41367 JL News 11 [6].indd - J. Lauritzen

OCEANS OF KNOW-HOW
September 2009
The climate-friendly
lifeblood of the global
economy
Half-year results 2009 · The climate-friendly lifeblood of the global economy ·
A smaller footprint · Seagoing lab helps vessels · Getting better all the time ·
From black water to clean water · Jens Ditlev Lauritzen assumes chairmanship
of the JL-Foundation · Capesize in a box · Dan Swift headed for Brazil · Making
sense of uncertain markets · Hi-spec duo to J. Lauritzen Singapore · Industrial
immersion internships · Make way for women · J. Lauritzen celebrates 125 years
in shipping

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Editorial
Half-year results 2009
The climate-friendly lifeblood of the
global economy
A smaller footprint for big ships
Seagoing lab helps vessels run better
and cleaner
Getting better all the time
From black water to clean water
Jens Ditlev Lauritzen assumes
chairmanship of the JL-Foundation
Capesize in a box
Dan Swift headed for Brazil
Steady as she goes
Making sense of uncertain markets
Hi-spec duo to J. Lauritzen Singapore
Fleet Notes
Trainees off to a strong start
Industrial immersion internships at
J. Lauritzen Singapore
In memoriam: Niels Fisch-Thomsen
Make way for women
J. Lauritzen celebrates 125 years
in shipping

Dear Reader,
The global fi nancial crisis has severely affected shipping markets. Fortunately, JL has
been able to adjust activities and strategies, and with the continuously dedicated support
of our customers worldwide, JL was able to record a positive fi nancial result for the fi rst
half-year of 2009. The result was limited compared to last year; however, it was acceptable
in view of the fi nancial turmoil and the extremely diffi cult market conditions that
prevail for seaborne trade.
Recent indications of world economic improvements are certainly most encouraging,
but the road to a full world economic recovery is likely to be long and bumpy. Whereas
the global economy may still be in limbo, there is reason to believe that the worst is over.
Emerging economies are performing strongly, but there is still a lot of uncertainty
relating to the economic performance of the industrial world.
In addition to the global economic uncertainty, the shipping industry is facing challenges
in relation to tonnage supply. It is worth mentioning that less than expected
tonnage was delivered both in 2008 and during the fi rst half of this year. However,
regardless of cancellations, slippage and postponement of scheduled deliveries there
is still a considerable risk of oversupply in most segments of the industry.
Ahead of the UN Framework Convention on Climate Change (UNFCCC) in Copenhagen
in December this year, I would like to dispel the myth that the shipping industry
is dragging its feet on global warming. As can be seen from a special section on climate
and environment in this edition of the magazine, shipping is by far the least environmentally
damaging form of transport, but this does not mean that the industry is satisfi ed
with things as they are. The industry and we at JL are fi rmly committed to play our part
in reducing CO emissions, and I am pleased to report that a new generation of bulk
2
carriers in Lauritzen Bulkers’ fl eet have proven to be up to one-fourth more energy
effi cient than the 10-15 year old vessels they replace. JL is also involved in a broad range
of other activities with the aim of improving energy effi ciency and reducing emissions.
In May, I resigned as Chairman of the Danish Shipowners’ Association after four
interesting years in which Danish shipping confi rmed Denmark’s position as one of
the world’s leading shipping nations. I will remain as a board member of the Danish
Shipowners’ Association and of the European Community Shipowners’ Association,
and I look forward to continuously promoting Danish as well as European shipping.
Sincerely,
Torben Janholt
President & CEO
CLEAN SAILING
In April 2009, JL proudly celebrated
its 125th anniversary in the midst
of the most serious fi nancial and
economic crisis for decades.
During the fi rst 125 years of our
existence JL has experienced many
upturns and downturns, but we
have been riding the waves and
expect to ride this one as well.
Torben Janholt,
President and CEO
Photo by Carsten Lundager
3

4
The result for the fi rst half-year of
2009 was negatively impacted by
the global fi nancial crisis and the
world economic recession. The
bulk carrier markets plummeted
during the fi rst quarter of the
year followed by the collapse of
product tanker markets during
the second quarter of 2009.
Result before depreciation
(EBITDA) amounted to USD 58.2m
compared to USD 212.7m in the
same period of 2008 (cf. table 1)
and result before tax amounted
to USD 5.8m (cf. table 2).
Half-year
result for
2009
It is noteworthy that Lauritzen
Bulkers, Lauritzen Kosan and
Lauritzen Tankers all achieved
results before tax that were
better than expected. Lauritzen
Offshore Services is still in a
build-up phase and results before
tax were negatively affected by
the weak product tanker market
and thus lower than expected.
Net result for the fi rst half-year
was USD 1.5m compared to USD
322.4m in the same period of 2008
and USD 149.5m for the full year
2008. The result was not satisfactory,
but acceptable in view of the
diffi cult market conditions.
Table 1
Main developments
Lauritzen Offshore Services, which was
established in late 2008 as an independent
business entity, secured long-term
employment for the converted shuttle
tanker Dan Eagle to Petrobras, Brazil,
from August 2009. Furthermore, two
additional shuttle tanker newbuildings
are under construction, scheduled for
long-term employment with Petrobras
upon delivery in 2011.
The conversion of the Dan Swift into
an advanced dynamically positioned
accommodation and support vessel – the
fi rst of its kind - went into the fi nal stage,
with expected delivery at the end of the
third quarter of 2009. The vessel has been
Result before tax USDm
1st half
Full
Year
2009 2008 2008
Actual Actual Actual
Result before tax
Lauritzen Bulkers 20.1 305.5 157.0
Lauritzen Kosan 5.1 32.1 38.7
Lauritzen Tankers 0.4 2.2 2.4
Lauritzen Offshore Services (4.7) 0.1 (7.2)
Lauritzen Reefers (6.0) 1.0 6.3
Lauritzen Fleet Management (0.8) (3.6) (6.1)
Other (8.3) (9.8) (31.8)
Result before tax 5.8 327.6 159.3
Tax and minorities (4.3) (5.1) (9.9)
Net result 1.5 322.4 149.5

given its fi rst employment contract by
StatoilHydro, commencing December
2009, to support development of the
new Peregrino fi eld in the Campos Basin
off Brazil.
Lauritzen Bulkers sold fi ve Handysize
bulk carriers and one Panamax bulk
carrier, and four time-chartered vessels
were redelivered as part of the fl eet
renewal and adjustment programme.
Three additional time-chartered bulk
carriers are expected to be redelivered
during the second half of the year.
Lauritzen Kosan took delivery (in May
and July) of the two last innovative and
environmentally friendly 8,000 cbm
Key fi gures USDm
Year to date
Full
Year
2009 2008 2008
Revenue 253.0 427.3 685.2
EBITDA 58.2 212.7 158.9
Depreciation (49.3) (19.0) (142.6)
Sale of assets 3.3 103.0 153.8
Operating income 12.1 296.7 170.1
Associates (1.4) 27.1 27.3
Finance net (5.0) 3.7 (38.0)
Result before tax 5.8 327.6 159.3
JL’s share of the result 1.5 322.4 149.5
Invested capital (average) 1,304.5 1,214.9 1,155.9
ROIC 1.7% 53.3% 17.1%
ROIC (excl prepayments) 3.5% 101.9% 34.1%
Investments, net 119.2 141.3 283.6
Invested capital (period end) 1,383.9 1,343.0 1,225.1
- hereof prepayments 713.7 663.4 668.5
Fleet (full year average) 138 135 135
- hereof pool/partner share 40 42 42
Average no. of employees 754 630 662
Table 2
ethylene gas carriers, completing the series
of seven owned vessels from Sekwang
Heavy Industries, Korea. Further, one
sister vessel has been delivered to the
Lauritzen Kosan fl eet by partners, with
two additional vessels to follow, bringing
the series to a total of ten identical vessels.
Invested capital
Invested capital increased by USD 159m
(USD 256m in 2008) to USD 1,384m at
the end of June 2009 (USD 1,343m in
2008), cf. fi gure 1.
Average invested capital was USD
1,305m, of which USD 446m related
to Lauritzen Bulkers, USD 439m to
Lauritzen Kosan, USD 126m to
Lauritzen Tankers, and USD 294m to
Lauritzen Offshore Services.
Average invested capital for the year is
expected to be USD 1,471m compared
with USD 1,156m in 2008.
Outlook
Although international seaborne trade
is anticipated to fare better during the
second half of the year, market conditions
are expected to remain subdued due to
the signifi cant number of vessels – in
particular bulk carriers and product
tankers – scheduled for delivery. Net
result for the full year 2009 is expected
to be USD 30 to 35m.
Invested capital (period end) USDm
1400
1200
1000
800
600
400
200
0
LB LK LT LO JL
2008 2009
5

