong> loss <strong>of</strong> value 

<strong>of</strong> <strong>the</strong> US Dollar. According to <strong>the</strong> shareholders’ 

resolution <strong>of</strong> 14th December 2004, <strong>the</strong> ship 

opted for <strong>the</strong> tonnage tax with retroactive 

effect from 1st January 2004. 

Prospects 

An operating result <strong>of</strong> some EUR 4.0 million 

is expected for <strong>the</strong> business year 2009 (at an 

average exchange rate <strong>of</strong> EUR/USD 1.35 in - 

stead <strong>of</strong> 1.00 as stated in <strong>the</strong> prospectus). 

<strong>The</strong> charter revenues will, at EUR 7.0 million, 

altoge<strong>the</strong>r be some EUR 1.6 million lower than 

anticipated in <strong>the</strong> prospectus. This deviation is 

exclusively currency-related. <strong>The</strong> ship operating 

costs are expected to be approx. EUR 2.0 million, 

which is some EUR 0.1 million higher than <strong>the</strong> 

prospectus figure. Repayments in <strong>the</strong> business 

year 2009 are expected to be effected to sched - 

ule. Distributions <strong>of</strong> dividends in a total amount 

<strong>of</strong> 7.0 % on <strong>the</strong> limited partnership capital are 

planned for <strong>the</strong> year 2009. 

Financing and investment in thousand EUR: 

Operation as <strong>of</strong> 31.12.2008 accumulated: 

prospectus actual 

Limited partnership capital (nominal) 28,500 28,750 

Premium 1,425 1,438 

Borrowed capital 1) 33,365 32,887 


Operating days 2,141 2,131 

Net charter revenues in thousand EUR 50,410 40,081 

Operating results in thousand EUR 23,982 18,949 

Dividends in thousand EUR 14,820 14,231 

Loan level as <strong>of</strong> 31.12.2008: 

redemption schedule actual 

Ship mortgage loans in thousand USD 13,325.0 14,800.0 

Ship mortgage loans in thousand JPY 453,000.0 215,840.0 

Ship mortgage loans in thousand CHF 4,260.0 4,345.0 

Total in thousand USD 1) 19,783.0 19,417.5 

Tax results 2008 in % accumulated: 


Negative tax results -63.7 -58.8 

Positive tax results 

Option for tonnage tax as <strong>of</strong> 1.1.2004 

2.0 9.8 

Differential amount ship -1.4 

Differential amount, foreign currency as <strong>of</strong> 31.12.2008 13.8 

Capital commitment/reflux in % as <strong>of</strong> 31.12.2008: 


Paid in 105.0 105.0 

Tax repayments from <strong>of</strong>fsettable tax-deductible losses 33.9 31.3 

Tax payments on taxable pr<strong>of</strong>its 0.9 4.6 

Dividends 52.0 49.5 

Capital commitment 20.0 28.8 

Capital reflux 85.0 76.2 

Actual investment (incl. premium) 

76.2 % 28.8 % 

Capital reflux Capital commitment 

1) Valued at <strong>the</strong> purchase exchange rate at <strong>the</strong> value date 

53




62,442 tdw 


292.0 m 

Moulded beam: 

32.25 m 

Draught: 

13.50 m 

54 


4,565 TEU (Twenty 

Foot Equivalent Unit) 

Speed: 

24.5 kn 

Shipbuilders: 

Hyundai Heavy 

Industries 

in Ulsan/South Korea 


November 1995 

MV “HLL Baltic” 


<strong>The</strong> MV “HLL Baltic” is still operating under <strong>the</strong> 

charter name “APL Costa Rica” at least until 

August 2011 at a charter rate <strong>of</strong> USD 29,000 

gross per day for <strong>the</strong> liner shipping company 

APL (American President Line). APL belongs 

to <strong>the</strong> Neptune Orient Lines Group (in short 

“NOL”), in which <strong>the</strong> city state <strong>of</strong> Singapore 

is <strong>the</strong> majority shareholder. Only a repair time 

<strong>of</strong> eight hours for a seawater seal had to be 

deducted from full employment <strong>of</strong> 366 days 

in <strong>the</strong> leap year 2008. This demonstrates <strong>the</strong> 

unusually good technical condition <strong>of</strong> <strong>the</strong> 

meanwhile almost 14 year-old ship. Altoge<strong>the</strong>r 

operation <strong>of</strong> <strong>the</strong> ship was to <strong>the</strong> full satisfaction 

<strong>of</strong> <strong>the</strong> charterer APL. At present, <strong>the</strong> ship 

is deployed in a liner service on <strong>the</strong> route be - 

tween <strong>the</strong> Far East and <strong>the</strong> Red Sea and additionally 

serves ports on Sri Lanka and in India. 



which is thus EUR 0.81 million lower than <strong>the</strong> 

figure calculated in <strong>the</strong> prospectus. <strong>The</strong> charter 

revenues at EUR 6.74 million are a total <strong>of</strong> 

EUR 1.21 million lower than forecast in <strong>the</strong> 

prospectus. <strong>The</strong> ship operating costs (OPEX) 

at EUR 1.99 million are some EUR 0.15 million 

lower than <strong>the</strong> prospectus figure. <strong>The</strong>se include 

a fur<strong>the</strong>r increase in personnel costs (in USD) 

<strong>of</strong> 13 % against <strong>the</strong> year 2007. As <strong>the</strong> ship has 

contracted for a higher daily charter rate <strong>of</strong> 

USD 29,000 gross than that named in <strong>the</strong> prospectus 

and also <strong>the</strong> number <strong>of</strong> operating days 

at almost 366 is 36 more than <strong>the</strong> figure stated 

in <strong>the</strong> prospectus, <strong>the</strong> deviation in <strong>the</strong> balance 

sheet currency “Euro” results exclusively from 

<strong>the</strong> depreciation <strong>of</strong> <strong>the</strong> US Dollar (on average 

EUR/USD 1.47 instead <strong>of</strong> 1.00 as anticipated in 

<strong>the</strong> prospectus).

In conformity with <strong>the</strong> prospectus, <strong>the</strong> company 

opted for <strong>the</strong> tonnage tax with retroactive 

effect from 1st January 2004. Since <strong>the</strong> beginning 

<strong>of</strong> December 2008, MV “HLL Baltic” has 

been sailing under <strong>the</strong> German flag. <strong>The</strong> associated 

extra costs will be reimbursed on a prorata 

basis within <strong>the</strong> framework <strong>of</strong> a distribu - 

tion <strong>of</strong> cost agreement. 

Prospects 


(at an average exchange rate <strong>of</strong> EUR/USD 1.35 

instead <strong>of</strong> 1.00 as assumed in <strong>the</strong> prospectus) 

is expected for <strong>the</strong> business year 2009. <strong>The</strong> 

charter revenues at EUR 7.3 million will be a 

total <strong>of</strong> some EUR 0.7 million lower than ant 

icipated in <strong>the</strong> prospectus, although we are 

reckoning with an additional 32 operating days 

as compared with <strong>the</strong> prospectus. This shortfall 

in revenues is exclusively currency-related. <strong>The</strong> 

ship operating costs at some EUR 2.4 million 

are expected to be about EUR 0.2 million higher 

than <strong>the</strong> figure named in <strong>the</strong> prospectus. Redemption 

payments in <strong>the</strong> business year 2009 

are expected to be effected to schedule (total 

redemption advantage USD 0.3 million). Distributions 

<strong>of</strong> dividends in a total amount <strong>of</strong> 10.0 % 

on <strong>the</strong> limited partnership capital are planned 

for <strong>the</strong> year 2009 (cf 11.0 % according to <strong>the</strong> 

prospectus). 





Premium 725 750 








Darlehensstand zum 31.12.200 redemption schedule actual 


Ship mortgage loans in thousand JPY 550,945.0 0.0 

Ship mortgage loans in thousand CHF 0.0 0.0 





Positive tax results 7.7 29.9 


Differential amount ship -15.1 

Differential amount, foreign currency as <strong>of</strong> 31.12.2008 24.2 



Paid in 105.0 105.0 







86.7 % 18.3 % 



55

Name <strong>of</strong> <strong>the</strong> ships: 

MT “HLL Aegean” 

MT “HLL Barents” 

MT “HLL Indian” 

MT “HLL Ionian” 


Products-/ 

chemicals-tankers 


19,990 tdw 

(non-oil products) 


149.30 m 

Moulded beam: 

23.80 m 

56 

Draught: 

9.30 m 

Cargo capacity: 

22,883 m³ (98 %) 

Speed: 

15.5 kn 

Shipbuilders: 

Uljanik Shipyard, 

in Pula/Croatia 


HLL Aegean: 07/1999 

HLL Barents: 03/1999 

HLL Indian: 01/2000 

HLL Ionian: 09/1999 

HLL Tanker-Flottenfonds I 


<strong>The</strong> four tankers <strong>of</strong> <strong>the</strong> HLL Tanker-Flottenfonds I 

were taken over under time charters by Mega 

Chemical Tankers AG, Uttwil/Switzerland (formerly: 

Mega Chemical Tankers Pte Ltd, Singapore; 

in short: MCT) for a period <strong>of</strong> ten years 

(plus an option for two fur<strong>the</strong>r years at <strong>the</strong> dis - 

cretion <strong>of</strong> <strong>the</strong> charterer). At <strong>the</strong> beginning <strong>of</strong> 

2008, <strong>the</strong> activities <strong>of</strong> <strong>the</strong> MCT Pool were moved 

from Singapore to Uttwil/Switzerland. Mega 

Chemical Tankers AG has taken over all <strong>the</strong> 

rights and duties deriving from <strong>the</strong> charter contracts. 

