ISSUE ONE 2015 www.maritime-ceo.com

Cousins steer new course Cesare and Paolo d'Amico reveal

pooling plans

Issue one 2015 1

3 At The Prow

Economy5 US6 EU7 China8 India9 Brazil

Markets11 Dry Bulk13 Tankers15 Containers17 Offshore19 Finance

Executive Debate20 Does a good looking ship

earn more dollars?

Profiles24 Cover Story d'Amico 27 Auerbach28 Gestion29 TCC31 NSB32 Greatship33 Global Marine Systems35 Delphis36 Bengal Tiger Line37 Shreyas39 Celsius40 Dalmare41 Pola Maritime42 AAL

Recreation43 Wine44 Gadgets45 Books46 Travel47 Golf49 Yachting

Opinion50 The Secret P&I Chap51 The Contrarian 52 MarPoll47

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Issue one 2015 3

I lose track of the number of ship-owners who have said to me in recent years they are shying away

from buying ships because they feel prices have not come down as much as they should have done given the sensational crash in rates the indus-try has experienced these past seven years. A majority of you, however, felt that overpriced ship prices are not a permanent feature in today’s altered shipping world. Voting in our second annual Future of Shipping Poll (results are on the back page) drew many intriguing comments.

“Overpriced ships are partly due to easy money from US investors. This money has created a bubble to asset prices,” one respondent wrote.

Indeed, American private equity has propped up prices – but, as our finance columnist, Dagfinn Lunde, reports on page 19, shipping is very, very unpopular with investors in the US where too many people have been burnt.

Nevertheless, there’s no sign of private equity being able to beat a retreat anytime soon.

Some two thirds of voters in our poll think PE will continue to have a strong influence on shipping for at least the next five years.

“They are here to stay,” one respondent wrote, adding: “And it will also drive the industry to become more transparent and more clean, more efficient. But it will also make the industry more shortsighted.”

Another person had this to say on the matter: “When they get what they want and find another industry to place their money printed by the trillions, then they will move away. But the PE money may stay for good in the same way they have stayed in the entertainment industry.”

Still, while we love having a Future of Shipping Poll, and all the

debate that it engenders, none of us can really tell what is going to happen in the markets. This time last year, analysts were bigging up dry bulk and doing down tankers.

Which leads me back to Dagfinn again, who memorably notes on page 19: “How much of shipping is sentiment led rather than by supply/demand facts never ceases to amaze – for an outsider it must look ridicu-lous.” Indeed, it must, but that is why we love it. ●

Sam ChambersEditorMaritime ceo

Your views on shipping going forward

at the prow

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Issue one 2015 5

reGULar eConoMY Us

A recent report from the National Association for Business Economics (NABE)

(see table) points to improved prospects in the US employment market, a lower inflation rate, and additional consumer spending growth in 2015, as compared to the organisation’s December 2014 report. A lot of this cautious optimism is, of course, based on globally lower oil prices as well as a strengthening of the dollar against most major currencies so far this year. Lower oil prices should help the recovery of the American economy for some time to come – NABE forecasts that crude oil prices, which went down from $98 per barrel in December 2013 to $59 in December 2014, will average $61 by the end of 2015 and $69 by the end of next year. That will give much of America’s manufacturing base, and hopefully consumer users too, some much needed breathing space. However, it should be noted, there

will be a larger US trade deficit this year and signs of reduced corporate profit growth forecasts.

When it comes to the American economy there are always hawks and doves. The 2014 boost to employment seems to have faltered somewhat with companies concerned about overall profits for this year. Federal Reserve chair Janet Yellen recently commented: “If underlying condi-tions had truly returned to normal, the economy should be booming.” Yet it is not; why? Two factors seem

to be responsible. More Americans have jobs this year than last – the unemployment rate is down to 5.5%, its lowest mark in seven years. However, wage growth has been slow, even compared to other recov-ering regions such as Europe. This means consumer spending is taking longer to recover and so orders for new stock are lower than anticipated. With America still firmly wedded to a consumption track economy, this is not good news.

Secondly, the global econo-mies America relies on for orders, and cheap consumer goods, are becoming more expensive and also slowing down. China, India and Latin America are all going along slower than previously meaning less orders from overseas for American manufacturers and services. This situation is accentuated by the fact that the dollar is strengthening – good news for Americans travel-ling overseas as the US dollar is on its fastest rise in 40 years. But, of course, this makes US goods and services more expensive than foreign ones and that’s tough on exporters including everyone from Microsoft and Caterpillar. So far this dichot-omy between a strengthening dollar and sluggish overseas markets has adversely affected most sectors from consumer goods to machinery and agriculture. This explains the slowdown in hiring – manufactur-ing factories added just 8,000 new workers in February, down from an average of 18,000 a month last year. The situation – high dollar, sluggish export orders – is expected to last at least until the end of the year. ●

Cautious recoveryMost indicators point to solid growth, apart from wage increases

Solid growth coming2015 GDP growth 3.1%

2016 GDP growth 2.9%

2015Net monthly new job creation 250,000

2016Net monthly new job creation 216,000

Median forecasts in March from the National Association for Business Economics

maritimeceo6

reGULar

As ever the European Union (EU) remains a game of two halves – one side

performing OK-to-good; the other bad-to-disastrous.

In March, EU finance minis-ters agreed to roll out the so-called ‘Juncker investment plan’ in order to revive the continent's generally timid economic recovery. The Juncker Plan is supposed to unlock €315bn to finance projects aimed at rejuvenating the EU's economy. The idea is to stimulate long-term financing for projects that con-tribute towards the EU’s common priorities: namely in the sectors of energy, digital, transport and innovation; as well as supporting the backbone of the EU’s economy: SMEs and mid-cap companies. The plan is intended to spur growth in Europe through an elaborate scheme involving a total of €21bn from the European Investment Bank and funds from the EU's budget, which is supposed to unlock billions of private investors’ money. The plan will run for four years but will be reviewed after three years to see if it is working.

At the same time many are arguing that the EU is becom-ing increasingly protective and inward looking as it concentrates on domestic issues such as the rise of anti-austerity parties in Greece, Spain and elsewhere as well as the threat of EU exit referendums in Britain and several other countries in the coming few years. The idea of bolstering a ‘Fortress Europe’ has its opponents and its supporters. In late March, the EU imposed anti-dump-ing duties on imports of stainless steel cold-rolled sheets from China and Taiwan. The commission intends to set tariffs of about 25% for imports

from China and of about 12% for Taiwanese product, following a complaint lodged in May 2014 by the European steel producers associa-tion, Eurofer. Chinese steel exports to the EU increased to 4.5m tonnes last year from 1.2m tonnes in 2009.

Despite this imposition of anti-dumping duties, which annoyed Beijing unsurprisingly, European governments chose controversially to join a nascent, Chinese-led Asian Infrastructure Investment Bank (AIIB) in defiance of Washington's vocal misgivings. Germany, France, Italy, Luxembourg and Switzerland quickly followed London in sign-ing up to the new bank. Many in the EU had long urged Beijing to

recycle some of its trade surplus into building transport, energy and telecommunications networks in developing nations, but they wanted it to use the World Bank and the Asian Development Bank. London, Paris, Rome and others will hope that by signing up early they will get first mover advantage when it comes to the always messy business of award-ing contracts to foreign companies for large infrastructure projects in China and Asia.

Meanwhile, as ever, some countries are performing better than others. The recovery of the Irish economic miracle appears to be con-tinuing with Dublin revising export predictions upwards. The weakness of the euro is thought to be the major reason, making exports to Ireland’s largest export destination, the UK, better value. However, the UK economy, while growing, may take a decidedly anti-EU stance following the imminent general election, where parties and politicians advocating an exit from the union are expected to make gains. ●

Game of two halvesThere’s always the haves and the have-nots when it comes to writing about the European economy

Europe’s fastest grower – Ireland GDP growth in 2014 4.8%

Forecast GDP growth in 2015 3.8%

Forecast export growth in 2015 5.7%

Forecast unemployment by end 2015 9.8%

Forecasts from Ireland’s central bank on April 1

eConoMY eU

Issue one 2015 7

There’s no doubt that China’s growth story is complicated at the moment. On the one

hand, China’s economy is growing more slowly at 7.4% last year, com-pared to 7.7% for the two previous years. However, the incremental increase to the size of China’s economy was 100% greater than the increase a decade ago, when GDP rose 10%. This explains why the International Monetary Fund estimates that China accounted for almost one third of total global growth last year. Inflation-adjusted wages are up approximately 7% in China, compared to 2% in the US. Therefore, consumer spending is understandably still strong, up 11% versus 2% in the US. Yet instead of panda hugging there’s still a lot of panda slugging out there among analysts.

And there are reasons to be cautious. So much public infrastruc-ture has already been built across China that the growth rate of new construction is inevitably signifi-cantly lower. Commercially built, privately owned housing boomed during its first decade of existence in modern China, and is now growing more slowly as that sector matures. Similarly, as households acquire more essential large consumer items (washing machines, cars, fridges, etc) that sector will slow somewhat in the future. But this is all predictable and inevitable.

What is less predictable is the future for China as a manufacturer and exporter, as this obviously relies heavily on global economic trends. And it is trade where analyst concerns are greatest. Both imports and exports reported worse than anticipated numbers in January and the monthly trade surplus reached a

record $60bn. In short, Chinese man-ufacturing contracted in January for the first time in more than two years – exports down 3.3% and imports by 3%.

Most of this is due of course to globally slumping commodity prices – China’s crude oil imports fell by just 0.6% in volume terms but, due to price cuts, 41.8% in value terms. The number of tankers sailing for China is the same, it’s just the oil in them is significantly cheaper at the moment.

The news that China is planning to raise its own oil exports – Beijing has given Sinopec, CNOOC and PetroChina an oil product export quota of 9.75m tonnes, up about 20% from the initial limit set for 2014 – will mean more tankers sailing out of China’s ports with oil, but of course this will only add to the fuel glut globally and depress prices for longer. Given China’s overwhelming position as an oil importer/buyer, this might actually be a smart move long term.

What the Chinese doesn’t need right now is more trade spats. Yet, they’ve got them. Washington is preparing to challenge what it sees as illegal export subsidies to Chinese agriculture, medical goods and other sectors. This argument may well turn nasty and require WTO intervention. China will hope that nothing will stop its exports, needed to keep funding those wage rises and subsequent consumer expenditures that are essential right now to keep China’s growth rolling. ●

Reasons to be cautious about the People’s Republic

Sparks needed

eConoMY China

China’s average urban salary increases, 2010-2014

Year Gross average urban salary (RMB)

2010 36,539

2011 41,799

2012 46,769

2013 51,483

2014 52,388Source: Trading Economics & Statistics

maritimeceo8

March 31 is the last day of India’s fiscal calendar. It’s been a strong year for

India – a new, generally viewed as pro-business government, GDP esti-mates revised upwards, and the start of a reform process under the Modi administration.

Equity markets ended the year on a high, though the rupee is under some pressure. Still, sluggish Chinese growth compared to India meant more analysts have been closely watching India this last 12 months than ever before. The year saw growth in sectors such as mining, electricity and manufactur-ing, among others. The rupee may be under pressure, thanks largely to the strengthening of the US dollar, but that is making Indian exports cheaper while India, like everyone else, is benefitting from lower global oil prices.

The big job for the Modi govern-ment in the 2015-2016 fiscal year is to make good on its election promises of divesting the government from various sectors of the economy to improve efficiency and enhance the free market in India. Divestment in Coal India and the Steel Authority of India could be announced very soon. Local electrical companies, the state aluminium company and other energy sector holdings could swiftly follow.

All of this is leading more analysts to conclude that India is eclipsing China’s growth star both in terms of forward momentum in the economy as well as market liberalisa-tion. The stars do seem aligned – the growth of a middle class consuming group as China’s stalls, the demo-graphic dividend of a young working population compared to China’s rap-idly aging population, the currently

low penetration of goods and ser-vices distribution that should allow for a consumer boom, the existence of a flourishing democracy that may keep Chinese-style oligarchy and corruption at bay (or may not, it should be noted) and some compa-nies that have been long established and appear ready for investment and growth.

The IMF now forecasts that India will cross the $3trn GDP threshold in 2019, though much of this optimism is predicated on expectations of Modi carrying through much needed reforms and removal procedures of labyrinthine bureaucratic red tape. If he is unable to proceed with reforms as rapidly as investors expect then a strong pullback in foreign investment is expected.

