Ferry Shipping Conference Onbo10ard

Ferry Shipping Conference Onbo10ard

Ferry Shipping Conference OnBo10ard An eruption of thoughts ferry shipping conference 10 Sailing under an ash cloud From 20 to 22 April, ferry industry professionals gathered onboard the COLOR MAGIC in order to discuss the opportunities and challenges facing the industry. Sadly, the family was not complete: the ash cloud from the Icelandic volcano made air traffic in large parts of Europe come to a grinding halt. By PhiliPPe holthof and Klas Brogren n the days preceding the eighth con- out to be something similar to peak secutive Ferry Shipping Conference season on the ferries. This stimulated I(FSC), newspapers, radio- and TV the debate on board, with anticipations channels were dominated by reports about that more people in Europe would go on the Icelandic volcano – and the subsequent holiday with their cars – to the benefit of air traffic chaos. Several FSC delegates the ferry industry. found themselves stuck in various coun- Bo-Lennart Thorbjörnsson, co- tries, many of them trying in vain to attend organizer of the FSC, summarized his the conference. There was definitely a will reflections since last year’s conference. The two supremos both recommended to attend, with several heroic efforts made His conclusions were that freight traffic alternative marketing tools such as with the purpose of reaching Color Line’s was considerably down, by 8 to 30 per Facebook and/or Twitter. cruise-ferry in time (see separate sidebar). cent depending on which region one was Even so, the organizers regret very much looking at. Currency fluctuations can Oil: stable now, more expensive that not all delegates could attend. result in challenges, but also opportunities. next year The message from those participating Having in mind the denials at the In the “Recession outlook” session, Nor- was crystal clear: “let’s make this conference two years ago, about a merger dea’s oil expert Thina Margrethe Saltvedt conference efficient, cosy and creative between Norfolkline and DFDS, it was told the audience more about availability – and let’s have the most fun ever!” envisaged that more mergers will take and prices of bunker as well as trade de- With some hundred participants being place. The passenger volumes are, however, velopment. She anticipated that prices will stranded or not showing up for other really stable and there will be a surge remain fairly stable throughout 2010, but reasons, a clear majority of the delegates in the short break market. When also with some higher prices to be expected in still participated. These were the ones taking newbuilding opportunities into 2011. When investments are down in capi- who knew by experience – or had just consideration, an industry where half of tal expenditure and the number of airline learnt – that there are indeed other the operators are showing red figures is departures are reduced by ash clouds, the methods to travel than going by air. At becoming quite interesting. demand for oil also comes down. But, no the opening ceremony, Klas Brogren The panel debate with Color Line’s doubt, transportation demand will contin- touched on the bad news of the volcano, Trond Kleivdal and Piotr Waszczenko of ue to grow in the long term. With the GDP but also mentioned the positive effects Unity Line was rather intense. Mr Kleivdal per capita and wealth increasing, people it has had (and will continue to have) claimed that he would not be in his current will start to demand more transportation on ferry travelling. Several ferry owners position had his company not performed – be it for themselves or for goods that could report how bookings had surged, a market analysis in 2002. This resulted noting that the days of air chaos turned in newbuildings coming on stream in the Politicians, be aware 2004-2008 period. Reducing the number of the message! Color Line’s Trond Kleivdal of ships from ten smaller ships to six bigger Carrying more than two billion pas- officially opened the ones has lead to a much better capacity conference but also took sengers annually, the worldwide ferry part in the panel debate utilization. Unity Line, on the other hand, industry can prove that it is almost han- together with Unity Line’s has gone in the opposite direction. The dling as many passengers as the world’s Piotr Waszczenko. Also company has increased the number of pictured are organizers airlines do. And there are reasons to Bo-Lennart Thorbjörnsson ferries from three to seven, intensifying assume that the number of ferry pas- and Klas Brogren. the schedule between Poland and Sweden. sengers could be much higher. That’s because accurate figures are missing. In addition to that, a large number of ferries carry vehicles which, if lined up, would cover