<strong>The</strong> time charter rate is variable and is 

dependent on <strong>the</strong> corresponding charter market 

and <strong>the</strong> activities <strong>of</strong> <strong>the</strong> MCT Pool, which operates 

and sub-charters <strong>the</strong> tankers on its own 

account. <strong>The</strong> amount <strong>of</strong> <strong>the</strong> charter rate results 

from <strong>the</strong> pool result achieved by <strong>the</strong> ship. Two 

<strong>of</strong> <strong>the</strong> four tankers are employed under sub-charters 

on <strong>the</strong> basis <strong>of</strong> time charter contracts and 

two in <strong>the</strong> so-called “spot market”. In <strong>the</strong> year 

2008, on annual average <strong>the</strong> four tankers achiev - 

ed a net charter rate (prior to deduction <strong>of</strong> ship 

operation fees) <strong>of</strong> some USD 14,500 per day and 

ship. Our charterer MCT is very satisfied with 

operation <strong>of</strong> <strong>the</strong> ship. Apart from <strong>the</strong> unsched - 

ul ed docking <strong>of</strong> <strong>the</strong> MT “HLL Indian” in January 

2008, <strong>the</strong>re were no fur<strong>the</strong>r “<strong>of</strong>f hire” times 


operable and thus cannot earn any revenues). 

This reflects <strong>the</strong> good technical condition <strong>of</strong> 

<strong>the</strong> ships. For <strong>the</strong> current business year 2009, 

scheduled dry dock overhauls with all class 

work are budgeted for MT “HLL Aegean”, MT 

“HLL Barents” and MT “HLL Ionian”. Whereas 

in <strong>the</strong> case <strong>of</strong> two dry dockings we are reckoning 

with purely routine work within <strong>the</strong> framework 

<strong>of</strong> <strong>the</strong> five-year size class work, for MT “HLL 

Barents” additional expenditure for <strong>the</strong> renewal 

<strong>of</strong> tank coatings is being budgeted for. As a result 

<strong>of</strong> changing cargoes, <strong>the</strong> tank coatings are 

eaten away so that here from time to time it is 

necessary to renew <strong>the</strong> coatings. 


<strong>The</strong> accumulated operating result <strong>of</strong> all four 

shipping companies is EUR 6.09 million and is 

thus EUR 1.67 million lower than <strong>the</strong> figure 

calculated in <strong>the</strong> prospectus due to <strong>the</strong> changes 

in currency exchange rates (average exchange 

rate <strong>of</strong> EUR/USD 1.47 instead <strong>of</strong> 1.10 as anti ci - 

pated in <strong>the</strong> prospectus). Charter revenues 

<strong>of</strong> (accumulated) EUR 13.33 million were 

achieved in <strong>the</strong> reporting year 2008, which is 

thus EUR 1.26 million less than forecast in <strong>the</strong> 

prospectus. <strong>The</strong> accumulated ship operating 

costs (OPEX) at EUR 6.03 million are EUR 0.91 

million higher than <strong>the</strong> prospectus figure. <strong>The</strong> 

deviation results on <strong>the</strong> one hand from <strong>the</strong> 

unscheduled dry docking <strong>of</strong> MT “HLL Indian”. 

On <strong>the</strong> o<strong>the</strong>r hand, a general increase in costs 

in <strong>the</strong> fields <strong>of</strong> maintenance, lubricants and personnel 

in <strong>the</strong> few past years is responsible for 

<strong>the</strong> deviation from <strong>the</strong> prospectus figures. As 

compared with 2007, personnel costs (in USD) 

rose yet again over <strong>the</strong> prior year, this time by 

18 %. <strong>The</strong> shortfall in revenues in <strong>the</strong> balance 

sheet currency Euro result exclusively from <strong>the</strong> 

depreciation <strong>of</strong> <strong>the</strong> US Dollar, as in <strong>the</strong> business 

year 2008 an average pool charter rate <strong>of</strong> 

USD 14,500 net per operating day was achiev - 

ed (rate named in <strong>the</strong> prospectus USD 11,800 

net p.d.) and also <strong>the</strong> average number <strong>of</strong> ope r - 

at ing days was higher than assumed in <strong>the</strong> prospectus. 

In <strong>the</strong> business year 2008, besides <strong>the</strong> 

scheduled repayments additional special 

redemption payments were also made, so that 

<strong>the</strong> accumulated redemption advantage as <strong>of</strong> 

<strong>the</strong> end <strong>of</strong> <strong>the</strong> year amounts to some USD 7.3; 

this corresponds to a redemption advantage <strong>of</strong> 

about one and a half years. Dividends in a total 

amount <strong>of</strong> 8.0 % on <strong>the</strong> limited partnership 

capital were distributed in 2008, which corres - 

ponds to <strong>the</strong> prospectus figure. As foreseen in 

<strong>the</strong> prospectus, <strong>the</strong> four one-ship companies 

opted for <strong>the</strong> tonnage tax in <strong>the</strong> year 2006.

Prospects 

An accumulated operating result in <strong>the</strong> amount 

<strong>of</strong> EUR 2.6 million is expected for <strong>the</strong> business 

year 2009 (at an average exchange rate <strong>of</strong> EUR/ 

USD 1.35 instead <strong>of</strong> 1.10 as assumed in <strong>the</strong> 

prospectus). <strong>The</strong> accumulated charter revenues, 

which will probably total EUR 12.5 million, will 

be some EUR 2.1 million lower than predicted 

in <strong>the</strong> prospectus as a result <strong>of</strong> <strong>the</strong> changes in 

currency exchange rates. Due to <strong>the</strong> downward 

trend <strong>of</strong> <strong>the</strong> charter markets, a reduced average 

rate <strong>of</strong> USD 12,500 net p.d. is being assumed 

for <strong>the</strong> current year 2009. <strong>The</strong> ship operating 

costs are calculated (accumulated) at EUR 8.8 

million, which is EUR 2.1 million higher than <strong>the</strong> 

prospectus figure. Besides increases in costs, 

three scheduled dry dock overhauls are also 

planned. Due to <strong>the</strong> three forthcoming dry 

dockings in <strong>the</strong> year 2009 as well as a fur<strong>the</strong>r 

scheduled docking at <strong>the</strong> beginning <strong>of</strong> <strong>the</strong> year 

2010 (MT “HLL Indian”), <strong>the</strong> existing redemption 

advantages are likely to be partly <strong>of</strong>fset. 

Assuming a reduced average pool rate <strong>of</strong> 

USD 12,500 net, dividend payments totalling 

4.0 % would be possible for 2009 (cf 8.0 % 

as per <strong>the</strong> prospectus). 





Premium 1,400 1,460 








Darlehensstand zum 31.12.2003: redemption schedule actual 










0.6 2.7 

Differential amount ship 2) 110.8 

Differential amount, foreign currency as <strong>of</strong> 31.12.2008 2) 0.1 



Paid in 105.0 105.0 







65.8 % 39.2 % 



2) Subject to recognition by <strong>the</strong> tax <strong>of</strong>fice 

57

58 


Limited partnership capital (nominal) 

Premium 

Borrowed capital 1) 


Operating days 

Net charter revenues in thousand EUR 

Operating results in thousand EUR 

Dividends in thousand EUR 


Ship mortgage loans in thousand USD 

Ship mortgage loans in thousand JPY 

Ship mortgage loans in thousand CHF 

Total in thousand USD 1) 


Negative tax results 



Differential amount ship 2) 

Differential amount, foreign currency as <strong>of</strong> 31.12.2008 2) 


Paid in 

Tax repayments from <strong>of</strong>fsettable tax-deductible losses 

Tax payments on taxable pr<strong>of</strong>its 

Dividends 

Capital commitment 

Capital reflux 


2) Subject to recognition by <strong>the</strong> tax <strong>of</strong>fice

MT “HLL Aegean” MT “HLL Barents” MT “HLL Indian” MT “HLL Ionian” 

actual actual actual actual 

7,300 7,300 7,300 7,300 

365 365 365 365 

11,592 11,504 11,857 11,309 


1,819 1,828 1,755 1,818 

17,965 18,042 17,316 18,005 

7,875 7,920 6,204 8,269 

2,772 2,772 2,772 2,772 


4,012.5 4,350.0 5,456.6 4,175.0 

156,605.0 207,097.5 230,440.0 157,545.0 

0.0 0.0 0.0 0.0 

5,443.3 6,243.0 7,560.0 5,614.8 


-46.6 -51.9 -59.3 -51.0 

3.4 2.7 2.5 2.3 

110.3 111.4 108.1 113.2 

0.2 0.0 0.1 0.0 


105.0 105.0 105.0 105.0 

24.3 27.0 30.3 26.6 

1.6 1.2 1.1 1.1 

40.0 40.0 40.0 40.0 

42.3 39.3 35.8 39.5 

62.7 65.7 69.2 65.5 

59


Products-/ 

chemicals-tanker 


16,456 tdw 


135.55 m 

Moulded beam: 

22.50 m 

Draught: 

9.10 m 

60 


17,689 m³ (98 %) 

Speed: 

14.0 kn 

Shipbuilders: 

Watanabe Zosen K. K., 

Hakata/Japan 


February 2001 

MT “W-O Noroc” 


<strong>The</strong> MT “W-O Noroc” was chartered out for 

three years +/- 60 days until 21st March 2009 

to <strong>the</strong> company W-O Marine Pte Ltd., Singapore, 

at a daily rate <strong>of</strong> USD 14,850 (gross). <strong>The</strong> charterer 

did not exercise <strong>the</strong> renewal option and 

instead returned <strong>the</strong> ship in March 2009. 

At <strong>the</strong> meeting <strong>of</strong> <strong>the</strong> Advisory Board on 

15th December 2008, <strong>the</strong> Management Board 

and <strong>the</strong> Advisory Board decided on expiry <strong>of</strong> 

<strong>the</strong> time charter to employ <strong>the</strong> MT “W-O 

Noroc” for at least twelve months in <strong>the</strong> 

WOMAR pool (formerly “Yamuna A” pool). 

From <strong>the</strong> end <strong>of</strong> March until <strong>the</strong> end <strong>of</strong> May, 

<strong>the</strong> ship is employed under a sub-charter to 

BP Shipping Ltd. at a daily rate <strong>of</strong> USD 16,500 

(gross). 

