1. automotive and vehicles
2. boats and watercraft

SHIPPING
INDUSTRY INTRODUCTION: SHIPPING
Danish shipping companies handle around 7
percent of total world tonnage and transport 10
percent of the world’s seaborne trade. Moreover,
Danish shipping companies’ share of the value of
the world’s seaborne trade corresponds to more
than USD 900 billion or ten times the value of total
Danish exports. Consequently, Danish shipping
companies are important players in global
shipping and as mediators of international trade.
The three largest segments of Danish shipping are
tankers, container vessels and bulkers. Together
these three segments account for nearly 60
percent of the number of ships owned by Danish
shipping companies and more than 95 percent of
their cargo carrying capacity.
The proportions and experiences of Danish
shipping companies have made them global frontrunners in making sea transport as efficient, safe
and environmentally friendly as possible. Danish
shipping companies have developed successful
business models that address the specific focus
areas and challenges of their market segments
and give the companies competitive advantages.
The following cases represent examples of
different initiatives from specially designed
vessels, safety procedures to installation of
environmental performance systems. These
cases again represent the different segments
of the shipping industry.
The cases from the tanker segment focus
on ensuring safety and increasing energy
efficiency. The former is motivated by the severe
environmental consequences of accidents
involving tankers. The latter by the fact that the
tankers typically steam at high speed in order
to deliver the cargo and then reload at another
destination.Therefore shipping companies aim
at optimizing the operation time and reduce fuel
consumption and emissions.
The case from the container business segment
explains how investments in new vessels can
help increase port productivity, lower costs
and thereby increase trade – while at the same
time reducing emissions. This is particularly
challenging in developing countries where poor
port infrastructure and low capacity often prevent
the efficiency advantage of large container ships
to materialise.
The cases from companies in the bulk segment
are focusing on the needs to respond efficiently
and flexibly to the technical challenges that arise
when handling dry bulk cargo in the world’s
different ports and terminals. This is relevant
because dry bulk carriers operate in the tramp
regime, which means that the ships and their
operators must be flexible to remain efficient.
THE DANISH MERCHANT FLEET’S REDUCTIONS IN CO2 EMISSIONS
60
Shipping companies transport about
90 percent of global trade and emit
about 3 percent of global CO2 emissions. Danish shipping companies
have been proactive in reducing CO2
emissions. Since 2008, Danish shipping companies have reduced their
CO2 emissions by almost 25 percent.
50
40
30
20
Source: Danish Shipowners’
Association, 2012
10
0
2008
2009
Relatve reduction since 2008, pct
2010
CO2 - Emissions
World view on shipping
Benefits of international trade given in terms of
economic growth and employment creation are
self-evident and indisputable. Gains from trade
do not only accrue to rich countries. Reduced
trade costs and increased imports of intermediate
goods also stimulate productivity, innovation and
competitiveness in developing countries.
2011
Deadweight Tonnage in mio. tons
But international trade can only take place if
the transport costs are low enough to make
trade desirable, making highly efficient modes
of transport vital. Sea transport is by far the
cheapest compared to air and land transport and
sea transport also has lower emissions. And for
many commodities, such as coal and iron ore, it is
the only feasible way of transport in an economic
and environmental sense. Today, sea transport
accounts for 70 percent of total transport in terms
of value and 90 percent in terms of volume.
CLIPPER
Clipper's project vessels can service ports with rudimentary infrastructure and can deliver project
cargoes such as construction materials closer to their final destination. The elimination of superfluous
transport legs can be of particular significance in developing African countries where each additional leg
of transport may be prone to inefficiency and generate extra costs. The environment also benefits from
the use of project vessels.
Clipper has two strategic business units: Clipper Bulk
and Clipper Projects. Clipper Bulk controls a fleet of
approximately 100 bulk carriers. Bulk cargo services
operate both on a contract and spot basis, and the
company transports all main types of cargo, including break bulk, primarily between locations in the
USA, Europe and the Far East.
Clipper Projects operates over 40 multipurpose vessels, which handle cargoes that demand particular
care in logistics management and reliability.
Clipper employs approximately 300 people
worldwide having its headquarters in Denmark and
regional offices in 10 countries around the world.
Project vessels enable trade
Countries with limited port infrastructure are generally not regarded as attractive markets for ordinary
bulk shipping companies, which limits the options for
sea transport to and from these countries.