6
CLEAN SAILING
The climate-friendly lifeblood
of the global economy
While trade liberalization is a major
prerequisite for global trade, it is indeed
international shipping that has made
globalisation possible.
“Around 90 percent of world trade is carried
by ships and for the vast majority of
this trade there is little or no alternative
to maritime transport. This demonstrates
the critical importance of the shipping
industry to world trade, and international
shipping is probably the single most
important vehicle for globalisation,”
according to Jens Søndergaard, senior
vice president, J. Lauritzen A/S.
It is to a great extent because of inexpensive
and effi cient maritime transport that
the benefi ts of the international division
of labour is constantly enhanced, and global
economic growth and prosperity are to
a large extent due to ever more maritime
transport. The key benefi t of maritime
transport is the linking of resource-rich
regions (Americas, Australia and Africa)
with resource-poor regions (Asia and Europe)
enabling intercontinental exchange
of raw materials and manufactured goods.
“Economies of scale in ship and port
operations, bigger ships and not least
continuous improvements in technology
and effi ciency have made the costs of
moving goods at sea insignifi cant in relation
to the price of a product paid by the
end-consumer,” says Jens Søndergaard.
CO 2 g/ton/kilometre
Shipping and world trade
Even though the current economic recession
has led to a decline in world trade and
thereby requirements for seaborne transport,
shipping maintains its position as
most important carrier of world trade; and
as the world economy recovers, seaborne
trade is likely to resume growth.
Despite diffi culties in quantifying the
value of world seaborne trade in monetary
terms, the United Nations Conference
on Trade and Development (UNCTAD)
estimates that the contribution from the
operation of merchant ships in terms of
freight revenues is equivalent to about fi ve
percent of world trade, and J. Lauritzen
estimates that the contribution amounts
to 1.5-2.0 percent of global economic
value added.
Shipping and the environment
Shipping is the least environmentally
damaging form of transport, and the
shipping industry is a relatively small
contributor to the total volume of CO 2
emissions compared to other modes of
transportation in terms of CO 2 emissions
per tonne of cargo transported one
kilometre, cf. fi gure 1.
At the outset, shipping is a very fuel effi -
cient way of moving goods, but signifi cant
improvements in engine effi ciency and
hull design, and the use of ships with
larger carrying capacity are leading to
Figure 1. Comparison of CO 2 emissions by different transport modes
600
500
400
300
200
100
0
540
Boeing
747-700
175
Ford
Mondeo
1,8 P
Heavy
truck
Source: European Shipowners’ Association and International Chamber of Shipping
50
8 3
6,600 TEU
Container
ship
Panamax
Bulk
carrier
Figure 2. Global CO 2 emissions
Source: IMO
Share of global CO 2 emissions
73% 27%
Transport Other
Share of global CO 2 emissions
97% 3%
International shipping
Other
considerable reductions of emissions per
transported unit and thus further improving
fuel effi ciency. As can be seen else-
where in this edition of Lauritzen News
(page 8), new fi gures from Lauritzen
Bulkers indicate a signifi cant increase in
fuel effi ciency relating to a new generation
of bulk carriers in Lauritzen Bulkers’
fl eet of already very young vessels.
Shipping is thus by far the most climateeffi
cient form of commercial transport,
but taking the enormous scale of the
industry into consideration, the shipping
industry is nevertheless a considerable
contributor to the world’s total CO 2
emission in absolute terms.

According to the International Maritime
Organisation (IMO), a specialised agency
of the United Nations, marine bunker
fuel consumption and CO 2 emissions
from the global shipping industry’s 55,000
merchant ships are estimated to amount
to 2.7 percent of global CO 2 emissions;
this is, however, equivalent only to 1/10th
of global emissions from all transport
activities worldwide, estimated to a total
of 27 percent of global CO 2 emissions,
cf. fi gure 2.
“The IMO estimates confi rm that international
shipping remains a very climate
friendly mode of transport. This is
remarkable because most news media
tend to portray the shipping industry as a
very climate unfriendly mode of transport.
From a specifi cally Danish perspective, it
should be noted that CO 2 emissions from
the operations of the Danish shipping
industry might appear considerable when
compared to total CO 2 emissions of a small
country with only 5.5 million inhabitants
and essentially no heavy industry. These
emissions should, however, be seen in the
light of the massive transport work performed
by Danish shipping estimated to
amount about 10% of world seaborne
trade,” says Jens Søndergaard.
Reducing maritime CO 2 emissions
Although the carbon footprint of international
shipping remains modest in
relative terms, the IMO and the shipping
industry are fi rmly committed to playing
its part in reducing emissions of carbon
dioxide and green house gasses.
“Comprehensive international regulation
already controls the industry, and the
IMO recently implemented standards
for lowering limits on certain harmful
emissions of sulphur and nitrous oxides,
which confi rms the IMO’s ratifi cation
and enforcement ability in politically
complex matters,” says Jens Søndergaard.
In December 2009, the post-Kyoto
climate regime will be developed further
in Copenhagen under the banner of the
UN Framework Convention on Climate
Change (UNFCCC). It is very much
hoped that an agreement will be achieved
in Copenhagen stating that measures for
shipping should be directed by the IMO.
“Shipping is a global industry and thus
global standards applicable to all vessels
irrespective of fl ag are paramount for the
industry. What is needed from the international
community is to agree upon
CLEAN SAILING
worldwide measures for the shipping
industry that will provide real reductions
in the consumption of fossil fuels, while
having a minimal impact on global trade,”
says Jens Søndergaard.
Shipowners, shipbuilders and the classifi -
cation societies are all actively examining
numerous ways to reduce CO2 emissions
for new as well as existing vessels (see
the following articles in this edition of
Lauritzen News), which are primarily
linked to reduction of fuel consumption.
Initiatives also include the IMO suggestion
to introduce an energy-effi ciency index
for new ships and the Danish government
proposal to introduce a contribution from
bunker fuel with the aim of raising funds to
develop new energy effi cient technologies.
In the long-term perspective the shipping
industry is also exploring the use of alternative
fuels. For the foreseeable future,
however, merchant ships will continue to
burn fossil fuels and the most signifi cant
means of reducing CO2 emissions will
most likely be achieved by further fuel
effi ciency improvements across the entire
transport chain.
7

8
CLEAN SAILING
A new spin on
effi ciency
A Japanese company has developed a
small auxiliary propeller called PBCF,
which stands for Propeller Boss Cap
Fins. Mounted on a ship’s standard
propeller, the PBCF redirects water
fl ow to achieve a three to fi ve percent
reduction in fuel consumption at the
same speed – or to boost speed by one
to two percent with the same fuel
consumption. “Bulk carriers have used
standard designs for years,” says Claus
Mygind, “so a device like the PBCF is
a valuable addition. Using advanced
hydrodynamic technology – but
without radical ship redesign – it can
give a signifi cant boost to our fuel
effi ciency. We’re currently having the
PBCF installed on four of our newbuildings
from China, and we’ve also
asked our pool partners to do the same
on two additional vessels. Together
with other seemingly small-scale
changes – such as the hull coating
mentioned in this article – initiatives
like this can make quite a difference
in our operational effi ciency.”
Lauritzen Bulkers maintains a constant push
for cleaner, greener, more effi cient operations.
A smaller footprint
for big ships
Bulk carriers are regarded as the low-tech
workhorses of the shipping industry, yet
through consistent policy and a variety
of new initiatives Lauritzen Bulkers is
shaping a fl eet that is one of the bulker
segment’s most environmentally
progressive. “Contrary to the common
perception of the shipping industry,
numerous initiatives are being taken by
ship-owners with the aim of reducing the
environmental impact of our operations.
It is defi nitely our policy to look for
environmentally sound solutions,” says
Claus Mygind, vice president and head of
operations for Lauritzen Bulkers. “Bulk
shipping is solidly based on price, and
initiatives that lower our cost of transport
and benefi t the company and the
environment.” He points out that in the
past year Lauritzen Bulkers has sold six
ships built in the 1990s in order to focus
the fl eet on newer, more effi cient vessels.
The oldest owned ship in the Lauritzen
Bulkers fl eet today, the Tilda Bulker was
built 2003. This is certainly a forwardlooking
policy in a business where the
typical vessel lifetime is 25-30 years.
The benefi t is clear, as a comparison of
ship performance between those that
were sold and newer vessels with 2003
and 2007 build dates shows that the
newer vessels burn considerably less fuel
per ton of cargo transported – between
16 percent and 26 percent less depending
on oil quality, trading patterns and other
variables. “As it stands now, we’re basing
these numbers on rough calculations
of fuel consumed,” says Poul Martin
Kondrup, marine technical manager for
Lauritzen Bulkers. “This gives us a clear
indication of positive results, but the new