Due to <strong>the</strong> downward development <strong>of</strong> <strong>the</strong> 

charter markets, an average charter rate <strong>of</strong> 

USD 14,200 p.d. (gross) is assumed for <strong>the</strong> 

current year 2009. Operation <strong>of</strong> <strong>the</strong> ship in <strong>the</strong> 

year 2008 was to <strong>the</strong> full satisfaction <strong>of</strong> <strong>the</strong> 

charterer W-O Marine Pte Ltd. MT “W-O 

Noroc” has hi<strong>the</strong>rto mainly operated for <strong>the</strong> 

sub-charterer BP <strong>of</strong>f <strong>the</strong> coast <strong>of</strong> south-east 

Africa. In 2008, <strong>the</strong> ship was not “<strong>of</strong>f hire” 


operable and thus cannot earn any revenues) 

for a single day, which reflects <strong>the</strong> good tech - 

nical condition <strong>of</strong> <strong>the</strong> ship. 



this being EUR 307,000 short <strong>of</strong> <strong>the</strong> figure 

calculated in <strong>the</strong> prospectus. <strong>The</strong> charter revenues 

at EUR 3.47 million (net) were a total <strong>of</strong> 

EUR 0.55 million lower than had been antici - 

pated in <strong>the</strong> prospectus, although <strong>the</strong> ship was 

able to achieve eleven operating days more 

than planned. Despite higher-than-average 

cost increases for personnel and lubricants, <strong>the</strong> 

ship operating costs (OPEX) at EUR 1.42 million 

were EUR 97,000 lower than predicted in <strong>the</strong> 

prospectus.

<strong>The</strong> dry dock overhaul calculated in <strong>the</strong> prospectus 

for 2008 was carried out as an inexpensive 

“in-water survey” in March 2009. As <strong>the</strong> 

daily charter rate <strong>of</strong> USD 14,850 corresponds to 

<strong>the</strong> rate stated in <strong>the</strong> prospectus, <strong>the</strong> difference 

in <strong>the</strong> result is exclusively attributable to <strong>the</strong> 

balance sheet currency Euro, as <strong>the</strong> US Dollar 

devalued more strongly than had been assumed 

(on average EUR/USD 1.47 instead <strong>of</strong> 1.2233 as 

assumed in <strong>the</strong> prospectus). In <strong>the</strong> business 

year 2008, besides <strong>the</strong> scheduled repayments 

additional special redemption payments <strong>of</strong> JPY 

32.0 million were made, so that <strong>the</strong> redemption 

advantage as <strong>of</strong> <strong>the</strong> end <strong>of</strong> <strong>the</strong> year is some 

USD 1.2 million. In 2008, dividends totalling 

6.0 % were distributed on <strong>the</strong> limited partnership 

capital (cf prospectus 8.0 %). As foreseen 

in <strong>the</strong> prospectus, <strong>the</strong> one-ship company immediately 

opted for <strong>the</strong> lump-sum determination 

<strong>of</strong> net income in accordance with § 5a EStG 

(tonnage tax) in <strong>the</strong> year 2005. 

Prospects 

For <strong>the</strong> business year 2009 we expect to see an 

operating result <strong>of</strong> EUR 1.3 million (at an aver - 

age exchange rate <strong>of</strong> EUR/USD 1.35 instead <strong>of</strong> 

1.17 as stated in <strong>the</strong> prospectus). <strong>The</strong> charter 

revenues at EUR 3.5 million will be a total <strong>of</strong> 

some EUR 1.0 million lower than anticipated in 

<strong>the</strong> prospectus. <strong>The</strong> deviation is due on <strong>the</strong> one 

hand to <strong>the</strong> calculated charter rate, which at 

USD 14,200 gross p.d. is lower than had been 

assumed when drafting <strong>the</strong> prospectus (renew - 

al option at USD 15,600 gross p.d.). <strong>The</strong> ship 

operating costs at EUR 1.6 million are expected 

to be some EUR 0.2 million higher than <strong>the</strong> prospectus 

figure. Fur<strong>the</strong>r shortfalls in revenues in 

<strong>the</strong> balance sheet currency “Euro” result from 

<strong>the</strong> calculated depreciation <strong>of</strong> <strong>the</strong> US Dollar. 

<strong>The</strong> number <strong>of</strong> operating days is expected to be 

roughly on a par with <strong>the</strong> prospectus forecast. 

It will be proposed to <strong>the</strong> general meeting <strong>of</strong> 

<strong>the</strong> shareholders that, depending on <strong>the</strong> course 

<strong>of</strong> business, in December 2009 a dividend <strong>of</strong> 

up to max. 4.0 % be distributed on <strong>the</strong> limited 

partnership capital. 




















Tax results 0.5 0.4 



Paid in 105.0 105.0 







19.8 % 85.2 % 



61


Crude oil-/ 

oil products-tanker 


73,400 tdw 


228.60 m 

Moulded beam: 

32.25 m 

Draught: 

14.30 m 

62 


85,300 m³ (100 %) 

Speed: 

14.5 kn 

Shipbuilders: 

New Century 

Ship building Co. Ltd., 

Jingjiang/China 


December 2006 

MT “W-O Sharon Sea” 


MT “W-O Sharon Sea” is chartered out to 

Heidmar LLC, Marshall Islands, for a total time 

charter period <strong>of</strong> seven years +/- 60 days and is 

employed in <strong>the</strong> “Star Tankers Pool”. For <strong>the</strong> 

first three years, <strong>the</strong> charter rate is USD 22,700 

gross per day plus pr<strong>of</strong>it-sharing in <strong>the</strong> amount 

<strong>of</strong> 35 % in any accumulated additional earnings 

deriving from <strong>the</strong> sub-chartering to <strong>the</strong> “Star 

Tankers Pool”. In years four to seven, <strong>the</strong> 

charter will be variable in accordance with 

<strong>the</strong> actual pool results. MT “W-O Sharon Sea” 

is deployed throughout <strong>the</strong> world. 

<strong>The</strong> operating areas <strong>of</strong> <strong>the</strong> ship in <strong>the</strong> year 2008 

were <strong>the</strong> North Atlantic, <strong>the</strong> North Sea and <strong>the</strong> 

Baltic Sea as well as <strong>the</strong> Mediterranean. 

Operation <strong>of</strong> <strong>the</strong> ship in 2008 encountered no 

problems and it was possible to deploy <strong>the</strong> 

ship almost without interruption. <strong>The</strong> charterer 

deducted only eleven hours <strong>of</strong> “<strong>of</strong>f hire” time 





this being EUR 0.16 million higher than <strong>the</strong> 

prospectus figure. <strong>The</strong> charter revenues at 

EUR 6.25 million are in line with <strong>the</strong> prospectus 

forecast. Positive effects on <strong>the</strong> revenues side 

derive from an additional five operating days 

(365 instead <strong>of</strong> 360) as well as <strong>the</strong> gross charter 

rate <strong>of</strong> USD 26,350 (corresponds to a pool 

rate <strong>of</strong> USD 33,100 before pr<strong>of</strong>it-sharing). 

Compared with <strong>the</strong> guaranteed base charter 

rate <strong>of</strong> USD 22,700, this means additional 

earnings <strong>of</strong> some USD 1.33 million.

<strong>The</strong> ship operating costs (OPEX) at EUR 1.68 

million are EUR 0.21 million higher than <strong>the</strong> 

figure stated in <strong>the</strong> prospectus. In <strong>the</strong> balance 

sheet currency “Euro”, <strong>the</strong> additional USD earn - 

ings are <strong>of</strong>fset by <strong>the</strong> depreciation <strong>of</strong> <strong>the</strong> US 

Dollar (on average EUR/USD 1.47 instead <strong>of</strong> 

1.2036 as anticipated in <strong>the</strong> prospectus). 

Redemption payments were made to schedule 

in <strong>the</strong> business year 2008, so that <strong>the</strong> amortisation 

level is also on schedule in line with <strong>the</strong> 

original bank financing plan. In <strong>the</strong> business 

year 2008, dividends <strong>of</strong> 7.0 % on <strong>the</strong> limited 

partnership capital were distributed as foreseen 

in <strong>the</strong> prospectus. As envisaged in <strong>the</strong> 

prospectus, <strong>the</strong> one-ship company opted for 

<strong>the</strong> lump-sum determination <strong>of</strong> net income in 

accordance with § 5a EStG (tonnage tax) in <strong>the</strong> 

year 2005. 

Prospects 


(at an average exchange rate <strong>of</strong> EUR/USD 1.35 

instead <strong>of</strong> 1.20 as anticipated in <strong>the</strong> prospectus) 

is expected for <strong>the</strong> business year 2009. <strong>The</strong> 

charter revenues at EUR 5.6 million are some 

EUR 0.7 million short <strong>of</strong> <strong>the</strong> figure calculated in 

<strong>the</strong> prospectus. This is due exclusively to <strong>the</strong> 

calculated depreciation <strong>of</strong> <strong>the</strong> US Dollar, as 

on <strong>the</strong> revenues side we are reckoning with 

<strong>the</strong> guaranteed minimum charter rate <strong>of</strong> 

USD 22,700 gross p.d. and also <strong>the</strong> number <strong>of</strong> 

operating days corresponds to <strong>the</strong> prospectus 

figure. <strong>The</strong> ship operating costs at EUR 1.9 million 

are expected to be some EUR 0.4 million 

higher than assumed in <strong>the</strong> prospectus. We 

expect redemption payments to be made to 

schedule in <strong>the</strong> business year 2009, so that 

<strong>the</strong> amortisation level will also remain in line 

with <strong>the</strong> bank financing plan. Dividend distri butions 

in a total amount <strong>of</strong> 7.0 % on <strong>the</strong> limited 

partnership capital as foreseen in <strong>the</strong> prospectus 

are possible for 2009. 


Operation as <strong>of</strong> 31.12.2008. accumulated: 






Operating days 708 751 















Paid in 105.0 105.0 







13.8 % 91.2 % 



63


Crude oil-/ 

oil products-tanker 


73,400 tdw 


228.60 m 

Moulded beam: 

32.25 m 

Draught: 

14.30 m 

64 


85,300 m³ (100 %) 

Speed: 

14.5 kn 

Shipbuilders: 

New Century 

Ship building Co. Ltd., 

Jingjiang/China 


June 2007 

MT “W-O Ashley Sea” 


MT “W-O Ashley Sea” is chartered out to 

Heidmar LLC, Marshall Islands, for a total time 

charter period <strong>of</strong> seven years +/- 60 days and is 

employed in <strong>the</strong> “Star Tankers Pool”. For <strong>the</strong> 

first three years, <strong>the</strong> charter rate is USD 22,700 

gross per day plus pr<strong>of</strong>it-sharing in <strong>the</strong> amount 

<strong>of</strong> 35 % in any accumulated additional earnings 

deriving from <strong>the</strong> sub-chartering to <strong>the</strong> “Star 

Tankers Pool”. In years four to seven, <strong>the</strong> charter 

will be variable in accordance with <strong>the</strong> 

actual pool results. MT “W-O Ashley Sea” 

does not operate on fixed routes but is deployed 

throughout <strong>the</strong> world. 

