Half-year results · Lauritzen Kosan newbuilding programme enters into
delivery phase · Staying safe means staying alert · Vessel of the Year
2006 · Hole in one · JL exits the reefer business · A Capesize milestone ·
Goodbye to training, Hello to the real thing · It’s back to school for
experienced purchasers · Lauritzen Tankers builds in China
OCEANS OF KNOW-HOW
4 Half-year results 2007
5 Lauritzen Kosan newbuilding
programme enters into delivery phase
6 Staying safe means staying alert
8 Vessel of the Year 2006
9 Hole in one
10 JL exits the reefer business
13 A Capesize milestone
14 Allotment gardens - nature and leisure
within the city limits
16 Goodbye to training, Hello to the
18 It’s back to school for experienced
19 Lauritzen Tankers builds in China
20 Namegiving ceremonies
Dear Reader, Although some organisations
The ability to handle uncertainty and change is paramount in today’s business may continue successfully with
world with its increasing competitive pressures. The ability to cope with and their current strategies, most
even thrive on change can thus be regarded as a major competitive advantage. will undoubtedly need to change.
Of course, any change brings
The decision to sell JL’s 50% shareholding in NYKLauritzenCool, and conse- uncertainty, and some organi-
quently to exit reefer shipping, is an excellent example. I take pride in the way it sations are better at coping
demonstrates our ability to change. JL’s history in the reefer business (see article, with that situation than others.
page 10) illustrates our ability to constantly seek new opportunities through
innovation, market development, and flexibility – and to continuously respond
to changing market conditions.
It is, of course, emotional to leave the fascinating reefer industry together with
all our trustworthy customers and dedicated colleagues worldwide. We wish all
our friends in the reefer industry good luck and thank them for the trust they
have shown us during many years. However, our exit from the reefer business
will open new opportunities for JL.
I find it fair to state that the ability to cope with change is built into the culture,
organisation, and management style of JL. I am very pleased with that. But there
is always a risk that complacency might be lurking around the corner. Therefore,
we constantly have to sharpen our skills and competencies and thus our ability
to continuously change.
During the last couple of months, other major changes have occurred. Lauritzen
Bulkers has ordered no less than four Capesize bulk carriers, manifesting its presence
in this segment of the bulk market. The Capes are the biggest vessels ever ordered
by JL. During the summer, Lauritzen Tankers ordered six additional product tan- Torben Janholt,
kers, another sign of our continuous fleet build-up in the MR product tanker market. President and CEO
With 50 owned and time-chartered vessels on order, JL has the biggest new-
building portfolio ever recorded. Furthermore, partners will add 15 additional
newbuildings to the JL-managed fleet.
I am pleased to report that JL’s result for the first six months of 2007 was
USD 132 million compared to USD 60 million in 2006 and thus better than
expected and very satisfactory. The outlook for the remaining part of the year
is positive, and the best ever full-year result is expected for 2007.
President & CEO
half-year results 2007
JL’s result for the first six months of Fleet and USD 140 million to Lauritzen
2007 was USD 132 million compared During the first six months of the year, Tankers.
to USD 60 million in 2006. The JL took delivery of two Handysize
result is better than expected and very bulk carriers, two MR product tankers JL’s newbuilding commitments total
satisfactory. (one of which was sold at delivery), about USD 1.3 billion. In addition,
and one 8,000 cbm ethylene gas carrier JL’s investment capacity amounts to
The improvement compared to 2006 (the first of a series of six sister vessels). about USD 1 billion.
was primarily driven by a substantial Additionally, JL took delivery of four
strengthening of the bulk market, long-term time-chartered product Lauritzen Bulkers
increasing activities within JL’s product tankers and one Handysize bulk carrier. The result before tax was USD 114.4
tanker division, and gains on securi- million compared to USD 34 million
ties. Earnings in Lauritzen Kosan and Year-to-date, investments in 15 fully in the same period last year. The result
Lauritzen Reefers were better than or part-owned vessels were approved, is considerably better than expected.
expected but lower than last year due as were divestments in five vessels and
to lower profit from sale of vessels and other assets. Towards the end of the first half of
for Lauritzen Kosan particularly due 2007, Lauritzen Bulkers ordered
to the sale of the small gas carrier After the exit from the reefer business, four Capesize bulk carriers, further
activity towards the end of 2006. JL controls a combined fleet of about strengthening its presence in this
130 vessels at the beginning of August segment of the bulk market.