Lab-On-A-Ship project being tested
on two of our vessels will give us much
more precise measurements of engine
performance and environmental impact
(see accompanying article, p. 10). We’re
the only bulker fl eet currently testing this
kind of capability.”
You might say that Lauritzen Bulkers
has a head start in the race to minimise
fuel consumption and environmental
impact, as the size and fl exibility of its
fl eet ensures fewer ballast days for its
vessels. “Basically, we move more cargo
with less fuel - and consequently with less
Co 2 emission - than many bulk shippers
because our fl eet allows us to run an effi -
cient operation,” says Bernardino Lladoc,
superintendent. “We almost always have
a ship close to the port where it’s needed,
so we virtually never make long voyages
carrying ballast instead of cargo.”
Additionally, Lauritzen Bulkers is engaged
in a range of initiatives aimed at making
the daily operation of its vessels as effi cient
and environmentally friendly as possible.
They include the following:
Advanced hull coating
It is common to use antifouling coatings
on the bottoms of ships’ hulls. Unlike
many other owners, Lauritzen Bulkers
uses new environmentally friendly coatings
on the sides of the hull – up to the normal
draft line – as well. This produces better
speed performance and lower fuel consumption
and, therefore, less pollution.
It also increases coating costs by around
30 percent, but this is more than compensated
for by increased fuel effi ciency.
Low-dust grabs
Poul Martin Kondrup helped design
improved grabs a few years ago in
response to new standards to limit dust
pollution in Norwegian ports. He
modifi ed the physical design of the
scoops on grabs to keep dust inside,
which provides a much better working
environment for ships’ crews and
terminal workers, not to mention a
generally improved port environment.
The concept has been so successful
that other shipowners have requested
this “Lauritzen design” when ordering
from grabs manufacturers.
Improved hold cleaning
There is more to pollution than CO 2 .
Cargo hold cleaning is an area that in the
past has posed an environmental threat,
as many ships holds were cleaned with
acids, which were bad for the crew and
were washed back out into the sea.
Lauritzen Bulkers now uses environmentally
friendly biodegradable cleaning
materials supplied by a Canadian company.
These are more expensive, but – in theory
at least – safe enough to drink, so they
contribute to a much better environment
onboard ships and in surrounding oceans.
Additionally, Lauritzen Bulkers is about
to begin testing a newly designed container
system, which already holds a CLASS
certifi cation, that can clean wash water
used in cargo holds. Essentially, it can
separate cargo residue – coal, cement or
clinker, for example – from water. The
fi ltered water is clean enough to be pumped
into harbours and the remaining
cargo solids can be sold or disposed of
onshore. This system will initially be
used in the Rotterdam/Amsterdam area
where Lauritzen Bulkers discharges
many of its vessels. “The Baltic area has
particularly strict discharge regulations,”
says Poul Martin Kondrup. “Ordinarily,
vessels have to discharge cargo, leave
port, wash down and entirely exit the
Baltic before fl ushing wash water into the
sea. With this container, the fi ltered wash
water is clean enough to put into the
harbour. This is a signifi cant benefi t to
the environment and to shipowners, as it
immediately frees up to 250 tons of cargo
capacity that might otherwise have been
wasted in transporting cleaning water.”
Innovative lube systems
All newbuildings ordered by Lauritzen
Bulkers have advanced engine lubrication
systems that help reduce pollution by
decreasing the amount of lubricants used.
On older engines lubrication systems are
manually adjusted by engineers. The new
“alpha” system features a precise electronically
controlled automatic feed, which
lubricates engine parts just as effectively
while using up to 40 percent less lubricant.
Effi ciency is further enhanced by modern
cylinder design.
Achieving early compliance
“We have always had a policy of adapting
early to new environmental initiatives,
often long before regulations offi cially
come into effect,” says Bernardino Lladoc.
“Two past examples are our rapid compliance
and early certifi cation in the areas of
air pollution and antifouling paint.
CLEAN SAILING
Others areas we’re working on include
new ballast water treatment regulations
that don’t come into effect until 2014 -
we’re complying now. We’re also
voluntarily working toward gaining
International Maritime Organisation
(IMO) Green Passport certifi cation for all
vessels in our fl eet.” The Green Passport
is a document that accompanies a ship
throughout its working life. It contains
an inventory of all materials potentially
hazardous to human health or the
environment used by a ship during its
lifetime, from construction to recycling.
Working with the weather
For the past two years the entire
Lauritzen Bulkers fl eet has used the
services of Weathernews Inc. (WNI) to
help plot voyages more effi ciently. Daily
weather reports from WNI give sailing
recommendations for optimal weather
routing. This helps masters navigate to
avoid storms and results in signifi cant
fuel savings. WNI’s computerised
programme also helps document vessel
performance and fuel consumption.
Nordic Bulker and
Laura Bulker receive
Green Flag award
The US Port of Long Beach, California,
has a 20-year record of environmental
protection programmes. As part
of its Green Port Policy, the port urges
vessels to travel at or below 12 knots
within 20 miles (32 kilometres) of the
coast. Ships traveling at slower speeds
reduce emissions. Those that comply
earn a Green Flag Environmental
Achievement Award. Two Lauritzen
Bulkers vessels, the Nordic Bulker and
the Laura Bulker, achieved 100 percent
compliance in 2008. They are now
proudly fl ying the Green Flag and are
also eligible for a 15 percent reduction
in dockage fees.
Photo by Ulla Munch-Petersen
9

10
CLEAN SAILING
Lab On A Ship tested for “proof of
concept” on two Lauritzen Bulkers vessels.
Seagoing lab helps vessels
run better and cleaner
It is about the size of a standard refrigerator,
although it has also been likened to
an ice-cream machine. It is designed to
sit unobtrusively onboard ships, automatically
analysing fuel and lubricants,
transmitting data and generating reports.
And it is on the verge of making a big
difference in bunkering, engine maintenance
and engine performance. Two of
these systems – called Lab On A Ship
(LOAS) – are being tested now on
Lauritzen Bulkers vessels, the Sofi e Bulker
and the Amine Bulker. “I think it’s fair
to say these systems are a signifi cant
breakthrough. They’ll help make vessels
more reliable and effi cient for owners and
customers and also help ensure compliance
with environmental standards,” says
Poul Martin Kondrup, marine technical
manager for Lauritzen Bulkers. “LOAS
can measure and analyse as accurately as
any land-based lab, and it operates
automatically, with virtually no interference
from the crew.” The system is
programmed to perform tasks – such as
adding an appointment into Outlook ®
– on a regular schedule with a 45-minute
cycle time. It provides information to the
vessel control room, but also communicates
effi ciently with an onshore server
and automatically generates customised
reports and e-mails them to recipients
such as technical or fl eet managers.
LOAS promises to dramatically streamline
the bunkering process. Standard
procedure today for ships taking on fuel
includes a delay of three or four days –
sometimes longer – until results from an
onshore lab can confi rm the composition
and quality of the oil. LOAS is capable
of analysing the fuel during bunkering
and providing results within 30 minutes.
Which means vessels will have the
immediate option of not taking on fuel
that does not meet quality standards,
thus avoiding loss of time and money
and perhaps being stuck with a load of
oil that can neither be used nor readily
disposed of.
Tracking engine performance
LOAS also tests the main engine oil just
before it goes into combustion chamber
and constantly measures and analyses
engine lubrication oil. “This gives us the
ability to repeatedly track and observe
specifi c trends in engine performance,”
says Poul Martin Kondrup. “Essentially,
the LOAS system brings modern process
management to ship propulsion systems.
This has big implications for engine
performance and maintenance since it