Clippers project vessels delivers project cargo such
as prefabricated steel girders for construction,
large pieces of machinery or transport equipment
to remote destinations in Africa with limited port
infrastructure. The on-board cranes allow for efficient
loading and unloading independently of the availability of harbour cranes. The services of Clipper facilitate the countries' trade with the rest of the world
and contribute to cost-efficient development of e.g.
power stations, industry and transport infrastructure.
Environmental benefits
The use of project vessels as opposed to ordinary
bulk cargo vessels also provides environmental benefits stemming from their flexibility, which prevents
transhipment by land and contributes to shorter stays
in port. The faster loading and unloading when
using own cranes and experienced crew reduces
turnaround time.
In addition to the intrinsic benefits of using project
vessels, Clipper engages in several initiatives to
create added environmental value. Clipper uses
trim optimisation, meaning that the distribution of
ballast is adjusted in order to match current sailing
conditions, such as ship load, draught or sea state.
Optimised ballast distribution improves the hydrodynamic characteristics of the vessel, which means that
less energy and fuel is required to sail the vessel. The
company estimates that the annual CO2 savings due
to trim optimisation amount to more than 1000 tons.
Furthermore, Clipper implements optimal voyage
planning for its vessels. This has brought in significant annual CO2 savings.
Further information: www.clipper-group.com
J. LAURITZEN
Lauritzen have increased the flexibility of its fleet of bulkers with inventions such as grabs for handling
cement. This allows the company to carry cement to destinations that lack the infrastructure to accommodate specialist cement carriers or large ships. The benefits are higher utilization for the fleet as well
as cost savings for the client from the cargo arriving closer to its final destination, which also reduces
transhipments and environmental impact.
J. Lauritzen was founded in 1884 and remains wholly-owned by the Lauritzen Foundation. J. Lauritzen’s
business activities encompass: Lauritzen Bulkers,
Lauritzen Kosan, Lauritzen Offshore and Lauritzen
Tankers. The company is headquartered in Denmark
and has activities worldwide with offices in, China
and Japan, Philippines, Singapore, Spain and USA.
J. Lauritzen has about 1,300 employees worldwide
and the company controls about 165 vessels.
Developing of dust-eliminating grabs
Lauritzen Bulkers is a significant provider of tonnage
to the cement trade. Besides cement and clinker,
Lauritzen uses its fleet to transport a variety of other
cargoes requiring special transport arrangement,
incl. minerals, agricultural products, wood logs or
wood pellets.
Cement and clinker is a challenging cargo to load,
transport and discharge. A substantial part of the
cement business takes place in ports with limited
infrastructure whereby both the environment and the
physical space available makes it a challenging task
to load or to discharge. The greatest challenge is
related to the generation of dust, presenting danger
to the crew, ship’s installations, port infrastructure
and surroundings, and the cargoes of other ships.
To address this, Lauritzen has developed special
dust-eliminating grabs for cargo handling.
Loading ships to their full potential
The use of grabs also allows the crew to load the
ship to its maximum capacity without jeopardizing
stability or inducing dangerous structural stresses.
Cement has a low angle of repose, which means
that it has an inherent tendency to form a cone when
it is loaded using conveyors. This gives rise to two
problems. A cone can shift on voyage, creating
stability problems. Moreover, coning is an inefficient
way of loading cargo because it leaves part of the
holds empty. The use of grabs eliminates the risk of
coning because the operator of the grabs distributes
the cargo evenly in the hold.
Trained crew reduces risks
Trained crew on-board Lauritzen Bulkers ships
increases the efficiency and reduces the risk of
incorrect loading, accidents and cargo spillage. It
also increases efficiency in preparing and cleaning
the hold and reduces the risk of improper maintenance of the grabs. Furthermore, the crew is able to
leverage its experience to either repair the grabs or
remedy the costs in terms of time, money and the environmental damage by taking action immediately.
The presence of an experienced crew helps ensure
an efficient flow of operations ashore as well.
Better utilization of port infrastructure
The use of grabs means maximum use can be made
of the port capacity available. The infrastructure available in many ports may pose limitations for loading
and discharging cement. However, making use of the
port capacity available is particularly important in the
case of cement and cement clinker because they are
low value products. Transport costs can add up to a
large part of the final value of the cargo.
Better utilization of port infrastructure also means
more cargo shipped with fewer vessels entering the
port reducing waiting times for others.
