joININg a global battLe - J. Lauritzen A/Sstatic.j-l.com/imce/LauritzenNews/LauritzenNews16/News16.pdf · 2014. 8. 6. · Lauritzen news · Issue #16 · may 2012 3 We were, however,

Lauritzen news · Issue #16 · may 20121

Issue No. 16 may 2012

joININg a global battLe

Lauritzen news

scholarshIp in singapore

hope for somaLia

TurNINg maNagers into Leaders

commITTedto energy efficiency

oceans of know-how


editorial ................................................. 3

2011 financiel result .............................. 4

joining a global battle ........................... 6

donation to the danish seamen’s

church in New york ............................... 8

helping women help themselves ........... 9

hope for somalia ................................... 10

a truly natural partnership ...................... 12

committed to energy efficiency ............ 14

scholarship in singapore ...................... 16

Winning the battle against barnacles ...... 17

censor for sImac ................................. 18

prestigious award to lauritzen bulkers .... 19

Turning managers into leaders ............... 20

streamlined and flexible .......................... 22

dan Termansen lecture on piracy ............ 24

New two-year training programme ......... 24

doNaTIoN in new york 8

eNergyefficiency 14

helpINg women 9

hope for somaLia 10The lauritzen foundation supports a save the children project in somalia that aims to improve employment opportunities for the younger generation.

a gift from j. lauritzen helped support a new mosaic alter window for the danish sea-men’s church in New york.

joININg a globalbattLe 6jl’s new anti-corruption policy states zero tol-erance towards bribery, and commits to work-ing proactively against facilitation payments.

lauritzen bulkers is working to improve energy efficiency, an initiative that promises to lower costs, improve competitiveness, and benefit the environment.

a donation from the lauritzen foundation helps maternity WorldWide educate ethiopian women on subjects such as birth control, basic health, and general birth complications.

Table of contents

Lauritzen news · Issue #16 · may 2012 3

We were, however, severely hit by contract partners’ defaults amounting to net usd (60) million which had a major bearing on the usd (46.5) million result for the year (see page 4). despite this result, our balance sheet remains robust with a solvency ratio of 45% and liquidity of usd 234 million at year-end 2011. We also have no redemptions of loans and bonds due until 2014 -15.

following the defaults noted above, we have now implemented additional risk assessment procedures in order to avoid further defaults.

some encouraging indications have emerged recently on the global economy. There are signs that strong policy actions are making a difference, especially in europe. financial mar-kets have become a little calmer and recent indicators point towards an upswing in real economic activity, mostly in the united states.

however, the global economy is not yet out of the danger zone. financial systems are still fragile, public and private debt is still high, and unemployment remains a major problem. rising oil prices are also a new threat that could derail recovery.

added to that, the emerging economies are far from immune to weaknesses among the advanced economies. and the possibility of slower growth over the medium term in some emerging economies is another source of risk to a sustained recovery of the global economy on which international shipping re-mains dependent.

after record deliveries in 2011, a slight de-cline in deliveries is anticipated in 2012 be-cause financing continues to be limited, since owners are in no rush to take delivery into difficult markets, and because yards would not like to see their forward cover eroding too rapidly. This general trend is ex-pected to characterise the bulk carrier, gas carrier, and product tanker segments.

Taking responsibility is a value that is strongly incorporated into our way of doing business and as a signatory to the uN global com-pact, jl is dedicated to working with the uN 2015 goals. furthermore, the lauritzen foundation supports these goals by various

contributions. engaging in the local societies where we have our daily operations brings value to these societies and to jl. This edi-tion of lauritzen News contains a series of articles on our corporate responsibility (cr) involvement. as an example, you can read about our NTu scholarship in singapore that jl has initiated in cooperation with the lau-ritzen foundation (see page 16).

and speaking of education, as international shipping becomes ever more complex with intensified competition and increased volatil-ity, the knowledge and competencies of our employees increasingly become strategic assets. competitive advantage derives from our ability to combine knowledge assets with other assets in our efforts to create value. This is the reason why jl together with other danish shipping companies and the danish shipowners’ association have decided to de-velop a new two-year training programme to be implemented this autumn.

It is evident that 2012 will be a very tough year with many challenges, but hopefully also with exciting opportunities. jl remains committed to our core values in our never-ending endeavour to deliver world-class shipping services to our clients worldwide

dear reader

In 2011, InternatIonal shIppIng markets were generally dIstressed, but Jl’s day-to-day tradIng operatIons fared well, generally keepIng ahead of the market.

sincerely, Torben janholtpresident & ceo

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JL severeLy hit by defaulTseconomic growth and industrial produc-tion turned out slightly below expecta-tions in 2011, with advanced economies experiencing the most difficult environ-ment. Japan due to the earthquake in march, the usa during the early summer when recession fears emerged, and the eu area for most of the second half of the year due to the sovereign debt is-sues in southern europe. in addition, overheating in emerging countries led to the introduction of still more finan-cial policy tightening in a number of key economies.

The following characterised jl’s main mar-kets in 2011:

• The spotmarket forCapesizebulk carri-ers was poor during the first half of 2011, but enjoyed reasonably strong earnings towards the end of the year as key com-modity prices, for example for iron ore, fell to levels where imports became com-petitive with domestic produce, in partic-ular in china. handymax and handysize bulk carriers enjoyed fairly healthy rates, although below 2010 until the autumn, and the spot market ended at a depressed level not seen since the beginning of 2009.

• Spotmarketratesforsmallergascarrierswere in general up on 2010. some weak-ness was noticed towards the end of the year, mainly for semi-refrigerated gas car-riers employed in regional distribution in europe.

• Medium Range (MR) product tankershad yet another year of high volatility, but average spot market levels were poor.

• Offshoremarketswerequitebuoyantandcrude oil prices were favourable to both exploration and the development of new fields.

result for the year2011 was characterised by declining eco-nomic growth, heightened financial and economic uncertainty, significant deliveries of new tonnage in major shipping segments,

and certain counterparties being unable to fulfil their contractual commitments: conse-quently, jl’s result was usd (46.2) million compared to usd 130.7 million in 2010.

The decrease in profits was mainly due to the weakening of the bulk markets and sig-nificant counterparty defaults, but also to changed employment for the accommoda-tion and support vessel, Dan Swift, which from mid-2011 was employed on a long-term contract. This was partly off-set by a significant number of newbuildings, mainly bulk carriers and product tankers, which were delivered during the year and thus increased depreciations and financial costs.

return on invested capital was 1.1% com-pared to 10.2% in 2010.

jl’s balance sheet remained robust with equity of approximately usd 1,200 million and a solvency ratio of 45% at year-end 2011 (51% at year-end 2010).

during the year, jl took delivery of 17 new-buildings and yet at the same time increased cash holdings by usd 79.7 million to usd 234.1 million at year-end 2011.