Foreign trade will also be key to projected growth. The govern-ment’s imminent Five Year Foreign Trade Policy is expected to pro-mote exports of items, many from labour-intensive sectors such as textiles, leather and handicrafts, to key buyers such as the EU and the US. Potential markets in Africa, Latin America and Eastern Europe will also be targeted. The policy, which has been on the cards since last August, is being announced at a time when exports from India are under pressure. Exports in the last three months have declined due to contraction in global demand and the target of $320bn for fiscal 2014-15 looks to have fallen short. ●

The world’s fastest growing major economy The IMF reckons India’s economy will double in size in the ten years from 2009 to 2019

eConoMY india

“ More and more analysts are concluding that India is eclipsing China’s growth star ”

Issue one 2015 9

Brazil finished out 2014 in lacklustre fashion. With the government of Dilma Roussef

looking to introduce an austerity package this didn’t bode well for 2015.

Brazil’s GDP, according to the country state statistical organisa-tion, grew just 0.1% in 2014 from 2013, and expanded 0.3% in the fourth quarter from the third. The general analyst consensus was that the Brazilian economy was in poor shape and in need of reform.

The government’s immedi-ate reaction to the bad news – to announce tax hikes and state spend-ing cuts – led to demonstrations and a disgruntled public. Consensus opinion is about a half per cent contraction in GDP this year over last with a slightly larger contraction in industrial output. This will be matched by rising inflation (of about 7.7%). So, all in all, 2015 looks like being another year of economic disap-pointment for Brazil watchers.

The biggest problems are massive bureaucratic red tape across all sectors, poor infrastructure and a persistently high currency – all huge disincentives to business to win orders, make money and hire workers.

Real wages have grown some-what boosting consumer spending, but not enough and now wages appear to be stagnating again before a really sustainable consumer book ever took off. Unemployment had been dipping in Brazil, down to 5%, but now appears to be edging upwards again at 5.4% in March. This, of course, is further dampening any thoughts of a consumer-led recovery.

However, exports have

surprisingly seen a slight uptick of late. Brazil had a trade surplus of $458m in March as exports jumped on the first two months of the year. Partly this is due to some weakening in the generally high real against the US dollar making exports cheaper and more competitive, particularly to Brazil’s main export market, the US. The traditional big export categories performed better than expected – soybeans and maize – both seeing new export destinations such as the Middle East help boost figures. Similarly iron ore exports surged due to increased demand from China. The

iron ore story appears to be a good one in the short to medium term. Gavekal Economics in Beijing recently noted that, “Brazil’s iron ore exports to China will remain stable for five years but then a sharp slowdown in the Asian giant’s housing market will trigger a reduction in demand for steel”. Nothing lasts forever, of course, but China’s demand for Brazilian soybeans and iron ore appears strong until at least the end of the decade.

However, the stumbling block of infrastructural development is proving harder to overcome. A major scandal in Brazil’s state-owned energy company, Petrobras, combined with Roussef ’s impending austerity programme, means that there will be little investment in infrastructure to smooth the production process in Brazil or reform the highly-regulated energy market anytime soon. This will not be good news for the private man-ufacturing industry in the country. ●

eConoMY BraziL

Economy to take biggest nosedive for 25 years2015 GDP growth -0.83%

2016 GDP growth 1.2%

2015 inflation growth 8.12%

Survey of private economists carried out by the Central Bank on March 23

Another disappointing yearBrazil’s GDP is set to take its biggest hit for 25 years in 2015, fuelling protests

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Issue one 2015 11

reGULar

It finally happened. One of the big four iron ore miners (which include Vale, Rio Tinto, BHP,

and FMG) finally broke away from a united front in late March, with FMG stating it would be happy to cap iron ore production if the other three min-ers do the same. Rio Tinto and many Chinese steel mills quickly spoke out against the idea of capping iron ore production, and for now it appears that the big four will continue with their robust iron ore production expansion plans. Nevertheless, the united front has finally been broken.

We believe that in the near term, FMG’s suggestion of capping cross-company iron ore production will be dropped. However, the first major iron ore miner finally flinching is at least a small bit troubling for the dry bulk shipping market, and one has to wonder what will happen if iron ore prices decrease by a much larger amount later this year and/or in upcoming years. In addition, what happens if iron ore prices simply remain very low for a longer period that many currently anticipate?

Chinese steel production coming under pressure and being possibly set to fall significantly from last year’s level makes the above two scenarios more likely. And keep in mind that while many major miners are pushing back against any notion of capping production, many also continue to state they believe Chinese steel pro-duction will continue to grow. This is a view that we disagree with, at least for this year. We continue to believe that China’s steel production will decline this year, which would mark the first year-on-year decline since 1981. If miners were admitting that Chinese steel production is likely to decline this year, it would be easier to

be confident that the big four will all continue with plans to boost iron ore production significantly during the next several years.

At present, the Australian government continues to predict that Australian iron ore production will increase by 75m tons this year and will increase by 59m tons in 2016. Such large expected jumps are a positive for the dry bulk market, in a time when such positives have become rare. It is only in later years that Australian production growth is currently expected to reach low levels (but those are the years when Vale’s production is scheduled to rise significantly). At present, the Australian government predicts that Australian iron ore production will increase by 33m tons in 2017 and 24m tons in 2018. In its last guidance report, though, Vale reported iron ore production would increase by 13m tons this year, but then by 36m tons in 2016, 35m tons in 2017, and 42m tons in 2018.

The forecasts for Australia’s and Vale’s iron ore production are both encouraging for longer-term capesize prospects. The market’s reality, though, is that on any day iron ore production forecasts can change. Back on December 8, we reported that Vale announced it had lowered its iron ore production forecast for

2015 to 340m tons. Previously, Vale’s 2015 iron ore production stood at 348m tons. To be frank, on any single day the market can awake and find that a major has announced a reduced iron ore production forecast. Today Australian iron ore production is expected to increase year-on-year by 59m tons in 2016, but tomorrow the increase can be reduced to 40m tons or less.

The big four’s solidarity has finally been broken. Of course it is FMG which is struggling most with current iron ore prices, but the entire iron ore market is likely to face more pressure. Australian and Brazilian iron ore production is set to increase significantly during the second half of this year (as it does every year) and Commodore continues to believe iron ore prices will fall even further, with there being a very real chance prices will fall to $45. One of the four major iron ore exporters finally having flinched is concerning to us for the dry bulk market, and so to is the fact that iron ore production fore-casts from major miners are simply not set in stone. Both the dry bulk and the iron ore markets continue to hope for strength to emerge from China’s steel market, but with a likely first contraction in steel production there for 34 years this is looking optimistic. ●

Markets drY BULk

FMG flinches firstJeffrey Landsberg from Commodore Research details production plans for the top iron ore miners

Australian Iron Ore Production Forecast(2014 - 2018)950mt

900mt

850mt

800mt

750mt

700mt2014 2015 2016 2017 2018

Current forecast from Australian government (Courtesy of Commodore Research)

Issue one 2015 13

reGULarMarkets tankers

Since the crude oil prices col-lapsed in the second half of 2014 under the combined pressure of

too much production and not enough global demand, the market continues to debate what will happen next. How low will oil prices go? Will OPEC cut production? When will US shale oil production start to decline? Where does all the excess oil go? How much storage capacity is there worldwide?

On June 19 last year, the price for Brent, the global crude oil bench-mark, reached $115 per barrel, the highest price of the year. In the second half of last year, it became increasingly clear that oil supply was growing much faster than oil demand and oil prices started to weaken as a result. The main driver on the supply side was the rapid increase in US tight oil production, while the slowdown in Chinese oil demand growth has been frequently cited as the key factor behind the weakening oil demand growth. By September 2014, Brent crude oil prices had fallen below $100 per barrel and the price curve switched from being in back-wardation (when the futures price is below the expected future spot price) to contango (when the futures price is above the expected future spot price).

The decision by OPEC on November 27, 2014 not to cut their production quota disappointed the markets and accelerated the fall in oil prices. By the middle of January this year, Brent was at $45 per barrel. As spot prices fell much quicker than future prices, the Brent price con-tango became steep enough that first oil traders and later major oil compa-nies started to look at floating storage for crude oil. This can be seen in the

chart below, when the 12-month Brent spread (the difference between the current spot price and the Brent futures price 12 months from now) exceeded the costs of hiring a VLCC plus the financing cost of storing a 2m barrel cargo of crude oil for a year. There was a flurry of activity in the timecharter market and some 30-40 vessels (primarily VLCCs) were fixed, mostly for periods up to one year.

However, when VLCC charter rates increased and the oil market rebounded, with WTI prices increas-ing to above $60 per barrel, the level of contango reduced and floating storage became uneconomical. As a result, most of the VLCCs were relet into the market and our data indicates that only a few of the vessels taken on charter earlier in the year are currently being used for floating storage.

However, while the economics of floating storage appear to have diminished somewhat, nobody in the oil markets disputes that global crude oil production far exceeds crude oil demand. The International Energy Agency estimates that excess crude oil production in the first two quarters of 2015 will be 1.4m and 1.8m barrels per day respectively. This excess crude is being stored in

tanks worldwide. Unfortunately, it is unclear how much commercial and strategic storage capacity there is globally. No consistent and reliable data is available on storage capacity in the non-OECD countries. Within the OECD, only the US keeps track of storage statistics.

Anecdotal information suggests that storage capacity is filling up worldwide. In Cushing, Oklahoma, one of the largest commercial storage facilities in the US, crude oil stocks reached 54.4m barrels on March 13 of this year, or 77% of the reported 70.8m in total capacity. With respect to other parts of the world, recent reports from China seem to indicate that their commercial and strategic storage capacity is almost full as well.

Will the world run out of land storage capacity and be forced to revert floating storage (i.e. tank-ers)? For that to happen, the market contango has to widen significantly. Does this mean that oil prices are headed for another fall? It is impos-sible to say, but the next three to six months could be very interesting for both the oil and tanker markets. ●

Where will all the excess oil be stored?Poten & Partners’ Erik Broekhuizen mulls where oil prices are headed

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12 month Brent Time Spread vs 1 yr TC + Interest

VLCC 1 Yr TC Interest 12 Mos Brent Spread

Assumptions:Volume: 2 Mln bbls5% Interest rate

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02. Maritime_Maritime_CEO_210x297_v1.indd 1 09/02/2015 21:24

Issue one 2015 15

reGULar

Carriers and shippers alike have experienced a high degree of freight rate insta-

bility in recent years, especially in the Asia to Europe market. A closer analysis of the developments shows that the instability is getting worse, and there are no signs of a change in this pattern.

Very simply put, spot rates are currently governed by two main forces. On one hand the carriers are using general rate increases (GRIs) to push through an elevation of the rate level. On the other hand we see a constant erosion of freight rates every week, which are driven by the carriers’ attempt to retain customers in the face of competition from other carriers promising rate reductions.

It is of particular interest to calculate the magnitude of this weekly rate erosion. The graph shows how much the spot rate declines in an average week on the market from Shanghai to North Europe, in weeks where no GRIs are being implemented. As can be seen, the development has been highly neg-ative. In this context, it should be remembered that this trade saw an

overt freight rate war from mid-2010 until end-2011. In this period, the weekly rate erosion was a level of $20-30 per teu.

Today we have a situation wherein freight rates are eroding by $90 per teu each week – a level which is at least three times as strong as seen during the freight rate war in 2010-2011. Additionally, it is a situation which has been constantly deteriorating in the past three years and shows no signs of abating. Out of the first 12 weeks of 2015, five weeks saw rates decline in excess of $100 per teu from one week to the next.

The carriers are attempting to counter the erosion by increasing the magnitude and frequency of their GRIs. The problem is that the level of erosion has reached a point whereby carriers have a need to implement an $800 per teu GRI almost every two months, only to keep rates in place. In this context, the GRI of $800 to $1,000 per teu announced for April 1 is not just in line with the ‘new normal’ for the market, but should be expected as a regular feature every couple of months.

Although the graph only shows the developments from Asia to North Europe, the same pattern is seen when analysing spot rates on export markets from Asia to the Mediterranean, North America, Middle East, Australia and South America. Only the Asia to Africa market has thus far avoided this trend.

One of the key factors contrib-uting to this development is the

structural overcapacity in the mar-ket, which places a negative pressure on rate development. All carriers strive to fill their new 14,000 to 19,000 teu vessels, as the anticipated scale benefits will only material-ise if utilisation levels are high. In recent years, carriers have become more adept at using blank sailings to compensate for the injection of new tonnage, but seen from the spot rate development, this has not been entirely successful. ●

Overcapacity is eroding freight rates from Asia to Europe by $90 per teu a week so far this year, writes SeaIntel’s Lars Jensen

Markets Containers

“Carriers and forwarders will

need to adapt to instant transparent pricing, or be left behind in this competitive industry”— Zvi Schreiber, CEO, Freightos

The freight rate rollercoaster

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02. Maritime_Maritime_CEO_210x297_v1.indd 1 09/02/2015 21:24

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Issue one 2015 17

reGULar

A year ago we were in a very different setting. Oil was hovering comfortably above

$100 per barrel, new vessels a plenty were being ordered and delivered, China was getting its house in order on quality, and delivering fine ves-sels and the chartering (orderbook) was healthy.