The newbuilding programme further 2007. Based on current commitments,
increased to a total of 50 vessels, includ- a total of 65 newbuildings will be added Lauritzen Kosan
ing 19 vessels that will be taken on long- to the fleet during the coming years, During the first half of the year,
time time-charter. Furthermore, joint bringing the total fleet to 195 vessels. Lauritzen Kosan realised a result
venture partners will add another 15 before tax of USD 7.2 million com-
newbuildings to the JL-managed fleet. Invested capital pared to USD 16.9 million in the
During the first half of 2007, invested same period last year. The result is
During the first half of 2007, JL’s 50% capital increased by USD 255 million better than expected.
shareholding in NYKLauritzenCool compared with the same period last
was sold to joint-venture partner NYK year. Average invested capital was The first of a series of innovative
Reefers Ltd. As consequence of the USD 695 million, of which USD 291 8,000 cbm ethylene gas carriers was
transaction, JL will leave the reefer million relates to Lauritzen Bulkers, delivered in May. A further nine iden-
market (see article on page 10). USD 265 million to Lauritzen Kosan, tical vessels will be delivered during
Invested capital (average) 1H USDm Key figures 1st Half Total Year
800 2007 2006 2006
(USD million) Actual Actual Actual
Lauritzen Bulkers 114,4 34,0 93,4
Lauritzen Kosan 7,2 16,9 38,3
Lauritzen Tankers 13,6 1,6 3,8
Lauritzen Reefers 9,9 16,2 13,2
Landbased activities (0,2) (1,2) (3,7)
Other (7,6) (1,3) (8,7)
Result before tax 137,3 66,2 136,3
Bulk Gas Tank Reefer JL
Tax and minorities (5,8) (6,3) (11,9)
Net result 131,5 59,9 124,4
Cash and securities 10,3 104,4 48,6
Long-term debt, total 44,8 68,1 49,9
Equity (excl. min.) 782,3 614,4 679,8
Total assets 991,8 755,9 929,7
the coming years, five of them owned Key figures
by Lauritzen Kosan and four by joint- Return on invested capital for the first Lauritzen Kosan
venture partners. six months of 2007 was 34.5% com-
pared to 27.7% in the same period in newbuilding
Lauritzen Tankers 2006.
The result before tax was USD 13.6 programme
million compared to USD 1.6 million Return on equity was 37.7% compared
in the same period in 2006. The result to 19.6% in the same period in 2006. enters into
is better than expected.
Solvency was 78.9% compared to delivery phase.
During the summer, Lauritzen Tankers 81.3% last year.
ordered six additional products tankers, Past issues of this magazine have pro-
further strengthening the fleet build-up Outlook vided progress reports on Laurtizen
in the MR product tanker market. Due to the continued strong global Kosan’s extensive newbuilding project
Lauritzen Tankers’ newbuilding pro- economy and the overall positive out- of ten ethylene gas carriers being built
gramme comprises 12 owned and time- look for JL’s business activities, the net at INP shipyard in Ulsan, Korea. The
chartered vessels. result for 2007 is expected to be sub- first of these, the Isabella Kosan, was
stantially higher than earlier estimated delivered on 31 May. After extensive
Lauritzen Reefers and the best in the history of JL. sea and gas trials, she sailed from
The result before tax was USD 9.9 Korea to Iran to load her first cargo.