Total vessel days increased to more than 55,220 in 2011, slightly up on the 54,342 days reported in 2010.

for further details on JL’s 2011 annual report, please visit our website: www.j-l.com

key figures: full yearusdm 2011 2010 revenue 621,1 739,5 ebitda 146,0 252,2 depreciation (91,2) (53,2)profit on sale of vessels (36,2) (12,5) operating result 18,5 186,5 Income from joint ventures 4,7 11,0 finance net (69,2) (56,3)Tax and minorities (0,3) (10,6) JL’s share of result (46,2) 130,7fixed assets 2.361 2.062 Hereof vessels under construction 232 663Net investments (vessels only) 402 320 profit margin 3,1% 25,9%roIc 1,1% 10,2%solvency ratio 44,7% 51,4%roe (3,8%) 11,1%fleet /full year average) 151 149average no. employees 1.300 1.148

ebitda, ebit and result for the year usdm cash flow from operations and cash usdm

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Bulk Kosan Oshore Tank

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due to jl’s comprehensive fleet renewal and expansion efforts in recent years, jl owns a modern, efficient fleet: bulk carriers have an average age of 1.6 years, gas carriers nine years (including ethylene gas carriers at 3.6 years), product tankers three years, and off-shore support vessels five years.

during the year, lauritzen offshore success-fully completed its strategy and thus the group’s four specialised offshore units are all on long-term contracts with the brazilian oil major petrobras or affiliates. With Korea line going into receivership, lauritzen bulkers lost four long-term time-charter contracts together with forward delivery of a long-term time-chartered capesize bulk carrier new-building for delivery in september 2011.

The controlled fleet in 2011 averaged 151 vessels compared to 149 vessels in 2010, of which 48 were owned vessels (40 in 2010).

investmentsat year-end, invested capital amounted to usd 2.3 billion compared to usd 2.0 billion year-end 2010. jl’s invested capital has thus more than doubled since 2007, and it will further increase in 2012 with the completion of the majority of the current investment pro-gramme.

during the year, jl’s investment in fleet ex-pansion totaled usd 435 million compared

to usd 536 million in 2010. divestments of vessels and other assets amounted to usd 33 million compared to usd 216 million in 2010.

Total book value of jl’s assets is higher than broker valuations. The value in use of the as-sets comprising the fleet and the contracts exceeds total book value.

The investment programme represented a total cost of usd 533 million at year-end 2011 (usd 1,427 million in 2010) of which 48% so far has been prepaid by own funds.

outlookat the beginning of 2012, spot market earn-ings for bulk carriers and product tankers were very poor, whereas spot market earn-ings for gas carriers were at reasonable lev-els. In addition, the outlook for the immedi-ate economic activity is quite bleak with the unrest in financial markets that characterised most of the second half of 2011 continuing into 2012.

overall, the dry bulk market is on average expected to be weaker in 2012 than in 2011, whereas the smaller gas carrier segment is forecast to enjoy slightly better spot market rates in 2012. mr products tankers appear to be facing another difficult year, but with expected improvements during the year.

In early 2012, a considerable part of jl’s forecast revenues for 2012 are secured by contracts.

The result in 2012 will remain unsatisfactory with an expected loss, although better than in 2011 primarily due to one-offs of net usd (16.7) million included in the 2011 result and increased earnings (ebITda and joint ven-tures) partly offset by increased deprecia-tions.

“the result for 2011 was unsatIsfaCtory and lower than expeC-tatIons and refleCted not only the dIffI-Cult and ChallengIng shIppIng markets but also the ImplICatIons of sIgnIfICant Coun-terparty defaults amountIng to a total of usd (60) mIllIon.”Birgit Aagaard-Svendsen, Executive Vice President & Chief Financial Officer

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invested capital year-end usdm capital structure usdm

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joININg a globalbattLe

Imagine you are a ship’s captain in port with a cargo to offload. harbour officials expect a “facilitation payment” – maybe no more than a few cartons of cigarettes – in order to secure your place in the schedule. If you refuse, you end up at the back of the queue, and the true cost in lost time could be enor-mous. In the shipping industry, these kinds of facilitation payments (payments made for a service one is already entitled to) are unfor-tunately an embedded part of doing business in certain areas around the world. This is a situation that affects virtually all shipown-ers and operators, including jl’s seafarers. during the last few years, fighting this kind of corruption has become a key topic on the global agenda. elimination of such facility payments can only be achieved over time through joint action by the global shipping community and by mind-set changes in parts of the world where facilitation payments are common, including governments effectively preventing their officials from demanding such payments.

zero tolerance towards briberyIn 2011 jl updated and replaced its anti-bribery policy with a new anti-corruption pol-icy. The formulation of the jl anti-corruption policy which involved top level commitment, states zero tolerance towards bribery, and commits us to work proactively against facil-itation payments. further, the policy encour-ages business partners, agents, and public officials to comply with international stand-ards and legislation. The policy is aligned with international regulations and standards. “our updated policy on anti-corruption is aligned with a broader global movement, en-couraged by the oecd anti-bribery conven-tion and the uN convention against corrup-tion,” says sofie Kamph, assistant attorney in jl’s legal department. “The policy update was actually inspired by the introduction of the uK bribery act that came into force in july 2011 – a regulatory initiative that is regarded as a ‘game-changer’ in legal terms,

both because of its extra-territorial effects and its focus on facilitation payments. There is no doubt that the uK bribery act and fu-ture laws on corruption and bribery will in-crease their far-reaching effects in many industries, including shipping. Therefore we obviously need to have practices and pro-cesses in place.”

commitment and joint actionlast year jl signed the uN global compact and committed the group to work with the uN’s ten principles on human and labour rights, environmental protection, and anti-corruption. “The update of jl’s anti-corruption policy has encouraged the development of a compliance programme, which have been important steps for our corporate responsi-bility work in 2011 and 2012,” says Kathrine geisler, jl’s corporate responsibility assis-tant. In may 2011, jl joined the maritime anti-corruption Network (macN), a volunteer network with representatives from different areas of the shipping industry all seeking to target corrupt practices and finding root cause solutions. Important inspiration and input on best practice for jl’s compliance programme have been gathered through this network par-ticipation. “There are many shipowners that wish to join the fight against corruption,” says sofie Kamph. Kathrine geisler agrees: “This is an industry challenge that can’t be solved by companies independently – there is a need for joint action. The macN network allows us to learn from other players in the industry and share best practices.”


maritime anti-corrup-tion network

jl participates in the maritime anti-corruption Network (macN - established in january 2011) to-gether with representatives from different areas of the shipping sector located in denmark, Nor-way, germany, uK, us, and swe-den. The purpose of the network is to share best practices and align policies and approaches in the field of anti-corruption. one of the ambitions of the network is to seek support from govern-mental bodies and international organisations to target corrupt practices in challenging environ-ments and seek solutions to root causes for corrupt practices.

“awareness and learnIng wIll be a CruCIal part of our antI-CorruptIon programme.” Kathrine GeislerCR Assistant, J. Lauritzen

Jl’s antI-CorruptIon InItIatIves are alIgned wIth global prInCI- ples and InClude par-tICIpatIon In the marI-tIme antI-CorruptIon network (maCn).

clear guidanceformulating the compliance programme began with risk assessment and a dialogue with internal stakeholders in order to sys-tematically map jl’s exposure to bribery and challenges with facilitation payments. “We are developing a programme that bal-ances the challenges we face and is aligned with established principles,” says Kathrine geisler. “a cornerstone of the programme is to create sufficient guidance and tools for the seafarers and the operation departments, so that awareness and learning will be a cru-cial part of our anti-corruption programme.” Valuable contribution comes from jl’s four business units, which are committed to de-velop adequate procedures. sofie Kamph concludes that “we need to make sure that the guidance facilitates corporate decisions and is part of a clear anti-corruption policy and programme.”

The compliance programme also considers business partners and suppliers that perform services on behalf of jl. The next step for the programme is to focus on how jl’s due diligence processes can more systematically embrace anti-corruption before the finalising and implementing of jl’s compliance pro-gramme during 2012.