Turn the clock forward one year and we are in a market no one (and I mean no one) would have envisaged.

With oil now hovering uncer-tainly at almost half last year’s levels, we seem to have become used to $55 a barrel with an expectation that we will not see much above $80 per barrel until maybe 2017 at best. Who knows, we may get a reverse shock, one can be ever hopeful.

The oil price shock has sent the oil companies into a spin. They have

have cut the all-important capex by 15-44%. National oil companies (NOCs) capex cuts are as steep as the international oil companies (IOCs), the majors, with Indonesia (44%), China (30%), Brazil (28%) and Russia (21%) taking the brunt. Surprisingly Saudi Arabia is main-taining its capex spend but due to the lower oil prices is leaning on contractors to cut charter rates of OSVs by more than 20%.

People have been surprised at the NOC reaction and the fact they have moved to cut capex so quickly.

In most of the offshore sectors the focus has moved from deepwater to shallow water projects, which are easier to exploit with a massive move away from exploration and a strong focus on production. This has had a big impact on drillers who have been exposed to the global drilling rig market being on a down-hill slope since early 2014 due to rig oversupply. The oil price collapse has compounded the situation. We are seeing drilling rig contracts ter-minated left right and centre, with, for the first time, drilling rigs now going to scrap. Utilisation of drilling rigs has plummeted globally.

Those service companies that support production related activi-ties are faring better than most.

Deepwater is however not completely dead. Deepwater activity is highest in Africa with development still ongoing in Brazil. Selected deepwater fields continue to be developed. IOCs are selec-tively pursuing deepwater projects. The projects remaining in favour are subsea tiebacks to existing

production hubs, due to the lower capex needed for field development. IOCs expect deepwater development costs to drop by 20-30% over the next 18-24 months. The deepwater sector has become hamstrung by massive increases in costs in recent years. These costs must be brought into line for this industry to survive.

Globally, the oil and gas industry faces stock erosion, poor earnings and access to funding becoming a particular struggle. As mentioned above, it’s not just about the cost of oil and cutbacks that is effecting the business but the industry (as a whole) really needs to get its head around costs. Offshore construction work costs are just too high and even with oil above $100 per barrel the IOCs were still not making money.

An austerity drive now per-meates across the entire industry – among oil companies, service providers and shipyards. ●

Markets offshore

“For the first time drilling rigs are going to scrap”

Austerity driveM3 Marine’s Mike Meade looks at the sudden and very large drops in capex by oil companies

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PRESIDENTChemical Shipping

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MANAGING DIRECTORTanker Shipping

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CEODry Bulk Owner

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Actions speak louder than words

Issue one 2015 19

Markets finanCe

I have recently returned from the US where I was attending the Capital Link event in New York

as well as the Connecticut Maritime Association’s (CMA) annual bash.

The greatest impression I had as I boarded my plane back to Europe from an enjoyable and hospitable week away was one of immense contrast. The contrasting senti-ment between a clearly upbeat US economy and a downbeat, frankly dismissive, attitude to shipping.

The mood in America was palpa-bly optimistic; the economy is clearly going places again. I read an interest-ing poll while out there – some 63% of all US companies surveyed think this year’s prospects are much better than last year. Sentiment is clearly very strong, a massive change from the 12 months since I was last in the US.

The take on shipping however is shocking. At Capital Link and CMA, negativity was everywhere as ship-ping share prices have tanked 50-70% and the dry bulk market continues to set new records on the wrong side. Private equity is not happy.

Wall Street is looking for exits rather than raising more money for shipping. Put simply, too many peo-ple have been burnt.

A common theme I picked up

was the perception that public ship-ping companies are rarely evaluated properly. The feeling is they are undervalued by the public.

A rare bright side looks like investments in gas with the likely exception of LNG. Changing trading patterns are clearly helping LPG.

I moderated a panel of second and third generation shipowners and the sense among the panellists was the public market is not for shipping; most are focused on keeping their business private, some with the help of private equity.

Preparing for the young ship-owner panel I got in touch with 16 previous commodores, the hall of fame-type honour bestowed annually by CMA, to get them to ask questions. Their thoughts and opinions proved fascinating. Stelios Haji-Ioannou told me shipping is extremely volatile, very high risk and you have to get the cycle right and that is a risky business model. Eletson’s Gregory Hadjieleftheriadis, meanwhile, said it had taken his company many, many years to build its fleet up to 21 ships and yet this younger generation can come in and order 20 ships at a time, some-thing he said was both amazing and wrong. Another nice nugget of advice from Hadjieleftheriadis was his view

that whatever your fleet size you can-not influence a charterer’s pricing.

Low oil prices formed much of the debate at CMA. There’s no doubt that ship speeds are going up, espe-cially on tankers.

Enthusiasm about the tanker industry was very noticeable. It is remarkable how sentiments are shift-ing – this time last year people were bigging up dry bulk. How much of shipping is sentiment led rather than by supply/demand facts never ceases to amaze – for an outsider it must look ridiculous. ●

“ Wall Street is looking for exits rather than raising more money for shipping”

Contrasting sentimentsDagfinn Lunde experiences a resurgent US economy and a downcast shipping mood while attending this year’s CMA

maritimeceo20

eXeCUtiVe deBate

A rustbucket is likely to lead to lower rate possibilities and more headaches for owners.

Keeping a vessel’s exterior in good condition not only protects an own-er’s reputation, but also ultimately his or her bottom line.

“The cosmetics side is criti-cal,” argues Tim Huxley, the ceo of Hong Kong’s Wah Kwong Maritime Transport Holdings, “as that is the frontline of your company's image. Crew are more motivated if it is a smart ship and first impressions our important – whether it be a char-terer, a vetting inspector or financier going onboard.”

Vaibhav Singhal, general man-ager at X-Press Feeders, reckons that customers never really get to get to know the inside of a vessel and they very much rely on the external cos-metic condition of a ship in deciding to do business.

Not mincing his words, Kevin Leach-Smith, vice president at Singapore’s Masterbulk, says: “First impressions are everything, espe-cially when it comes to port state inspectors and the like. Look like a rustbucket and they will treat you like a rustbucket, no matter how good your people and systems are.”

Huxley then cautions: “It's cer-tainly not everything and throwing paint at a ship will not cover any inherent ills.”

“Within Concordia Maritime,” relays Kim Ullman, the ceo of the Swedish tanker owner, “we as owners, require our vessels to be

painted in the corporate branding and maintained to this standard in service. With all corporate logos and branding being continuously intact and the corrosion resistance well maintained we market the vessels to reflect the high standards we work to giving our customers the confidence in our ability to safety transport their cargoes.”

Many customers require all chartered vessels to appear cos-metically attractive due to public perception for the protection of their reputation in the event of any nega-tive media incident, Ullman notes. In the same manner a well-protected coating gives greater corrosion resistance lowering maintenance and costs as the vessels age. With well maintained and quality underwater coating the fuel consumption can be reduced along with the environmen-tal impact.

Borje Anglerud, senior super-in-tendent at Northern Marine Management’s Houston office, comments: “With the vetting regime getting to a point where it’s over the top because they can’t find anything else to comment on, a ship can be rejected by owners or oil majors for cosmetic appearance.” A rust streak is often classed as heavy corrosion,

he says.A decent looking ship is also

important for those who are tasked with operating it, something that is often overlooked. Fared Khan, fleet personnel director at Hong Kong’s Wallem Ship Management, insists: “A good-looking vessel builds crew motivation and can have a positive effect on the physical and mental health of crew.”

Moreover, the Maritime Labour Convention’s reference to living con-ditions highlight the importance of a positive rest and work environment.

Surface preparation

Given limited crew resources, our respondents had plenty of advice on the best methods for maintaining the cosmetic integrity of a vessel.

Leach-Smith from Masterbulk has three words uppermost in his mind in answering this ques-tion: Preparation, preparation, preparation.

Proper surface preparation prior to application of paint is crucial, he says. “Without it,” he warns, “you may as well not waste your money on paint. Selection of the right paint is next.”

Northern Marine Management’s Anglerud admits he has seen weeks’ worth of surface preparation being wasted because the paint was not applied with sufficient thickness or only two coats were applied when the paint scheme called for three.

“Any rust spot arisen should be

Maritime CEO interviews top owners, operators and managers for their views and tips on vessel cosmetics

Why maintenance is an investment, not a cost

“ Look like a rustbucket and they will treat you like a rustbucket”

Issue one 2015 21

In profIle

tackled immediately to avoid it from spreading,” says Wah Kwong’s deputy COO, Capt J F Zhou.

Regular maintenance does not require a huge number of crew on board. Planned maintenance systems are an efficient tool to assist the crew to maintain the cosmetic integrity of the vessel.

Concordia’s Ullman recom-mends continual touch up fabric maintenance on a prioritised basis performed on long ocean passages in favourable climates. Likewise he says thoughtful hull preparation and product selection during drydock-ings assists with the longevity of the application coupled with consider-ately placed logos that avoid high abrasion impact areas such as tug pushing areas.

Deck corrosion is an issue for many of our respondents when main-taining a vessel, particularly when in between drydocking.

With hectic voyages on some vessels, impact damages in port

during cargo work and sea spray acting as a catalyst, deck corro-sion is often an issue, reckons Fleet Management’s managing director, Kishore Rajvanshy. “If not addressed,” he says, “the transfor-mation from a very good ship to rustbucket can be very rapid.”

Quick rate deterioration of fixtures and fittings, pipe clamps and brackets can cause early widespread unattractive deck staining, says Concordia’s Ullman.

Deck corrosion is especially an issue with older vessels, points out Leach-Smith from Masterbulk.

“You have to keep on top of it, or it is a never ending game which you can never win,” he warns.

Deck washing and cleaning is sometimes not feasible due to extremely short voyages, particularly

in small bulkers, says Wah Kwong’s Zhou, adding that the situation can become even worse if encountering bad weather.

In conclusion, Kenneth Koo, chairman of Hong Kong’s TCC Group, sums it up best.

“When I look at maintenance,” he says, “I do not necessarily inter-pret that as a cost. I tend to look at this more as an investment from the point of risk management. Being proactive, learning to apply early detection, diagnosis and preventative maintenance is the key.”

After all, maintenance costs are limited. It’s the consequential damages that are sustained when a vessel is at sea which will be the most destructive, potentially extending towards loss of life and reputation for the owner. ●

“ The cosmetics side is critical as that is the frontline of your company's image”

eXeCUtiVe deBate

maritimeceo22

In profIle

In profile this issueMaritime CEO’s 17 correspondents around the world have been in touch with many of the world’s top shipowners. Highlights are carried over the next 20 pages

Cesare d’Amico

p.24

Carlo Cepollina

p.41

Alex Saverys

p.35

Ian Douglas

p.33

Danilo Fumarola

p.28

Gaetano D’Alesio

p.40

Issue one 2015 23

In profIle

Bill Smart

p.36

Kyriacos Panayides

p.42

Kenneth Koo

p.29

Ramesh Ramakrishnan

p.37

Jeppe Jensen

p.39

Helmut Ponath

p.31

Ravi Sheth

p.32

Lucius Bunk

p.27

maritimeceo24

In profIle

The cover story of this issue takes us to Rome to catch up with the cousins con-

trolling one of Italy’s most powerful shipping concerns, d’Amico Group. Paolo and Cesare d’Amico are chairman and ceo of the 63-year-old firm respectively. They have been working at this family run line since the 1970s. With a giant diverse fleet, solid financial results and well timed vessel purchases, the d’Ami-cos are the envy of Italian shipping.

The company is made of a dry bulk division, a Milan-listed tanker division as well as a number of shipping service providers including port agency and shipmanagement.

Taking a new step in its Asia-oriented business strategy d’Amico is launching a new pool of supramax bulk carriers.

The new pool, called Medi Supra Pool Management, is dedicated to supramax bulk carriers from 53,000 to 64,000 dwt and is headed by Thor Andersen, based in Singapore in cooperation with Lucio Bonaso, the ceo of d’Amico’s dry cargo unit in Monaco and Ben Wilkes, the COO of d’Amico dry cargo in Singapore.

D’Amico’s supramax pool is the latest in a sudden recent flurry of new supramax pool announcements. Clipper and Genco formed one in January, while Thoresen Shipping created another last November.

Cesare d'Amico (pictured on this page) tells Maritime CEO: “Basically the idea to build up a pool came from the fact that our group in recent years has built many ships

in joint venture with third-party partners.”