<strong>The</strong> operating areas <strong>of</strong> <strong>the</strong> ship in <strong>the</strong> year 2008 

were <strong>the</strong> North Atlantic, <strong>the</strong> North Sea and <strong>the</strong> 

Baltic Sea as well as <strong>the</strong> Mediterranean. Ope r - 

a tion <strong>of</strong> <strong>the</strong> ship in 2008 encountered no prob - 

lems and it was possible to deploy <strong>the</strong> ship 

almost without interruption. <strong>The</strong> charterer 

deducted only 20 hours <strong>of</strong> “<strong>of</strong>f hire” time 





which is EUR 0.28 million higher than <strong>the</strong> 

prospectus figure. <strong>The</strong> charter revenues at 

EUR 6.23 million are EUR 0.39 million higher 

than had been anticipated in <strong>the</strong> prospectus. 

<strong>The</strong> ship operating costs (OPEX) at EUR 1.73 

million are EUR 0.35 million more than <strong>the</strong> 

figure stated in <strong>the</strong> prospectus. Positive effects 

on <strong>the</strong> revenues side derive from an additional 

five operating days (365 instead <strong>of</strong> 360) as 

well as <strong>the</strong> gross charter rate <strong>of</strong> USD 26,300 

(corresponds to a pool rate <strong>of</strong> USD 33,000 

before pr<strong>of</strong>it-sharing). Compared with <strong>the</strong> 

guaranteed base charter rate <strong>of</strong> USD 22,700, 

this means additional earnings <strong>of</strong> some 

USD 1.31 million.

In <strong>the</strong> balance sheet currency “Euro”, <strong>the</strong> additional 

USD earnings are partly <strong>of</strong>fset by <strong>the</strong> de - 

preciation <strong>of</strong> <strong>the</strong> US Dollar (on average EUR/ 

USD 1.47 instead <strong>of</strong> 1.2839 as anticipated in 

<strong>the</strong> prospectus). Redemption payments were 

made to schedule in <strong>the</strong> business year 2008, 

so that <strong>the</strong> existing redemption advantage <strong>of</strong> 

USD 600,000 as compared with <strong>the</strong> original 

bank financing plan remained unchanged. In 

<strong>the</strong> business year 2008, dividends <strong>of</strong> 8.0 % on 

<strong>the</strong> limited partnership capital were distributed 

as foreseen in <strong>the</strong> prospectus. As envisaged in 

<strong>the</strong> prospectus, <strong>the</strong> one-ship company opted for 

<strong>the</strong> lump-sum determination <strong>of</strong> net income in 

accordance with § 5a EStG (tonnage tax) in <strong>the</strong> 

year 2005. 

Prospects 

For <strong>the</strong> business year 2009 we expect an operat - 

ing result <strong>of</strong> some EUR 2.3 million (at an aver - 

age exchange rate <strong>of</strong> EUR/USD 1.35 instead <strong>of</strong> 

1.26 as anticipated in <strong>the</strong> prospectus). <strong>The</strong> charter 

revenues are calculated at EUR 5.6 million, 

this being some EUR 0.4 million lower than <strong>the</strong> 

prospectus figure. This is due exclusively to <strong>the</strong> 

calculated depreciation <strong>of</strong> <strong>the</strong> US Dollar, as on 

<strong>the</strong> revenues side we are reckoning with <strong>the</strong> 

guaranteed minimum charter rate <strong>of</strong> USD 22,700 

gross p.d. and also <strong>the</strong> number <strong>of</strong> operating 

days corresponds to <strong>the</strong> prospectus figure. 

<strong>The</strong> ship operating costs at EUR 1.9 million 

are expected to be some EUR 0.5 million higher 

than stated in <strong>the</strong> prospectus. We calculate that 

redemption payments will be made to schedule 

in <strong>the</strong> business year 2009. Assuming that <strong>the</strong> 

minimum charter rate will be USD 22,700 gross, 

dividend distributions <strong>of</strong> 5.0 % are possible for 

2009. 








Operating days 558 569 















Paid in 105.0 105.0 







7.8 % 97.2 % 



65

66 

(Claus Brandt) 

Auditor 

Auditor’s Certificate 

“We hereby certify that we have examined 

<strong>the</strong> results <strong>of</strong> <strong>the</strong> one-ship companies 

as set out in <strong>the</strong> <strong>Annual</strong> <strong>Report</strong> <strong>of</strong> <strong>the</strong> 

<strong>Hanseatic</strong> <strong>Lloyd</strong> <strong>Reederei</strong> GmbH & Co. KG, 

Bremen, for <strong>the</strong> business year 2008 

(pages 52 to 65 <strong>of</strong> <strong>the</strong> <strong>Annual</strong> <strong>Report</strong>) as 

well as <strong>the</strong> example portfolio (page 42 <strong>of</strong> 

<strong>the</strong> <strong>Annual</strong> <strong>Report</strong>). Our task was to examine 

whe<strong>the</strong>r <strong>the</strong> figures <strong>of</strong> <strong>the</strong> annual results as 

<strong>of</strong> <strong>the</strong> 31st <strong>of</strong> December 2008 tally with <strong>the</strong> 

supplementary tax accounts prepared by 

<strong>the</strong> company, with <strong>the</strong> published subscription 

<strong>of</strong>fers and with <strong>the</strong> redemption schedules. 

We were able to convince ourselves that 

<strong>the</strong> data presented correspond to <strong>the</strong> actual 

situation and that <strong>the</strong>se have been developed 

in a ma<strong>the</strong>matically and factually correct 

manner.” 

Hamburg, 22nd May 2009 

PricewaterhouseCoopers 

Aktiengesellschaft 

Wirtschaftsprüfungsgesellschaft 

(ppa. Reinhard Muchow) 

Auditor

<strong>The</strong> exclusively chartered out Hansa Mare Fleet 

Harro Kniffka, Founder <strong>of</strong> <strong>the</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> 

Group, founded <strong>the</strong> Hansa Mare <strong>Reederei</strong> in 

Bremen toge<strong>the</strong>r with partners in <strong>the</strong> year 

1992. Via <strong>the</strong> company <strong>Hanseatic</strong> <strong>Lloyd</strong> Holding 

<strong>the</strong> community <strong>of</strong> heirs, <strong>the</strong> Kniffka family, continues 

to be a 50 % shareholder <strong>of</strong> <strong>the</strong> Hansa 

Mare <strong>Reederei</strong>. Thorsten Mackenthun, besides 

Burkhard Rösener, Managing Director <strong>of</strong> <strong>the</strong> 

<strong>Hanseatic</strong> <strong>Lloyd</strong> <strong>Reederei</strong>, has fur<strong>the</strong>rmore 

been a member <strong>of</strong> <strong>the</strong> company management 

<strong>of</strong> <strong>the</strong> Hansa Mare <strong>Reederei</strong> since 2001. 

Ships <strong>of</strong> good quality that can be used universally 

are a prerequisite for successful charter - 

ing out. With <strong>the</strong> exclusively chartered out container 

ships <strong>of</strong> <strong>the</strong> Hansa Mare fleet between 

1,000 and 4,000 TEU, <strong>Hanseatic</strong> <strong>Lloyd</strong> <strong>of</strong>fers 

ships in <strong>the</strong>se size classes that are interesting 

for <strong>the</strong> charter market. 

<strong>The</strong> following pages provide a summary overview 

<strong>of</strong> how <strong>the</strong> ships <strong>of</strong> <strong>the</strong> Hansa Mare fleet 

were chartered out in <strong>the</strong> reporting year and 

also look at <strong>the</strong>ir medium-term prospects. <strong>The</strong> 

economic results <strong>of</strong> <strong>the</strong> Hansa Mare one-ship 

companies will be published in <strong>the</strong> <strong>Annual</strong> 

<strong>Report</strong> <strong>of</strong> <strong>the</strong> Hansa Mare <strong>Reederei</strong> in mid-June 

2009. 

4,000 TEU-class 

MV “Mare Arcticum” 

Deadweight tonnage: . . . . . . . . . . . . . . . . . . . . . .52,267 tdw 

Length overall: . . . . . . . . . . . . . . . . . . . . . . . . . . . . .260.65 m 

Moulded beam: . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32.25 m 

Draught: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12.5 m 

Container storage capacity: . . . . . . . . . . . . . . . . . .4,038 TEU 

Speed: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25.0 kn 

Shipbuilders: . . . . . .Hyundai Heavy Industries, South Korea 

Year <strong>of</strong> issue: . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1999/2000 

In service since: . . . . . . . . . . . . . . . . . . . . . . .December 2000 

Current charterer: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .APL 

Current charter name: . . . . . . . . . . . . . . . . . . . . .“APL Chile” 

Current operating area: . . . . . . . . . . . . . . . Far East/Red Sea 

Operating days in 2008: . . . . . . . . . . . . . . . . . . . . . . . . . .365 

Revenues pool: . . . . . . . . . . . . . . . . . . . . . . .since July 2004 

Next routine dry dock overhaul: . . . . . . . . . . . . . . . . . . .2010 

Since August 2004, <strong>the</strong> MV “Mare Arcticum” 

has been in service for an eight-year period <strong>of</strong> 

employment with APL/NOL (American President 

Lines/Neptune Orient Lines), Singapore, at a 

daily rate <strong>of</strong> USD 28,500 and is thus chartered 

out in <strong>the</strong> long term until at least <strong>the</strong> end <strong>of</strong> 

July 2012. With 365 operating days, <strong>the</strong> MV 

“Mare Arcticum” was almost fully employed 

in <strong>the</strong> reporting year, and since entering service 

in <strong>the</strong> year 2000 until <strong>the</strong> end <strong>of</strong> 2008 it was 

in gainful employment for a total <strong>of</strong> 59 days 

more than had been forecast in <strong>the</strong> prospectus. 