In November 2010, the board of the danish seamen’s church – which has been a fixture in New york since the 19th century – decided it was time to install a new altar window, which had not been replaced after a church renovation in 2005. The donation from jl was one of three that made the new window possible. “The congregation is immensely thankful for this generous donation,” says julie sløk, pastor of the church. “j. lau-ritzen has supported the danish seamen’s church economically over many years, and also helped with the renovation. We could not keep up our level of activity without the economic support of companies such as j. lauritzen.”

The alter mosaic depicts a scene from the gospel of john, in which shortly after the crucifixion jesus is luminously resurrected in front of the disciples, who do not recognise him. The mosaic was unveiled on 4 septem-ber 2011 in the presence of the artist maja lisa engelhardt. also present were the gen-eral secretary of danish churches abroad, margith pedersen; the chairman of the board of danish churches abroad, hans skov christensen; the consul general of denmark in New york, ambassador jarl frijs-madsen; and the general manager of jl's activities in the us, jesper mehlsen bab; as well as many members of the danish congregation.

J. laurItzen’s gIft of dkk 125,000 helped support a new mosaIC alter wIn-dow Created by the danIsh artIst maJa lIsa engelhardt.

“durIng my stay In new york In the mId 80’s for Jl usa I personally enJoyed vIsItIng the danIsh seamen’s ChurCh In brooklyn. danIsh seamen’s ChurChes around the world naturally have spe-CIal meanIng for a shIppIng Company suCh as Jl, so we were espeCIally pleased to be able to support the new york ChurCh through a ContrI-butIon for the new alter wIndow.”

Torben JanholtPresident & CEOJ. Lauritzen

doNaTIoN To The daNIsh seameN’s church in new york

jl’s office in s stanford, conneticut, enjoys regular contact with the danish seamen’s church. “The danish employees in the us office enjoy the presence of the church, and the company is happy to support the church and the good work it does here,” says jesper mehlsen bab. “I was present at the inaugura-tion for the mosaic – which is a beautiful cen-trepiece for the church – and was honored to receive many thanks from julie sløk, hans skov-christensen, and the artist herself.”

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heLping womenhelp ThemselVes

“women are the key. whatever we Can do to support women wIll have multIple effeCts on CommunI-tIes. helpIng people help themselves Is fundamental to our way of thInkIng In the laurItzen foundatIon.”

Jens Ditlev LauritzenChairman, Lauritzen Foundation

helle Johansen, private sector advisor for the uNdp (united Nations development programme), has 14 years of experience

with advising companies on strategic cr, the uN global compact, and doing business in developing countries. ac-cording to her, all of the uN’s private sector programmes receive growing support from the corporate world with its increasing focus on cr. In par-ticular, the uN’s largest private sector initiative and also the world’s largest cr initiative – the global compact – has experienced significant growth in the last three to four years. “however,” she says, “the global compact wants companies to become more active partners in the uN’s broader mission. The uN secretary-general has recently asked the global compact board to place stronger emphasis on the public-private partnership agenda in support of critical development challenges.”

In 2005, six danish women founded mater-nity WorldWide (mWW), a charitable organi-sation that provides life-saving health care, education, and economic aid to women and children in ethiopia in connection with preg-nancy and labour. Their work covers three of the uN’s millennium goals in the battle to reduce poverty in developing countries. The lauritzen foundation has donated dKK 500,000 for a four-year mWW project in 60 ethiopian villages. The project educates women on subjects such as birth control, ba-sic health, and general birth complications.

“contributions such as the lauritzen foun-dation’s grant to mWW are of great impor-tance in order to reach the millennium de-velopment goals,” says the uNdp’s helle johansen. “actually, it is generally acknow-ledged that the millennium development goals cannot be achieved without support from individual corporations and founda-tions. That’s also why uNdp and other de-velopment agencies are trying to integrate the private sector in its work and strategies and are offering different programmes and platforms for public-private partnerships to encourage companies to contribute to social and environmental challenges.”

health and emancipation The lauritzen foundation values the uN’s work with the 2015 millennium goals and focuses its donations on danish projects that

contribute to that work and make a differ-ence internationally. “mWW is one of the international projects we are supporting,” says jens ditlev lauritzen, chairman of the lauritzen foundation. “When we reviewed the project, the numbers alone showed the importance of tackling the problem of wom-en dying or suffering serious health compli-cations from childbirth: globally there are more than 500,000 deaths a year. In ethio-pia, the area of the grant project, 25,000 died last year in childbirth and 400,000 were severely disabled.”

The programme also includes microloans, which support emancipation of women and help them take charge of their own lives.

miLLennium deveLopment goaLsThe uN 2015 millennium development goals is a joint agreement from countries all over the world to come together to meet the needs of the worlds’ poorest. read more at www.un.org/millenniumgoals/

support for women, who are the core of family and community stability, is one of the surest ways to influence conditions for fol-lowing generations. “Women are the key,” says jens ditlev lauritzen. “Whatever we can do to support women will have multiple effects on communities. helping people help themselves is fundamental to our way of thinking in the lauritzen foundation.” helle johansen adds, “gender equality is crucial for human development, and uNdp’s work with gender equality and women’s empow-erment is based on the same understanding. as the former uN secretary general Kofi an-nan said, “It’s impossible to realise our goals while discriminating against half the human race’. ”

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as part of their work towards reducing pov-erty and improving children’s rights, including the right to education, save the children has initiated a project in the regions of somaliland and puntland in somalia. The project focuses on education and internships in order to im-prove employment opportunities for the younger generation, which has an unem-ployment rate of more than 40%. The project has also had a positive effect in terms of re-ducing criminality amongst young somalis. The lauritzen foundation, along with other danish shipping foundations and the dan-ish shipowners’ association, supports save the children’s efforts in somalia and has so far donated a total amount of dKK 450.000 for their project, called Vocational education and Training for accelerated promotion of employment.

jakob eilsøe mikkelsen, programme coordi-nator with save the children, was stationed in ethiopia (a neighbouring country to soma-lia) and uganda for a total of ten years with the uN. his experience with the history and events of somalia gives him expertise with and insight into the country’s current situa-tion and needs. In his view, it is important to take a look at the political and regional composition of somalia, which is by far more complicated than one might think.

a country of conflictsbecause of the civil war in somalia in the 1980’s and 1990’s, together with severe droughts, many somali’s struggle to earn a living. somalia is considered to be one of the poorest countries in the world, with many somalis living on an average income of less than one usd a day and almost 50% unem-ployment. With only 25% of the girls and 37% of the boys enrolled in primary school, somalia also has one of the lowest youth literacy rates in the world. as a result, with-out access to education, development of skills, or income, a large number of young somalis are forced into alternative ways of living and some end up in fundamentalist groups and piracy.

as 95% of the somali population are mod-erate sunni muslims, the country does not have a tradition of extremist Islamism. Nev-ertheless, several political groups that in the western society are considered terrorists have a large influence on the country and its regions. about this complex situation ja-kob eilsøe mikkelsen observes that, “If you understand 10% of somalia’s situation you have come far.”

a good starting point is al shabaab, probably the best-known fundamentalist group, which has a very strong influence in the country’s

hope forsomaLia

“I belIeve that support-Ing organIsatIons that have an InsIght Into the struCture of somalIa wIll help solve the Country’s problems – espeCIally on a short and medI-um-term basIs – If we fIght to make sure that the rIght struC-tures are developed and human rIghts are InCorporated. thIs Is the rIght thIng to do.”Jakob Eilsøe MikkelsenProgramme Coordinator, Save the Children