The company has four such ships under construction in Japan at Oshima Shipbuilding in a joint venture with Coeclerici and another seven in China, five of which are d’Amico’s, one is co-owned by Venice Shipping & Logistics fund and one more by an unspecified European partner.

The pensive Italian shipowner believes that by operating a large number of vessels it’s possible to optimise the use of the ships and to gain more money taking advantage of d’Amico’s commercial relations and international network. The final goal of the pool is to get to 40 units in the fleet from the current base of

25 supramax vessels owned, in time charter and under construction. All the supramax bulk carriers in d’Amico’s fleet have already been transferred to the pool.

“We are talking with several Japanese operators and partners with ships under construction or with time charter contracts expiring because in many cases they do not have the commercial structure and expertise to operate the vessels on the spot market,” d’Amico says.

Given its strong and diversified international presence with offices in Monaco, Singapore, Stanford and Vancouver, d’Amico’s technical and commercial structure may be attrac-tive also to financial institutions, banks and institutional investors who have to manage their marine assets. “We are obviously interested even to consider partnerships with funds that want to invest and enter in our pool,” emphasises d’Amico.

Even with the present drop of the dry bulk market “not to be solved

“ The most important charterers and shippers are carefully selecting the best shipping companies to work with in order not to have bad surprises especially in the long term”

Cesare and Paolo d’Amico discuss the markets

Cousins pool talents

Issue one 2015 25

In profIle

soon”, the Italian shipowner finds some reasons to see the glass half full.

“The international trade of goods grew by 4-5%, the fleet will increase by 6-7% in 2015 and 2016, but from 2017 the new deliveries will collapse dramatically. Then the mar-ket will remain very difficult and volatile for the next two years but the companies well organised with their own commercial structures will be favoured,” he says, adding: “Another sensitive issue is the risk of counterparties: in this present sce-nario the most important charterers and shippers are carefully selecting the best shipping companies to work with in order not to have bad surprises especially in the long term. From our point of view many charterers are already selecting companies who are financially strong and with high quality ships and a long shipowning tradition.”

Meanwhile, d’Amico Group chairman, Paolo d'Amico (pictured on this page), is not afraid about the shipping downturn and looks at the future of liquid bulk with confidence. “Even with the pres-ent complex economic situation, d’Amico International Shipping, our tanker divison, has a favourable out-look for the future and confirms its long-term investment plan that will lead our company to have in 2017 one of the youngest fleets in the world”.

The gregarious owner reckons the tanker market remains volatile, but he is hopeful the past few months of solid earnings will continue later in the year after the upcoming tradi-tional seasonal decline.

With the most recent time charter-in contracts signed, d’Amico International Shipping is now among the top five tanker operators in the world in terms of the number of ves-sels operated. As of today the fleet is made up of 53 tankers, but the target is to reach 60 soon.

During the second half of 2014 the company sought further growth by expanding its time chartered-in fleet and, between July and early November, DIS took delivery of 11 vessels (eight MRs and three

handys), while two further time charertered-in handy vessels were delivered in mid-December. Such an increase in chartered tonnage allowed the company to take full advantage of the very strong fourth quarter charter market by deploying more ships in the spot market.

The Q4 2014 spot result rep-resented the company’s best spot performance since the first quarter of 2009, a positive market momentum that has continued at the beginning of 2015.

As of today DIS has ordered a total of 16 eco-design product tank-ers (10 MR and six handysize vessels), of which seven vessels were already delivered in 2014. This corresponds to an overall investment plan of approx-imately $490.7m and reaffirms the company’s strategy to modernise its fleet through eco newbuildings.

Moreover, the company has recently voiced its intentions to make its debut in the LR product

tanker department.As for the group’s international

presence, the plan according to its chairman, is to build on its strong Asian ties, especially in Japan and Singapore.

With a fourth generation of d’Amicos in place at the company, the reins of power look likely to be handed over soon after the present pair of top executives have clocked up a remarkable 40-plus years of ser-vice at the yellow-funnelled line. ●

CoVer storY

d'Amico Group

Founded in 1952 by timber mer-chants d’Amico is today one of the

largest Italian shipping lines. As well as dry bulk and tankers, it has port agency

and shipmanagement divisions.

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Issue one 2015 27

Composure, reflection, action – these are the traditional Hanseatic virtues that lie at

the heart of Auerbach, according to the firm’s good-looking website.

Action is definitely underway at the Hamburg-based firm as it chases its first foreign investors, aiming to double its equity to EUR40m.

Founded by Lucius Bunk (pictured, left) and Alexander Tebbe (pictured, right) in 2010, Auerbach is focused on the multipurpose (MPP) sector. Both had previously been with Ernst Russ, before coming up with a novel way to be a shipowner.

“When we started to consider founding a shipping company in 2010,” Bunk relates, “we of course often asked ourselves what to learn from the crisis.”

One of the key factors causing and still supporting the ongoing mar-itime crisis, Bunk points out, was the ease to raise both equity and debt to buy all different kinds of ships.

“Fleet growth at the time was not cargo driven. Instead there was a lot of artificially created demand for tonnage which resulted in an unprec-edented excess capacity with many of the ships being financed as single ship funds and not as part of a pur-posely-built and managed merchant fleet,” the German national observes.

Bunk and Tebbe decided to create a different model of equity participation, with an exclusive focus on one niche segment – MPPs.

“Rather than investing into individual ships,” Bunk explains, “our shareholders hold a direct stake

in our parent and holding company, i.e. in Auerbach Shipping itself – a company which strives to build up the entire maritime value chain, from technical management to cargo oper-ation, around a modern fleet of 10 to 15 multipurpose heavylift vessels.”

Once the fleet is fully up and run-ning Auerbach intends to establish direct access to cargo forwarders, in order to become less dependent of third parties and to raise investor returns when the shipping cycle turns.

Auerbach owns three 12,000 dwt MPP tramp ships today, each bought from distressed sellers at less than half of their respective newbuilding prices. Two of these vessels are part of a Beluga inspired 80-plus ship series built between 2004 and 2012.

The total Auerbach fleet oper-ated today consists of five vessels, with currently 10 employees ashore and more than 20 German seafarers onboard. Among the vessels managed is the Enercon-owned one-of-a-kind prototype vessel E-Ship 1. As Germany’s largest manufacturer of wind turbines, Enercon founder Aloys Wobben decided to put pen to paper and design a cargoship which makes use of the oldest form of seaborne propulsion: the wind. The E-Ship 1 is a 12,000 dwt MPP ship with four so-called Fletter sailing rotors on deck for additional sail propulsion. With ideal wind conditions fuel savings of up to 25% can be reached, Bunk says.

In addition to the five ships in the water Auerbach ordered four new

MPPs at Jiangzhou Union Shipard for delivery in 2016/17. The vessels were designed in Germany in close coop-eration with two heavyweights in the industry – Briese/BBC and Krey Schiffahrt. With 12,500 dwt and two 250 ton Liebherr cranes the one-hold design will consume up to 30% less fuel oil as compared with the prede-cessor Beluga design, Bunk claims.

There are no plans to look at other sectors. “On the contrary,” Bunk says, “we believe that the exclusive focus on the MPP market allows us to optimally utilise economies of scale, to build up and strengthen a clear brand and to establish ourselves as a market participant in a clearly defined industry.”

Expanding on Auerbach’s operating philosophy, Bunk says, “Vessels are a means to an end. They are utilised for the transport of cargo. We therefore believe that the key to success is to fully understand the demands of the cargo owners and forwarders. Only if we do so we can provide the optimal service to our heavylift customers.” ●

Auerbach

Founded in 2010 by two ex-Ernst Russ executives in Hamburg. Goal is to operate up to 15 multipurpose heavylift

ships.

Spot on

Multipurpose action Two former Ernst Russ highflyers are now making their own waves at Hamburg heavylift outfit, Auerbach

in profiLe

maritimeceo28

In profIle

Monaco-based Gestion Maritime is ready for its debut in the liquid bulk

market this summer and is also readying a significant dry bulk series of acquisitions. Two 50,000 dwt medium range tankers under construction at Hyundai Mipo Dockyard will deliver this June and August, says Danilo Fumarola, ceo of the company.

The ships, named Stenaweco Andrea Corrado and Stenaweco Caterina Corrado, have already been chartered out for five years to Stena Weco.

“The two coming new tanker ships are strategic for us and mark our entry into a new market that offers a degree of diversification of investments much appreciated by our shareholders, especially given the present market situation in dry bulk,” the ceo says.

Gestion Maritime was founded by the Corrado family. It is a pri-vately owned shipping company whose roots stretch back to 1908. It has grown from a small family com-pany to become a prominent global tonnage provider mainly in the dry bulk segment but ready to start a new business adventure in the liquid bulk market too.

Including the newbuildings still to be delivered, Gestion Maritime manages and operates dry bulk car-riers and chemical/oil tankers with a total tonnage of about 800,000 dwt and an annual carrying capacity of 4.2m tons of cargo.

“We have invested significantly in order to handle these ships according to the highest stand-ards required by the market,” says Fumarola. “Furthermore, apart from the new tanker vessels, we also took the opportunity to improve the standard of the management for the entire fleet made up of the current nine bulk carriers.”

The current crisis in freight rates for bulk carriers offers inter-esting opportunities for those who have financial resources, Fumarola maintains.

“We are seriously considering the possibility of modernising our

dry bulk fleet, taking advantage of the economic situation that allows replacement and renewal of tonnage at a historically very low cost,” says Fumarola, one of many Italian shipowners who call Monaco home. More specifically, Gestion is hunting down modern secondhand panamax and kamsarmax ships. “No new construction, because we believe the market is oversupplied enough,” Fumarola stresses.●

Gestion Maritime

A privately owned Italian shipping company based in Monaco. Fleet of

around 800,000 dwt is mainly dry bulk led with a recent additional focus on chemical

tankers.

Spot on

Liquid bulk debutGestion Maritime is about to take delivery of a pair of chemical tankers, while it looks to renew its dry bulk fleet

“I think every shipowner is

thinking when to start to use LNG as fuel”— Björn Rosengren, president and

CEO, Wärtsilä

“ We are seriously considering taking advantage of the economic situation that allows replacement and renewal of tonnage at a historically very low cost”

Issue one 2015 29

One of the grand names of Hong Kong shipping, Tai Chong Cheang Steamship

(TCC Group) held celebrations in Tokyo this January to mark 60 years of business with Japanese partners, a stream of business TCC chair-man Kenneth Koo is determined to develop.

TCC opened its Tokyo office under the name of Dowa & Co in the old Iino Building back in January 1955. Since then, TCC’s Tokyo presence has become the driving force of the family shipping enterprise’s growth.

In 2007, during the height of the so-called shipping supercycle, a decision was made to further strengthen TCC’s Japanese niche and the result is a substantial new-building fleet replacement program exclusively in Japanese shipyards with the majority of the tonnage long term chartered to TCC’s Japanese major operator friends.

“Back in 2007, I set out to develop a 21st century shikumisen strategy. That is coming to fruition,” Koo says. The old shikumisen strat-egy, combining financing, ordering and chartering out of Japan was how many of Hong Kong’s owners grew big in the 1960s.

TCC’s present newbuilding program of two panamaxes, two to three aframaxes and five to eight capesize bulk carriers to be built and delivered between now and 2020 are, for the most part, tied with long term charters to Japanese business partners.

Last November, TCC formed a joint venture, TK50, with Japanese shipping major, Kawasaki Kisen Kaisha (K Line) for a 182,200 dwt capesize to be built at Japan’s

Imabari Shipbuilding. Further ships might be added to this venture soon.

“In today’s increasingly frag-mented and commoditised shipping industry, closer collaboration between traditional shipowners would be so important in guarding and continuously improving the demanding standards of interna-tional shipping with a united voice,” Koo comments about the new venture.

Koo says TCC’s plan is based around what he describes as a bou-tique owner strategy, building ships towards specific commercial or stra-tegic requirements that the group’s business partners may have.

The TCC boss, the third gener-ation of Koos at the helm, is not at all optimistic about the freight rate environment, telling Maritime CEO, “Shipping is not going anywhere.”

While many other Hong Kong owners have put much of their future in China’s growth, Koo has felt that is a risky move for a long time. Owners should no longer put all their eggs in the China basket, he says. Other routes and markets need to be found as China’s growth slows and its lines take a lion's share of cargoes.

