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Shipping Conference12 Ferry Shipping Conference OnBo12ard Baltic Meeting A spirit of optimism and concern ferry shipping conference 12 Gloom, doom but also optimism Gloom and doom prevailed during this year’s Ferry Shipping Conference. But there were also speakers who see the future through faith-coloured glasses. By PhiliPPe holthof ubbed by some delegates as the pointed out, cutting of costs and capacity lifetime of a company is changing and “Ferry Sulphur Conference” be- has been the order of the day with some also today’s children values have changed. Dcause of the sulphur issue that operators having opted for alliances and People have more time today than 20 years dominated the debates, the 10th joint partnerships. “Louis Dreyfus Armateurs ago although the subjective feeling is not ShipPax Information – BOLT Consult- has joined forces with DFDS Seaways and so. She also elaborated on KLM’s Meet & ing Ferry Shipping Conference was held in the Mediterranean, Superfast Ferries has Seat service to make the best out of people’s on board of Tallink’s BALTIC QUEEN entered into a partnership with Anek Lines. time during an intercontinental flight. The during a Stockholm-Tallinn return trip. It There might be more to come, especially in Meet & Seat service brings Facebook and turned out to be a big success with over 370 the Med.” LinkedIn users together before, during delegates boarding the ship in Stockholm A “broker’s reality” presentation and after the flight. Neither interested to discuss the state of the industry and net- prepared by Klas Brogren revealed some nor convinced about the power of social work during two full days. But due to the striking figures of the S&P market. In the media, some (conservative) ferry executives economic crisis as well as the skyrocketing 2009-2011 period, 40% of all transactions kept on talking about the bad shape of the price of bunkers and the impending 0.1% were within Asia. “And it is not only a industry due to the high cost of bunkers sulphur limit, there was no reason to cheer story about small ships, but also big ones. and the 0.1 sulphur limit. Luckily enough, and Imperial Shipping’s Carl-Otto Dahl- There is a huge market out there”, Philippe the conference also offered a platform for berg told the delegates that he had never Holthof said. Deputizing for Klas Brogren, optimists. heard such gloom and doom than during he added that the broker’s market has been this year’s conference. rather flat of late, but the recent sale of the The pessimists Bo-Lennart Thorbjörnsson gave some MOBY FREEDOM may give it a new The ferry executives painted a very pes- food for thought in his “Strategic situation impetus. simistic picture of the industry. Tallink’s of the industry” opening presentation. One of the sessions dealt with world Enn Pant, who had opened the conference, The European ferry industry develops economic trends and behaviours. A slide stated that his company is operating in a at different speeds, he said. The Baltic shown by Hugo Modderman of DVB very competitive market competing with passenger and freight market was on Bank illustrated that quite a number of other ferry operators, airlines and far away the up in 2011. In the Mediterranean, well-known banks have pulled out of short break destinations. “We cannot af- however, freight and passenger carryings ship financing. On a positive note, he ford that people turn their back on ferries. have plummeted. As a result of last year’s stated that the oversupply of ferries is For this reason we have to continuously conference and the urgent call to speak disappearing from the market. Johanna look at what customers demand and how with one voice, Interferry Europe has Danielsson of Kairos Future talked about to serve them better. Tourism is quite big been created. Thanks to this, Bo-Lennart the changing consumer landscape. The an industry, producing 5% directly and Thorbjörnsson has the impression that the ferry industry is working together in a better and more proactive way with regulators and Photos: Mike Louagie legislators. This was endorsed by Interferry Europe’s Johan Roos who said that “We are now speaking to regulators before they take decisions”. “This is a big advantage. Politicians know that the situation is difficult for us and some individual governments are now committed to it. Our voice is being heard loud and clear now”, he commented. As Thorbjörnsson 2 CRUISE & FERRY Info JUN 12 www.shippax.se ferry shipping conference 12 “Our voice must be heard loud and Gloom, doom but also optimism clear now” Johan Roos, Interferry. Photos: Mike Louagie Carla Aguirre, Hugo Modderman, VisitSweden DVB Bank Tallink’s Enn Pant opens the conference. Johanna