a distance equal to 41 times around the globe! “It is essential that our industry can make the most of this mes- sage and convey it to politicians all over the world”, Klas Brogren said. 2 CRUISE & FERRY Info MAY 10 www.shippax.se ferry shipping conference 10 “If you are not at the table, you are probably on the menu” Johan Roos, Stena Rederi been prepared by Johan Roos, who represented Stena Rederi. However, due to the air chaos he was stuck in the Bahamas, the presentation instead being given by STX Europe’s Håkan Enlund (who is also an Inter- ferry board member). Johan Roos had sent a video with his own comments and showing the quite Interferry board member Håkan Enlund acting on behalf nice surroundings that he had out there. of Johan Roos who sent a message from the Bahamas. The conclusion was that the ferry industry details for her presentation to Bo-Lennart should definitely pay more attention when Thorbjörnsson. Among the topics to be it comes to IMO related matters. The pic- aware of were the lower sulphur emissions, tures were accompanied by the message but some nations and organizations like “Why we need to increase our presence in ECSA have started to react with studies. the rule makers’ minds”. According to Jo- But there are also so many other legislative han Roos, very few shipping organizations matters to be concerned about, such as are really supporting the short sea segment, Marco Polo, Motorways of the Seas, Ten-T, including ferries and ro-pax vessels. “If you VAT onboard, passenger rights and single are not at the table, you are probably on the language communications – as well as menu,” he summarized while talking about manning directives. The conclusion was decisions – or pending decisions – regard- that, apart from IMO regulations, there ing sulphur, carbon, sewage and EEDI. As are many other legal matters that ferry Interferry had just held a board meeting in operators have to study. the Bahamas, Håkan Enlund reported on Thanks to the combination of data Recession outlook with Nordea’s Thina Margrethe the outcome and suggested that the organi- collection and intense lobbying, the UK’s Saltvedt and Tor Wergeland. sation will remain THE voice for the ferry Passengers Shipping Association has need to be carried. industry but that it will seek to channel its emerged as a heavyweight in the area of The “shale gas mania” in the US will affect messages more efficiently. industry information. On behalf of Bill the prices there. During the Q&A session, Attica’s Yiota Krassakopoulou was stuck Gibbons, Simon Johnson from P&O there was a discussion regarding LNG ver- in Athens, but had kindly forwarded all Ferries gave a brief presentation of the sus bunker. The belief that there will even- tually be a move towards LNG was voiced. Ro-pax or Pax-ro? Tor Wergeland summarized the Klas Brogren further elaborated on the ARMORIQUE, more “Ro” than “Pax?” economic outlook when stating that word “ro-pax”, of which there is no of- problems in shipping were self-inflicted: ficial definition. It was exemplified by a too many shipowners ordered too many plethora of different ships that, for sure, ships in a kind of collective euphoria. could be categorised in various “grey The underlying economical factors were zones”. Interestingly, when delegates were presented, together with an analysis of asked to tick the type of vessels presented, the short- and long term effects of these. a new definition, “pax-ro”, was conjured Basically, the economy is growing again, up. Despite the word never being used thanks to China. But, in the long term, before, it got many votes (see adjacent Photo: Brittany Ferries Mr Wergeland expected that emerging graph). What’s CRUISE- RO- PAX- FAST FERRY RO-RO markets will increase. He speculated that more, the test also FERRY PAX RO FERRY IMF voting rights will change in favour illustrated that the ARMORIQUE 17% 0% 0% 64% 19% 0% of China. His view was that oil will no industry has prob- MOLDEFJORD 80% 0% 4% 9% 3% 4% longer be the main alternative when it lems when it comes BO HAI BAO ZHU 19% 3% 4% 58% 15% 1% comes to transportation, as green house gas to definitions of at ELYROS 21% 19% 0% 34% 26% 0% emissions will have to be considered. The least some activi- MARTIN I SOLER 36% 14% 1% 31% 13% 5% worldwide GDP has a tendency to increase ties carried out by NORMAN BRIDGE 6% 0% 13% 76% 4% 1% from 2.9 per cent to 3.5 per cent. ferry operators. NORMAN ARROW 3% 3% 0% 4% 0% 90% SUPERFAST I 3% 1% 5% 68% 4% 19% The winner of a Speaking with one voice COTENTIN 11% 0% 18% 66% 5% 0% ShipPax Database QUEEN CORAL PLUS 28% 3% 18% 45% 6% 0% It is essential that the ferry industry speaks is Singapore Tech- SEAFRANCE MOLIERE 21% 1% 5% 37% 14% 22% with one voice.

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