SSG No 10 - Shipgaz

The Höegh
Shanghai.
Whereas the contracting of cargo vessels
peaked in 2006, the main feature for 2007
was the ordering of large and expensive
offshore vessels for subsea work, construction
and maintenance in deep waters. Such
vessels may have building prices as high as
USD 150–200 million and are to a certain
extent built against long-term employment
to offshore contractors.
Last year also saw the ordering of
heavylift crane vessels and a number of
combined crane/accommodation vessels.
As for cargo vessels, Wilh. Wilhelmsen
and Höegh Autoliners have both contin-
what is Norwegian?
How is Norwegian shipping to be
understood, statistically? Is it the
40.9 million DWT as reported by
the NSA, or does it also include the
commercial or operational activities
carried out from Norway of fleets
controlled by foreign-based owners?
The NSA figures comprise genuine
Norwegian-owned companies and ships,
with some historic concessions like
Höegh and the former Bergesen fleet
that are now formally foreign-owned. It
does not include John Fredriksen’s Oslolocated
companies like Frontline and
Golden Ocean, nor the K G Jebsen London-based
companies, although its ships
are managed from Bergen. ISL-Bremen,
the institution with the perhaps the most
reliable statistics on national fleets, also
adopted the NSA figures a couple of
years ago.
Continuing globalization
We have repeatedly argued that the NSA
figures do not reveal the true commercial
and operational extent of the Norwegian
shipping community. Further,
the present definition is hardly tenable
as the shipping industry continues to
globalize, with Norwegians seeking formal
domicile in Singapore, Cyprus and
Bermuda, but continuing to operate
their business from Norway.
The complexity of our industry has
long ago transgressed traditional definitions
and national boundaries. The
key characteristic for being Norwegian
should be whether a major part of the
business in conducted from or within its
national maritime cluster. Commercial
head office, ship operation and management
are essential aspects.
By this definition foreign-owned
companies like BW Gas, BW Offshore,
Höegh Autoliners, Höegh LNG, Teekay
Norway, Frontline, Golden Ocean, Nordic
American Shipping and offshore companies
like Bourbon Offshore Norway,
Gulf Offshore Norway and Aries Offshore
Services should be included. Similarly
some of the companies controlled
by London-based entrepreneur Kristian
Siem like Subsea7 and Siem Offshore,
but not Star Reefers. Arne Blystad may
be a harder case, but his Norwegian-based
business is definitely larger today than
five years ago. Also, the figures should
include Norwegian-owned companies
relocated to Singapore and Cyprus, like
Masterbulk owned by the Westfal-Larsen
brothers, Deep Sea Supply, Prosafe and
Seadrill (formerly Smedvig, still with its
head office in Stavanger).
The new offshore companies set up by
Norwegian entrepreneurs in Singapore,
like Nor Offshore, Equinox, Nortech
and others, are drawing heavily on competence,
equity and financing from Norway.
Should they be considered a part of,
or at least affiliated with, the Norwegian
shipping community?
So, should the Norwegian fleet be
assessed to 40 or 70 million DWT? The
real question is perhaps rather whether
Norway is still one of the 3–4 leading
maritime communities in the world, or
merely a fallen star, in terms of tonnage?
Shipping investment 1995–2007
Billion USD � Second-hand purchases � New orders
20
15
10
5
0
‘95
‘96
‘97
SCANDINAVIAN SHIPPING GAZETTE • MAY 16, 2008 65
‘98
‘99
‘00
SHIPPING AND SHIP MANAGEMENT
‘01
‘02
‘03
‘04
‘05
‘06
‘07
Source: SSG-Bergen