Further information: www.j-lauritzen.com
MAERSK LINE
Faced with infrastructural challenges, Maersk Line has designed a special class of container ships,
WAFMAX, that are optimised in terms of size and draught to call key West African ports. The deployment
of the WAFMAX ships helps improve the productivity of some of the world's most congested ports by
significantly bringing down waiting and berthing times. These productivity gains have positive effects for
the local economy as trade becomes both cheaper and more environmentally efficient, thereby creating
favorable conditions for West Africa's future growth.
Established in 1904, Maersk Line operates container
ships. It is the largest business unit in A.P. MollerMaersk, accounting for app. half of the Group’s
revenues, with a headcount close to 26,000 in 125
countries. Maersk Line is also the largest container
shipping company in the world by capacity, with a
global market share of 15 percent and a presence
on every major trade route. Maersk Line operates a
fleet of more than 600 ships.
WAFMAX is an abbreviation for Maersk Line’s 22
new “West Africa Maximum” ships, which have
been designed to meet the growing trade volumes
between Far East Asia and West Africa. As the
name implies, these vessels increase the current
maximum capacity level of shipping lines calling
West African ports and are the biggest vessels ever
to serve the region.
The challenge of West African ports
The African continent is heavily dependent on international trade. Intra-African trade only constitutes
11.5 percent of the continent’s total trade and the
bulk of Africa’s international trade (oil, minerals and
agricultural products) is transported by sea. As a
consequence, maritime trade accounts for more than
90 percent of the continent’s imports and exports.
The ports of Africa therefore play a fundamental role
in facilitating Africa’s integration with international
trade.
Yet West African ports are among the least efficient
and most congested in the world and the recent
growth in trade has increased congestion even
more. Dwell times are nearly quadruple those of
Asian ports, and limited traffic, poor facilities and a
lack of maintenance dredging means that large vessels do not call West Africa.
Increased port productivity
The WAFMAX vessels were specifically designed to
overcome the obstacles in West African ports. Every
time a WAFMAX vessel calls a West African port,
it delivers almost twice the number of containers as
other vessels calling the same port, and faster too.
That helps bringing down the notoriously long waiting times of West African ports benefitting all vessels
servicing the territory and hence also importers and
exporters in the region. In addition to reduced waiting time, the WAFMAX vessels' length and improved
stability also help reduce berthing time through faster
loading and discharge of containers.
Since the WAFMAX vessels are responsible for a
significant share of the traffic in the ports they call,
they have a measurable impact on improving the
ports' overall productivity. In Apapa, Nigeria, the
WAFMAX ships are for instance expected to lead to
a 20% increase in port productivity by 2013.
Reduced emissions
The WAFMAX vessels also reduce the environmental
impacts of container shipping on the West Africa
- Far East Asia trade. A combination of lower port
turnaround times and slow steaming while vessels
are in transit means that a container shipped on a
WAFMAX vessel has up to 30 percent lower CO2
emissions compared to the industry average on the
Far East Asia to West Africa trade route. The WAFMAX vessels also reduce SOx emissions significantly.
Enabling trade
The improvement in port productivity as a a result
of WAFMAX also has an impact on transportation
costs for shippers importing to or exporting from
the region. The reduced waiting time enabled by
WAFMAX means that customers are able to reduce
their inventory costs and will incur fewer congestion
surcharges as they receive their goods faster.
The reduced logistics costs of importing to or exporting from West Africa are expected to generate
increased trade and economic activity in West Africa
in the years to come.
Further information: www.maerskline.com
NORDEN
NORDEN has implemented ship performance monitoring systems which streamline the collection
of performance indicators in real time and eliminate a number of clerical activities in the office.
This allows the company to develop efficiency-enhancing measures, such as right steaming or virtual
arrival. These measures result in more efficient fleet management and reduced environmental
impacts.
NORDEN was founded and listed in 1871 and is
one of the oldest shipping companies in the world.
NORDEN operates globally in dry cargo and
product tankers with one of the most modern and
competitive fleets in the industry. NORDEN operates
a total of 244,5 vessels. In addition, vessels from
3rd parties are operated in pools of which NORDEN which is either co-owner or manages. These
are Norient Product Pool, NORDEN Post-Panamax
Pool and NORDEN Handysize Pool.
NORDEN has its headquarters in Denmark, and
offices in Singapore, China, India, the USA and Brazil, a network of port captains as well as site offices
at shipyards in Korea, China, Vietnam and Japan.
NORDEN has 273 employees on shore and 884 on
board owned vessels. In addition, Norient Product
Pool has 44 employees at is offices in Denmark,
Cyprus, Singapore, the USA and Brazil (numbers
are stated the 31st. December 2012).