<strong>The</strong> ship mortgage loan <strong>of</strong> <strong>the</strong> MV “Mare 

Arcticum” has been fully repaid since 

September 2007, i.e. five years earlier than 

originally anticipated in <strong>the</strong> prospectus. 

To reduce <strong>the</strong> consumption <strong>of</strong> lubricant and 

to lessen <strong>the</strong> burden on <strong>the</strong> environment, 

a so-called “Pulse Lubricating System” was 

fitted in October 2008. <strong>The</strong> savings in <strong>the</strong> 

consumption <strong>of</strong> cylinder oil on an annual 

basis are currently approx. 27 to 29 %. 

MV “Mare Atlanticum” 



Moulded beam: . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32.25 m 

Draught: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12.5 m 


Speed: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25.0 kn 




Current charterer: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .MSC 

Current charter name: . . . . . . . . . . . . . . .“MSC Scandinavia” 

Current operating area: .Europe/South America West Coast 




<strong>The</strong> MV “Mare Atlanticum” has been operating 

under charter for <strong>the</strong> liner shipping company 

MSC (Mediterranean Shipping Company), 

Switzerland, since January 2004. <strong>The</strong> latest 

renewal was agreed in April 2007 at a new 

rate <strong>of</strong> USD 28,950 per day and is valid for 

three years. In <strong>the</strong> reporting year, <strong>the</strong> MV 

“Mare Atlanticum” was fully employed with 

366 operating days. Since entering service in 

2000 until <strong>the</strong> end <strong>of</strong> 2008, <strong>the</strong> ship was in 

operation for 75 days more than stated in 

<strong>the</strong> prospectus. 


Atlanticum” was completely repaid at <strong>the</strong> end 

<strong>of</strong> <strong>the</strong> year 2007, i.e. five years earlier than 

had originally been assumed in <strong>the</strong> prospectus. 


to lessen <strong>the</strong> burden on <strong>the</strong> environment, a socalled 

“Pulse Lubricating System” was fitted in 

June 2008. <strong>The</strong> savings in <strong>the</strong> consumption <strong>of</strong> 

cylinder oil are currently approx. 27 to 29 % a 

year. 

67



MV “Mare Britannicum” 



Moulded beam: . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32.25 m 

Draught: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12.5 m 


Speed: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25.0 kn 


Year <strong>of</strong> issue: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2000 



Current charter name: . . . . . . . . . . . . . . . . .“APL Kaohsiung“ 

Current operating area: . . .Far East/US Gulf Coast/Jamaica 


Revenues pool: . . . . . . . . . . . . . . . . . . . . . . since July 2004 


Since October 2004, <strong>the</strong> MV “Mare Britannicum” 

has been chartered out in <strong>the</strong> long term to <strong>the</strong> 

liner shipping company APL/NOL (American 

President Lines/Neptune Orient Lines), Singa - 

pore, at a daily rate <strong>of</strong> USD 28,500. This contract 

runs until at least September 2012. Since 

13th August 2008, APL has sub-chartered <strong>the</strong> 

ship out to <strong>the</strong> Israeli shipping company ZIM. In 

<strong>the</strong> reporting year, <strong>the</strong> MV “Mare Britannicum” 

was almost fully employed with 365 operating 

days, this being 15 days longer than originally 

forecast in <strong>the</strong> prospectus. 

As things appear at present, assuming that 

fur<strong>the</strong>r special redemptions will be made in <strong>the</strong> 

year 2009, <strong>the</strong> ship mortgage loan will already 

be repaid in <strong>the</strong> course <strong>of</strong> <strong>the</strong> year 2010 and 

thus two years earlier than anticipated in <strong>the</strong> 

prospectus. 

To reduce <strong>the</strong> consumption <strong>of</strong> lubricant and to 

lessen <strong>the</strong> burden on <strong>the</strong> environment, a socalled 


August 2008. <strong>The</strong> savings in <strong>the</strong> consumption <strong>of</strong> 


year. 

68 

MV “Mare Caribicum” 



Moulded beam: . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32.25 m 

Draught: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12.5 m 


Speed: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25.0 kn 





Current charter name: . . . . . . . . . . . . . . . . .“APL Argentina” 

Current operating area: . . . . . . . . . . . . . . . .Far East/Red Sea 




Since September 2004, <strong>the</strong> ship MV “Mare 

Caribicum” has been employed by APL/NOL 

(American President Lines/Neptune Orient 

Lines), Singapore, for a charter period <strong>of</strong> eight 

years at a daily rate <strong>of</strong> USD 28,500. <strong>The</strong> ship is 

<strong>the</strong>refore chartered out on a long-term basis at 

least until mid-August 2012. 

With 365 operating days, <strong>the</strong> MV “Mare 

Caribicum” was almost fully employed in <strong>the</strong> 

reporting year. From <strong>the</strong> time <strong>the</strong> ship entered 

service at <strong>the</strong> end <strong>of</strong> 2008, it has earned re - 

venues on 40 days more than assumed in <strong>the</strong> 

prospectus. 


Caribicum” has been fully repaid since June 

2008, i.e. approx. four years sooner than 

predicted in <strong>the</strong> prospectus. 


to lessen <strong>the</strong> burden on <strong>the</strong> environment, a socalled 


August 2008. <strong>The</strong> savings in <strong>the</strong> consumption 

<strong>of</strong> cylinder oil on an annual basis are currently 

approx. 27 to 29 %. 

MV “Mare Lycium” 



Moulded beam: . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32.25 m 

Draught: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12.5 m 


Speed: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25.0 kn 




Current charterer: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .CSAV 

Current charter name: . . . . . . . . . . . . . . . . . .“Libra Mexico” 

Current operating area: . . . . . . . . . . . . . . . . .US Gulf Coast/ 

. . . . . . . . . . . . . . . . . . . . . . . . . . .South America East Coast 




Since September 2006, <strong>the</strong> MV “Mare Lycium” 

has been operating for <strong>the</strong> liner shipping 

company CSAV (Compañía Sud Americana de 

Vapores), Chile, under a long-term contract at 

a daily rate <strong>of</strong> USD 30,250. <strong>The</strong> ship <strong>the</strong>refore 

has a fixed charter at least until mid-September 

2011. Restructuring measures for <strong>the</strong> financially 

weakened charterer CSAV are currently being 

worked out with banks and tramp shipping 

companies. With 366 operating days, <strong>the</strong> 

MV “Mare Lycium” was again fully employed 

in <strong>the</strong> reporting year. Since entering service 

in <strong>the</strong> year 1999 until <strong>the</strong> end <strong>of</strong> 2008 <strong>the</strong> 

ship was in gainful employment for a total <strong>of</strong> 

29 days longer than originally predicted in <strong>the</strong> 

prospectus. 

As things look at present, <strong>the</strong> ship mortgage 

loan will be fully repaid in <strong>the</strong> course <strong>of</strong> <strong>the</strong> 

year 2010 (instead <strong>of</strong> in 2011 as anticipated in 

<strong>the</strong> prospectus). 


lessen <strong>the</strong> burden on <strong>the</strong> environment, a socalled 


October 2008. <strong>The</strong> savings in <strong>the</strong> consumption 

<strong>of</strong> cylinder oil on an annual basis are currently 

approx. 27 to 29 % a year.

MV “Mare Phoenicium” 



Moulded beam: . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32.25 m 

Draught: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12.5 m 


Speed: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25.0 kn 



In service since: . . . . . . . . . . . . . . . . . . . . . . . . .August 1999 

Current charterer: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .CSAV 

Current charter name: . . . . . . . . . . . . . . . . . . . . . . . . . . . . .--- 

Current operating area: . . . . . . . . . . . . .Middle East/Europe 




Since September 2006, <strong>the</strong> MV “Mare 

Phoenicium” has been operating under a 

long-term charter for <strong>the</strong> liner shipping com - 

pany CSAV (Compañía Sud Americana de 

Vapores), Chile, at a daily charter rate <strong>of</strong> 

USD 30,250. This employment lasts until at 

least <strong>the</strong> beginning <strong>of</strong> August 2011. Restruc - 

turing measures for <strong>the</strong> financially weakened 

charterer CSAV are currently being worked out 

with banks and tramp shipping companies. 

In <strong>the</strong> reporting year, <strong>the</strong> ship was fully employed 

for 366 days, this being 16 days longer than 

originally predicted in <strong>the</strong> prospectus. Since 

entering service in <strong>the</strong> year 1999 up to and 

including 2008, <strong>the</strong> ship has accumulated a 

total <strong>of</strong> 82 additional operating days as compared 

with <strong>the</strong> prospectus. 

As things appear at present, <strong>the</strong> ship mortgage 

loan will be repaid in full in <strong>the</strong> course <strong>of</strong> <strong>the</strong> 

year 2009 – instead <strong>of</strong> at <strong>the</strong> end <strong>of</strong> 2011 as 

anticipated in <strong>the</strong> prospectus. 

Like its sister ships, <strong>the</strong> MV “Mare Phoenicium” 

was also additionally fitted with a so-called 

“Pulse Lubricating System” in <strong>the</strong> year 2008. 

<strong>The</strong> savings in <strong>the</strong> consumption <strong>of</strong> cylinder oil 

are currently approx. 27 to 29 % a year. 

MV “Mare Siculum” 



Moulded beam: . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32.25 m 

Draught: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12.5 m 


Speed: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25.0 kn 




Current charterer: . . . . . . . . . . . . . . . . . . . . . . . . . . .“K” Line 

Current charter name: . . . . . . . . . . . . . . . .“Alvsborg Bridge” 

Current operating area: Far East/North America West Coast 




From May 2004 until <strong>the</strong> end <strong>of</strong> April 2009, <strong>the</strong> 

MV “Mare Siculum” was employed by <strong>the</strong> liner 

shipping company Maersk Line, Copenhagen, at 

a daily rate <strong>of</strong> USD 32,500. At <strong>the</strong> end <strong>of</strong> May 

2008, it was already possible to agree a direct 

follow-on charter with <strong>the</strong> “K” Line shipping 

company from 1st May 2009 at a daily rate <strong>of</strong> 

USD 29,950 gross and a duration at least until 

<strong>the</strong> beginning <strong>of</strong> March 2014. 

