� Wilh. Wilhelmsen ASA

CIMAC Annual meeting Jan 30th 2013

Petter Chr. Jønvik, Shipping and Environment Manager

> Agenda

• Background for low sulphur policy

• How it was possible to accomplish

• Challenges

2Shaping the maritime industry

• Challenges

• Benefits

• How to meet the future

> Wilh. Wilhelmsen Group

3Shaping the maritime industry

Our global presence

4

EUKOR

Wallenius Wilhelmsen Logistics

American Roll-on Roll-off Carrier

� Wilhelmsen Maritime Services

� Global logistics network (incl WWL,

AAL/ALN and Glovis)

> 1.5 % S global average. How was it possible to accomplish?

• Liner service � fixed bunker ports

• Control the entire business chain

• Group size and customers with strong environmental profile

• Since 1999, 1.5% global sulphur policy for Wallenius Wilhelmsen logistics (WWL)

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• Since 1999, 1.5% global sulphur policy for Wallenius Wilhelmsen logistics (WWL)

• Still, one of the world largest consumer of LSFO

> Challenges, of course there have been some…

• More energy content? Not the case...

• Many problems in the beginning

• Lack of experience with burning LSFO onboard

• Lubrications issues, oil companies joined onboard

• Blending issues

6Shaping the maritime industry

• Blending issues

• Filter clogging, separator issues, ignition issues, full speed operations, flashpoint, catalytic fines (Al/Si)

• De-bunkering

• Availability

• Cost

> Stabilization period, business as usual

• Long period with quite stable LSFO fuel quality

• Less frequent problems caused by LSFO

• Why?

• Smart bunker planning

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• Smart bunker planning

• Lube oil issues more or less solved

• Crew competence

> New ECAs, almost as to move back to start

• Similar fuel quality issues as in the beginning coming back

• Blending issues � Filter clogging, separator issues, catalytic fines (Al/Si), ignition issues,

full speed operations, flashpoint, de-bunkering

• Availability – no longer a problem, however at a cost...

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New challenges

• 1.00% � compliance risks

• Changeover time

• Large price variations in LSFO premium

> Bunker purchase and LSFO related costs

• Fuel mix, 40% LSFO (12% ECA + 28 % WWL policy), 55% HSFO, 5% LSMGO

• Main LSFO still purchased in EU, minor amouts in Singapore and Savanna

• Direct annual costs related to LSFO policy and ECA regulations:

• All time high 2008, USDM 25 (LSFO premium)

• Latest years approx USDM 4 (LSFO premium)

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• Latest years approx USDM 4 (LSFO premium)

• Estimated in 2016 USDM 80 (LSFO premium/LSMGO + ECA costs)

> Benefits, of course there have been some

• Built up great competence on fuel switching, no blackouts or non-compliance experiences

• Easily adopted to US ECA

• Bunker market experience

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• Bunker market experience

• Smart bunker planning

• Double set of service and settling onboard most vessels

• Competitive advantage at the same time business as usual for WW-Group

• Great company reputation

> How to meet the future

• 2015

• 2018 � 2020 (?) or 2025 (?)

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• 2018 � 2020 (?) or 2025 (?)

• LNG?

• Back to sail?

> No single solution, many roads leads to Rome

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>Shaping the

maritime industry

For more information: www.wilhelmsenasa.com

> Thank you for your attention

13Shaping the maritime industry