has the potential to eliminate guesswork.”
Instead of roughly estimating maintenance
intervals based on past experience,
LOAS allows specifi c tracking of trends
that provide better indications of time
for maintenance. Over time, for example,
the system will show changes such as
increased water content in the lubrication
oil, which could indicate coolant system
leakage. Ultimately the system could lead
to substantial cost savings and help cut
pollution by reducing excessive burning
of oil mixed in with fuel. The main benefi
t is the ability to improve scheduling
for engine maintenance and overhauling,
which affects everything from engine
performance and effi ciency to spare parts
stocking. Such information tracked over
time might also allow ship owners to
work with engine manufacturers to refi ne
and maximise engine operation.
Additionally, LOAS can be used to
manually measure and analyse hydraulic
oil – for example, from hydraulics
systems on hatches and cranes – to allow
early detection of potential mechanical
problems. During 2009 the system will
also be extended to include automatic
measurement of cat fi nes (small metal
particles) in heavy fuel. A second analysis
unit, a gas analyzer that has the capability
to measure NO X , SO X , CO, CO 2 and
O 2 , will also be added to the vessels.
“Then we’ll have a complete system to
measure oil in and gas out, which will
give a very good picture of how effi ciently
the engine is burning oil,” says Poul Martin
Kondrup. “The system also provides
absolute proof that you’re in compliance
with the required sulphur content of
fuel. Once the exhaust gas measurement
component has been tested and approved,
we’ll also be able to provide proof of
emissions compliance. LOAS has passed
an accredited ASTM correlation test
and has a pending approval from Lloyd’s
Register EMEA for oil analysis. In fact,
Lloyd’s Register EMEA has been an
important project partner in analysing
data and in the education of the engineers
and superintendents who work with the
LOAS system and interpret data. The
professional cooperation between vendor,
classifi cation society and owner has been
essential for the outcome of the project.”
Worldwide market potential
LOAS was developed by NanoNord A/S
– an Aalborg, Denmark-based company
founded by entrepreneur Ole Jensen –
and is largely funded by Vesterhavet A/S,
the holding company for J. Lauritzen.
“Vesterhavet originally invested in
NanoNord’s nano-technology work,
but about three years ago Ole Jensen
and I decided to look for a shippingrelated
project that would generate
more immediate revenue,” says Bent
Østergaard, president of Vesterhavet A/S.
“We hit upon the idea of bunker analysis
and oil analysis. We currently have fi ve
systems on ships – including the two
Lauritzen Bulkers vessels – being tested
for proof of concept. So that’s pretty
fast work, although we’re still fi ne-tuning
the equipment. The goal is to have the
fi ve current systems running with all
components, including cat fi nes analysis,
by the end of this year.” Bent Østergaard
further points out that LOAS is a fl exible,
scalable concept. Less expensive, more
targeted systems that, for example, measure
only cat fi nes or sulphur could easily
be produced.
“We see a large potential market in
Denmark and worldwide,” says Ultan
O’Raghallaigh, NanoNord’s director of
business development and sales. “The
test trials underway by our fi rst four
customers, including Lauritzen Bulkers
CLEAN SAILING
have the potential to lead to fl eet installations
on more than 100 vessels over the
next three years. Worldwide, in roughly
the same time frame we see a pool of
approximately 7,000 newbuildings that
are in the size range to be customers for
LOAS. We’ve already introduced the
system to 45 leading shipping companies
in Asia, North America, the Middle
East and Europe. These companies were
encouraged by the initial Lloyd’s approval.
They all expressed intense interest and
are awaiting the proof-of-concept results
from our fi ve current installations.”
“This gives us the ability to constantly track
and observe specifi c trends in engine performance.
Essentially, the LOAS system brings
modern process management to ship propulsion
systems. This has big implications for engine
performance and maintenance since it has the
potential to eliminate guesswork.”
Poul Martin Kondrup
Marine Technical Manager, Lauritzen Bulkers
Ole Jensen, Director, NanoNord A/S,
(on left) and Poul Martin Kondrup,
Lauritzen Bulkers’ technical manager,
with the LOAS system.
11

12
CLEAN SAILING
Photo by Hans Søndergaard
Getting better all the time
Software developed by Danish Technical University senior researcher
and adjunct professor Hans Otto Holmegaard Kristensen – and funded
in part by the JL-Foundation (JL-Fondet) – opens the door to more
effi cient ship design.
The software is complex – it’s been under
development, off and on, for nearly a
decade – but some very simple numbers
get to the heart of the story. “Each ton of
fuel burned by a ship at sea creates about
three tons of CO 2 , and each ton of fuel
saved reduces emissions by the same
amount,” says Hans Otto Holmegaard
Kristensen. So it is not surprising that
ship energy use has been increasingly
scrutinised. The need became clear for
analytical tools to calculate ship energy
consumption and exhaust emissions.
Enter Professor Holmegaard Kristensen’s
software, which is designed to do just
that for bulk carriers, tankers, Ro-Ro
cargo ships, container vessels and
passenger vessels. The project is now at
an intermediate stage, with a beta version
of the software already available for container
vessels and Ro-Ro cargo ships.
Reducing emissions
The system is designed so that when
cargo capacity is entered for a given type
of vessel, the software uses an extensive
range of statistical data to calculate a set
of representative main data for the
particular ship. The programme has to
be written specifi cally for different cargo
and vessel types, because cargo has a
huge infl uence on ship design. Containers,
for example, often must be delivered
relatively quickly, and container ships
therefore need slender hull forms for
higher speeds, compared with slower, less
streamlined bulk carriers. Ro-Ro ships
and passenger vessels are even higher up
the hierarchy in terms of speed and
narrow, streamlined hulls. Different hull
shapes and different speeds all demand
different mathematical models. By
examining and calculating a wide variety
of variables, the software allows fi ne-tuning
of vessels at the design stage to see
how even small adjustments to ship design
can affect propulsion power requirements
and total energy consumption.
“Regardless of ship type, the goal is the
same,” says Hans Otto Holmegaard

Kristensen. “That is to redesign ships of
the future to be more fuel effi cient and to
reduce emissions. As an example, imagine
a container ship 250 metres long. If we
increase the length by just 5% we would
also increase effi ciency by approximately
5% because the hull will be more streamlined.
When speed is unchanged, a longer
hull produces less water resistance. Of
course, many other variables also have
to be considered. And remember that a
lengthened hull is more expensive, so in
the days of low fuel prices hull length was
kept down. But today and in the future
because of generally higher prices and
environmental regulations, the emissions
reduction can more than compensate for
increased build costs.”
Meeting standards
It will also be possible to use the software
to determine the impact on the so-called
Energy Effi ciency Design Index (EEDI)
which the IMO – with strong Danish
input headed up by the Danish Maritime
Authority – is working to have implemented
for new vessels to make them
more energy effi cient. Additionally,
emission data can be entered into the
programme for the intended propulsion
machinery and associated exhaust gas
cleaning technology such as scrubbing
technology for reduction of SO X emissions.
The software will also use data
gained from the Green Ship of the
Future project to calculate the volume
of exhaust emissions - CO 2 , NO X , SO X
and particulates.
According to Professor Holmegaard
Kristensen, the programme will probably
be released at the end of this year, and
could be put to use immediately to help
shipowners meet IMO requirements. And
to help shipowners and ship consultants
work with shipyards to prove the benefi ts
of new approaches to ship design for the
fl eets of the future.
“Regardless of ship type, the goal is the same.
That is to redesign ships of the future to be
more fuel effi cient and to reduce emissions.”
Hans Otto Holmegaard Kristensen
Senior Researcher, Danish Technical University
The genesis of
a good idea
CLEAN SAILING
Hans Otto Holmegaard Kristensen’s
professional background seems tailormade
for a developer of cutting-edge
maritime software. Educated as a naval
architect, he has worked as a consultant
for numerous Danish shipping companies,
including JL. Additionally, he has
been employed at the model tank centre
in Lyngby, Denmark (now FORCE
Technology) researching ship propulsion
and by the Danish Navy, where he
contributed to the design of the so-called
fl exible support ship Absalon. “This
software combines my experience in both
ship design and ship propulsion into one
exercise,” he says. “The genesis of the
actual programme occurred ten years ago
when I worked for the Danish Shipowners’
Association. Peter Bjerregaard, the
Association’s director, asked me to try to
calculate the effi ciency of different ship
types. It was long before anyone else was
doing this, so Peter was well ahead of
the curve to be thinking in these terms.
On one level or another, I’ve been
occupied with the idea ever since. Taking
a full-time position as a researcher at
DTU a year ago has given me more time
to focus on it and bring it to completion.”
Photo by Hans Søndergaard
13

14
CLEAN SAILING
From black water
to clean water
Lauritzen Kosan
newbuildings fi tted
with next-generation
biological sewage
treatment plants.
Readers of Lauritzen News will be
familiar with the series of 10 advanced
ethylene carriers contracted by Lauritzen
Kosan at Sekwang Heavy Industries in
South Korea. Seven have been delivered
to Lauritzen Kosan, one has gone to Lauritzen
Kosan’s partner Allocean and the
fi nal two will go to LGR Navigazione.
All ten vessels are commercially managed
by Lauritzen Kosan. These vessels incorporate
many environmental innovations,
and are the fi rst gas carriers designed to
comply with the International Maritime
Organisation’s (IMO) Green Passport
concept and the CLEANSHIP class
notation for pollution prevention. All the
ships are also equipped with new IMOapproved
biological sewage treatment systems
that provide early compliance with
new IMO guidelines – effective January
2010 – on black water treatment.
“These bioreactor systems are enclosed
units that use bacteria to clean waste
water,” says Nicolas Grantzan, Lauritzen
Kosan superintendent. “Black water from
toilets and grey water from sinks and
showers are piped into the units, which
process the water and pump clean water
into a holding tank, which discharges
automatically when it’s full.” In fact, the
entire process is automatic and requires
virtually no crew involvement. The bio-
reactor units can handle waste water from
up to 30 people; typical Lauritzen Kosan
crew size is about 15.
Well-tested solution
Rolf Andersen, compliance manager for
Lauritzen Kosan, explains that the units
put Lauritzen Kosan well in the forefront
of maritime sewage treatment. “Under
current regulations it’s still permissible
to ‘commute’ waste water by separating
solids and treating the water with
chemicals, then discharging it three miles
from shore – or to carry raw sewage in a
holding tank and pump it out 12 miles
from shore. The water created by our bioreactors
is considered by the IMO clean
enough to be discharged at any distance
from shore. The systems also help us
meet our ISO 14000 goals.”
This sewage treatment system is well tested,
as more than 250 have been installed
onboard ships. According to the manufacturer,
Gertsen & Olufsen, the system
exceeds any known or expected future
environmental demands in any waters.
“It is our ambition to provide all our
new-buildings with systems like these
in the future,” says Peter Justesen, vicepresident
and head of Fleet Management
for Lauritzen Kosan. “They are very
environmentally friendly, as no solids
are released and no chemicals are used
in treatment. For comparison, you could
say that the clean water produced by the
eight ships we’ve already equipped with
bioreactors is the environmental equivalent
of providing a sewage treatment plant
for a small village.”
“For comparison, you could say that the clean
water produced by the eight ships we’ve
already equipped with bioreactors is the
environmental equivalent of providing a
sewage treatment plant for a small village.”
Peter Justesen
Vice President and Head of Fleet Management, Lauritzen Kosan