For a man born and brought up in a shipping empire, Koo has an interest in developing new technol-ogies to take the industry forward. TCC has been supporting research-ers at the University of Southern California (USC) Viterbi School of Engineering in developing a more efficient method to initiate com-bustion, providing a breakthrough, technological step forward in clean shipping design. The technology, transient plasma ignition (TPI), would allow marine diesel ships to reduce emissions, increase fuel economy and meet the International Maritime Organization’s (IMO) stringent emissions mandate with minimal modifications. The technol-ogy will serve as another feather in the cap of the storied history of this 98-year-old shipping line. ●

TCC Group

Founded in Shanghai in 1917 as Tai Chong Hsiang Company, a customs brokerage firm.

Became an owner in the following decade. Name of firm became Tai Chong Cheang

Steamship. The company was resurrected in Hong Kong in 1983. Fleet is a mix of bulkers and tankers. Boss is Kenneth Koo, the third

generation running one of Hong Kong’s best-known shipping

lines.

Spot on

Resurrecting the heady shikumisen days TCC’s Kenneth Koo is fostering plenty of business in Japan

in profiLe

“ Back in 2007, I set out to develop a 21st century shikumisen strategy. That is coming to fruition”

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Issue one 2015 31

In profIle

Helmut Ponath, ceo of Reederei NSB, is exasperated at Berlin’s intransigence on

making the German flag more com-petitive and more in line with other European nations. As the shipping line with the highest number of German flagged ships in the world, his opinions ought to be heard, but are currently falling on deaf ears in the Bundestag, Germany’s parliament.

The EU now allows seafarers to be relieved from 100% taxes on wages; Germany only allows a 40% cut however. Furthermore, at least five sailors of a crew on ships flying the German flag have to be German or European. Other countries do not have regulations regarding national-ities at all.

“With roughly 500 German and European sailors on our current 38 vessels with a German flag we had been the operator with the biggest

number of German flagged ships,” Ponath says, adding: “We regret that, even with the involvement of politics and associations, we weren’t successful in bringing the frame-work of support for the German flag to another level, which would ensure a European employee at sea the long-term ability to compete internationally and secure maritime knowledge in Germany.”

With expectations that con-tainer shipping is set to be in the doldrums for some time to come, NSB has been diversifying a great deal in the past year.

The company continues to push itself as a third party shipmanager, opening a branch in Shanghai named Asia Marine Shanghai in November.

Last October the company founded NSB Marine Solutions, offering shipmanagement processes. Customers can select from a broad portfolio of services, pick individual products or receive a full-service package.

While box shipping might still present challenges, Ponath is more optimistic about the offshore wind installation sector.

NSB has formed a joint venture with offshore specialist Offcon and has developed new designs for multi-purpose offshore vessels (MPOVs).

“The MPOV-Wind family is tailor-made to the requirements of the offshore wind market and offers a highly efficient and cost-optimsed concept which also includes logistics and maintenance to wind farm oper-ators,” Ponath says. ●

Flag frustrations The boss of Reederei NSB vents his frustrations at Berlin’s intransigence towards shipping

Reederei NSB

Founded in 1982, now one of Germany’s largest shipowners with around 100 ships, mainly container vessels, with some 400,000 teu of

capacity. Also focusing on wind installation recently.

Spot on

“ We regret that we weren’t successful in bringing the framework of support for the German flag to another level”

“These days mistakes in

estimation, financing, operations, project planning and execution as well as procurement will be punished immediately and can become killing factors for a shipyard”— Stephan Aumann, managing

director, Theordor Buschmann

maritimeceo32

In profIle

If it had not been for a differ-ence of opinion between the Sheth cousins over the manner

in which Great Offshore Limited should be run, there may not have been a Greatship Limited which, in nine short years since its launch of operations in March 2006, has become the undisputed number one offshore services supplier in India.

Vijay Sheth, who was basically running Great Offshore, insisted that the company be hived off from its parent, India’s largest private sector shipowner, Great Eastern Shipping. Cousins Bharat and Ravi Sheth reluctantly acquiesced to the separation, and Vijay walked off with what was re-named GOL Offshore, while Ravi, Bharat’s younger brother, was tasked with setting up a new offshore subsidiary.

“There was virtually no time lag between the completion of the court process for divestment, and the launch of Greatship’s operations,” says the unassuming Sheth, who was given the twin roles of execu-tive director of Great Eastern and managing director of the new entity Greatship.

“We started modestly, with the purchase of three secondhand

platform supply vessels (PSVs). Had we gone the newbuilding route at the time, it would have been a strain on the company’s finances, because, once you build up a fleet, you have overheads.”

Those three, incidentally, remained the only secondhand vessels that Greatship purchased. The following year, the company embarked on an ambitious new-building programme, placing orders for 13 new ships.

“At the time, the market was heated, and there was a shortage of shipbuilding slots,” says Sheth. “All the good shipyards were jam-packed. We ordered two platform supply ves-sels (PSVs) from Aker of Norway, and were actually instrumental in turn-ing Colombo Dockyard (CDL) from a predominantly ship repair facility into a serious shipbuilder. They even-tually built 11 vessels for us.”

Today, the company boasts a 22-strong fleet – seven 80-tonne anchor handlers (AHTSs), four D-class PSVs with the standard UT-755 design, two M-class mul-tipurpose vessels built by Keppel in Singapore (Greatship had four initially, of which two were sold), two 150-tonne AHTSs built in Indonesia, and six R-class remotely operated

vehicle support vessels (ROVs).The company also owns a new

P-class PSV, a slightly larger version of the standard PSV. It also has four 350 ft four-legged cantilevered oil rigs, of which the youngest only joined the fleet last month.

Greatship has left its erstwhile subsidiary, GOL Offshore, way behind. Operationally, the latter is doing well enough, but the balance sheet swims in a sea of red ink.

Greatship has no plans of adding to the fleet in the foreseeable future. Crude prices have come down to such an extent that prospecting for oil is not proving a very profitable proposition.

“Every offshore services com-pany, without exception, is in trouble at the moment,” says Sheth, who has just resigned his position as executive director in Great Eastern Shipping, in order to concentrate all his energies on Greatship.

“Currently, we are forced to wait and watch. If this low price in oil continues for a year, there will be a lot of blood on the street, and a lot of people going bankrupt.”

The one good thing that has happened as a result of the weak oil prices is that weak offshore players are being forced out of the market. A number of vintage offshore assets are moving in the direction of the scrapyard.

“The next one to two years will witness a lot of scrapping of old offshore assets,” says Sheth. “We have been lucky in that we have a young and modern fleet, and a reasona-bly healthy contract coverage. In addition, we are not over-leveraged on debt, so remain reasonably well positioned.” ●

The nine-year path to the topGreatship is India's number one offshore services provider, all thanks to a 2006 family bust-up

Greatship

Founded in 2006 as Great Eastern’s offshore arm, the firm is now India’s

top offshore services company with 22 vessels to its name.

Spot on

Issue one 2015 33

In profIle

There’s a glut of subsea installation vessels in the market at the moment, which

is presenting one ambitious com-pany plenty of acquisition targets. Global Marine Systems, which was taken over by HC2 Holdings last September, has a legacy that spans 160 years in the telecommunications market. The business today though is also immersed in other sectors supporting the digital requirements of the oil and gas market – fulfilling their demands for fibre to platform connectivity and undertaking a variety of projects that require the installation and burial of subsea cables. It also provides vessels for the offshore power market, something that is viewed by the company’s boss as a booming market.

“2014 saw us providing vessels to key customers in this market and we see a robust set of opportunities ahead,” says CEO, Ian Douglas.

Global Marine’s presence in Europe and Asia is particularly strong. In Asia this is thanks in a significant measure to some success-ful joint ventures, one of which - S. B. Submarine Systems - marks its 20th anniversary since inauguration this year. The other, Huawei Marine,

has just completed the successful sea trial for the second-generation repeater, upon Global Marine’s flag-ship vessel Cable Innovator.

“We believe that our Chinese joint ventures are well positioned to support the exponential growth of the offshore wind market in China,” says Douglas, whose past career included seven years working in the People’s Republic.

2015 will see Global Marine working in West Africa and North Asia in addition to its more tradi-tional geographies.

“As a company, we are keen to be involved in permanent reservoir monitoring opportunities globally, as we see this as a close fit with our subsea cable knowledge,” Douglas explains.

Douglas says the company’s cur-rent pipeline of work is strong and it finds itself short of ships, something that current market conditions bring great opportunities.

“We have plans in place to expand the fleet – we need ships to replace old tonnage and to meet demand, we intend to build our fleet with an asset mix of purpose-de-signed vessels both owned and chartered as business need dictates,” Douglas says. Global Marine has designs for newbuilds ready to go

but will wait to see how the market evolves in the coming months.

Douglas, who believes the oil price drop is only temporary, notes there’s lots of vessels on the market without work. “We will watch and see what openings this brings,” he says, adding, “We can benefit from the oversupply of subsea assets and buy and convert for our particular use.” ●

Tonnage lookoutGlobal Marine Systems, fresh from being bought out, is planning a subsea raid

Global Marine

SystemsSubsea operator bought out by HC2

Holdings last September. Plans to make the most of depressed asset prices to

bolster fleet soon.

Spot on

“ We can benefit from the oversupply of subsea assets and buy and convert for our particular use”

“What we have been seeing lately is

a movement towards class as both regulator and innovator”— Noboru Ueda, chairman,

ClassNK

TAI CHONG CHEANG STEAMSHIP CO. (SINGAPORE) PTE LTD.1 Raffles Place, #44-03 One Raffles Place

Singapore 048616TEL: (65) 6339 3928 FAX: (65) 6339 3930

WEBSITE: WWW.TCCFLEET.COM

Congratulations to the 10th Singapore Maritime Week 2015

Issue one 2015 35

In profIle

TAI CHONG CHEANG STEAMSHIP CO. (SINGAPORE) PTE LTD.1 Raffles Place, #44-03 One Raffles Place

Singapore 048616TEL: (65) 6339 3928 FAX: (65) 6339 3930

WEBSITE: WWW.TCCFLEET.COM

Congratulations to the 10th Singapore Maritime Week 2015

Founded in March 2004 and based in Antwerp, Belgian boxline Delphis has become

among the leading sub-4,000 teu container specialists in the world.

Alex Saverys is in bullish mood when comes calling. Having also recently stepped up to take over the reins from his father at bulk giant, Compagnie Maritime Belge (CMB), the 36-year-old has a lot on his plate, but as founder of Delphis he’s still got lots of plans on the container side.

Delphis has 14 boxships plus European feeder operator Team Lines as well as investments in European terminals.

“We have been and are expand-ing our container vessel fleet,” he says.

“Sub-4000 teu rates should improve during 2015, led by a small orderbook, healthy demand and improving time charter rates in the bigger sizes,” he insists, adding: “I see a big demand boost coming for the Eurozone: cheap oil, cheap euro and Draghi’s bazooka," a reference to the president of the European Central Bank’s recent EUR1.1trn quantitative easing programme. The impact will not be immedi-ate, Saverys says, but the second half of the year should see “nice” improvements.

Saverys has been and remains a champion of consolidation within the liner sector, something he has

been linked to potentially aiding in the past.

“Consolidation in the container shipowning sector has happened and will continue,” he says. He reckons it will be interesting to see what the impact will be of the current round of 20,000 teu ordering on the balance within alliances.

“I’m not expecting any great shakes in 2015 as the liners will get a profitability boost by the cheap oil, the market needs to digest the new alliance setups and most of the 18,000 teu-plus fleet will only deliver end 2016 and into 2017,” he says.

Delphis, best known as an intra-European player, has been one of the companies most affected by

this year’s introduction of emission control areas (ECAs). For Saverys, the ECA impact has yet to fully play out for shipowners, he reckons.

“1st of January 2015 came and 1st of January 2015 went and ships are still sailing around, so the market found a way to cope with low sulphur fuel,” he says. Low bunker prices helped with this shift, he says. “From a technical point of view,” he observes, “it’s too early to say what impact a prolonged consumption of marine gasoil will have on the engines of 10- to 15-year-old ships.”

Alex is the fourth generation of the Saverys in shipping, arguably Belgium’s oldest and best known name in maritime. ●

European container player has plans to grow

Delphis delves deeper

“Marine, traditionally, is a

very data-poor industry”— Tom Boardley, marine

director, Lloyd’s Register

“ Consolidation in the container shipowning sector has happened and will continue”

maritimeceo36

In profIle

Feeder operator Bengal Tiger Line (BTL) defines the very essence of niche marketing. As

a common feeder facilitator, it has managed to remain neutral in the industry, only carrying boxes belong-ing to the mainlines and NVOs, and operating only on feeder sectors.

In addition, the company refrains from direct ownership of vessels, preferring to go the charter route to avoid any conflict of interest with its part owner, the Schoeller Group, which owns and operates more than 70 ships.