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southern and central regions. There are, however, other dimensions to this group that must be understood in order to assess their influence in the country. al shabaab delivers support to a large part of the somali popula-tion through a welfare system of organised distribution of food, water, and other essen-tials. They are engaged in many different local businesses and industries, but al shabaab is also known to have connections to piracy in somalia, through recruitment and hijacking pay-offs. The effects of this activity reach be-yond somalia’s borders. for example, “little mogadishu”, the somali district of eastleigh in Nairobi, Kenya, profits from piracy attacks.

searching for a solution“There is no obvious, fast, or easy solution to the piracy problem,” he says. “however it is obvious that poverty along with denial of human rights – no matter where you live – is a root cause of social problems such as pros-titution, child labour, and piracy: these are really critical issues in somalia.” jakob eilsøe mikkelsen states that piracy is so incorporated into the somali environment in puntland in particular that it’s not something that will disappear any time soon. “but definitely a part of the solution is to provide alternatives for the young somalis,” he says, “in order to stop the development of criminal activities such as piracy, and a good alternative is to create employment opportunities on shore or through fishing.”

The internal conflict in somalia further af-fects the strong influence that al shabaab has in some regions of the country. south/central somalia, with its severe drought, is by far the most critical area of the country. In contrast to somaliland and puntland, the risk for Ngo’s to work in this area is very high.

positive developmentsIn its fight towards independence, somali-land politics directly conflicts with the vision of the puntland region for a united somalia. however, somaliland’s vision has a reasona-ble foundation, as this region is by far the most successful in somalia. unlike many african countries, somaliland has held peaceful democratic elections and created a public sector, although still at a modest level. further, the level of safety and security standards makes it possible for Ngo’s to engage in development projects that benefit the region socially and financially.

The current government in somaliland has laid out a strategy of bringing home well-ed-ucated former somali war refugees from around the world to lead the country. “It is really good to see that the people are coming back and taking part in the civil society, pushing development in a positive direc-tion,” says jakob eilsøe mikkelsen. he also observes that, in general, the standards for schools and the working environment are improving and that the benefits of this devel-opment are increasingly improving.

due to this positive development and with the hope of inspiring the rest of the country, danish institutions primarily focus their financial aid – which is scheduled to double this year – within the somaliland region.

Linking education and employmentsave the children’s work in somalia keeps a strong focus on improving children’s rights. “It’s all about fighting poverty through em-powerment of children and youth and work-ing towards a situation where the country becomes independent from financial aid,” says jakob eilsøe mikkelsen. “This is very closely related to a well-functioning educa-tional system – the private sector’s efforts in somalia are very good in terms of giving the younger generation an opportunity for cre-ating a stabile financial foundation through education. We strive to create opportunities that make it attractive for young people to stay ashore and make a prosperous living rather than engaging in criminal activities.”

save the children offers a solution that helps transition young somalis from school to an actual job. “our project offers additional education for those who leave school early, or whose opportunities are limited in the job market due to their clan minority heritage, or who are unwanted outcast refugees from central/south somalia,” says jakob eilsøe mikkelsen.

The project offers classes at technical schools or basic education, such as reading and arithmetic. It also provides actual in-ternships in small private companies where trainees learn to fix mobile phones or repair cars, or to become electricians or bakers. The courses are based around male or female professions, due to a culturally gender-divided society, although there are a few stories of women entering men’s professions: one ex-ample is Zhaida (see photo), who became

an electrician, and a rather good one, just to prove to her brothers that she could do it.

“In order to provide these opportunities, local contacts are essential. We look at how to provide these opportunities with our goals and vision in focus, which is how can we create the possibility of a steady livelihood for the children and youth of somalia,” says jakob eilsøe mikkelsen. “and looking into the significance of our work, and the project that the lauritzen foundation supports, our success rate is quite high – approximately two-thirds of those who finish our programs get a job afterwards, which is 30% above the general success rate.”

understanding and respectThere are many aspects to the problems of somalia, and it is very difficult to determine the precise interplay of basic elements such as peace, stability, and resolving conflicts in creating a dynamic civilization and a strong civil structure, one that is responsive and complies with democratic processes.

jakob eilsøe mikkelsen emphasises the importance of understanding and respect-ing the methods that work and building on those rather than forcing western structures upon an already fragile country. “It’s very im-portant to look at what is already working,” he says. “There is potential for the country, although it does look like the progress will be a lot slower in the high conflict areas, such as south/central somalia. There is no doubt that peace and conflict must join hands with a political strategy supported by financial development. save the children is there to make sure that children’s rights are incor-porated into the build-up of a new somali society. We definitely believe that children’s rights are part of furthering this develop-ment.”

Find out more about Save the Children at:

http://www.savethechildren.net/alliance/index.html

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Scan to see related article:Lauritzen News issue 15, page 20-22


a Truly NaTural partnership

sometimes, it’s who you know as well as what you can offer. on 1 february 2012, lau-ritzen bulkers (lb) signed a six-year contract with green circle bio energy, an alternative fuel producing business based in panama city, florida, for the transportation of wood pellets from the us to europe. This is the longest contract ever to be signed by lb and was an opportunity that came to claus stahl, vice president and head of handysize char-tering, who acted quickly to follow up on a colleague’s personal contact.

fueling new opportunitiesas the renewable energy sector is in its formative years of becoming a large scale in-dustry, green circle was established with the purpose of becoming a major player in the international market for alternative, carbon- neutral energy. a well-respected business

with a strong environmental profile, the com-pany owns one of the world's largest wood pellet plants in North florida, which started production in may 2008 with an annual ca-pacity of about 600,000 tonnes.

In europe, power plants are facing ever more stringent regulations in regards to their car-bon footprint and as a result are converting from coal to alternative fuels. This has been good news for green circle and their co2-neutral product is increasingly in demand. The one problem they had was finding a suit-able shipping partner to transport their pro-duct abroad.

a personal approachIn autumn 2011, the ceo of green circle, morten Neraas, was in copenhagen on busi-ness. always one to move quickly on new

thanks to quICk thInkIng and personal ContaCts, laurItzen bulkers has sIgned Its longest ContraCt ever wIth green CIrCle bIo energy.

“one of thIngs I am most happy about Is laurItzen bulkers’ Close ConneCtIon wIth our busIness. thIs Isn’t sImply In respeCt to our Inbound and out-bound transporta-tIon needs, but also to our Culture and personal approaCh.”

Morten NeraasCEO, Green Circle Bio Energy


opportunities, claus stahl called him directly and following a friendly chat, an introduc-tory meeting was soon arranged in florida to showcase lb’s strengths and explore op-portunities to work together.

In florida, both parties quickly saw the po-tential of a partnership. “during our talks it became evident that green circle was not only looking for a company that was able to fulfil their transport needs but also for a part-ner with whom they could identify – one who could live up to their ethics, standards, and quality,” says claus stahl.

already aware of their good reputation in the industry, morten Neraas was particularly impressed with lb’s personal approach to business, which was a strong differentiator from their competitors, as was their impres-

sive fleet of young and reliable ships. being ship owners is an advantage as it makes the company less vulnerable to adverse market and economic developments.

a natural fit“one of the things I am most happy about is lb’s close connection with our business,” said morten Neraas. “This isn’t simply in re-spect to our inbound and outbound trans-portation needs, but also to our culture and personal approach.