Jens Ditlev Lauritzen
assumes chairmanship
of the JL-Foundation
After a career of more than 30 years at
all levels of J. Lauritzen and the past 11
as president of Lauritzen Bulkers, Jens
Ditlev Lauritzen has stepped up to take
over as chairman of the JL-Foundation
(JL–Fondet). Asked for a view of what
the move holds for him, he says that
“of course it’s a big change and a big challenge.
Especially considering the fact that
I’ll be the fi rst Lauritzen family member
at the head of the Foundation since
1978, when shipowner Knud Lauritzen
passed away. On a personal level, I’ll be
very aware of the feeling that past family
members – right back to the founder –
are looking over my shoulder, so to speak,
and maybe asking, ‘what are you up to
now’. From a business point of view this
position will demand much more of a
strategic ‘helicopter view’ – I’ll be thinking
from the perspective of the entire
Lauritzen Group now, not just of one
company within the Group. Since 1978,
the position of chairman has been held
by people from outside the top Lauritzen
management ranks, who haven’t had the
background to be as actively involved as
I anticipate I will be. Since JL has been
my only business focus for more than
three decades, there’s not much in the
company that I don’t have a feel for.
I hope it will be an advantage for the
Group that I have this background.
An active role
“The Foundation is not only 100 percent
owner of JL and the majority shareholder
in DFDS, but is also a partner on a venture
investment basis in ten other smaller
companies that range from software to
building materials businesses. Direct
oversight of these ventures is the responsibility
of Bent Østergaard, who is president
of Vesterhavet (JL’s holding company).
I’m here to discuss ideas and facilitate
activities. It’s very early days for me, but
I can say we’ll be looking for new opportunities.
The Foundation’s charter states
that we should work for the betterment of
Danish entrepreneurs, and I want to play
an active role in doing so. I would say the
same for the charitable side of the Foundation’s
activities, where Inge Grønvold is
manager. I will be actively involved there,
too, visiting and speaking with the charities
we support. Overall – given a little
time – my ambition is to streamline and
increase the profi le of the entire JL-Foundation.
I’ll look forward to reporting on
that progress in future issues of Lauritzen
News.”
15

16
CAPESIZE
IN A BOX
Photo taken from the upper deck looking forward.
Erection of the cargo hold bulkhead.
A “mega-block” consists of multiple blocks assembled on ground
level in the yard. A 1,600-ton crane will lower this mega-block
into the dry dock for erection and welding.
The main engine is lowered into place.

Erection of the 400-ton accommodation house.
Engine casing ready to be positioned behind the completed
accommodation house.
As the photos here show, some of the world’s largest vessels
are constructed, Lego-style, from pre-manufactured
modules, or blocks. According to Curt Corneliussen,
technical manager of bulk projects, this has been common
procedure for decades. Hyundai Heavy Industries in South
Korea – where this Lauritzen Bulkers Capesize, the Caecilie
Bulker, is being built – is one of the world’s most sophisticated
shipyards, with the ability to manufacture much bigger
blocks than many other yards. Each section lowered into
place is fully coated and nearly completed with all pipes,
cables, pumps, machinery, etc. and ready to be connected to
adjoining blocks. The entire process goes very quickly. Work
on steel cutting and block production began in September
last year. The keel laying, or placement of the fi rst block in
dry dock, was accomplished in February. The ship was
launched out of dry dock at the end of May and out on sea
trial at the end of June.
Work in progress.
Proud site manager Jan Sjulstok on the starboard bridge wing of
Hull No. 2122, soon to be the Caecilie Bulker.
17

18
The new Lauritzen Offshore Services
accommodation and support vessel will
assist StatoilHydro with development
of the Peregrino oil fi eld.
Dan Swift
headed for Brazil
“In particular, the vessel’s two fl exible
gangways give it an unmatched capability
to connect safely to the platforms in DP mode
in varying wind and current conditions.”
Michael Kristensen
Vice President, Lauritzen Offshore Services, Singapore

Work is nearing completion on the
conversion of the Dan Swift to serve as
a dynamically positioned (DP) Accommodation
and Support vessel for the
crews and equipment needed to work on
fi xed or fl oating offshore structures.* In
December 2009 the vessel is scheduled
to begin a seven-month contract,
including options for up to four onemonth
extensions, to assist StatoilHydro,
the well-known Norway-based oil and
gas company, in the Peregrino oil fi eld in
Brazil’s Campos Basin. The Dan Swift
will provide accommodation and service
facilities for hook-up and commissioning
of two well-head platforms (WHPs).
Maersk is to provide the project’s FPSO
(fl oating production, storage and offl oading)
vessel.
Spot-on for the job
During the project, StatoilHydro will
have about 230 workers, engineers and
supervisors onboard to work on the wellheads
and prepare for oil production. Additionally,
J. Lauritzen will supply a crew
of about 60, ranging from offi cers for DP
navigation and IT specialists to caterers –
even a fi tness instructor – to meet all the
needs of StatoilHydro. Three helicopter
fl ights daily will ferry personnel back
and forth from the mainland to the Dan
Swift, a journey of about 100 kilometres.
“The Dan Swift was considered spot-on
for this contract for many reasons,” says
Michael Kristensen, vice president of
Lauritzen Offshore Services in Singapore,
“not least of which is its ability to move
between the two WHPs, which are about
ten kilometres apart. In particular, the
vessel’s two fl exible gangways give it an
unmatched capability to connect safely to
the platforms in DP mode in varying
wind and current conditions. ‘Safely’ is
the key word here. As part of the total
conversion – you might almost say
‘newbuilding’ – process, we were able to
do model testing of the Dan Swift at the
Marin Institute in Holland. The tests
were based on prevailing weather statistics
for the Campos Basin, so we have great
confi dence in the vessel’s ability to
perform safely as the fi rst of its kind
in the world. The safety issue is also
tremendously important to StatoilHydro,
which is known for setting extremely
high HSE (Health, Safety and Environment)
standards – even more so as the
Dan Swift will also serve as an evacuation
and rescue vessel for the workers in case
the WHPs need to be evacuated.”
Head-start in the market
The Dan Swift won the contract with
StatoilHydro in close competition
against other experienced players in
the market. In addition to advanced
technical solutions and HSE compliance,
J. Lauritzen’s experience in Brazil was also
an important factor. “We have also signed
a service contract covering shore support
and local logistics to ensure timely
execution of the project,” says Michael
Kristensen. “Compliance with Brazilian
law and requirements can be challenging
in this business, but we’ve operated for
many years in Brazil and could assure
StatoilHydro of our ability to deal
successfully with local stakeholders
and authorities. We’re particularly happy
to have been chosen for this contract,
as StatoilHydro is both globalised and
highly regarded in the industry – working
with them gives us a head-start on future
success in the accommodation and
support market.”
*For more information about the Dan
Swift, please see Lauritzen News #9 or
visit www.lauritzenoffshoreservices.com.
Zero room for error
Health, Safety and Environmental
concerns – known as HSE – are front
and centre for the oil and gas industry.
Companies go to great lengths to
eliminate adverse effects on the
environment and to promote the health
and safety of all individuals involved.
StatoilHydro has earned a reputation as
an industry leader within HSE. The
company website sets forth the goal of
operating “with zero harm to people,
society and the environment in
accordance with the principles for
sustainable development. Our policies
and requirements apply to all operations
we control and to all staff and
contractors involved in those operations.
We expect our partners and
suppliers to have standards consistent
with ours.” Lauritzen Offshore Services
has developed a mindset and described
procedures and policies to meet the
most stringent requirements of the
industry. This was a top priority for
StatoilHydro in considering Lauritzen
Offshore Services as a business partner.
Because StatoilHydro places such
strong emphasis on working with
outside partners that can match its
own high HSE standards, Lauritzen
Offshore Services is particularly
pleased to have been chosen to play a
key supporting role in StatoilHydro’s
project to develop the Peregrino oil fi eld.
19