Nor is there any conflict with Hamburg-headquartered Passat Shipping, which operates three 2,700 teu feeder vessels owned by BTL’s founding partner, Joachim Von Der Heydt, who has since moved to Singapore as executive chairman.

“We have some 35 scheduled vessels, of which just 15 are directly chartered in,” says BTL’s managing director Bill Smart, who joined the company as owner’s representative in Singapore in 1990.

“We have a range of feeders, from 600 to 2,700 teu vessels. India forms our core business, and we run services all along the country’s east-ern coast. We handle about 900,000 teu per annum, using the hub ports of Singapore, Colombo, Port Klang, Kaohsiung and Jebel Ali.”

The very concept of the com-pany’s name came from the golf

expression ‘tiger line’, and the fact that its main area of operation is the Bay of Bengal.

The carrier has never really gone well up the Indian west coast, mainly because of its perception of Jawaharlal Nehru port at Nhava Sheva as a hub for mainlines, and therefore, not much of a feeder market. Its cov-erage on the west coast is restricted to Goa, New Mangalore, Cochin and Tuticorin.

Feedering along India’s east coast poses its own challenges. “Draught plays a significant part in our oper-ations onto the northeastern coast

of India,” says Smart. “In the winter season, the draught drops to below 6 m at Kolkata; and that restricts the tonnage we can operate there.

“We take shallow-drafted vessels up the River Hooghly, and it can be pretty challenging because there are still antiquated lock-gate systems left behind from the colonial days. There is a mixture of mobile harbour cranes and self-sustaining vessels where approximately half of those working at Kolkata are geared.”

During shipping’s long recession, the company had its hands full keep-ing its nose above water.

“We looked at all the services we had, and rationalised where possible, to ensure that we were not over-de-ploying capacity,” says Smart. “That is the biggest problem in the industry – ensuring correct deployment so that the right balance is maintained between supply and demand.”

Apart from Singapore where it is headquartered, the company has been using Colombo as a regional tran-shipment hub, mainly because the Sri Lankan city has stayed ahead of the game, and created plenty of capacity in recent times.

“The basic infrastructure in Colombo has improved dramatically,” says Smart. “The port is a vision for the future, not just for the next five years. Sufficient capacity is being cre-ated to help Colombo retain its status as a significant regional transhipment hub for the next 25 years.

“Unfortunately, India missed a trick there. They talked about Vallarpadam for many, many years, but it was too slow off the blocks. It would have been nice to have had another base on Indian shores.” ●

The feeder operator has some of the best coverage in India

Bengal Tiger Line’s neutral path

“ The biggest problem in the industry – ensuring correct deployment so that the right balance is maintained between supply and demand”

Issue one 2015 37

In profIle

In January, Shreyas Shipping and Logistics, part of Dubai headquartered conglomerate

Transworld Group, created a slice of maritime history by becoming the first line to service domestic contain-erised cargo movement at all Indian ports, from Mundra up to Kolkata.

Deploying the newly acquired vessel SSL Gujarat, whose delivery was taken on January 19 this year at Jebel Ali in Dubai, on a self-oper-ated service along the coastal route, has enabled Shreyas Shipping and Logistics to link all ports. The new ship has also helped to increase the total tonnage by 25% to 98,696 grt.

The vision of Shreyas Shipping and Logistics is very much in line with the vision of India’s Ministry of Shipping for Indian coastal shipping, says Ramesh Ramakrishnan, chair-man of Transworld Group.

“With the addition of SSL Gujarat, Shreyas’ fleet is adequately

equipped to handle anticipated growth of trade on the coastal trade. That being said Shreyas is always on the lookout for very specific vessel types to suit requirements on the coast,” the Transworld chairman says. With this in mind, at the end of March, the board of Shreyas Shipping and Logistics approved a plan for the acquisition of four containerships ranging in size from 1,700 to 2,500 teu over the next two years.

“We are expecting a challenging year,” he admits, “with many new deliveries scheduled to be pressed into service. This added supply could put pressure on the rates. We will also be cautiously watching to see the continuing effect of the reducing

fuel prices on the industry.”Shreyas Shipping and Logistics

is the shipowning and operating unit of Transworld Group in the Indian subcontinent. The company was India’s first container feeder owning and operating company. It currently owns and operates a fleet of six ves-sels trading on the Indian coast.

Parent company Transworld is involved in many other maritime activities including ship agency, shipmanagement, freight forward-ing, contract logistics and non-vessel operating common carrier (NVOCC) operations. ●

Shreyas Shipping and Logistics becomes first line to cover all Indian boxportsThe offshoot of Dubai’s Transworld Group is also set to add another four ships to its fleet over the next couple of years

“ We are expecting a challenging year”

“We are not seeking to turn the

company into a goliath of shipping activities and lose our core focus or identity. We will leave that role to others”— Nigel Richardson,

managing director, EA Gibson

Issue one 2015 39

In profIle

Celsius Shipping is looking to diversify and is keen to invest in new tonnage this year.

Celsius acts as a platform for investors to come in on ship acquisi-tion deals with a focus on specialised tonnage.

Its investments to date have been centred on chemical and product tankers as well as LPG tankers. However, the time has come to look at other ship types too, says chairman Jeppe Jensen.

“We are focused on the core busi-ness segments we currently operate in – chemical tankers, LPG carriers and product tankers, but we may look into a new shipping segment during 2015 to diversify our business,”

Jensen tells Maritime CEO. Jensen will not be drawn on what sector he is looking at, but says analysis is ongo-ing as to the best time to get up and started in this new direction.

Jensen says 2014 saw signifi-cant growth for Celsius particularly within the stainless steel chemical tanker sector as ethylene carriers,

both second hand acquisitions and newbuildings.

“We expect the rates for stainless steel chemical tankers to firm up during 2015 and continue this trend into 2016,” Jensen says.

In March Celsius added four chemical tankers to its newbuilding list in China. The four 24,600 dwt vessels are priced at a total of around $160m and will deliver in 2017.

Jensen has a long history in ship-ping and latterly ship investment. He started out with AP Moller – Maersk, he then became CEO of JP Morgan’s ship investment vehicle, Ceres Marine Partners, before heading up GasLog. In addition to Celsius, he is an exec-utive director at Odfjell Gas Carriers and the founder of a shipping private

equity firm, Breakwater Capital.This extensive background gives

him clarity on what it takes to be a successful shipowner.

“As we have said many times,” he says, “we strive to get the long term right in our businesses, no matter when your entry happens. This approach to business and risk facilitates survival even in the most difficult periods of turmoil.”

Celsius recently shifted its opera-tions from Monaco to Denmark, while Breakwater Capital remains head-quartered in London. ●

Celsius risingThe Danish tanker player has plans to enter new sectors

Celsius Shipping

Denmark-headquartered Celsius Shipping has a fleet of around 60 ships, including newbuildings. Fleet is made

up of chemical, product and LPG carriers.

Spot on

“ We strive to get the long term right in our businesses, no matter when your entry happens”

“Shipmanagement services

nowadays have become commoditised to a point that cost efficiency, asset preservation, and fitness for purpose are a given”— Rajaish Bajpaee, chairman,

Bernhard Schulte Shipmanagement

maritimeceo40

In profIle

Following the abandonment of the dry bulk market with the sale of some assets recently,

Dalmare’s future strategy is to focus on the liquid bulk business mainly in the Mediterranean.

Gaetano D’Alesio (pictured, sec-ond from right), managing director of the company, together with his cous-ins Mauro, Francesco and Antonio, explains that the recent sales of two ships is part of Dalmare’s restruc-turing plan which also encompassed the sale of bulk carriers Giannutri and Montecristo as part of moves to quit the deepsea trades to intensively focus on port bunkering services in Leghorn-based tank farms and on cabotage services in Italy and the Mediterranean.

The short sea shipping business is operated on behalf of Eni through tankers Divina and Ardenza, engaged on seven-year time charters covering the route linking Sicily and Ortona port, and on behalf of Q8, with whom they recently sealed a two-year contract for a ship called Melaria. The entire fleet is made up of seven tankers and four bunker vessels.

The D’Alesio Group was founded more than seventy years ago by Gaetano D’Alesio, his sons Antonio and Nello continue to run the firm with the collaboration of the third

generation represented by Gaetano, Antonio, Mauro, Francesco and Elisa. As well as shipping the group is involved in oil storage and bunkering.

“Since Dalmare is a family owned company and cannot compete with the new shipping giants backed by private equity investors, we decided to follow a new business strategy oriented to the niche market rather than operating on the main interna-tional deepsea routes,” says D’Alesio, pointing out that its two 40,000 dwt MR tankers, Aquaviva and Caletta, are still operating on the spot market.

“We are interested in exploring

new business opportunities in the Mediterranean as we did in Algeria where we have chartered out one of our bunker vessels for a long time contract with the national oil com-pany,” says D’Alesio.

For more than 50 years D’Alesio Group has been the largest supplier of bunker products in the port of Leghorn as well as in the other ports of the Tyrrhenian coast from La Spezia to Piombino. ●

A great name in Italian shipping is turning its back on the deepsea trades

Dalmare concentrates on the Mediterranean

“ Since Dalmare is a family owned company and cannot compete with the new shipping giants backed by private equity investors, we decided to follow a new business strategy oriented to the niche market rather than operating on the main international deepsea routes”

Dalmare

Part of Italy’s family run D’Alesio Group. Involved in oil storage, bunker-ing as well as shipowning. Ditched dry bulk fleet recently to focus on tankers.

Spot on

Issue one 2015 41

In profIle

Pola Maritime is ready to order more handysizes, so long as prices for newbuilds drop a bit.

Carlo Cepollina is the general manager of Pola Maris, a company based in Antwerp which commer-cially represents Pola Maritime, a Russian owned private company established in 2006 in Cyprus as an entity backed by experienced share-holding interests in the dry bulk shipping industry.

“As soon as the dry bulk market recovers,” Cepollina says, “and Chinese shipyards return to reason-able prices, our plan is to order other newbuildings in order to reach a fleet of 20 owned handysize bulk carriers. After that, we will focus on the second step of the business strategy based on handymax and panamax ships”.

The Russian shareholding interests behind Pola Maritime own many other ships in different sectors, including barges, tankers and fishing vessels.

“Pola’s plans are to expand the fleet with more long term time chartered-in tonnage and to acquire further tonnage either via S&P deals or strategic partnerships,” says Cepollina, explaining that at the moment the company’s current 20 ships are mainly 37,000 dwt handy-sizes, in a mix of owned and chartered tonnage. It is also now branching out into panamaxes as well. All of the ves-sels owned by Pola Maritime are open hatch/boxed shaped and ice class, able to take on challenging routes, cargoes and contracts as well as being spot minded. Pola Maritime has been steadily increasing its presence in the Atlantic basin since 2011.

The Pola Maris general manager says fleet activity is mainly focused on transatlantic trades from the

Baltic Sea to the east coast of the US and South America transporting steel, coal, grains, fertilizers, minerals cargoes and soybean.

Last year, Pola ships carried almost 3m tons of cargo, generating a turnover of about $90m thanks to sta-ble business relationships with some shippers from Eastern Europe such as Severstal Steel, but also with other major players such as Eurochem, Sodrugestvo Trading, BPC, Uralkaliy, Rio Tinto, Glencore, Rusal, Nidera/Transgrain, Cargill, Bunge and Noble. Its clients are seeking a unique competency, namely shallow draft ice class handysize designs, which can operate from the coldest winters in Russia to the shallowest river ports in South America.

Looking at the future of the dry bulk market, Cepollina prefers not to make forecasts since “all the previ-sions made by many experts have been denied. With the current market fluctuation it is really hard to predict what will happen but Pola Maritime just requires a slight upward cor-rection in freight rates to operate in profit.”

The fleet, he says, has been acquired under low cyclical prices,

giving the company an “excellent” risk management position.

As soon as the market will give some sign of recovery, Pola is ready for a next stage of investments. In the last few months the company was already negotiating new orders with Chinese shipbuilders but they stopped the process as the collapse of the dry bulk segment occurred and yet newbuild prices remained obstinately high.

“When freight rates will soar and Chinese shipyards will return to quote handysize newbuildings at

reasonable prices – below $20m – we are interested and ready to sign new contracts for building handysize bulk carriers. We are not in a hurry,” says Cepollina.

Pola has access to several capital providers from Russia and Asia. Last year Gazprombank started to finance Pola with a non-revolving credit line of $91.2m for the construction of six bulk carriers – the Seahorse 375 series – built by China’s Qingshan Shipyard. Gazprombank mediated the finance project with recourse to the existing business and by attracting funding from the Export-Import Bank of China. Each vessel was approved for a direct long-term financing of up to 12 years. ●

The Russian controlled dry bulk operator is waiting for more reasonable newbuild prices before putting pen to paper again

Pola Maritime bides its time

Pola Maritime

Russian controlled dry bulk player whose 20-strong handysize fleet is set to have panamaxes and handymaxes

added to it.