“We viewed their strong position in the ocean shipping segment we are in, their can-do attitude and understanding of green circle’s priorities and requirements as deci-ding factors in our decision to enter into this agreement,” he added.

even though there was close and direct con-tact during the entire contract negotiations, the broker r.s. platou helped both parties close this deal. Today the six-year contract is now successfully underway, starting at five or six shipments a year but over time growing to more than 20 shipments a year. ”entering a contract of this length and magnitude recon-firms lb’s position as a worldwide industrial carrier,” says claus stahl. “We are of course happy and proud that green circle saw these qualities in lb.”

From left: Claus Stahl (vice president and head of Handysize chartering), Morten Neraas (CEO, Green Circle), Terje Kobro, (broker, R.S. Platou), Gunnar Ose (broker, R.S. Platou), Torben Janholt (CEO JL), Ejner K. Bonderup (President, LB).


commITTed To energy efficiency

It takes more than raw capacity to compete in today’s bulk markets. With that realisation in mind – along with actively working with the environmental principles of uN global compact, of which jl is a signatory – all de-partments of lauritzen bulkers (lb) have been cooperating to improve energy efficien-cy, an initiative that promises to lower costs, improve competitiveness, and benefit the environment. The technical department care-fully tracks new developments in ship de-signs to ensure that new vessels incorporate energy-saving features which contribute to fuel efficiency and result in a superior speed/consumption ratio. “Typically ship designs are ‘off the shelf’,” says søren roschmann, technical superintendent, “but we look at a standard design and then tweak whatever specifications might enhance operation and fuel efficiency and also best meet our busi-ness needs.”

eco-speedlb also makes a constant effort to find the most cost-efficient speed/consumption ratio for its fleet. It is necessary to find a balance between the present market for the ship and

current bunker prices. When the market in dry cargo is not especially strong and bunker prices are high, it makes sense to go for “high-mileage” ships, to find better and more cost-efficient speed/consumption ratios. “simply slowing the rate of voyage slightly – called ‘eco-speed’ – can have a big impact,” says jan olav sjulstok, senior technical man-ager. “everyone realises that faster means more expensive, something that must in-creasingly be taken into consideration.”

as shown by a typical speed vs. power curve p1 = p2 * (v2/v1)

3, increasing the speed by a factor of two requires eight times the shaft power and, consequently, eight times the fuel oil consumption.

laurItzen bulkers sees energy effICIenCy as key to both busI-ness suCCess and envIronmental responsIbIlIty.

uN global compacT eNVIroNmeNTal principLes

• Principle7:Businessesshould support a precautionary approach to environmental challenges;

• Principle8:undertakeinitiativesto promote greater environmental responsibility; and

• Principle9:encouragethedevelop-ment and diffusion of environmen-tally friendly technologies.

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as the figure illustrates, this is also true in re-verse. by reducing the speed from 14.5 to 14.0 knots for a handysize and capesize in ballast and fully laden condition, it is possible to im-prove the main engine fuel oil consumption by two and six metric tons, respectively, or almost 10%. This amounts to a saving of usd 1,500 (handysize) and usd 4,300 (capesize) per day throughout the voyage and an approximate 10% co2 reduction of seven and nineteen tons, respectively. This also has a positive impact on the botton line in a volatile dry bulk market.

“The operational and chartering departments work together to determine any number of factors that can affect a vessel’s speed/con-sumption ratio,” says claus mygind, vice president and head of operations. “factors such as weather routing, trim optimisation, and voyage planning all contribute to finding what speed is optimal for a given ship and a given voyage.” Weather can have an enor-mous impact on fuel consumption and time, which is why all lb vessels are routed by a weather bureau and receive continuous up-dates to support optimal route planning and adjustment. careful voyage planning also supports fuel efficiency. “If you know a ship will commence loading only on a certain day and the time will not count anyway, there is no sense in going faster to arrive early and then wait to load,” says claus stahl, vice president of chartering. “It is more economi-cal and energy-efficient to slow down and practice ‘just in time arrival’. This is a con-cept that’s also attractive to clients, as fuel burned is reflected in chartering rates. just-in-time arrival and slightly slower speeds mean we can offer more competitive freight rates. We not only share the savings with our customers, but also help them establish a greener environmental profile – something that is increasingly valued by more and more of our customers.”

close cooperation some relatively simple measures can pay off in energy savings. Trim optimisation is one

example; another is ensuring optimal use of shipboard hardware, such as shutting down pumps to save fuel. but even these meas-ures require close cooperation among lb departments and close communication with managers on board vessels to recommend best practices. Trim optimisation, for in-stance, includes a variety of factors – such as how cargo is stowed, volume of ballast wa-ter, and where oil is stored – which can vary from ship to ship. sometimes maximising ef-ficiency comes down to having someone on the spot to monitor loading. optimising the loading or discharging process by means of a super cargo function enables lb to reduce days in port, hence giving the voyage a greater return. furthermore, more ports worldwide require burning low sulphur, i.e., expensive marine gas oil (mgo).

The operations department continuously monitors vessel performance, gathering in-formation that can be passed to the techni-cal department to determine whether in-creased fuel use is caused by weather, hull or propeller fouling, or engine problems – issues that can be corrected immediately af-ter or often even during a voyage. lb is cur-rently evaluating software that will standard-ise and upgrade its monitoring capabilities on all vessels. “We expect the new system to be operational within the year,” says søren roschmann. “These monitoring programmes will allow us to compare ship performance with a range of benchmark data, such as sea trial data and design data from a shipyard or engine maker. This information will help us operate more efficiently and be more com-petitive, and at the same time it helps us comply with the environmental principles of the uN global compact.”

“Just-In-tIme arrIval and slIghtly slower speed mean we Can offer more CompetI-tIve freIght rates. we not only share the savIngs wIth our Cus-tomers, but also help them establIsh a greener envIronmen-tal profIle – some-thIng that Is InCreas-Ingly valued by more and more of our Customers.”

Claus StahlVice President, CharteringLauritzen Bulkers

From left: Jan Olav Sjulstok, Senior Technical Manager; Søren Roschmann, Technical Superintendent; Claus Stahl, Vice President, Chartering; Claus Mygind, Vice President and Head of Operations

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schoLarship IN sINgapore

With support from the lauritzen founda-tion, j. lauritzen singapore has introduced a scholarship for students enrolled in the mari-time studies programme at Nanyang Tech-nological university (NTu). The scholarship is offered as financial support to talented young candidates who lack the funds necessary to complete their studies. starting august/sep-tember this year and continuing for the next five academic years, the singapore office and the lauritzen foundation will sponsor a first- or second-year student with sgd 8,000 annu-ally. The amount is slightly above the current tuition fee.

“I hope that the scholarship will benefit a good candidate student and increase the aware-ness of j. lauritzen as an attractive employer and a socially responsible company,” says jesper Kragh andresen, managing director of j. lauritzen singapore. “The scholarship aims to support both a student and the maritime studies programme itself, and to maintain our ability to attract and recruit top talent from the programme.”

close contactbecause of the university’s high-quality ship-ping programme, j. lauritzen singapore has had close contact with NTu since the office opened in 2005. This year will mark the fourth consecutive year in which j. lauritzen

singapore welcomes two students for a ten-week internship. “practical application is an important part of any study and therefore we aim to provide the interns with as realistic and challenging an experience as possible,”says jesper Kragh andresen. The relationship was strengthened in 2008 when line lund clausen, senior chartering man-ager in the singapore office’s dry cargo team, was guest lecturer in the maritime studies programme. Today, the singapore office employs three graduates of the mari-time studies programme, although recipi-ents of the scholarship are not required to work for j. lauritzen singapore as employ-ees or interns.