20
Steady as she goes
When Jens
Ditlev
Lauritzen
became
the new chairman of the JL-Foundation
(JL-Fondet) after more than ten years at
the helm of Lauritzen Bulkers, the ideal
replacement was ready to take over as
president. Ejner Bonderup began with
J. Lauritzen in the late 1980s and, except
for a one-year traineeship with Lauritzen
Reefers, his entire career has been centred
around the dry bulk side of the business.
He points out, however, that three post-
ings abroad also gave him a wide exposure
to JL’s other business areas. He was in
Tokyo in the early 1990s, then transferred
directly to Melbourne to start up the JL
offi ce there and, after a couple of years
back in Copenhagen, went to New York,
where he eventually became general manager.
“I dealt with bulk operations in all
of these positions abroad,” he says, “but I
also had direct involvement in the entire
range of JL’s business activities, especially
in opening the Melbourne offi ce and
heading the operation in New York.”
He dates his really serious concentration
on the bulker business from 1999, when
he returned to Copenhagen as head of
Handysize activities, the largest segment
Ejner Bonderup, new president
of Lauritzen Bulkers, sees continuity
in long-term strategy.
“I think it’s important to point out
that I and many others in senior
positions began as trainees with
JL. My promotion to president of
Lauritzen Bulkers should send a
strong signal to young people in the
company. JL has a solid tradition of
promoting people from within and
giving employees the opportunity
within Lauritzen Bulkers. “I was fortunate
to have worked very closely with
Jens Ditlev Lauritzen for nearly his entire
tenure as head of the business unit, and I
served as senior vice president for the past
three years,” he says. “So while the transition
to president of Lauritzen Bulkers is
certainly a challenge for me, I feel that I’m
up to speed with all the details of the business
and have a full picture of our history
over the past decade.”
Well positioned for the future
Asked about future direction for Lauritzen
Bulkers, particularly in light of the current
economic crisis, Ejner Bonderup
points out that strategy formulated back
in 2002 largely anticipated current conditions.
“We analysed the market at that
time and created a strategy that we’re
still implementing today. Basically, we
predicted seven years ago that we were
in for a few good years, which we could
take advantage of with the right balance
between cargo and ships. So we decided
to take on ships. But even then we foresaw
tighter future markets and composed
the fl eet so it could be adjusted downwards
when times became more diffi cult.”
As a result Lauritzen Bulkers began to
readjust its fl eet by selling off older vessels
and redelivering time-chartered ships even
before the full impact of the downturn
was felt (see Fleet Notes, page 23). The
ships being sold are primarily older,
smaller vessels that cannot be optimised
for cargo as well or operated as effi ciently
as bigger vessels. “Looking ahead, the demand
side of dry bulk shipping is actually
pretty healthy, showing a steady increase,”
he says. “The challenge for everyone in
the industry is a huge order book and the
uncertainty caused by many ship owners
trying to delay or cancel orders because
of fi nancing diffi culties. This can have
a big impact on what the market looks
like in the long term, but it’s a moving
target and hard to precisely predict how
the supply side will turn out. However,
it might give us business opportunities
that we are ready to take. We continue to
implement our long-term growth strategy
– including optimising our present fl eet
and newbuilding programme – and have
successfully done so slightly more rapidly
because of the fi nancial crisis. It’s part of
a planned adjustment. By lowering the
average cost of the fl eet, focusing on a
modern and attractive fl eet composition
and working with reliable partners, this
strategy puts us in good condition to
weather the current downturn.”
to work their way up through the
system. There are many educational
and career opportunities here, and
also the chance for interesting life
experiences, as my postings in
Tokyo, Melbourne and New York
certainly show.”
Ejner Bonderup
President, Lauritzen Bulkers

Making sense of
uncertain markets
It takes steady nerves, a head for details and
a taste for calculated risk to be a successful
product tanker chartering manager
Imagine that you have suddenly (as in a
dream) been assigned to work as a Laurtizen
Tankers chartering manager, just as
the world economy is suffering through
one of the most serious downturns ever.
What would you have to know, just to get
by? The short answer is: a tremendous,
mind-boggling variety of information,
which, just to make things interesting,
changes constantly. Fortuantely, Lauritzen
Tankers has an expert on the job
– an authority on the subject who appears
to fi nd it not only challenging, but positively
stimulating. Lars Blanco-Hansen
is a product tanker chartering manager
whose main task – together with fellow
chartering manager Jesper Mortensen and
trainee Jonas Andersen – is to charter fi ve
ships for cargoes in the spot market. In
addition to the spot chartering, he also
handles time chartering of ships that are
put out on period contracts.
Constant change
A general description of the job sounds
straightforward enough. “We carry only
refi ned products,” he says, “and we monitor
short- and long-term trends, different
factors that can have an infl uence on the
supply-and-demand balance.” The major
factors to be considered and balanced
against each other range from how many
new ships may be coming from shipyards
in the near and long terms; trends in oil
product consumption, primarily but not
solely in the United States; and most
important, sourcing of products. Typical
sourcing for Lauritzen Tankers comprises
carrying gasoline from Europe to the
United States and sometimes to West
Africa and taking diesel and jet fuel from
the United States to Europe.
“This is the market we’re primarily
engaged in,” says Lars Blanco-Hansen,
“but there’s a lot of seasonal change in
the course of a year. So we monitor all
kinds of factors that might infl uence
demand. How cold or warm the winter
is going to be will infl uence the demand
for heating oil in the US North Atlantic
states, for example. During a mild winter
more US-produced diesel product will be
available for shipment to Europe. People
typically drive more during the summer
in the United States, so we monitor trends
in the economy. This year, lots of people
lost their jobs due to the economic crisis.
Our thinking is that they probably won’t
be able to afford to travel abroad and may
drive even more within the country. Then
around September or October, we start
monitoring the hurricane season. A rough
season can be both good and bad for us.
Bad storms can cause electricity and pipeline
problems that decrease US refi nery
production. The result is an increased
demand for gasoline imports but a reduction
of diesel available for shipment back
to Europe.” In other words, placing Lauritzen
Tankers vessels in the spot market
is a continual balancing act.
Judgement calls
Which is not to say that there is not
a host of uncertainties to juggle and
judgement calls to make. “We buy our
own ships or charter them long term so
our business is sensitive to cargo fl ow –
we always want to make optimal use of
our fl eet,” he says. “At the end of last year,
for example, we believed that the fi rst
quarter of 2009 would be weak, so we
allocated more tonnage to the West Africa
trade because the demurrage we collect
for waiting one to three months to enter
West African harbours can, in a down
market, amount to more than freight
income. It was a good call that helped
carry us successfully through the fi rst
quarter.” There are other long- and
short-term imponderables as well. Because
US refi ners, for instance, can no longer
compete internationally and are being
squeezed on margins, it is likely that
there will be a greater US demand for
gas imports – but exactly when and how
much is not certain. European refi ners
are in somewhat better shape than those
in the United States, but not much.
New refi neries are coming online in
India, China, Korea and the Middle East,
which means that the future could hold
longer voyages. If this is true, should
Lauritzen Tankers reconsider its focus
on MR-size ships? Not to mention the
question of whether at some point in
the future different routes to transport
bio fuels – from Indonesia or Brazil, for
example – may have to be considered.
And the fact that even if earnings remain
steady, the price of bunker oil is making
it more expensive to run the fl eet.
For a tankers chartering manager,
uncertainty is a given. It can even be a
good thing. The question, of course, is
how much of it one can tolerate. Lars
Blanco-Hansen was evidently born for it.
“That’s the fun part,” he says. “We add
up all the information, make the best possible
forecast and try stay one step ahead.
When we’re successful – and we usually
are – it’s very satisfying. When we’re not,
we’ve learned something new to use next
time around.”
“We add up all the information, make the best
possible forecast and try stay one step ahead.”
Lars Blanco-Hansen
Chartering Manager, Lauritzen Tankers
21