Spot on

in profiLe

The multipurpose (MPP) sector continues to face ever growing pressure from the container

and bulker trades, squeezing freight rates, admits the boss of one of the leading names in the MPP seg-ment. However, Kyriacos Panayides, managing director of AAL, says he is “cautiously optimistic” that freight rates will recover from 2015.

“Clearly there are uncertainties, which could impact on the heavylift sector,” he admits, “particularly in relation to the oil and gas industry, where a number of projects could be postponed on the back of falling oil prices.” However, the growth in renewables and the fact that many nations suffering from poor infra-structure with huge budgets are

already placed on large projects, could act as a counterbalance to this, he reckons.

AAL has realised exponen-tial growth over the last few years, doubling revenues and expanding its fleet, trade routes and services. Its most recent geographic expansion

was in Asia, its heartland. In January AAL launched a new operation in Japan. Based in Tokyo, AAL Japan will focus on the engineering, procure-ment and construction sectors. The global expansion has coincided with a rebrand, the company acronyming its original name, Austral Asia Line, to better reflect its larger range of services around the world.

The size of its fleet over the course of the this year will grow sig-nificantly with Panayides revealing to Maritime CEO plans to add more third party tonnage on long term charter.

“This significant investment will create a fleet in excess of 500,000 dwt and one of the sector’s largest, modern and youngest fleets within the multi-purpose sector,” says Panayides. ●

Multipurpose operator AAL has been busy in the charter market

Towards 500,000 dwt

Issue one 2015 43

wine

Wine drinkers in general, and those in the UK in particular, have a lot to

be grateful to the Australians for. That may seem counterintuitive, given the sporting thrashings that they regularly deal out, but when the subject is wine the facts are clear.

What they did was to make buy-ing and drinking wine both simpler and cheaper. Gone was the need to understand vintages, appellations or know the grapes in a bottle of French or Italian wine because they were right there on the label, in English.

On the back was some (occa-sionally) useful information about what food the wine might go well with but the main point was you didn’t need food; these low cost, generally good quality wines could be drunk for fun.

The use of flying winemakers who could descend on a vintage and quickly blend something drinkable

and affordable was in high demand. So much so in fact that the phenom-enon eventually began to work in reverse, with well-trained Aussies and Kiwis doing the same thing in the Loire, Languedoc and elsewhere.

This encouraged the rest of the world and so the New World boom grew, taking in New Zealand, South America, South Africa and California. And like every boom, it had to bust.

It took some time for our palates

to tire of heavily oaked Chardonnay or over-excited Shiraz/Cabernet blends, but tire we did.

As the pendulum swung back towards more refined New World styles, the Australians regrouped and rethought how to hold on to a useful export earner. Out went super-extraction, bags of oak chips used to ‘age’ white wines made in stainless steel and the ‘one-glass’ reds that were a meal in themselves.

In came cooler climate wines and styles that favoured elegance over weight, even if they were not made for long ageing. Around the same time came the realisation that many of New Zealand’s red and white wines had exhibited these same qualities for some time.

Which brings us to Asia. One of the things that Australian and New Zealand winemakers noticed early on was that their whites in particu-lar were well suited to Asian cuisine wherever it was served. A fuller fruit style, a touch of sweetness, some balancing acidity and you had the perfect partner for the hot/sour/sweet/umami combinations of the region.

That doesn’t mean to say you should ignore the originals, from Burgundy, Alsace and the rest, but when in Singapore…●

With Singapore Maritime Week upon us, Neville Smith highlights why Australian and New Zealand wines are so good with Asian cuisine

The Lane BLock 1a chardonnay, adelaide hills, australia is classic contemporary chardonnay; refined and elegant but with gentle persistence and good length.

From new Zealand’s South Island comes ostler Lakeside Riesling Waitaki River, otago which plays the off-dry card and would work well as well with food as the meatier chardonnay. ●

Two to try

When in Singapore…

maritimeceo44

GadGets

Space watch

The strange sci-fi feel continues now with the HM 6 Space Pirate, the latest offering from possibly the weirdest watchmakers in the world, MB&F. This is

inspired by the Japanese anime of Captain Future, which was immensely popular in France, and the watch is based on his spaceship and the biomorphic design it engendered. Not only is the result strange and futuristic looking, it is a tour de force in watchmaking and mechanical engineering with 475 parts and 68 jewels, producing a flying tourbillon mechanism with sapphire crystal displays and an automatic winding device with a 72-hour reserve. All-in-all it is a rare object of great beauty, with only 50 being made in the titanium version, and very few watches even coming close to looking either so different or so perfect.

$230,000http://mbandf.com

Themis Desktop Cigar Holder

Finally, another weird objet d’art with purpose behind it comes in the form of the Themis Desktop Cigar Holder from Solloshi. Perhaps this invention draws inspiration from the CIA’s

efforts to assassinate Fidel Castro via his love of cigars. This limited edition stand is made from military-grade aluminium and is shaped to mimic the cylinder from an old school Colt revolver, in which the six ‘bullets’ are in fact titanium cigar tubes which can store a cigar of 20 mm diameter and 180 mm length, although the length can be customised upon request. Each tube includes a small humidifier, ensuring the cigar is kept properly, and the whole stand rotates just like a real revolver. There’s really no better way for a big shot to play Russian roulette with their cigar collection.

$9,500http://solloshi.com/

Multipurpose transport

We’ve reviewed submersibles before, but the Amphibious Sub-Surface Watercraft counts as probably the oddest as it is boat, submersible and tank all in

one. Which has its good points. First, it looks like two ships from the Jetsons parked on top off each other or some sci-fi vehicle straight from a school-boy’s notebook. Secondly, unlike a sub or boat, you can drive it around and you don’t need a crane or gantry to get it in the water, because it will drive itself into and out of the sea, lake or river you’re pottering about on. But there are caveats: on land it drives on tracks which does handle up to 30° slopes, but most likely renders it not street-legal. On water, it is ultimately a boat, and that means it will not fully submerge, but gives you a 360° view both above and under water. It sails at a slow but steady 6 knots, and its batteries are purported to last for up to 110 hours at that speed. The whole thing is 3.65 m long and 2.45 m wide, and it weighs in at 1,540 kg. There is something about it that is some-how curiously irresistible, appealing directly to the inner daydreaming child we all harbour.

$300,000http://www.hammacher.com/Product/12472

Issue one 2015 45

Books

In comparison to the Pacific or the Atlantic, the Indian Ocean has so far produced far fewer books

examining this space of sea. Yet, the Indian Ocean is the world’s third largest, covering 20% of the water on the Earth's surface. Stretching from Australia, across Asia, to Africa and beyond it is clearly a crucial waterway for commerce, geopolitics and the countries that border it. The ocean connects the Mediterranean with the South China Sea. Surely the ocean deserves some good books?

Edited by Abdul Sheriff and Engseng Ho The Indian Ocean covers the general history and development of the sea as “a zone of encounters and contacts ... a privileged crossroads of culture”. Representing trade routes as spaces where different cultures, religions and economic systems have intersected and interacted is all the academic rage at the moment. Obviously the number of slaves and indentured labourers who crisscrossed the ocean in times past is matched today by the global trade that cross in tankers and containerships.

UCLA history professor Edward Alpers’s The Indian Ocean in World History is part of the New Oxford World History covering history from the third millennium BC to the pres-ent day. Again, it focuses on the inter-actions and crosscurrents of trade and communities; the diasporas of the past two millennia – Persians and Arabs from the Gulf came to eastern

Africa and Madagascar as traders and settlers, while Hadramis dis-persed from south Yemen as traders and Muslim teachers to the Comoros Islands, Zanzibar, South India, and Indonesia. Southeast Asians migrated to Madagascar, and Chinese dispersed from Southeast Asia to the Mascarene Islands and to South Africa. Truly the Indian Ocean is a global melting pot.

The Indian Ocean remains a contested water. The bestselling geopolitical writer Robert Kaplan refers to “Monsoon Asia” in his book Monsoon: The Indian Ocean and the Future of American Power. Monsoon Asia includes India, Pakistan, China, Indonesia, Myanmar, Oman, Sri Lanka, Bangladesh, and Tanzania. Kaplan believes that it is here the fight for democracy, energy independence, and religious freedom will be lost or won. Throw in that this is the epicen-tre of the world’s projected population growth and potential environmental calamities and Kaplan’s argument that Washington, and by default Europe, should pay more attention to the region is a convincing one.

This thesis is leading to a number of both utopian and dystopian views of the future of the Indian Ocean. Jonathan Holslag’s China’s Coming War

With Asia leans heavily to the dysto-pian viewpoint. Put simply, Holslag believes that China’s peaceful rise is impossible to maintain and that it will need to become more assertive in the Indian Ocean region (and elsewhere – the Malacca Straits, Sea of Japan, North Pole, the Pacific, etc) and this will lead to clashes, both military and diplomatic, with other rising nations around the Indian Ocean rim includ-ing Indonesia and India.

Others however take a more optimistic approach. Michael J. Fratantuono, in his book The US:India Relationship – Cross-sector Collaboration to Promote Sustainable Development, sees the Indian Ocean rim as one where the urgent need to deal with issues of the environment and sustainability will force rational debate and joint action for everyone’s improved future wellbeing.

Whatever the future – utopian or dystopian – it’s pretty clear that the Indian Ocean requires more thought – at least equal to that given to the Pacific and the Atlantic in the past. The potential challenges of Monsoon Asia – environmental, religious, geo-political, energy and trade included – are immense and vital to the future of the entire globe. ●

“ Representing trade routes as spaces where different cultures have intersected is all the academic rage at the moment”

The Indian Ocean is set to play a vital role in 21st century geopolitics, as Paul French explains

Monsoon Asia

maritimeceo46

traVeL

Dalian is different. For one, it is young by the standards of this ancient country,

founded by the Russians as recently as 1898. Secondly, and this is per-haps down to its founding, it is green – with a strong European flavour to it. Indeed, the seven million peo-ple who live in this northeastern outpost will regale visitors with how it is regularly voted China’s most liv-able city. The cleanliness of the place is evident everywhere. Its lush green surroundings make for the bluest skies imaginable in coastal China. This is not lost on China’s elite either, with top politicians, celebrities and tycoons making a beeline for the coastal city for summer holidays.

The city, once pilloried as a rust-belt kind of place, is now in the top ten richest in the nation and is very much a model for city development.

Start by wondering around Zhongshan Square in the heart of the city to get a taste of yesteryear, with grand colonial buildings cir-cling the pretty park in the centre. Head south from here for a little strangeness that is Russia Street, somewhat run down and tatty, but nevertheless a homage to a bygone area with lots of faux Russian build-ings, culminating in the original, now sadly falling apart, town hall. When the Russians founded the city, a vital ice-fee seaport on the Pacific, at the end of the 19th century it

was known as Dalny, which literally translates as Far Away Place. Under the Japanese who occupied the port city for 40 years from 1905 it became known as Dairen.

Still in the downtown area, Labour Park is worth a visit for pan-oramic views, via a ski lift to the top of a hill and a fun metal pipe sledge on the way back down.

The city’s commitment to green-ery is stunning and provides plenty of possible excursions, none more beautiful than Binhai Road, which hugs rugged coastline for more than 32 winding kilometres along the southern shores of the city. The road starts out from just off Xinghai Square, which is also worth check-ing out, some say it is exactly one square metre larger than Tiananmen to the consternation of mandarins in Beijing.

Don't be surprised to see plenty of folk in the know checking in their golf bags on your flight to Dalian. The city is host to some of the finest courses in all of China, and yet it remains a bit of secret. Situated within an hour's drive of the downtown area are seven courses that even the most discerning golfer will be wowed by. And green fees are inexpensive too.

For those that don't fancy the fairways and the greens, how about a soak? Dotted around the outskirts of the city, along the mountains,

are countless hot springs, where a stunningly relaxed afternoon can be spent. And if you happen to arrive in winter, there's also skiing just 12 km from the city centre.

In terms of where to stay in Dalian there are now, as is so common across China, a surfeit of top-end hotels so bargains are to be had. We recommend the Kempinski just off Labour Park as it has large, well appointed rooms, very decent breakfast fare … and did we men-tion the Paulaner Brewery in the basement.