“I receive many unsolicited job applications from singapore students who have heard about jl, what kind of a company we are, and what we stand for,” says Tove elisabeth Nielsen, senior vice president and head of corporate human resources. “so the scholar-ships will be an effective way of further rein-forcing jl’s image. In fact, the high calibre of NTu’s maritime studies programme has in-spired us to revise our own trainee pro-gramme: we now require a bachelor’s de-gree to enter. In the future, we also plan to occasionally bring graduates of the NTu pro-gramme to copenhagen to participate in some modules of our own programme.”

Jl’s sIngapore offICe InCreases Its Com-munIty Involvement In CooperatIon wIth the laurItzen foun-datIon.

“the sCholarshIp aIms to support both a student and the marItIme studIes programme Itself, and to InCrease our abIlIty to ContInu-ously attraCt and reCruIt top talent from the programme.”

Jesper Kragh AndresenManaging Director, J. Lauritzen Singapore

Nanyang Technological University


The general description of a barnacle sounds innocent enough: “a marine crustacean that in the adult stage forms a hard shell and re-mains attached to submerged surfaces, such as rocks and ships' bottoms”. The problem is that especially in warmer seas, as in brazil, the little monsters multiply like mad and can quickly add an unwanted 30-50 mm layer to a ship’s hull. because rapid movement of water along the hull creates a polishing ef-fect, vessels on the move do not experience heavy barnacle buildup with ordinary anti-fouling paint. shuttle tankers, however, have short voyages and longer periods of station-

ary time, which creates ideal conditions for barnacles to attach and grow and disrupt the carefully engineered hydrodynamics of the hull. The ship then has to use more power and fuel to plow through the water.

When the shuttle tanker Dan Eagle went to dry-dock recently for scheduled three-year maintenance, a thick layer of barnacles not only covered large areas of the hull, but was also found to be choking cooling water inlet pipes. “barnacle buildup was causing 15-20% more fuel consumption,” says hans gundestrup, vessel manager for lo, “which meant that the vessel either had to increase power and fuel consumption to maintain speed or add time to her schedule.” It was a tough and time-consuming job to remove what turned out to be 40 tons of barnacles with high-pressure hoses: a total of eight to ten days, which included paint treatment of the hull.

keeping cleanTo protect against future buildup on Dan Eagle, jl chose to apply an advanced anti-fouling paint – seaQuantum ultra from jo-tun – which is customised for such a ship’s

operation pattern. The paint system gives a controlled release of copper particles that prevent marine growth. The paint consists of a soft polymer that binds the copper, and as water flows over it the coating diminishes layer by layer until virtually nothing is left by the time for the next dry dock. This particular paint system is designed to work with mini-mal water flow, at low speeds down to one knot, which makes it ideal for Dan Eagle.

“jl is constantly on the lookout for custom- made products for our operating patterns, like this antifouling paint,” says hans gun-destrup. “We expect very good performance from this paint system, which naturally is also in compliance with international envi-ronmental standards and regulations. When you consider that the difference between a clean hull and a fouled hull can easily add up to ten per cent in fuel consumption and emissions, this paint is clearly worth the higher price we pay for it, both in terms of our bottom line and for the environment,” hans gundestrup adds.

CustomIsed antI-foulIng paInt for shuttle tankers helps laurItzen off-shore Combat bar-naCle buIldup that InCreases water re-sIstanCe and boosts fuel ConsumptIon and emIssIons.

“thIs paInt Is Clearly worth the hIgher prICe we pay for It, both In terms of our bottom lIne and for the envIronment.” Hans GundestrupVessel Manager, Lauritzen Offshore

WINNINgThe baTTle agaINsT barnacLes

Lauritzen news · Issue #16 ·may 201218

ceNsor for simac

dan larsen, teChnI-Cal superIntendent for laurItzen tank-ers, brIngs a real-world perspeCtIve to evaluatIng marI-tIme students’ fInal proJeCts – a rela-tIonshIp that also benefIts Jl.

.

sImac (svendborg International maritime academy) is the biggest maritime education and training institution in denmark. after students make an oral defence of their final projects, the next decisions they make will be in the real world of a ship at sea, not in a classroom. Which is why the school thinks it is a good idea to have someone like dan larsen participate as censor in the oral examination. “students at this late stage typically don’t fail because they lack basic academic competence,” he says. “as this is the student’s final project before becoming master or chief engineer, their next proposal will most likely have real-world consequenc-es, therefore my focus is on the project’s ap-proach to that reality.”

strengths and weaknessesdan larsen typically participates in three to five exams a year, receiving a stack of pro-ject proposals early on so that he can sug-gest the ones on which he would be best qualified to comment. since he was edu-cated as a naval architect, he leans toward technical subjects – in the recent past that has included areas such as lubrication, trim assistance, inert gas projects, and led light-ing. he receives completed papers about a month in advance of the oral exam, which is conducted together with an academic coun-sellor from the school. “We discuss what we

see as the strengths and weaknesses of the project, and I usually see eye to eye with the school counsellor,” he says. “The hardest is a situation where a student is close to fail-ing, here my judgement will often keep a main focus on the real-life consequences of the student’s results. however, if the internal counsellor and I are too far apart in our eval-uation – which rarely happens – the decision goes to a third party. and it’s not the end for students who do fail – they can try again a half year later with another project.”

source of ideasThis is a relationship that also benefits jl. It provides the company with a foundation for contact and collaboration with sImac, and dan larsen’s exposure to a steady stream of final projects gives jl a way to keep up to date with the latest initiatives and theories at the school. “of course, direct recruitment of graduating students is always a possib-ility,” he says, “but more important is that my presence there raises the awareness of jl and our brand. also, whenever I look at a project, I ask myself whether it is some-thing jl could be interested in. The school is a valuable source of ideas that we might be able to adapt for our own fleet. even student projects that aren’t 100 percent feasible in reality can provide useful spin-off ideas.”

This is a process that will soon be tested in reverse, with jl suggesting subjects that might make good student projects. dan larsen is a member of the jl technical committee, which brings together repre-sentatives from all the business units every few weeks to discuss interrelated subjects. “We’re looking for projects that could be in-teresting for both sImac students and jl,” he says. “It’s an arrangement that would benefit both sides. They get a real-life project to work on, and we get the results of their work, as well as further reinforcement of the jl brand.”

“the sChool Is a valu-able sourCe of Ideas that we mIght be able to adapt for our own fleet. even student proJeCts that aren’t 100 perCent feasIble In realIty Can provIde useful spIn-off Ideas.”

