Page 42: of Maritime Reporter Magazine (May 2015)

$1.5T

Norway’s

The value of the global ? eet has (winding) increased 10% per annum since 2000, growing to $1.52 trillion in 2013/2014.

The Norwegian ? eet is valued at $87 billion, growing 8% per year

Path AheadPath Ahead

What Norway lacks in population size it compensates nicely Service Vessel market today, for example, and the design, out-

A precipitous plunge in in maritime might. The country has a population a shade north ? tting, construction and ownership of these high-performance, energy pricing is problem- of ? ve million, ranking 121st out of 240 countries. But the high-value, high-spec boats are quietly taking over the Norw- country is unique in its connection to and af? nity for the sea, gian maritime scene. In fact, according to the NSA report, Nor- atic for a prodigious oil and cumulatively the maritime industry employs more than way is the world’s second largest owner of Offshore Service 110,000 people (or about 2% of the population) and contrib- Vessels, second only to the United States. In terms of growth producing nation such as utes a value creation of 175 billion NOK ($21.6 billion) per markets, Norway today sees the U.S., Canada and Mexico, fol- annum. This is according to “Maritime Outlook 2015: Navi- lowed by Southeast Asia, Brazil, West Africa and China as its

Norway, but it really only gating in a New Climate,” a report recently released by the most important growth markets.

Norwegian Shipowners Association (NSA). While the num- While the numbers are impressive, the tone looking forward tells a portion of the story bers in the most recent report are impressive, which is an im- is decidedly reserved, and across the maritime and offshore oil when evaluating the imme- perative annual tome which discusses the recent history and and gas sectors there generally are sentiments that pro? tability future direction of the Norwegian market, the numbers do not, will be lower in 2015, except for the deep sea segement. diate future for the collec- never have and never will tell the e While Norwegian shipowners still antici- whole story. p p pate an increase in turnover to 268 billion tive maritime and offshore “Maritime” and all that it en- - N N NOK in 2015 (versus 262 billion NOK in tails is in the DNA of seemingly y 2 2014), this 2.3 percent increase is markedly energy markets. Prolonged every Norwegian, a history, cul- - l less optimistic than the 6 percent increase 18001800 stagnation in the global ture and cluster that works as s a anticipated in the “2014 Outlook” report. ? uidly and ef? ciently – amongst t t M More telling are sentiments surrounding economy, growing politi- themselves and in the global l t the Norwegian OSV market.

There are 1800 Norwegian ships and rigs in maritime community – as any in n According to the Outlook 2015 report, action around the world. There are 176 cal tension and instability the world. O OSV owners expect turnover to fall by 4.2 cumulative

Norwegian ships on order, a n While the level of saturation p p percent in 2015, a number made more sig- in several world regions, value of $12.4 billion.

of maritime – and in more recent t t n ni? cant when you consider that it would and a general breakdown times the offshore energy sector r r m mark the ? rst fall in turnover in the OSV – is enviable, in some ways it is s s segment since 2002. Following is a broad in international coopera- an economic tightrope act, as both industries are notorious for statistical abstract of ? ndings from the Maritime Outlook 2015 heavy cycles up and down. report. The report in its entirety is a fascinating read, with tion all conspire to make insightful articles which dig deep into some of the societal, 2015 & Beyond environmental and political issues that are drivers for global the path ahead a perilous

While the prolonged drop in energy pricing is having a direct maritime trends. Visit: one for this wealthy nation effect on many Norwegian companies, the dynamics of the in- https://www.rederi.no/en/aktuelt/2015/outlook-2015/ dustry and its people are diverse and no single factors works to of ? ve million. If history de? ne the whole. The Value Play • Norway is expensive. While it is a literal hotbed of The Norwegian Shipowners Association, courtesy of a study serves as a barometer maritime knowledge and insight, the prospect of ships stamped by Menon Business Economics, ? nds that the value of the global “Made in Norway” is increasingly rare, as low-cost competi- ? eet has increased 10 percent per annum since the year 2000, however, Norway will sim- tors have cropped up globally, even in the construction of some growing in value from $443 billion in 2000/2001 to $1.52 tril- ply pull on its boots, get of the world’s most technically complex vessels. lion in 2013/2014. (The e • The Maritime Cluster is a core economic engine. study based the valua- - to work and ? gure out the

More than 110,000 people worked in the industry in 2013, cre- tion on newbuild costs s ating value creation of more than $21.6b, the highest ever re- in the various vessel l best path forward.

corded and an 11% increase from 2012. Norwegian shipown- segments adjusted for r r 110,000 ers accounted for $13.6b. (Note: In Norwegian currency, the ? eet age and size.) On n

Norwegian Krone (NOK), this equaled 102 billion NOK … the Norwegian side of f f the ? rst time ever that shipowners created more than NOK 100 the ledger, its ? eet was s

More than 110,000 people worked in n billion in value.) valued at $87 billion the industry in 2013, creating value by Greg Trauthwein g • Norway is international. While small in popula- 2013/2014, showing creation of more than $21.6b, the high- est ever recorded and an f f tion, Norway is in? uential in many global circles, particularly an annual growth of 11% increase from 2012.

in terms of maritime and offshore oil and gas. Norway and close to 8 percent in the e its companies have effectively helped to rede? ne the Offshore same study timeframe. . 42 Maritime Reporter & Engineering News • MAY 2015

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