22
Hi-spec duo
to J. Lauritzen Singapore
The sixth of June 2009 was most
certainly not just another day at the
offi ce in the short history of J. Lauritzen
Singapore.
The delivery of two of the most environmentally
sophisticated vessels ever built
was imminent. These were the seventh
and eighth ethylene carriers in a series
of ten initiated by the J. Lauritzen Group
from Se Kwang Heavy Industries of
South Korea. More importantly, it was
also the day when two prominent ladies,
Ms. Low Chiew Sim and Ms. Patricia
Poon, had accepted to sponsor the double
namegiving, which in itself was a unique
event.
Ms. Low, spouse of JLS Board Member
Professor Neo Boon Siong, was the
sponsor for the fully fi tted Leonora
Kosan. The namegiving ceremony took
Colonel (Ret)
Lee Seng Kong
was formerly
the director of
Marine and senior
director in the
Maritime and
Port Authority of Singapore. Before that
he was in the Singapore Armed Forces/
Republic of Singapore Navy serving in
various capacities that included director
of Public Affairs in the Ministry of
Defence, defence attaché in Washington,
DC, and head of Naval Operations and
fl eet commander in the Republic of
Singapore Navy. He graduated from the
British Royal Naval College and US
Naval War College, and has a Master
of Arts degree from Duke University.
“The excellent teamwork, support and
leadership in JLS have contributed to the
development and success of the company. The
future challenges will be to ensure that our
activities are environmentally sustainable
and that we remain proactive.”
place at Onsan, South Korea, where a
crisp morning breeze swept across the
world’s largest shipyard. Coincidentally,
a funnel destined for a Lauritzen Bulkers
Capesize bulk carrier passed by on a
barge. The namegiving party had the
opportunity to familiarise themselves
with the crew and the innovative solutions
which brought Lauritzen Kosan Lloyd’s
List’s prestigious Ship of the Year Award
in 2008.
Following a refreshing lunch hosted by
Captain No, Chairman of SKHI and
Mr. S.U. Lim, CEO of SKHI, Ms. Poon,
spouse of JLS Board Member Colonel
(Ret) Lee Seng Kong was the sponsor for
the nearly completed Victoria Kosan. A
rather brisk afternoon wind challenged
neat hair styles and attire, which, however,
persisted graciously.
Professor Neo
Boon Siong is
director of the Asia
Competitiveness
Institute in the Lee
Kuan Yew School
of Public Policy in
the National University of Singapore, and
a fellow of the Civil Service College and
the Singapore Institute of Directors.
He was formerly dean of the Nanyang
Business School at the Nanyang Technological
University, Singapore. An expert
in strategy, management and organisational
change, he currently serves on
numerous corporate and public boards.
Professor Neo has advised many major
corporations and government agencies,
facilitated strategy workshops, and led
management development programmes
for senior executives and government
offi cials.
“JLS’s growth since 2005 has been
phenomenal. The signifi cant achievements
are a result of the vision and commitment of
Subsequently, thanks to Lauritzen Kosan
partner LGR Navigazione, the party
enjoyed another spectacular event when
the ninth vessel in the series was launched
by Captain Camino. At very close range
the group witnessed the vessel gathering
speed down the slipway and successfully
entering her natural element.
Excellent year-end results
Since its July 2005 start-up, history
has been hectic but kind to the JLS
(J. Lauritzen Singapore) Group. This is
illustrated by the fact that the Leonora
Kosan and the Victoria Kosan were the
28th and 29th vessel to join the Group
fl eet, with another nine vessels pending
delivery during 2009-2011. As the current
tally of 19 indicates, vessels have also left
the fl eet during these fi rst four years, with
ten vessels sold. Results culminated in
2008 with a profi t of USD 107 million,
the Lauritzen leadership. It is a privilege
for me to be involved in the foundation and
growth of JLS, and to be able to work with
a group of enthusiastic and highly skilled
professionals.”
“Prof Neo and Col Lee’s
contribution has paved
the way for JLS in gaining
a top tier position
in Singapore. Personally
I have benefi tted
immensely from their
sharing of know-ledge
and networks.”
Tom Hansen
Managing Director,
J. Lauritzen Singapore

Tom Hansen, managing director of J. Lauritzen
Singapore, reports on delivery and namegiving
of environmentally sophisticated ethylene carriers.
despite the economic turmoil during the
second half.
This extraordinary development would
not have been possible without the contribution
of JLS board members Professor
Neo Boon Siong and Colonel (Ret) Lee
Ms. Low Chiew Sim sponsored the Leonora
Kosan.
Fleet Notes
Lauritzen Bulkers
Partly in response to current market
conditions, but largely driven by its
strategy of building a modern, effi cient
fl eet Lauritzen Bulkers has – so far this
year – redelivered a total of eight timechartered
ships, with another four to
follow later in 2009. Additionally, a total
of nine ships were sold in the past 18
months, all older, smaller units that were
increasingly costly to operate. The longterm
strategy is to combine fi ne-tuning of
newbuilding programme deliveries with
ongoing adjustment of the fl eet to lower
average costs, operate more effi ciently and
increase competitiveness.
Lauritzen Kosan
Namegiving ceremonies were recently
held for the Victoria Kosan and Leonora
Seng Kong. On board since JLS shipowning
activities kicked off with AIS
status in September 2005, they have participated
in the expansion into Handysize
bulk carriers, MR product tankers, fully
pressurised gas carriers, shuttle tankers,
offshore support vessels and ethylene
Ms. Patricia Poon sponsored the Victoria Kosan. On her left, Mr. S.U. Kim, president of Se
Kwang Heavy Industries; on her right, Jan Kastrup-Nielsen, president of Lauritzen Kosan.
Kosan. These two vessels, which were
delivered in June and August to J. Lauritzen
Singapore, are the fi nal Lauritzen-owned
ships in the series of advanced ethylene
carriers produced by the Sekwang shipyard
in South Korea. Two more ethylene
carriers are being delivered later in the
year from Sekwang to Lauritzen Kosan’s
Italian pool partners. Additionally, six
pressurized gas carriers being built in
China will be delivered between the fi rst
quarter of 2010 and the second quarter
of 2011. Two of these may go into China
costal trade, while the others are targeted
for international trade.
Lauritzen Tankers
One of the series of eight ships on order
from Guangzhou Shipyard International
in China has been sold; of the others, one
carriers. This was executed through
activities acquisitions, purchase of
second-hand vessels, contracting of
newbuildings and bareboat and time
charters either directly or with JLS
partners IVS, Tailwind, and Mitsubishi.
will be delivered in 2010 and six will
follow in 2011/2012. Two additional
newbuildings – sister ships to Lauritzen
Tankers’ existing vessels the Freja Dania,
Freja Fionia, Freja Hafnia and Freja
Selandia – are to be delivered early in 2010.
Lauritzen Offshore Services
Two purpose-built shuttle tankers from
Cosco Nantong Shipyard in China
are scheduled for delivery in 2010 and
2011. These are on long-term charter to
Transpetro, a wholly owned subsidiary
of Petrobras, Brazil’s state-owned oil
company.
23

24
From left: Michael Spelling Clausen, Purchasing Department; Jakob Langballe Pedersen, Lauritzen Tankers; René Gaarden Jensen, Lauritzen
Bulkers; Anders Stæhr Poulsen, Lauritzen Bulkers; Maria Mosekjær Rasmussen, Lauritzen Tankers; Mia Storgaard Andersen, Lauritzen Kosan.
Trainees
off to a strong start
The trainees pictured here all became
full-fl edged employees as their two-year
training period ended in July. Their
continuing enthusiasm for J. Lauritzen
and the shipping industry just goes to
show that the right people plus the right
programme is a formula for success.
All six strongly agree that there is a
special spirit within the shipping industry
and particularly within J. Lauritzen. The
JL trainee programme has fostered this
feeling by immersing them immediately
into the responsibilities and the details
that keep J. Lauritzen running. And by
exposing them to the international
contact and travel that all of them fi nd
an interesting aspect of the shipping
business.

Industrial immersion
internships at J. Lauritzen
Singapore
Line Lind Clausen, chartering manager for
JLS, reports on the offi ce’s fi rst experience
with maritime studies interns.
KEEP (Knowledge, Experience, Ethics
and Personality) is what Weixiang Su (23)
and Chai Yuan Sheng (22) concluded
they gained and further developed after
their ten-week internship at JLS. I came
into contact with the two students while I
was guest lecturing at Nanyang Technological
University last year (see article in
Lauritzen News #10), and both subsequently
applied to have their internships
at JLS. Both students are taking a four-year
bachelor degree in maritime studies,
a programme that focuses on tertiary
education in shipping, business, management
and maritime science and technology.
The degree includes a semester at the
Norwegian School of Management (BI)
and a ten-week Industrial Immersion
Attachment (internship).
The objective of the Industrial Immersion
Attachment is to instill a sense of professionalism
and the right work attitude, as
well as to give students a chance to apply
the knowledge they have gained from
their studies in real-time work situations
in a corporate environment. During the
internship, Chai and Weixiang were both
surprised by the hectic and ever-changing
environment, which requires teamwork
and personal judgment, and can neither be
prepared for nor learned from text books.
Weixiang comments that “the work is full
of challenges and uncertainties”.
Hands-on experience
During their stay at JLS, both students
were introduced to areas such as dry
cargo operations and chartering, gas
operations and fi nance and accounting.
They also worked on practical assignments
like proofreading, arranging
charter parties and updating records for
ships owned by JLS. The ten-week stay
at JLS also included familiarisation visits
to two ships, the Stina Kosan and the
Karine Bulker, which both were in
Singapore for bunkering operations.
Chai went to Norway last year and
completed a semester at BI, whereas
Weixiang is currently doing his studies
“For us it has become even more evident how
valuable it is for the industry to stay in touch
with and have an ongoing dialogue with educational
institutions. This provides an opportunity
to follow and even infl uence the programmes,
and thereby to play a part in setting a direction
for the future workforce.”
at BI. During Weixiang’s stay in Oslo,
he has had the opportunity to take the
DFDS passenger ferry from Oslo to
Copenhagen with fi ve fellow students,
where they had an unforgettable stay.
The students visited JL headquarters at
Sankt Annæ Plads, saw the former
training ship Lilla Dan and went on a
JLS sponsored trip to Tivoli.
This is the fi rst time JLS has had interns
from the university. It has been a mutual
and positive learning curve. It offers a
good opportunity for the interns to combine
the theoretical side of their studies
with the practical tasks of the workplace,
and it gives JLS an excellent opportunity
to spot talent and identify possible future
employees. Both Weixiang and Chai
agreed after their stay at JLS that it was
an invaluable contribution to developing
their shipping skills. As Chai says, “Everyone
is learning every day in shipping”.
Line Lund Clausen
Chartering Manager, J. Lauritzen Singapore Weixiang Su (on left) and Chai Yuan Sheng.
25