Dan LarsenTechnical superintendent, J. Lauritzen

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presTIgIous aWard To Lauritzen buLkersnew busIness strat-egy leads to Inter-natIonal bulk Jour-nal’s 2011 award for bulk shIp operator of the year

The International bulk journal (Ibj) awards are dedicated exclusively to the maritime dry bulk industry and recognise achievements improving and enhancing efficiency, safety, and environmental protection in the global market. lauritzen bulkers (lb) was also nominated and shortlisted for the bulk ship operator of the year award in 2010. accord-ing to ejner bonderup, president of lb, what particularly caught the award panel’s atten-tion this time around was the way lb had completely transformed its business strategy during the past two to four years. “While continuing to implement our overall growth strategy,” he says, “lb has also had the clear ambition to move away from the role of be-ing a traditional tonnage provider. We have

now become primarily an industrial carrier and work directly and closely with end-cus-tomers in the dry bulk shipping business.”

better control of the businessafter the market collapse of 2008, it became clear that shifting the focus to a voyage-re-lated – as opposed to time-chartered – op-eration would provide lb with much better control of its business.

acting as an industrial carrier puts lb in di-rect and close contact with the various play-ers on the cargo side, dealing directly with shippers, receivers, and trading companies, whereas in a traditional tonnage provider ar-rangement there is an additional filter in the equation.

for lb, it was a natural part of the ongoing growth strategy to move closer to custom-ers, a move that provides direct access to knowledge about market developments and customer needs. It is a shift in focus that opens up direct lines of communication be-tween customers and lb in an attempt to optimise overall daily coordination for mu-tual benefit.

“This business transition has caused quite a few changes within our organisation in terms of how we do business and how we approach the market,” says ejner bonderup. “We have significantly strengthened our global trading platform and have added new talent to our stamford (us), singapore, shanghai, Tokyo, and copenhagen offices.

“for us, winning the prestigious bulk ship operator of the year award is a recogni-tion of the fact that we have succeeded in completing our mission, and we are pleased to see that it has been well acknowledged by the various players in the market,” adds ejner bonderup.

From left: Lars Busk, Lightship; Morten Have, Lightship; Jörg Stehn, Stehn & Co.; Claus Stahl, LB; Søren Uglit, Bidsted; Ejner Bonderup, LB; Ulrik Danstrøm, LB; Torben Warsberg, LB; Nick Mitchell, Rigel Shipping; Carl Wegeberg, LB


TurNINg maNagers into Leaders

for some time, Lauritzen kosan has been looking for the most effective way to help captains and chief engineers embrace managerial responsibilities, develop strong leadership skills and develop clos-er relationships with their counterpart fleet managers in copenhagen. consider-ations of the best possible solution led to the development of a highly successful on-going programme: the Lauritzen ko-san Leadership and management course.

The purpose of the course is to provide man-agement personnel at sea with strengthened skills for understanding authority, responsi-bility and solving problems cross-culturally as well as personally. The course, which is mandatory for all captains and chief engi-neers on-board lauritzen Kosan (lK) ves-sels, takes them through a personality profile analysis along with other tools and models that increases their capability of coping with challenging situations at sea.

developing skillsbeing in a managerial position can be chal-lenging and it might be easier for some than others. It requires training, experience, and an understanding on one’s own character to be a successful leader. lK turned to the maersk Training centre in svendborg, den-mark, to develop a tailor-made programme that would guide captains and chief engi-neers through a series of trials, training, and real-life situations that will prepare them for their challenges. The programme was not intended to be a “pass or fail” test; instead it focused more on developing the attributes needed to be an effective manager as well as the insight into how to be a strong leader.

The first of these courses was conducted in November 2011 over a three-day period in manila, philippines. It included a series of simulated events to see how participants fared under stressful situations, such as hand-ling difficult tasks, quick decision-making and managing crews.

“during the course, I learned much in terms of prioritising tasks, delegation methods, and motivation techniques to further enhance teamwork on-board and get the best out of my crew,” said captain david aro, who took part in the course. “I have also understood new ways to apply leadership in any given situation.

“The course helps participants to understand how to manage and lead in an ‘ideal’ way, in order to attain the utmost result for on-board relationships and results,” he added.

developing charactereffective leadership qualities are not some-thing that can be easily taught and require a strong character, a belief in one’s own abili-ties, and an empathy for others. as such, the course needed not only to give people effec-tive management skills, but also the confi-dence to take on their responsibilities with a new approach. It was therefore decided that the programme should also include the Thomas Test – a personal profile analysis that

“the Course has gIven me many extremely valuable tools to be a more effeCtIve shIpboard manager. I wIll use the know-ledge I aCquIred and apply It as a better leader.” Nestor Almero, participant Lauritzen Kosan Leadership and Management Course


helps the participants to understand their own personality and how to use their own personal strengths and weaknesses to their advantage.

“The leadership and management course is largely about self-awareness and aware-ness of others,” said peter justesen, vice president and head of lK fleet management. “The Thomas Test was an important addition to the programme – for managers to be ef-ficient, they need to understand themselves in order to know how they will react in cer-tain situations. by gaining a clearer picture of their own character, participants increase their self-awareness and become know-ledgeable about their abilities, which in turn encourages others to trust their judgement as a leader.”

The Thomas Test not only helped people to read and understand their own personal-ity, but it also proved to be a useful way for participants to understand other people's personality and react accordingly: “I have learned a lot from this course,” commented captain Nestor almero, one of the first to take part in the programme. “Importantly, I discovered how to adjust myself when deal-ing with different people’s behaviour or per-sonality in order to reach the team’s goal.”

another important part of this process was also to help participants to become more culturally aware; often communication be-tween the philippine crew at sea and danish personnel in the office in copenhagen can be very challenging and cause misunderstand-ings due to cultural differences. Thus both the personnel ashore and at sea are provided with training tools that highlights these dif-ferences.

developing loyaltyemployee retention is something that lK has always taken very seriously. In addition to teaching skills, the course was also seen as an effective way to encourage participants to develop relationships with colleagues both at sea and ashore, as well as fostering a sense of being a valued part of the organisa-

tion and help employees feel a strong sense of loyalty towards the company.

“maintaining loyalty among employees is a very important part of our working practices. It is something that we simply expect,” says susan flintegård, head of maritime person-nel at lK. “While many crew members are very loyal and respectful to fellow shipmates, there was not always such a strong bond be-tween managers at sea and those ashore. The course has been a successful way to change this.”

In addition, even though the course had been co-designed by the maersk Training centre, it was conducted entirely by lK staff in a lK environment. This was to help par-ticipants engage with and understand the company’s corporate culture and values. The exercise also helped to promote a “com-mon vocabulary” that enable ship-based and shore-based managers to cooperate more easily and communicate a unified message to teams and individuals under their authority.

a successful outcomeThree courses have been held so far, with two further sessions planned for this year. The cource has received positive feedback from both participants and organisers.

“The leadership and management course has been a superb way to give captains and chief engineers the tools, insight, and self awareness to be leaders,” said peter møller petersen, head of vessel management at lK. “It is also an invaluable way to ensure ship- and shore-based managers share the same philosophy and managerial approach.”

both captains and chief engineers reported afterwards that they found the process an “eye-opening experience”. In only three days, they felt that they had learned a host of useful skills that would help them in their daily jobs, developed strong relationships with other managers both at sea and ashore and, thanks to the Thomas Test, also learned valuable things about themselves.

participants have also been encouraged to continue their own self assessment through on-going personal development plans. This includes writing summaries of what they feel they got out of the programme and self-improvement areas they would like to focus on. These summaries also serve as a useful guide for lK management to understand the manager’s particular strengths and weak-nesses, and how they can support their pro-gress in the future.

“as one of the lK instructors running the course, I also learned a lot,” said christian riis, head of hsseQ at lK.“ setting up the programme was a very educational exercise, as was collating and analysing the results. and thanks to the Thomas Test, I now have a deeper and clearer understanding of my own personality – which was surprising!”