Due to a routine dry docking in Shanghai, <strong>the</strong> 

ship was in operation for 343 days in <strong>the</strong> report 

ing year. From <strong>the</strong> time <strong>of</strong> entering service 

in 1998 until <strong>the</strong> end <strong>of</strong> 2008, <strong>the</strong> ship accu mu - 

lated 68 additional operating days as compared 

with <strong>the</strong> prospectus forecast. <strong>The</strong> ship mortgage 

loan <strong>of</strong> <strong>the</strong> MV “Mare Siculum” has been 

fully repaid since July 2008, i.e. some two 

years sooner than original ly stated in <strong>the</strong> prospectus. 


lessen <strong>the</strong> burden on <strong>the</strong> environment, <strong>the</strong> dry 

docking was also taken as an opportunity to 

install a so-called “Pulse Lubricating System”. 

<strong>The</strong> savings in <strong>the</strong> consumption <strong>of</strong> cylinder oil 

are currently approx. 27 to 29 % a year. 

MV “Mare Superum” 



Moulded beam: . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32.25 m 

Draught: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12.5 m 


Speed: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25.0 kn 



In service since: . . . . . . . . . . . . . . . . . . . . . . . . .October 1998 

Current charterer: . . . . . . . . . . . . . . . . . . . . . . . .Maersk Line 

Current charter name: . . . . . . . . . . . . . . . . .“Maersk Tirana” 

Current operating area: . . .Far East/Eastern Mediterranean/ 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Black Sea 




In July 2004, <strong>the</strong> MV “Mare Superum” was 

chartered out to <strong>the</strong> liner shipping company 

Maersk Line, Copenhagen, for a period <strong>of</strong> 

at least 60 months and at a daily rate <strong>of</strong> 

USD 32,500. <strong>The</strong> earliest possible date for 

returning <strong>the</strong> ship is at <strong>the</strong> end <strong>of</strong> July 2009. 

As a result <strong>of</strong> <strong>the</strong> routine dry dock overhaul, 

<strong>the</strong> MV “Mare Superum” was in operation for 

343 days in <strong>the</strong> reporting year. Since entering 

service in <strong>the</strong> year 1998 until <strong>the</strong> end <strong>of</strong> 2008, 

<strong>the</strong> ship was in gainful employment for 43 days 

more than assumed in <strong>the</strong> prospectus. 

<strong>The</strong> ship mortgage loan was completely repaid 

in February 2008, i.e. almost two years earlier 

than foreseen in <strong>the</strong> prospectus. 

In order to reduce <strong>the</strong> consumption <strong>of</strong> lubricant 

and to lessen <strong>the</strong> burden on <strong>the</strong> environment, 

<strong>the</strong> dry docking was also taken as an opportunity 

to install a so-called “Pulse Lubricating 

System”. <strong>The</strong> savings in <strong>the</strong> consumption <strong>of</strong> 


year. 

69



MV “Mare Africum” 



Moulded beam: . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32.25 m 

Draught: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11.50 m 


Speed: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22.0 kn 



In service since: . . . . . . . . . . . . . . . . . . . . . . . . . . .April 1997 

Current charterer: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .PIL 

Current charter name: . . . . . . . . . . . . . . . . . .“Kota Ekspres” 

Current operating area: . . . . . . . . . . . . Far East/South Africa 


Revenues pool: . . . . . . . . . . . . . . . . . . . . . . .since April 2002 


<strong>The</strong> charter party with PIL (Pacific International 

Lines), Singapore, for <strong>the</strong> MV “Mare Africum”, 

which has now already been renewed for <strong>the</strong> 

third time, came into force at <strong>the</strong> end <strong>of</strong> May 

2008 and runs at least until <strong>the</strong> beginning <strong>of</strong> 

September 2010. <strong>The</strong> agreed daily charter rate 

<strong>of</strong> USD 26,250 is substantially higher than <strong>the</strong> 

current market level. In <strong>the</strong> year 2008 <strong>the</strong> ship 

was in operation for 365 days and to <strong>the</strong> full 

satisfaction <strong>of</strong> <strong>the</strong> charterer. <strong>The</strong> ship mortgage 

loan was fully repaid in <strong>the</strong> first quarter <strong>of</strong> 

2009. 

<strong>The</strong> “Alpha Lubricator” installed to reduce <strong>the</strong> 

consumption <strong>of</strong> lubricant and to lessen <strong>the</strong> 

burden on <strong>the</strong> environment achieves savings 

in <strong>the</strong> consumption <strong>of</strong> cylinder oil <strong>of</strong> currently 

approx. 29 to 33 % a year. 

70 

MV “Mare Caspium” 



Moulded beam: . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32.25 m 

Draught: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11.50 m 


Speed: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22.0 kn 



In service since: . . . . . . . . . . . . . . . . . . . . . . .November 1995 

Current charterer: . . . . . . . . . . . . . . . . . . . . . . . . .CMA CGM 

Current charter name: . . . . . . . . . . . . . . .“CMA CGM Beirut” 

Current operating area: . . . . . . . . . . . . . . . . .Mediterranean 


Revenues pool: . . . . . . . . . . . . . . . . . . . . . . .since June 2003 


Since August 2007, <strong>the</strong> MV “Mare Caspium” 

has been chartered out to <strong>the</strong> shipping com - 

pany, CMA CGM (Compagnie Maritime 

d`Affrètement/Compagnie Générale Maritime), 

Marseilles. <strong>The</strong> ship is very successfully char - 

tered out at least until mid-August 2011 for 

a period <strong>of</strong> 48 to 50 months at a daily rate 

<strong>of</strong> USD 25,000. In <strong>the</strong> reporting year, due to 

necessary repair work on <strong>the</strong> main engine 

<strong>the</strong> ship was in operation for 361 days. 


Caspium” was already fully repaid in <strong>the</strong> 

year 2002, i.e. five and a quarter years 

earlier than predicted in <strong>the</strong> prospectus. 

In November 2008, a so-called “Alpha 

Lubricator” was fitted in order to reduce 

<strong>the</strong> consumption <strong>of</strong> lubricant and to lessen 

<strong>the</strong> burden on <strong>the</strong> environment. This is expect - 

ed to achieve savings in <strong>the</strong> consumption <strong>of</strong> 

cylinder oil <strong>of</strong> approx. 29 to 33 % a year. 

MV “Mare Gallicum” 



Moulded beam: . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32.25 m 

Draught: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11.50 m 


Speed: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22.0 kn 



In service since: . . . . . . . . . . . . . . . . . . . . . . . . . . .June 1996 

Current charterer: . . . . . . . . . . . . . . . . . . . . .Yang Ming Line 

Current charter name: . . . . . . . . . . . . . . . . .“YM Hiroshima” 

Current operating area: . . . . . . . . . . Europe/US East Coast 




Since July 2005, <strong>the</strong> MV “Mare Gallicum” 

has been chartered out to <strong>the</strong> liner shipping 

company Yang Ming Line with a contract 

period <strong>of</strong> 59 to 61 months and at a daily rate 

<strong>of</strong> USD 33,000 – conditions which in terms <strong>of</strong> 

amount and <strong>the</strong> period <strong>of</strong> <strong>the</strong> charter still constitute 

a record until today. In <strong>the</strong> reporting 

year, <strong>the</strong> ship was almost fully employed with 

365 operating days, this being 15 more than 

stated in <strong>the</strong> prospectus. Operation <strong>of</strong> <strong>the</strong> ship 

is to <strong>the</strong> full satisfaction <strong>of</strong> <strong>the</strong> charterer, Yang 

Ming Line. 


Gallicum” was completely repaid 2.1 quarters 

ahead <strong>of</strong> schedule at <strong>the</strong> end <strong>of</strong> 2007.

MV “Mare Internum” 



Moulded beam: . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32.25 m 

Draught: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11.50 m 


Speed: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22.0 kn 




Current charterer: . . . . . . . . . . . . . . . . . . . . . . . . . . . . .KMTC 


Current operating area: . . . . . . . . . . . . . . . . . .Far East/India 




During <strong>the</strong> reporting year and until 16th March 

2009, <strong>the</strong> MV “Mare Internum” was chartered 

out to <strong>the</strong> French liner shipping company CMA 

CGM (Compagnie Maritime d`Affrètement/ 

Compagnie Générale Maritime), Marseilles, at 

a daily rate <strong>of</strong> USD 19,450. Despite a difficult 

market situation, from 23rd March 2009 it was 

possible to conclude a follow-up employment 

contract at a market-reduced rate <strong>of</strong> USD 6,500 

gross per day with <strong>the</strong> Korean liner shipping 

company KMTC (Korea Marine Transport Co.), 

with an option for a renewal <strong>of</strong> one year at a 

daily rate <strong>of</strong> USD 9,500. 

<strong>The</strong> MV “Mare Internum” was fully employed 

in <strong>the</strong> reporting year with 366 operating days. 

From <strong>the</strong> time <strong>of</strong> entering service in <strong>the</strong> year 

1997 until <strong>the</strong> end <strong>of</strong> 2008, <strong>the</strong> ship was thus 

in operation for a total <strong>of</strong> 25 days more than 

anticipated in <strong>the</strong> prospectus. 

As foreseen in <strong>the</strong> prospectus, <strong>the</strong> ship mortgage 

loan will probably be fully repaid in <strong>the</strong> 

autumn <strong>of</strong> 2009. <strong>The</strong> “Alpha Lubricator” installed 

in November 2008 to reduce <strong>the</strong> consump 

tion <strong>of</strong> lubricant and to lessen <strong>the</strong> burden 

on <strong>the</strong> environment achieves savings in <strong>the</strong> 

consumption <strong>of</strong> cylinder oil <strong>of</strong> currently approx. 

29 to 33 % a year. 