Real time monitoring of ship performance
In the tanker business a fast and steady pace is
essential, both in the journey to the origin of the
cargo as well as delivering it at its destination. That
requires high speed resulting in high fuel consumption. Via the Norient Product Pool (NPP), NORDEN
engages in several initiatives to enhance efficiency
while still being able to satisfy its clients’ need for
timeliness and speed. Efficient operations mean
reduced consumption of bunker oil, which translates
into lower operating costs and lower CO2 emissions.
NPP has implemented a system known as Master’s
Operations and Environments Performance System,
MOEPS®. The system allows for the collection
and analysis of information on the organisation of
a voyage as well as its actual performance. The
system is capable of monitoring a ship’s operating
parameters, allowing comparison of the agreed
service speed with the actual speed of the vessel as
an example. If the actual speed exceeds the agreed
speed, the head office sends an enquiry to the cap-
tain to determine the reasons for the deviation. There
may be several reasons why the speed is higher than
agreed, such as the weather or the traffic situation
at sea. But if the head office determines that there
is no reason to steam at high speed, the captain is
ordered to reduce it.
Total savings between 2008-2012 amounted to
245,000 tonnes of bunker oil and 774,200 tonnes
of CO2. Compared to the level of efficiency in
2007, this corresponds to a 24 percent saving
approximately.
Right steaming and virtual arrival
NNP also uses MOEPS® for virtual arrival – a
process that involves an agreement to reduce a
vessel’s speed on voyage to meet a pre-determined
time of arrival. Reasons for reducing speed may also
include the discharge port not being ready for the
ship. In such a case, if the speed is not reduced the
ship may arrive too early and be required to wait
idly at anchorage. There would be no benefits from
fast steaming as this would not lead to discharging
the cargo any faster.
If the system alerts the operator that virtual arrival
is relevant for a voyage, NPP asks the customer for
permission to employ virtual arrival. If the customer
agrees, then NPP contacts the Danish Meteorological Institute (DMI) to calcute the virtual arrival
speed and arrival date based on relevant weather
forecasts. This is communicated to the customer and
may have a bearing on the duration of laytime and
demurrage.
Virtual arrival provides a number of benefits. Firstly,
emissions are reduced due to the elimination of emissions while waiting at anchor and steaming at optimised speeds. Secondly, port congestion is reduced
and the level of safety improves in port areas.
Further information: www.ds-norden.com
NORDIC TANKERS
Nordic Tankers works towards increasing its safety level which is of key importance in the transport
of chemicals by sea. The company undertakes projects addressing organisational processes as well as
corporate culture. A high safety level is beneficial for the protection of crew, cargo the general public and
the environment.
Nordic Tankers operates nearly 130 specialised
tankers specifically constructed for carrying chemical
substances. These vessels carry hundreds of different chemicals and other liquids, ranging from red
wine to concentrated sulphuric acid. Nordic Tankers
operates globally, the main regions being US Gulf,
Central and South America as well as North West
Europe.
The company has approximately 1450 employees at
sea and 210 ashore at offices in Denmark, France,
USA, Colombia, Singapore and Latvia.
Implementing a Safety Culture
Chemical cargo owners require shipping companies
to document high safety standards as a prerequisite
for operating in the market. This means that, apart
from having sophisticated ships and equipment,
shipping companies must design and implement
strict safety procedures and sign on specially trained
crews.
A high safety level is not only beneficial for the
protection of crew and cargo, but also translates
into greater safety for the general public, especially
populations living in port cities and coastal areas
close to the routes of chemical tankers. The benefits
of high safety levels are also evident regarding the
environment.
Nordic Tankers has chosen a profile as High Safety
Carrier as one of its competitive edges. This requires
on-going efforts in terms of specifying detailed
safety procedures that are harmonised, planned and
transparent for all parts of the work on board and
inherent in the culture of crews on-board and staff
ashore.
To improve safety performance, Nordic Tankers has
started a project called Safety Culture. Working
with the culture, goes beyond detailed safety procedures, and the aim is to bring safety into the DNA
of all employees and bring all Nordic Tankers ships
into the top quartile in terms of safety performance.
The first step involved a diagnosis of the challenges
at Nordic Tankers. The diagnosis revealed that there
was room for improvement in the interplay and communication between shore departments and ships,
a need for role models and leadership and a need
for improved motivation for learning and knowledgesharing.