Those who have taken part in the course have been encouraged to speak to colleagues and crew members about their experiences and there seems to be a sense of excitement about the experience. following this enthu-siasm and success, lK will take all captains and chief engineers through the course.

the thomas test The personal profile analysis measures the behaviour of individuals in their en-vironment or within a specific situation. The assessments classify four aspects of behaviour by testing a person's preferences in word associations. The combined outcome is a personal type profile (dIsc profile):

dominance – relating to control, power and assertivenessinducement – relating to social situations and communicationssubmission – relating to patience, persistence and thoughtfulnesscompliance – relating to structure and organisation


about 18 months ago, lauritzen Tankers (lT) joined hafnia management, a product tanker pooling arrangement (see story in lN#13). Today half of lT’s total fleet of 18 vessels par-ticipates in the pool and approximately half of lT’s employees moved to hafnia, leaving a total staff of four people. “We have suc-cessfully established our arrangement with hafnia,” says erik donner, president of lT, “and enjoy good market presence as a result. We are still very much involved as owners in strategic decisions. lT is part of the hafnia pool committee as well as a member of the board, and we are in close dialogue concern-ing various day-to-day issues.” In a parallel move, lT has also placed responsibility for technical management of its fleet with ex-ternal managers in japan, hong Kong, and Norway.

ship owneroutsourcing spot market and technical man-agement responsibilities is a strategic deci-

sion that gives lT the flexibility to accomplish more with a streamlined organisation. “our focus is on being a shipowner, as a business unit of jl and as a tonnage provider to the pool,” says erik donner. “lT is both an asset player – looking at the investment side to see whether we should buy or sell ships – and a participant in the time-charter market, tak-ing ships in on time charter, re-letting them or adding them to the pool. during the last half of 2011 and continuing into this year, our focus has been on getting the existing time-charter fleet either extended or renewed at present market levels, in order to lower ex-penses and improve the bottom line.

“These activities are done entirely within lT, and we can accomplish them effectively with a streamlined staff because our organisation will not be affected by changes in fleet struc-ture. This allows us to act quickly, especially if we want to buy vessels and increase the fleet, as our external managers give us the

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outsourCIng spot market and teChnI-Cal management responsIbIlItIes gIves laurItzen tankers a new strategIC manoeuvrabIlIty.


capacity to take on the additional tonnage. lT has taken in five ships on time charter since december 2011, and currently we have five newbuildings for delivery within the next two years from the guangzhou yard in china.”

operating structureIn practical terms, this means that the three areas within lT – projects, commercial ope-ration, and technical supervision – can each be handled by a single person. project area responsibilities include evaluating when and if a further investment in new ships should be made and whether to expand within tan-ker segments. “We are now focusing on mr (medium range) product tanker designs,” says erik donner, “but the market develops all the time, and we have to monitor it closely to be sure we’re in the right segments with the best hardware. hafnia management is engaged in mr and lr (long range) pools, which gives us the possibility to go larger if that seems advantageous.”

jesper Kjersgaard, in charge of commercial operations at lT, continuously monitors the performance of the fleet owned by lT and time-charter vessels. for the units fixed out on time-charter contracts to a range of cus-tomers, it is lT’s obligation to ensure that what is laid down in the time-charter con-tracts is met and that lT’s service level is constantly adjusted and optimised to meet the expectations of each customer. This re-quires a close dialog with the client as well as with lT’s technical managers and cap-tains. lT likewise has a close dialogue with the operations team at the hafnia pool to en-sure that owners’ requirements and policies are met at all times.

finally, lT’s technical superintendent, dan larsen, is chiefly responsible for high-level supervision of the fleet including external managers – agreeing on how vessels shall be run and maintained – as well as for bud-geting and following up on inspections, in-

cluding personally doing ship inspections on-board the fleet each year. he also pro-vides technical support to the chartering and operational teams – for example, regarding vessels’ cargo capabilities, rules and regula-tions – and technical-to-commercial transla-tion. In addition to the existing fleet, lT also has a series of newbuildings on the way from the guangzhou yard in china. dan larsen is in close contact with lT’s site team in order to fully support their requirements. addition-ally, he also looks into optimising the design of lT’s vessels, both newbuildings and ex-isting fleet, with a view to meet increasing demands from the marketplace, authorities, and institutions regarding issues such as improving the efficiency of the vessels and reducing their environmental impact.

“our foCus Is on be-Ing a shIp owner, as a busIness unIt of Jl and as a tonnage provIder to the pool.” Erik DonnerPresident, Lauritzen Tankers

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Lauritzen tankers owned: 7 part owned: 1 tC: 4 managed: 5 Joint charters: 1 total: 18 n/b (own): 3 n/b (tC): 3

From left: Jesper Kjersgaard, Head of Com-mercial Operations; Erik Donner, President; Dan Larsen, Technical Superintendent; Nikolaj Søggaard Hansen (closest to the camera), Shipping Trainee

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jl lauNches NeW TWo-year training programme jl, together with other danish shipping com-panies and the danish shipowners’ associa-tion, has developed a new two-year training programme to be launched this autumn. The programme aims to boost participants’ profi-ciency and is primarily directed towards can-didates from danish and foreign business schools holding a bachelor degree. The cur-riculum will include topics such as maritime economics and law, ship knowledge, courses in cultural awareness, workshops, and, of

course, on-the-job training for a career in international shipping. We look forward to reporting more about this in the next issue and as the programme progresses.

editorsTorben janholtTove elisabeth Nielsenjens søndergaardmaj faurholmcharlotte Nilausen

J. Lauritzen a/ssankt annae plads 281250 copenhagen KdenmarkTel: +45 3396 8000

editorial support and designcross-border communications,copenhagen

printed by Kls grafisk hus a/s, copenhagen

inhouse photographerulla munch-petersen

lauritzen News is a semiannual publication. reproduction permitted only after agreement with the editors.

J. Lauritzen A/S operates globally and is engaged in diversified ocean transport through Lauritzen Bulkers (dry bulk cargoes), Lauritzen Kosan (petrochemical and liquefied petroleum gases), and Lauritzen Tankers (refined oil products). J. Lauritzen also serves the offshore oil exploration and production industry with specialised tonnage through Lauritzen Offshore.

JL employs a staff of approximately 1,400 persons and together with partners/associates controls a combined fleet of about 200 vessels including short-term time-charters and 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 fleets, see www.j-l.com


on Wednesday 16 November, dan Ter-man-sen, former captain of HDMS Absa-lon and currently director of International maritime capacity building for the royal danish Navy, gave a lecture on piracy to jl’s staff club. for one and a half hours, he expanded upon several issues concern-ing piracy. he opened the lecture with an interesting introduction to the procedures of the command and support vessels

that operate along somalia’s coast. his remarks were accompanied with photos of vessels and procedures for capturing pirates in the area. as an expert on the subject, he offered sharp insight into the causes of and possible solutions for the piracy problem. for more about dan Ter-mansen’s views on piracy, please see his article in lauritzen News #15.

daN TermaNseN Lecture on piracy

Tove Elisabeth NielsenSenior Vice President, Head of Corporate Human Resources

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Documents

joININg a global battLe - J. Lauritzen A/Sstatic.j-l.com/imce/LauritzenNews/LauritzenNews16/News16.pdf · 2014. 8. 6. · Lauritzen news · Issue #16 · may 2012 3 We were, however,