MV “Mare Ionium” 



Moulded beam: . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32.25 m 

Draught: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11.50 m 


Speed: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22.0 kn 




Current charterer: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .--- 


Current operating area: . . . . . . . . . .In <strong>the</strong> roads <strong>of</strong>f Thailand 




<strong>The</strong> charter party with <strong>the</strong> liner shipping company 

Maersk Line, Copenhagen, at a daily rate 

<strong>of</strong> USD 24,000 and with a duration <strong>of</strong> 46 to 48 

months for <strong>the</strong> MV “Mare Ionium” ended at <strong>the</strong> 

end <strong>of</strong> April 2008. <strong>The</strong> option for a renewal <strong>of</strong> 

<strong>the</strong> charter party by a fur<strong>the</strong>r year envisaged a 

daily charter rate <strong>of</strong> USD 25,000 and this option 

was exercised by Maersk Line. On 16th March 

2009, <strong>the</strong> MV “Mare Ionium” was returned to 

<strong>the</strong> shipping company and is currently in <strong>the</strong> 

roads <strong>of</strong>f Thailand ready for operation. It has 

so far not been possible to agree any new 

employment. 

With 366 operating days, <strong>the</strong> ship was fully 

employed in <strong>the</strong> reporting year, this being 

16 days more than originally predicted in <strong>the</strong> 

prospectus. 

As things appear at present, <strong>the</strong> ship mortgage 

loan will be repaid in full in <strong>the</strong> course <strong>of</strong> <strong>the</strong> 

year 2009 in conformity with <strong>the</strong> prospectus. 

<strong>The</strong> “Alpha Lubricator” installed in November 

2008 to reduce <strong>the</strong> consumption <strong>of</strong> lubricant 

and to lessen <strong>the</strong> burden on <strong>the</strong> environment 

achieves savings in <strong>the</strong> consumption <strong>of</strong> cylinder 

oil <strong>of</strong> currently approx. 29 to 33 % a year. 

MV “Mare Thracium” 



Moulded beam: . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32.25 m 

Draught: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11.50 m 


Speed: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22.0 kn 






Current operating area: . . . . . . . . . . . . . . . . . .Far East/India 


Revenues pool: . . . . . . . . . . . . . . . . . . . .since October 2001 


From mid-December 2007 up to and including 

4th September 2008, <strong>the</strong> MV “Mare Thracium” 

was employed by <strong>the</strong> Heung-A Shipping Co. 

Ltd., South Korea, at a daily rate <strong>of</strong> USD 28,000. 

Directly after this <strong>the</strong> ship was successfully 

chartered out to <strong>the</strong> Korean liner shipping company 

KMTC (Korea Marine Transport Co.) at a 

daily charter rate <strong>of</strong> USD 19,100 with a long 

term <strong>of</strong> <strong>the</strong> contract until at least April 2011. 

Operation <strong>of</strong> <strong>the</strong> ship is to <strong>the</strong> full satisfaction 

<strong>of</strong> <strong>the</strong> charterer. With 365 operating days, <strong>the</strong> 

ship was almost fully employed in <strong>the</strong> reporting 

year, thus notching up 15 days more than <strong>the</strong> 

prospectus figure. 

<strong>The</strong> ship mortgage loan was completely repaid 

in <strong>the</strong> first quarter <strong>of</strong> 2009 as foreseen in <strong>the</strong> 

prospectus. 

71


1,700/1,000 TEU-class 

MV “Mare Ibericum” 



Moulded beam: . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25.30 m 

Draught: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9.95 m 


Speed: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19.4 kn 

Shipbuilders: . . . . . . . . . .Stocznia Szczecinska S. A., Poland 


In service since: . . . . . . . . . . . . . . . . . . . . . .September 1994 

Current charterer: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .PIL 

Current charter name: . . . . . . . . . . . . . . . . . . .“Kota Mawar” 

Current operating area: . . . . .South-East Asia/South Africa/ 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Angola 


Revenues pool: . . . . . . . . . . . . . . . . . . . since January 2008 


On 23rd May 2007, <strong>the</strong> MV “Mare Ibericum” 

started its period <strong>of</strong> employment for <strong>the</strong> charterer 

PIL (Pacific International Lines), Singapore. 

<strong>The</strong> ship was chartered out until mid-May 2008 

at a daily rate <strong>of</strong> USD 14,925 and <strong>the</strong> contract 

was renewed for 22 to 24 months at a daily 

rate <strong>of</strong> USD 17,650. This came into force on 

23rd May 2008 and runs at least until mid- 

March 2010. 

<strong>The</strong> ship operates between <strong>the</strong> Far East and 

south-east Africa and was almost fully employed 

in <strong>the</strong> reporting year with 365 operating 

days. <strong>The</strong> ship does not join convoys through 

<strong>the</strong> Gulf <strong>of</strong> Aden due to <strong>the</strong> low convoy speed. 

<strong>The</strong> Hansa Mare ships on <strong>the</strong> o<strong>the</strong>r hand travel 

through <strong>the</strong> endangered areas at top speed. 

Onboard operation <strong>of</strong> <strong>the</strong> MV “Mare Ibericum” 

runs smoothly and to <strong>the</strong> satisfaction <strong>of</strong> <strong>the</strong> 

charterer PIL. <strong>The</strong> next dry dock overhaul with 

all class work (after 15 years <strong>of</strong> continuous 

operation) is prescribed for <strong>the</strong> year 2012. 

72 

MV “Mare Adriaticum” 



Moulded beam: . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22.30 m 

Draught: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8.26 m 


Speed: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17.5 kn 



In service since: . . . . . . . . . . . . . . . . . . . . . . .November 1993 



Current operating area: . . . . . . . . . . . . . . . . .Korea/Vietnam 




Until 19th October 2008, <strong>the</strong> MV “Mare 

Adriaticum” operated for <strong>the</strong> Gold Star Line 

(GSL) at a daily rate <strong>of</strong> USD 11,000. <strong>The</strong> 

follow-up charter with <strong>the</strong> charterer Magistral 

Container Lines (MCL) at a daily rate <strong>of</strong> 

USD 9,100 was prematurely terminated by 

<strong>the</strong> Hansa Mare <strong>Reederei</strong> as rental payments 

were outstanding. Despite <strong>the</strong> employment 

situation in <strong>the</strong> reporting year described above, 

<strong>the</strong> ship was in operation for 350 days. 

In an extremely difficult market environment, in 

<strong>the</strong> year 2009 a number <strong>of</strong> short-term employment 

contracts were concluded with various 

feeder operators at market rates <strong>of</strong> between 

USD 4,250 and 3,950 per day. <strong>The</strong> ship is currently 

chartered out to <strong>the</strong> charterer “KMTC” 

(Korea Marine Transport Corporation, Korea) 

at least until mid-July 2009 and with various 

options for renewals. 

MV “Mare Balticum” 



Moulded beam: . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22.30 m 

Draught: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8.27 m 


Speed: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17.5 kn 



In service since: . . . . . . . . . . . . . . . . . . . . . . . . . . .April 1993 

Current charterer: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .OEL 


Current operating area: . . .South-East Asia/Myanmar/India 




<strong>The</strong> charter party concluded for <strong>the</strong> MV “Mare 

Balticum” with <strong>the</strong> shipping company OEL 

(Orient Express Lines) at a daily charter rate <strong>of</strong> 

USD 10,450 was renewed on 9th June 2008 

with a new daily rate <strong>of</strong> USD 10,950 gross. On 

13th May 2009, <strong>the</strong> ship was returned by OEL 

and was taken over for a short period until June 

2009 by <strong>the</strong> shipping company MCC Transport 

Singapore Pte Ltd., Singapore, at a daily rate 

<strong>of</strong> USD 3,900. It has so far not been possible 

to agree a longer charter period due to <strong>the</strong> 

especially poor state <strong>of</strong> <strong>the</strong> market. 

Operation <strong>of</strong> <strong>the</strong> ship within <strong>the</strong> charter periods 

was to <strong>the</strong> satisfaction <strong>of</strong> <strong>the</strong> charterers and 

<strong>the</strong> ship was in operation for 362 days in <strong>the</strong> 

reporting year.

MV “Mare Doricum” 



Moulded beam: . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22.30 m 

Draught: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8.27 m 


Speed: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17.5 kn 




Current charterer: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .MSC 

Current charter name: . . . . . . . . . . . . . . . . . . . .“MSC Belize” 

Current operating area: . . . . . . . . . . . . . . . . . .Caribbean Sea 




In August 2007, <strong>the</strong> MV “Mare Doricum” enter - 

ed upon its employment for <strong>the</strong> charterer MSC 

(Mediterranean Shipping Company), Switzer - 

land, under a contract with a term <strong>of</strong> 12 to 

14 months and at a daily charter rate <strong>of</strong> 

USD 10,950. <strong>The</strong> renewal <strong>of</strong> <strong>the</strong> charter party 

was successfully agreed with <strong>the</strong> shipping company 

from 15th September 2008 at a daily rate 

<strong>of</strong> USD 10,000 gross for a fur<strong>the</strong>r 12 months. 

<strong>The</strong> ship was virtually fully employed in <strong>the</strong> 

reporting year with 365 operating days, this 

being 15 days more than anticipated in <strong>the</strong> 

prospectus. Operation <strong>of</strong> <strong>the</strong> ship is to <strong>the</strong> full 

satisfaction <strong>of</strong> <strong>the</strong> charterer MSC. 

<strong>The</strong> originally granted ship mortgage loan was 

completely repaid in <strong>the</strong> reporting year 2007 in 

conformity with <strong>the</strong> prospectus. 

MV “Mare Hibernum” 



Moulded beam: . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22.30 m 

Draught: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8.25 m 


Speed: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17.5 kn 



In service since: . . . . . . . . . . . . . . . . . . . . . . . . . . .May 1995 

Charterer: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .--- 

Charter name: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .--- 

Operating area: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .--- 

Operating days in 2008: . . . . . . . . . . . . . . . . . . . . . . . . . . .--- 

Revenues pool: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .--- 

Sale <strong>of</strong> <strong>the</strong> ship: . . . . . . . . . . . . . . . . . . . .17th October 2007 

Through a resolution <strong>of</strong> <strong>the</strong> extraordinary gener - 

al meeting <strong>of</strong> <strong>the</strong> shareholders on 29th August 

2007, <strong>the</strong> MV “Mare Hibernum” was sold to 

K/S Green Valley for USD 19.9 million and was 

handed over on 17th October 2007 against payment 

<strong>of</strong> <strong>the</strong> full purchase price. 