million compared to USD 16.2 mil- “All the tests went very well,” says
lion in the same period in 2006. The Jan Kastrup-Nielsen, president of
result is in line with expectations. Lauritzen Kosan, “which is as we
expected. But when you’ve spent so
In connection with the 50% sale of long reviewing diagrams and drawings,
NYKLauritzenCool, JL’s portfolio it’s always a relief when a cargo is
of time-chartered reefer vessels was actually loaded.” The next ship in
transferred to NYKCool AB. Four the series, the Helena Kosan, is due
reefer vessels will, however, remain to be delivered early September. All
on bareboat charter to Lauritzen ten of the vessels are scheduled to be
Reefers and be commercially operated completed and delivered by 2009.
Total fleet (August 2007)
Joint charters 12
Comm. mngt. 4
N/B (own) 31
N/B (T/C) 19
N/B (partners) 15
“Our onboard ship management is tight,
and our crews are fully confident with
what it takes to stay safe – and that’s
Senior Vice President, Head of Lauritzen Fleet Management
How J. Lauritzen ships avoid modern-day pirates,
terrorists, and run-of-the-mill bad guys.
If you have recently enjoyed a couple of J. Lauritzen vessels have been attacked, Awareness and discipline
hours in a dark theatre happily eating a Danish vessel, the Danica White, was Large commercial vessels can’t do much
popcorn and watching Pirates of the hijacked in June, 210 nautical miles to protect themselves. They are too
Caribbean, you can be excused for off the Somalian coast. slow to outrun the pirates, and most
thinking of piracy as a threat from the shipping companies do not allow
past. In fact, it is a danger that never International naval forces do attempt ships’ crews to be armed. When asked
entirely disappeared and one that is to protect shipping in this area – to explain J. Lauritzen’s 100% success
making an impressive comeback off because of Middle East oil production rate in modern time at avoiding this
the west coast of Africa, in some of the it attracts heavy traffic – but the size danger, Tommy Thomassen, senior
same waters where the Barbary pirates of the territory to be patrolled gives vice president and head of Lauritzen
of centuries past preyed on shipping the pirates an edge. Even when help Fleet Management (LFM), gives a
in the western Mediterranean. is at the right spot at the right time, disarmingly simple answer. “Our ships
rescue efforts are not always successful: play it safe,” he says. “Off Somalia, for
21st-century pirates are often trained the USS Carter Hall, part of a US example, instruction is to stay at least
and heavily armed fighters who use task force, fired on the Danica White’s 250 nautical miles from shore. It’s a
speedboats equipped with satellite hijackers, but had to call off its pursuit matter of staying alert and being disci-
phones and Global Positioning System after the pirates entered Somalia’s terri- plined – observing the right security
equipment and have the backing of land- torial waters. level, posting extra guards, and always
based militias. They are notoriously being prepared. Our onboard ship
active off Somalia's coast. Although no management is tight, and our crews
are fully confident with what it takes about how to respond – and how not the code. “The regulations tightened
to stay safe – and that’s what matters ” to respond – in emergency situations. quayside security with strict visitor
Achieving a consistent level of security Additionally, all ships undergo rigorous rules and improved search routines for
awareness and discipline is a matter of audits: internal LFM security reviews stowaways and explosives,” he says, “so
training, and LFM sees that everyone and inspections and Flag State security they provide a layer of security against
is trained in security, in Denmark audits. “These audits are valuable not everything from terrorist threats to
and the Philippines and in the Baltic only because they document that we common criminals.” ISPS regulations
countries. There are three Company comply with requirements, but also also focus on the important transition
Security Officers, and each ship in the because they help us and the shipboard from sea to port, by requiring ships’
fleet has a specially trained Ship Security management and crew to continue security officer and the port security
Officer as part of the International stay on our toes when it comes to officer to coordinate security levels in
Ship and Port Security (ISPS) code. security, not allowing us to slowly a structured manner. In volatile areas
doze off ” says Tommy Thomassen. this is vitally important to ship security.