Talking of beer, it is not in short supply in this city. Indeed our top pick for seafood, something Dalian excels at, happens to have a micro-brewery inside. Donghai Mingzhu is located just off Mingzhu Square in the downtown area. Not far away from there is the Riviera, just next to the Shangri-la Hotel on Renmin Street, Dalian’s Champs Elysee. Let Australian proprietor Jennifer spoil you with wonderful Mediterranean cuisine and an impressive assort-ment of wines. For those fancying something bigger, brasher and well, American, then head over to the city’s number one bar/diner, the Brooklyn, where Wayne’s closely guarded secret recipes make for the best pizzas in Greater China. The Brooklyn is on Bulao Road. Go there, it’s cosy, friendly and unexpected – a bit like the city itself. ●

Northeast gemDalian is a model city in China, and one Maritime CEO knows better than most

Issue one 2015 47

GoLf

For me it is not always about any specific golf club or golf course, although some may be

spectacular to look at. But then golf is always more than the course. All golf courses have that physical ability to take you away from your concrete jungle into a green arena where lap-top, iPads and paperwork don’t work, and you are inevitably forced to face yourself as you actually are.

Good golf courses challenge you to think and make a choice with the 14 clubs in your bag. It is really up to you to make that choice and nobody can help you. In this context, golf hones your leadership skills to make quick decisions, both right and many times wrong.

Living with mistakes is never easy but this is more so in golf because it is quite unique for a game where you must keep your own

score, and writing down a bad score challenges your moral compass time and again.

There is always the notion that the more you practice the better your golf game will be. But golf plays tricks on you and seeing famous golfers playing shots that look easy does not help. In fact, I think the more you practice, beyond a point, the worse you get, or at least you don’t improve.

Sometimes the simplest change helps your game – like relaxing your grip, or a subtle shift in your position.

But change you must, and it is the acceptance of this change process in golf that plays a valuable role in your management thinking as a person.

Playing golf is about camarade-rie. It is about that interaction with others amidst a good game or a bad one. But the friendship you build on the course has an uncanny means to endure and remind you of that fateful day, even many years later.

Recently we launched our inaugural VPS Golf Open, and apart from conferring the normal cham-pion, runner up, etcetera prizes, we decided to hand out three awards for best dressed - most outrageous, most colourful and most classy. This drew a lot of excitement, which is how golf playing should be, learning to let your guard down, being yourself,

enjoying yourself.Eventually you play the game of

golf just like you walk through life.You learn to prepare, but only to

a point. You learn to accept that the final outcome is never really in your hands. You learn to accept a fantastic par three shot where you scored a birdie as perhaps fortuitous in mak-ing. You learn to accept a bad round with magnanimity and look forward to another good day.

Some of my fondest moments in golf have been playing with family and friends. Being together with father, son, niece, nephew, cousin or a close friend is a pleasure that seeps in while you play, like the passage of time on this journey through life. Eventually happy memories that last generations remain.

As a member of Laguna National Golf Club in Singapore where I have played most in recent years, I will need to choose hole 17 as my favourite hole in the world. A short par 3 over an expanse of water and no carry at the back, you need to be accurate to get on the green and stay there. It is always a pleasure to get a par on this green, where the green itself is running towards the waters, so your putting skills are tested. I have managed a few nice pars here over the years, which of course ends the game rather nicely. ●

Rahul Choudhuri from Veritas Petroleum Services muses how golf mirrors life before revealing his favourite hole in the world

‘Golf hones your leadership skills to make quick decisions’

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Issue one 2015 49

reGULar

I suppose I was as guilty as so many people on their first few trips to Hong Kong. The bustling business

hub of Central and the odd trip on the Star Ferry to Kowloon were about as much as I saw of the place. But once I began to question where do all those ferries criss-crossing the harbour actually go, and more importantly discovered the delights of sailing and pleasure junks, one of the best aspects of Hong Kong was opened up to me.

Hong Kong has around 235 islands, most uninhabited, so the options for getting off the main island and away from the concrete jungle are plentiful. For many residents and visitors alike, a regular weekend escape is the wonderful island of Po Toi. The most southern island in Hong Kong – next stop after Po Toi is the Philippines – but the island is easily reached in less than an hour by ferry

from Aberdeen or Stanley, although just as many people head out there on private junks or sailing boats.

Being 3.69 sq km in area, Po Toi is easy to get about and for any reasonably fit person, the well main-tained paths around the island offer a real escape to the countryside, with a cool wind from the South China Sea taking the edge off the humidity which shoots up from April onwards. A round trip walk from the ferry pier of just over an hour allows you to walk up to the unmanned lighthouse on the southernmost tip of the island, where stunning views of the Lamma Channel allow you to impress friends with your knowledge of shipping as a constant stream of vessels (mostly containerships) heads towards Hong Kong. Walking back past the numer-ous family burial plots, which hark back to when the island had a popu-lation much greater than the current

200 or so, it’s easy to understand why people would want to spend eternity here – the views are simply stunning, with not a skyscraper in sight.

Back near the ferry pier and having worked up a suitable appe-tite, you find a main – for many the only – reason to visit Po Toi. Perched on the beach is the famous Ming Kee Restaurant, famed for both its fabulous food and the hospitality of the hard working Leung family, who have run the place for generations. At weekends, the place is packed with locals and long-term expatriates who have been coming since the sisters working the tables were children. The signature deep fried squid beats anything you might find in an Aegean taverna, whilst plenty of other superbly cooked dishes satisfy every taste and a user-friendly corkage policy means those who brought a few bottles of wine ashore from their junk can get well stuck in. Those in the know will tell you to book ahead, and ideally, turn up around 14.00hrs when the crowds who came by ferry thin out and the kitchen is operating at full ahead. ●

“ Hong Kong has around 235 islands, most uninhabited, so the options for getting off the main island and away from the concrete jungle are plentiful”

YaChtinG

Weekend junk trips Tim Huxley highlights Po Toi, Hong Kong’s most southerly island

maritimeceo50

reGULar

‘The gears of third party liability grind slowly’A glimpse behind the scenes in this most conservative of industries

the seCret p&i Chap

“ If you would like to make a lot of money, maybe steer clear from handling claims as a career”

So you want to know something about the recondite world of P&I, eh? To a non-shipping out-

sider, the P&I industry is not known. How should I describe the occupation of P&I man? The term ‘Club Manager’ is often used but to me this smacks of people who wear dinner jackets at work during daylight hours. My wife announces me to my children as “our father who art in shipping”.

Friends say I am “something in the City”. I keep it short and simple. When asked I say “marine underwriter”.

Obscurity aside, the P&I business has a lot to be said for it. It is global, historical, bound together with the notions of common and admiralty law and full of Clubs often named after parts of the British Isles. Clubs are in it for the long term. Shut one of them down and you could wrap a piece of string around their last closed claims file in about 30 years or so. You can’t mess about in P&I, the gears of third party liability grind slowly, even

ponderously in the life of shipping.As you might expect this leads

to a certain conservatism in the industry. Just as it is rare to find a right wing social worker or a

left wing policeman, the average progressive person might well find

the pace of change within P&I too slow to tolerate. The Clubs are full of well to do fellows high born and low who mostly live within commuting distance of the City of London.

But the world is changing, not least the shipping

world. The ice upon which the P&I industry rests is shrinking. With fewer and bigger ships carrying the world’s cargo, you might ask whether the industry

really needs 13 Clubs, with 13 sets of professional managers and 13 sets of board members convening four times a year in the leading hotels of the world to decide policy. Since the industry gathering under the aegis of International Group of Clubs moves in a lockstep, you would hardly notice if there were one or two less Clubs around. Most of the Clubs are still located in London and seek to outdo each other with vigour and stealth.

Somehow in the last two decades the Norwegians have stepped in and become the industry hegemons. Other challenges come from the national clubs in Japan, Korea and China. They are different. Then there is the surpris-ingly abundant market fringe of fixed premium underwriters all looking for ways of making a buck from P&I.

So you have a saturated market full of gigantic owners not very keen to pay the right premium, a golden past as the confidents of shipowners, a present era of global melting and a future which suggests changes in the old paradigms are overdue. If you would like to make a lot of money, maybe steer clear from handling claims as a career. Being a player in the industry to come might be more interesting. Would I suggest to my nephew that he should join this indus-try and see the world? Up to a point, your lordship. ●

Issue one 2015 51

reGULar

An annual growth rate of 2.8%. That is not a figure for a nation’s rate of GDP

growth, although it might be. Nor is it a figure for a nation’s population growth, although, again, it might be. It is the rate of growth, in tonnage terms, of the world merchant fleet since 1949.

I have always said beware of putting a ruler on a graph and extrapolating from an historical trend in order to see what the future looks like, because in the short or medium term, that is absolutely bound to give a wrong answer. In the case of very long term trends – sec-ular trends, over Kondratieff cycles – it is more likely to be right.

I compared the number with rates of GDP growth and with rates of population growth in order to shock – 2.8% per annum is a high rate in either category. We know, at the back of our minds, that world trade moves mostly by sea, and that the volume of trade by sea, measured in ton-miles, grows faster than the rate of growth of the world economy.

Now, what else do we know at the back of our minds? We probably know that the ‘rich world’ is grow-ing rather slowly. What is the ‘poor world’ doing? It is getting richer, rather quickly, but because, at this

stage, the changes are still small, we can miss them. We sort of know that Africa is no longer a basket case, that Latin America is not now ruled by military dictators with a fondness for comic opera uniforms, and so on.

We are aware, at the back of our minds, that most people have a mobile phone, most people have a refrigerator, most people have a television, most people have a sewing machine, most people have a bicycle, many have a motor bike. Thirty years ago, they did not have these things. The impact of these things on trade by sea is real, but modest. What happens when everyone wants a car? What happens when everyone wants a foreign holiday?

One part of our industry has understood this – the cruise sector. Be honest – if you are not in the cruise business, you have never believed the cruise sector’s growth forecasts, have you? But they have been right every time.

A rate of growth of 2.8% annually, compounded annually, produces a doubling of the original number in 15 years. In the year 2000, the world fleet was half the size it is now. In 2030, it will be twice the size. There won’t be twice as many ships, but there will be bigger ships. Allowing for scale effects, that is not quite twice as much steel, not quite twice as much fuel, emissions, paint, luboil, etc.

These are fearsome quantities.The impact on the world’s seas,

and on the air above them, of twice as much merchant shipping is going to be ghastly. People will notice. There will be regulatory changes. Serious ones.

Our own little UN body, the shambolic and sclerotic IMO, may squawk a bit, but we all know that it can’t keep up. We are going to be noticed by national governments, in ways that we have not been used to. The United States is already asking us about the oil in our stern tube bearings and our bow thrusters and what we are doing about it at the next docking. The US government has understood, and they are right to do so. There will be a lot more of this, in ways that we cannot well foresee, and it probably will not be pretty.

Time to start thinking about it? ●

Smoke and no mirrors

Andrew Craig-Bennett argues that as the world fleet increases in size inexorably national governments will be taking a closer look at shipping’s footprint

“The impact on the world’s seas, and on the air above them, of twice as much merchant shipping is going to be ghastly”

the Contrarian

maritimeceo52

reGULar

Our range of questions certainly piqued many of you. Results and key comments below

Second annual Future of Shipping Poll

Does the shipping industry need so many brokers?

Are overpriced ship prices now a permanent feature of shipping?

Will owners regret the extensive ordering of ecoships now that bunker prices have halved?

What will be the biggest headache for shipowners in the coming five years?

Will the current pace of consolidation in the maritime industry continue?

How long will private equity continue to have a strong influence on shipping?

“ Shipowners must treat crew better”

“ Shipowners are still far too fragmented to be a real market force, especially with respect to many of the major charterers”

“ They are here to stay. And it will also drive the industry to become more transparent and more clean, more efficient. But it will also make the industry more shortsighted”

MarpoLL

Yes 26%No 74%

Overcapacity 53%Finance 13%Environmental regulations 18% Bunker prices 5% Crewing 11%

Yes 26%No 74%

Overcapacity 53%Finance 13%Environmental regulations 18% Bunker prices 5% Crewing 11%

Yes 36%No 64%

Yes 36%No 64%

Yes 39%No 61%

1 year 3% 2 years 20%3 years 7%4 years 5% 5+ years 65%

Yes 39%No 61%

1 year 3% 2 years 20%3 years 7%4 years 5% 5+ years 65%

Yes 86%No 14%

Yes 86%No 14%

“ If it weren't for information asymmetry, the entire broking industry could be replaced by a well-managed, eBay-style system”

“ Overpriced ships are partly due to easy money from US investors. This money has created a bubble to asset prices”

“ Anyone who is using this drop to make long-term decisions is doomed to fail”

www.nor-shipping.com

Organizer:

“Innovation is the best insurance

against a volatile market.”STÅLE HANSENPresident & CEO, Skuld

Join your peers, partners and prospects at Nor-Shipping, where the maritime world gathers in Norway to explore the future.

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