At <strong>the</strong> end <strong>of</strong> 2007, a first dividend payment in 

<strong>the</strong> total amount <strong>of</strong> 90 % <strong>of</strong> <strong>the</strong> limited partnership 

capital was distributed to <strong>the</strong> shareholders. 

In December 2007, this was followed by a 

fur<strong>the</strong>r partial dividend payment in <strong>the</strong> amount 

<strong>of</strong> 30 %, as well as on 4th December 2008 by 

payment <strong>of</strong> <strong>the</strong> remaining dividend in <strong>the</strong> 

amount <strong>of</strong> 6 %. <strong>The</strong> investors thus received 

dividend payments from <strong>the</strong> proceeds <strong>of</strong> <strong>the</strong> 

sale in a total amount <strong>of</strong> 126 %. 

With <strong>the</strong> sale <strong>of</strong> <strong>the</strong> MV “Mare Hibernum”, <strong>the</strong> 

company has ceased its business operations 

and has since <strong>the</strong>n been engaged in <strong>the</strong> wind - 

ing-up process. In accordance with <strong>the</strong> partnership 

agreement, <strong>the</strong> company counts as having 

been dissolved with effect from 31st December 

2007 and since 1st January 2008 <strong>the</strong> company 

name has <strong>the</strong>refore been changed to MV “Mare 

Hibernum” Schiffahrtsgesellschaft mbH & Co. 

KG i. L. 

MV „Mare Tuscum“ 



Moulded beam: . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22.30 m 

Draught: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8.27 m 


Speed: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17.5 kn 




Charterer: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .--- 

Charter name: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .--- 

Operating area: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .--- 

Operating days in 2008: . . . . . . . . . . . . . . . . . . . . . . . . . . .--- 

Revenues pool: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .--- 

Sale <strong>of</strong> <strong>the</strong> ship: . . . . . . . . . . . . . . . . . . . .16th February 2006 

In December 2007, a last dividend payment in 

<strong>the</strong> amount <strong>of</strong> 3 % on <strong>the</strong> limited partnership 

capital was distributed to <strong>the</strong> shareholders. 

This meant that dividend payments in a total 

amount <strong>of</strong> 116 % <strong>of</strong> <strong>the</strong> limited partnership 

capital were paid out to <strong>the</strong> shareholders 

instead <strong>of</strong> <strong>the</strong> originally predicted 111.4 %. 

After some difficult years, <strong>the</strong> ship project 

“Mare Tuscum” could <strong>the</strong>refore be brought to 

a successful conclusion for all those involved. 

73

<strong>The</strong> Structure <strong>of</strong> <strong>the</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> Group 


GmbH & Co. KG 

Bremen, Germany 

MD: Thorsten Mackenthun 


<strong>Hanseatic</strong> <strong>Lloyd</strong> AG 

Uttwil, Switzerland 

Chairman & CEO: Henner Lothar 

<strong>Hanseatic</strong> <strong>Lloyd</strong> Schiffahrt 

GmbH & Co. KG 




One-Ship Companies Container Vessels 

<strong>Hanseatic</strong> <strong>Lloyd</strong> Chartering 

GmbH & Co. KG 

Hamburg, Germany 

MD: Christian Jäkel 

HLL Atlantic Schiffahrtsgesellschaft mbH & Co. KG 

HLL Baltic Schiffahrtsgesellschaft mbH & Co. KG 

HLL Adriatic Schiffahrtsgesellschaft mbH & Co. KG 

HLL Arctic Schiffahrtsgesellschaft mbH & Co. KG 

HLL Caribic Schiffahrtsgesellschaft mbH & Co. KG 

HLL Pacific (2) Schiffahrtsgesellschaft mbH & Co. KG 

One-Ship Companies Tanker 

HLL Aegean Schiffahrtsgesellschaft mbH & Co. KG 

HLL Barents Schiffahrtsgesellschaft mbH & Co. KG 

HLL Indian Schiffahrtsgesellschaft mbH & Co. KG 

HLL Ionian Schiffahrtsgesellschaft mbH & Co. KG 

HLL Black Sea 1) Schiffahrtsgesellschaft mbH & Co. KG 

HLL Red Sea 1) Schiffahrtsgesellschaft mbH & Co. KG 

HLL White Sea 1) Schiffahrtsgesellschaft mbH & Co. KG 

HLL Yellow Sea 1) Schiffahrtsgesellschaft mbH & Co. KG 

1) Newbuildings 

Sold container vessel: HLL Pacific (1) 

Sold tankers: HLL Arctic, HLL Biscay, HLL Caspian, HLL Celtic 

Initiated Partner Projects 

W-O Ashley Sea GmbH & Co. KG 

W-O Sharon Sea GmbH & Co. KG 

W-O Noroc Schiffahrtsgesellschaft mbH & Co. KG 

Board <strong>of</strong> Directors <strong>of</strong> <strong>the</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> AG, Uttwil/Switzerland 

Henner Lothar 

Chairman 


Member <strong>of</strong> <strong>the</strong> Board 

Adrian Howald 

Member <strong>of</strong> <strong>the</strong> Board 

Suter Howald Rechtsanwälte, Zürich, Switzerland 

<strong>Hanseatic</strong> <strong>Lloyd</strong> Singapore Pte Ltd 

Singapore 

MD: Henner Lothar 

Svein Kristiansen 

Advisory Board <strong>of</strong> <strong>the</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> AG, Uttwil/Switzerland 

Dr. Peter Haßkamp 

Chairman 

Former Chairman <strong>of</strong> <strong>the</strong> Board 

<strong>of</strong> Bremer Landesbank, 


Adolf Adrion 

Vice-Chairman 

Former Member <strong>of</strong> <strong>the</strong> Board 

<strong>of</strong> Hapag-<strong>Lloyd</strong> AG, 

Hamburg, Germany 

Christoph Hinz 

Director General retd, Former Head 

<strong>of</strong> Shipping Directorate in <strong>the</strong> 

Ministry <strong>of</strong> Transport, Berlin, Germany 

Container vessels exclusively chartered out by <strong>Hanseatic</strong> <strong>Lloyd</strong> Chartering 

Jean Albert Hulliger 

Former Director <strong>of</strong> <strong>the</strong> Swiss 

Maritime Navigation Office, 

Bern, Switzerland 

Dr. Bernd Kröger 

Former Chairman <strong>of</strong> <strong>the</strong> Board <strong>of</strong> 

Manag ing Directors <strong>of</strong> <strong>the</strong> German 

Shipowners Association, Hamburg, 

Germany 

Martina Wießner-Kniffka 

Shareholder HLL AG, Lawyer, 

Altnau, Switzerland 

Dr. Matthias Zieschang 

CFO Fraport AG, 

Frankfurt/Main, Germany 

<strong>Hanseatic</strong> <strong>Lloyd</strong> Holding 

GmbH & Co. KG 


MD: Karl Hornung 

50 % 

Hansa Mare <strong>Reederei</strong> 

GmbH & Co. KG 



Dr. Andreas Opatz 

<strong>Hanseatic</strong> <strong>Lloyd</strong> Handel 

GmbH & Co. KG 


MD: Karl Hornung 

HLL Treuhand AG 

51 % 

Bremen, Deutschland 

CEO: Heinz D. Schickhaus 

One-Ship Companies Container Vessels 

MS “Mare Arcticum” Schiffahrtsgesellschaft mbH & Co. KG 

MS “Mare Atlanticum” Schiffahrtsgesellschaft mbH & Co. KG 

MS “Mare Britannicum” Schiffahrtsgesellschaft mbH & Co. KG 

MS “Mare Caribicum” Schiffahrtsgesellschaft mbH & Co. KG 

MS “Mare Lycium” Schiffahrtsgesellschaft mbH & Co. KG 

MS “Mare Phoenicium” Schiffahrtsgesellschaft mbH & Co. KG 

MS “Mare Siculum” Schiffahrtsgesellschaft mbH & Co. KG 

MS “Mare Superum” Schiffahrtsgesellschaft mbH & Co. KG 

MS “Mare Africum” Schiffahrtsgesellschaft mbH & Co. KG 

MS “Mare Caspium” Schiffahrtsgesellschaft mbH & Co. KG 

MS “Mare Gallicum” Schiffahrtsgesellschaft mbH & Co. KG 

MS “Mare Internum” Schiffahrtsgesellschaft mbH & Co. KG 

MS “Mare Ionium” Schiffahrtsgesellschaft mbH & Co. KG 

MS “Mare Thracium” Schiffahrtsgesellschaft mbH & Co. KG 

MS “Mare Ibericum” Schiffahrtsgesellschaft mbH & Co. KG 

MS “Mare Adriaticum” Schiffahrtsgesellschaft mbH & Co. KG 

MS “Mare Balticum” Schiffahrtsgesellschaft mbH & Co. KG 

MS “Mare Doricum” Schiffahrtsgesellschaft mbH & Co. KG 

MS “Mare Tuscum” 1) Schiffahrtsgesellschaft mbH & Co. KG 

MS “Mare Hibernum” 2) 1) Sold in February 2006 

2) Sold in October 2007 

Schiffahrtsgesellschaft mbH & Co. KG 

(Status as at: May 2009) 

<strong>The</strong> Structure <strong>of</strong> <strong>the</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> Group

Copyright © 2009 by <strong>Hanseatic</strong> <strong>Lloyd</strong> 

All rights reserved. 

Copying, also <strong>of</strong> extracts, or any 

o<strong>the</strong>r form <strong>of</strong> reproduction, including 

<strong>the</strong> adaptation into electronic data 

bases and copying onto any data 

mediums, in English or in any o<strong>the</strong>r 

language is permissable only and 

exclusively with <strong>the</strong> written consent 

<strong>of</strong> <strong>the</strong> <strong>Hanseatic</strong> <strong>Lloyd</strong> <strong>Reederei</strong> 

GmbH & Co. KG, Bremen, Germany. 

Concept and design: 

causa formalis informationsdesign, 

Cologne, Germany 

Printed by: 

Scharnhorst & Reincke GmbH, 

Brinkum/Bremen, Germany

The Annual Report of the Hanseatic Lloyd Reederei on the Business ...

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