Danielsson, Kairos Future Anders Refsgaard, Pierre Mattei, DFDS Seaways Corsica Sardinia Ferries 10% indirectly of European GDP. But the be exempt from the 0.1% sulphur cap. bitterly. According to Pim de Lange, LNG environment in which we are operating is But that does not mean that it is all plain propulsion is no option for existing ton- changing all the time. During the last 10 sailing for them, well on the contrary. It is nage whereas today’s abatement technology years alone, over 300 new and amended hard to ride out of the crises and as far as is no decent alternative for very expensive regulations have been imposed, the sulphur Corsica Ferries’ Pierre Mattei is concerned, MGO. He referred to a study of Interferry regulation being the most challenging by the company’s challenges are related to which had revealed that on 60% of the far.” Mr Pant set the tone for the other pan- state aid: the new PSO contract for services current ferries, scrubbers cannot be fitted. ellists in the ferry top executives panel de- linking Marseille with Corsica and the out- “It is not a reliable technology either, both bate. Anders Refsgaard of DFDS Seaways come of Tirrenia’s privatization. The main P&O Ferries and DFDS Seaways having said that the planning of tonnage, or better concern, however, are the rising oil prices tested it without much success. We at Stena the lack of orders, is directly linked to the which are playing havoc with all Mediter- Line went to great lengths and considered low sulphur requirements. “We expect the ranean ferry operators. This is no exception to install scrubbers on our Wismar and closure of routes if no solution is found. If on the North Sea with Stena Line’s Pim Samsung newbuilds. None of the manufac- oil prices continue to soar, we will reach a de Lange stating that bunker costs have turers could guarantee that it would work point where we can no longer charge the increased by more than 50% over the last properly. Scrubbers will be developed and extra costs to our customers.” As it stands two years. “With freight rates under pres- the technology will improve, but this will now, operators in the Mediterranean will sure due to a massive overcapacity, it is not take time. For this reason, we ask to post- easy to let the customer pay for pone the 0.1 sulphur limit to 2020 or grant the increased fuel bill”, he said exemptions”, he added. De Lange said that the call from politicians to let the Pim de Lange, customer pay the extra cost, is easier Stena Line said than done. “We are not com- peting on a level playing field with the fixed links which are not con- fronted with all these environmen- tal issues such as the 0.1% sulphur cap, EEDI, CO2 taxes and ballast water treatment. It is Eurotunnel Eero Mäkinen, STX Finland that sets the tariff. Typically, in poli- Simone Skoog, Criteo Per Westling, Stena RoRo Roman Poersch, Wilhelm Borchert Photos: Mike Louagie CRUISE & FERRY Info JUN 12 3 www.shippax.se ferry shipping conference 12 doom-mongers believe. Michael McGrath, Michael McGrath, Stena Stena Line Line’s Irish Sea Area Direc- tor, said that the industry’s Photos: Mike Louagie biggest challenges are not only sulphur and bunkers. “It is all about attracting customers. If we cannot at- tract customers, we cannot survive. We have a lot of Jon Boyce, Sea Highways Magnus Ehrenberg, EHRENBERG Kommunikation potential. People want to travel and still travel a lot. difficult to get young people on board. On Let’s think positive”, he added. Several the Hoek-Harwich service the average age delegates agreed that McGrath exuded the tics the environmentalists are stronger than is 43.” right spirit. On the Irish Sea, Stena Line the economists.” Pim de Lange’s words To add even more fuel to the fire, has shifted into high gear with two former were echoed by Roman Poersch of Wil- STX Finland asked the ferry executives if Superfast-class ferries that have revolution- helm Borchert GmbH. Mr Poersch talked there is room for expansion. The ferry top ized ferry travel on the North Channel. about the possible modal shift after the new executives answered with an unanimous A new dedicated Stena Line terminal in emission rules come into force. “Alternative and resound “NO!”. Anders Refsgaard Cairnryan (Loch Ryan Port) was erected on technologies are not mature and not avail- explained that it is difficult to predict today what used to be a greenfield site. Mc Grath able. The tighter limit values for the sul- the capacity requirements after 1 January explained that a terminal is more than just phur content of marine fuel were adopted 2015. “Consolidation is key”, he answered, a place where you process customers, Stena by IMO in October 2008.
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