26
In memoriam:
Niels Fisch-Thomsen
Niels Fisch-Thomsen, chairman of the board of directors of the
JL-Foundation (JL-Fondet), passed away on Saturday 11 April 2009
after a long illness. Bent Østergaard, president of Vesterhavet A/S, and
Inge Grønvold, manager of the JL-Foundation, look back on his career:
For 12 years, Niels Fisch-Thomsen,
lawyer, headed the Lauritzen Group as
chairman of the board of directors of the
JL-Foundation. The period was characterized
by changing market conditions and
many important decisions, which led to
signifi cant structural changes and affected
the daily work life of many. This includes
the closing of Danyard, the sale of
DFDS Transport to DSV, the delisting
of J. Lauritzen Holding A/S from the
Copenhagen Stock Exchange, and the
sale of Aalborg Industries A/S.
The period was also marked by prosperity
and growth for the Lauritzen Group.
During these years J. Lauritzen A/S, in
particular, changed its profi le, leading to
excellent results. After more than a decade
as a pioneer and market leader in the reefer
industry, J. Lauritzen’s involvement in the
reefer trades was terminated, while the
company expanded its activities considerably
in the bulk, gas, and product
tank markets. Most recently, Lauritzen
Offshore Services was established as a
new business unit serving the offshore
industry with dynamically positioned
support vessels. During Niels Fisch-
Thomsen’s chairmanship, DFDS A/S
also developed notably, including
considerable growth of the DFDS
Tor Line.
Vision and determination
One of Niels Fisch-Thomsen’s greatest
qualities was his ability to maintain
attention to detail while still managing to
be visionary and effi cient. Furthermore,
he had a unique ability that enabled him
to moderate his professional background
as a lawyer when required and act with
the confi dence and determination of a
skilled businessman.
At the same time he was deeply dedicated
to nonprofi t work, whether it was caring
for society’s weakest in Denmark or on an
international level. This is a signifi cant
part of the JL-Foundation’s purpose and
was one of Niels Fisch-Thomsen’s top
priorities. Niels Fisch-Thomsen enjoyed
great respect, not only because of his
ability to ask critical and penetrating
questions, but also because he had the
relaxed and pleasant ability to listen and
show confi dence in those around him.
During his battle with cancer he still
attended to business, and because of this,
especially, he serves as a shining example
for those of us who will now miss his
presence. His tenacity and determination
refl ect an unrelenting drive and vitality
to the very end.
“The love and care shown by parents for
their children is deeply rooted in human
existence and development,” wrote Niels
Fisch-Thomsen in the introduction to
the JL-Foundation’s 2008 annual report.
We know that his daughters and grandchildren
were his greatest pride. He now
leaves them behind, together with his
spouse Kirsten. Our deepest sympathy
goes to them.

Make way for women
Measured strictly by the numbers, shipping
may still be a man’s world. But in companies
such as J. Lauritzen, where women
occupy executive vice president and senior
vice president positions, old patterns are
clearly changing. According to Malin
Mattson, JL’s new head of Insurance &
Claims and Elsebeth Grosmann-Huang
who recently joined Insurance & Claims
as a claims executive, even the old traditions
weren’t necessarily “anti-female”. They
point out that the shipping industry is
built around technical interests and careers,
like naval architecture, that even today
tend to attract more men than women.
So that the higher number of men is not
necessarily a policy- or gender-driven issue.
“The question’s still valid – it is a male-
dominated industry, that’s for sure,” says
Malin Mattson, “but you get used to it,
and it’s not a problem. It all comes down
to what your approach is – whether you’re
open-minded, asking questions and and
willing to entertain new ideas.” An opinion
seconded by Elsebeth Grosmann-Huang:
“If anything, I see being a woman in the
shipping business as an advantage,” she
says. “I’ve had only positive experiences in
shipping. My experience as a lawyer is that
once people recognize that you know what
you’re talking about and have something
to contribute, then it’s not a question of
male or female.”
Advising the business units
Both women are educated as lawyers and
work in Insurance & Claims, which was
incorporated into JL’s legal department in
May 2009. The legal department dates
from just 2005; before that Lauritzen
depended exclusively on outside legal
advice. “The rationale behind merging
the two departments is pretty straightfor-
Shipping is traditionally regarded as a male
business, but there are notable exceptions.
Two of these are working to strengthen JL’s
Insurance & Claims department.
Photo by Ulla Munch-Petersen
Malin Mattson (on left) and Elsebeth Grosmann-Huang.
ward,” says Malin Mattson. “In shipping
the two areas are very tightly intertwined.
Claims are often treated as insurance issues.
For example, cargo damage or liability
claims might go to a claims handler and
eventually end up in arbitration or court,
so that JL’s legal department was automatically
involved. It also works the other way
around. When the legal department is
involved in the purchase of a vessel, for
instance, insurance has to be put in place
as soon as the purchase is made. So there’s
a constant overlap between the two areas.”
“A great deal of what we do can be seen as
providing a service to the business units,”
says Elsebeth Grosmann-Huang. “If there’s
a contractual problem of some kind, it’s
always our hope that the disagreement
can be resolved and not turn into a legal
dispute – and that we don’t have to approach
outside advice for court proceedings.
First, because that kind of advice is
expensive and second – but equally
important – because we want to build on
our already extensive in-house knowledge
and capability.” According to both
women, an important goal for the new
Insurance & Claims department is to
increase its role as an advisor. “We don’t
want to be in the position of simply
waiting to respond to claims,” says Malin
Mattson. “We see our mission as being
more proactive about providing updated
information to the business units – both
insurance and legal advice that they can
use in their daily work. This could include
advice about negotiations for new charters
or contracts, notifi cation about new
legislation that could affect operations,
updates about areas where extra insurance
coverage is needed – anything that can
help them operate more effectively.”
“We see our mission as being more proactive
about providing updated information to the
business units – both insurance and legal
advice that they can use in their daily work.”
Malin Mattson
Head of Insurance & Claims
27

J. Lauritzen
celebrates 125 years in shipping
In May 2009, J. Lauritzen celebrated the
125-year anniversary of its involvement
in virtually all facets of international
merchant shipping with a reception at the
company’s beautiful premises at Sankt
Annæ Plads. Amongst the guests were
employees, former employees, business
associates and friends of the company, all
of whom made the anniversary a day to
remember. In the evening, employees
and their spouses attended a celebration
dinner and, as a unique addition, no less
than 13 ship sponsors were also present
at the dinner.
Editors
Torben Janholt
Tove Elisabeth Nielsen
Jens Søndergaard
J. Lauritzen A/S
Sankt Annæ Plads 28
1250 Copenhagen K
Denmark
Tel: +45 3396 8000
On the occasion of the anniversary
J. Lauritzen had asked for contributions
to Stairway Denmark instead of gifts to
the company. Stairway is a programme
for the most marginalized and endangered
street children in the Philippines.
The company received DKK 125,000
in contributions, an amount that the
JL-Foundation (JL-Fondet) matched,
thus bringing the total contribution
to Stairway to DKK 250,000. Many
thanks for the generous contributions.
Editorial support and design
Cross-Border Communications
Copenhagen
Lauritzen News is a semi-annual
publication. Reproduction
permitted only after agreement
with the editors.
J. Lauritzen A/S operates globally and is engaged in diversifi ed ocean transport through Lauritzen Bulkers (dry bulk cargoes), Lauritzen Kosan
(petrochemical and liquefi ed petroleum gases) and Lauritzen Tankers (refi ned oil products). J. Lauritzen also serves the offshore oil exploration and
production industry with specialised tonnage through Lauritzen Offshore Services.
JL employs a staff of approximately 750 persons and together with partners/associates controls a combined fl eet of about 220 vessels including vessels
on order consisting of bulk carriers, gas carriers, product tankers and dynamically positioned offshore support vessels.
For more details on JL’s business activities and fl eets, see www.j-l.com
Ship sponsors, left to right:
Front row – Karin Halmøe, Isabel Pons
de Molina; Second row – Lena Have,
Marianne Lauritzen, Tutte Østergaard;
Third row – Marianne Warsberg, Tove
Nielsen, Therese Stenderup, Lizzie Janholt,
Ellen Mortensen; Fourth row – Anne
Bruun Larsen, Hanne Truelsen, Josefi n
Lindeblom Bonderup.