Sharing knowledge and defining responsibilities
To ensure active engagement from everyone the next
steps include communication, a safety leadership
training program and knowledge-sharing initiatives.
Knowledge-sharing among staff on ships and ashore
will include establishing an ideas bank with employees being invited to submit their suggestions for
safety improvements.
Nordic Tankers will also develop a Code of Conduct that will include policies in matters of safety.
The company will educate key personnel at sea
and ashore in how to apply the Code in practice
so they may act as role models and can coach their
colleagues.
The last step involves defining responsibilities for
project results and incorporating these into job descriptions and appraisal systems. This includes establishing of a rewards and sanctions matrix clarifying
consequences of behaviour affecting safety.
Measuring improvements
Nordic Tankers also work with Key Performance
Indicators in a number of areas related to safety. The
most important indicator is the number of so-called
Lost Time Incidents (LTI’s). LTIs are work related incidents resulting in absence from work on a scheduled
work shift on the day following the injury. Nordic
Tankers has improved its LTI from 1,8 in 2010 to
below 0,8 in 2012, and has set a target for further
improvement in 2013.
Further information: www.nordictankers.com
TORM
TORM improves safety and environmental performance through training and communication efforts.
Better safety and a ‘No blame culture’ helps prevent accidents and increases job satisfaction and retention among employees. High safety performance also yields more commercial flexibility and thus better
earning power.
TORM was founded in 1889, is headquartered in
Denmark and conducts business worldwide, with
offices in India, Philippines, Singapore, USA and
Brazil. The company employs approximately 300
people ashore and about 2900 seafarers.
TORM is one of the world’s largest carriers of refined
oil products and also a participant in the dry bulk
market. The Company owns 68 vessels and operates
a fleet of 125 vessels in cooperation with other shipping companies.
Focus on safety and the environment
TORM focuses on monitoring and reducing the risk
of non-compliance through operational, quality-enhancing initiatives in the areas of health and safety,
as well as through actions to mitigate risks of environmental damage. Strict requirements imposed by
oil majors give TORM an extra incentive to improve
safety performance and increase training efforts.
High performance yields more commercial flexibility
and thus better earning power.
Four levels of training
TORM’s training programme comprises activities
on four levels. The first level of training follows the
Standards of Training, Certification & Watch keeping (STCW) convention and flag state requirements,
including fundamental safety training, pollution
prevention and survival in craft and rescue boats.
The second level of training is in accordance with
the specific requirements for safety on board tankers.
This training is guided by Tanker Management and
Self Assessment (TMSA) requirements and includes
courses in bridge team management, ship handling,
vetting, equipment-specific training and officer
seminars.
The third level constitutes training in accordance
with company needs and requirements for technical,
environmental and safety performance. These may
include courses in pump systems, engine maintenance and supplier-specific training.
The fourth level comprises training directed towards
the individual needs and requirements. This training
can involve anything from information technology
skills, leadership skills, or painting courses.
Low number of accidents
Lost Time Accident Frequency (LTAF) is a measure
of work-related personal injuries that result in more
than one day off work per million hours of work.
TORM is aiming at minimising its LTAF,
recognizing that 'zero' would be the optimal
goal. TORM has consistently delivered an
average LTAF of 1.0 or below – a very
competitive level compared to other
industries and this performance can
be attributed to the safety training
programmes.
Learning from near misses
A 'near miss' is an unplanned event that did not result in injury, illness, or damage but had the potential
to do so. A ship without near misses is not necessarily a safe ship and a high number of near miss
reports indicate that the crew are aware of safety
risks and are responding to them.
In 2010, TORM initiated a project aiming at raising awareness about the importance of near miss
reports. Between 2009 and 2012, the reporting frequency increased by 841 percent, from an average
of 0.6 to 6.1 reports per ship per month. Sharing
near miss reports between the vessels
has proven to be an effective way of improving
the safety culture on board. Along with
TORM's ‘No blame culture’ this
approach helps.
Further information: www.TORM.com
The Danish Shipowners' Association
Amaliegade 33
1256 Copenhagen K
www.shipowners.dk
Danish Responsibility means striving for a
sustainable future, while building competitive
companies and a stronger society.
Danish Responsibility is a mindset which ensures that we combine economic growth with responsible behaviour. When social
and environmental responsibility is incorporated throughout the
supply chain, from design and production to use and disposal,
the end result is better products, and better products create a
better world. Learn more on www.danishresponsibility.dk