Quarterly December 2008 - Odfjell

Quarterly
In this issue:
Odfjell avoids Gulf of Aden ............................................................................ 4
P.O. Box 6101 Postterminalen
N-5892 Bergen
Norway
Tel: +47 55 27 00 00
Fax: +47 55 28 47 41
E-mail: quarterly@odfjell.com
Internet: www.odfjell.com
Bunkering facilities at OOTS ......................................................................... 6
OTK is getting bigger...................................................................................... 7
Hurricane Ike hitting the Gulf Coast Area ..................................................... 8
Odfjell Terminals’ Sales & Marketing summit .............................................. 9
New Intranet and Website for Odfjell ........................................................... 10
Bow Bracaria – rebuilt for hydrogen peroxide shipments ............................ 12
Dear
colleagues,
Editor:
Ellen Skagen
EDITORIAL COMMITTEE:
Brit A. Bennett
Margrethe Myrmehl Gudbrandsen
Tor Jürgensen
Siri-Anne Mjåtvedt
Morten Nystad
Helge Olsen
Marit Beate Simonsen
CORRESPONDENTS:
Rotterdam:
Theo Kruithof
Singapore:
Atle Knutsen
Deadline next issue:
March 6, 2009
Design: MacBox AS
Cover:
Bow Sirius in Richards Bay
October 1, 2008
Source: Zululand Observor,
Odfjell Maintenance Management Improvement Project ............................. 13
Britannia P & I Club visits Bow Century and Odfjell Terminals .................... 14
Giant load makes history ............................................................................... 15
QM Corner ..................................................................................................... 16
It’s all about the little things ......................................................................... 17
London – Odfjell location ............................................................................... 18
New and Improved Requirements and Guidelines Manual .......................... 20
Greetings From Around the World ................................................................ 22
Personnel Corner........................................................................................... 28
Fleet and Terminals....................................................................................... 30
The world financial crisis now has
started to have a severe impact also on
the real economy. Despite government
interventions through huge national
financial salvage packages, forecasts
for worldwide economic growth are
substantially downgraded. Most
advanced economies are now in
recession, and even rapidly expanding
economies, such as China and India, see
a considerable drop in their economic
growth. Many businesses get into
serious problems, and unemployment
figures are again on the rise. This
unfortunate development also affects
the shipping industry. Since this
summer the market for many segments
has deteriorated drastically, and at least
for dry bulk carriers and container ships
it looks like somewhat of a collapse. So
far the chemical tanker market has held
up reasonably well, and at Odfjell we
are benefiting from a healthy balance
between regular contract business and
spot cargoes. We also profit from the
fact that the price of fuel for our ships is
more than halved the last three months.
Although Odfjell’s fourth quarter results
are still in the making, all in all 2008
looks like being a reasonably good year
for the company. Earnings for our ships
have been strong at least throughout
November, and our terminals continue
to be profitable. All indicators show,
however, that 2009 will be a tough
and a challenging year for Odfjell with
weaker demand for our services. I
nevertheless believe there is room for
cautious optimism in the longer run;
Added liquidity into the finance sector
through the national salvage packages
will relieve many of the current trade
bottlenecks, e.g. related to obtaining
letters of credit, which will improve
conditions for more international trade
and thus demand for shipping services.
Financial restrictions combined with a
rather bleak short-term market outlook
are expected to increase the number of
cancellations of orders for new ships
and thus, eventually reduce the overall
tonnage supply. However, a positive
development for Odfjell is critically
dependent upon the professionalism
and drive of all our employees, at sea
and ashore, to make optimal use of all
our hardware and systems, and to go
the extra mile to reach our targets.
Another serious problem that arose
this autumn is the threat of our ships
being hijacked by Somali pirates in the
Gulf of Aden. Over the last five months
more than forty merchant ships have
fallen prey to these pirates, and several
of our competitors’ tankers have been
taken and held for ransom. Also one
of our ships was attacked, but through
a valiant and resolute action by the
captain and his crew the pirates had to
abort their attempt. For obvious reasons
this is a major concern, particularly
for our colleagues on board ships that
sail through these waters but also for
Odfjell as a whole. To avoid our ships
being hijacked, and hence to save our
seafarers the hardship of becoming
the pirates’ hostages, in November we
decided to route voyages that previously
went through Suez instead going the
long way around Africa. This is a costly
measure, entailing both extra sailing
days and more bunkers used, costs
that we cannot fully charge to our
customers. Therefore, when sufficient
protection through a regular escort
service is in place, expected to become
effective this December, we will resume
sailing through Suez and the Gulf of
Aden as long as this is deemed safe.
Our prime concern will always be the
safety of ship and crew.
There is nothing dramatic behind my
decision to resign as President/CEO
as from the Annual General Meeting in
May next year. I took this challenging
position more than five years ago for
an interim period of six to nine months.
Now, more than sixty months later, it is
time for change. I wish my successor,
our present Chief Financial Officer,
Haakon Ringdal, the best of luck in his
new position.
December is usually a very busy month,
and this year is certainly no exception.
There are all the end-of-the-year tasks
at work that need completion, seasonal
social arrangements and of course
all the preparations for the Christmas
festivities. Although I truly appreciate you
efforts and hard work for the company,
I also encourage you to take time to
enjoy this time with family and friends.
For us here up north hopefully we will
have snow for Christmas, and for our
colleagues down south at least some
decent barbeque weather.
I wish all of you and your families a very
merry Christmas and all the best for 2009.
Regards,
Odfjell Terminals (Rotterdam), August 2007
Terje Storeng
President/CEO
2 Odfjell Quarterly December 2008 Odfjell Quarterly December 2008 3