A major part of a Security Officer’s He also notes that the ISPS regula-
responsibility is ensuring compliance tions were by far one of the fastest
with the ISPS code that was imple- produced and implemented pieces of
mented in the wake of 9/11. Each maritime regulation ever, and points
J. Lauritzen ship has an individual out that rules covering port security
security plan, with specific guidelines are among the most important part of
Vessel of the Year 2006
Congratulations to the master, officers, and crew of the Tessa
Kosan for achieving best-in-fleet inspection performance.
The vessel received only two Ship Specific Remarks in 2006.
An article in the March 2006 issue
of this magazine reported on the
initial success of Lauritzen Kosan’s
Zero Remarks vetting programme. It
encourages high standards of vetting
inspections through monetary awards
to ships’ welfare accounts whenever a
ship posts an inspection score of 0-4
remarks. Successful vetting is crucial in
gaining business from the oil majors,
and it is also an opportunity to promote
Lauritzen Kosan as a safe and respon-
sible shipowner. As Klaus Grøndal,
vetting manager of Lauritzen Kosan,
puts it, “Vetting inspections are the
entry ticket to all our business. Not
doing well can have serious conse-
quences, as an unsuccessful inspection
Ulrich Voss (on left), Vetting Superintendent, Lauritzen Kosan, presents award can end up with the vessel being
plaque to Captain Nestor Aimero. rejected by our customers, with loss of
goodwill and earnings as a result”. A
rejected vessel is required to be satis-
“The performance of the Tessa Kosan is a factorily re-inspected before it again
good example of people pulling together to may do business for the individual
put our core values into practice.” customer, which is not only costly
but also time-consuming.
Klaus Grøndal During 2006, there were a total of 86
Vetting Manager, Lauritzen Kosan inspections carried out, of which 17%
received zero ship-specific remarks.
Hole in one
The average amount of money awarded While anchored on the roads off the reef on 2 July 2007. Minor
per inspection was increased by 75% Newcastle, Australia, the Pasha repairs were conducted in Newcastle
in 2006, and there were a growing Bulker – on long-term time charter to harbour before the Pasha Bulker was
number of USD 500 awards for a Lauritzen Bulkers – ran aground dur- towed for major repairs.
perfect score. The award money is ing a major storm on 8 June 2007,
used for the benefit of the entire crew, just off the local golf club at Nobbys The incident caused extraordinary
both those working at the time of the Beach. The vessel remained grounded media attention worldwide, but for-
inspection and those who join the ship on the beach only a few meters from tunately neither the crew nor the
at a later date. Funds can be spent on the greens, where it became a tourist environment suffered any damage.
anything from video games to karaoke attraction and certainly also a distrac- As time-charter owners, Lauritzen
systems to sports equipment. The idea tion for the club’s keen golfers. Bulkers had no responsibility for the
of identifying an overall winner as the navigation of the vessel nor for the
Vessel of the Year is a new addition to After the dramatic grounding all 22 rescue, but we thank the owners and all
the programme – one for which the Korean and Filipino crew members Australian authorities involved in the
officers and crew of the Tessa Kosan were successfully rescued from the rescue operation for a job well done.
were awarded a commemorative plaque vessel by helicopter. The vessel had
and a 32” flat-screen TV. no cargo onboard, as it was waiting
to load coal. During further stormy
“This programme is all about encour- weather, the ship was pushed onto
aging team effort, and it’s obviously the beach and was stuck in the sand,
been very successful,” says Klaus completely trapped between the
Grøndal. “We’re not only paying out beach and the reef. There were fears
more reward money, but the steady that it could break up and cause envi-
reduction in crew-related remarks ronmental problems.
also indicates a real change in attitude
and awareness. The performance of The vessel’s Japanese owners, together
the Tessa Kosan is a good example with salvage experts, decided to try to
of people pulling together to put our refloat the ship. After the third at-
core values into practice.” tempt, it was successfully towed off
For more than a century, J. Lauritzen reefer ships have
served worldwide markets. Seen here, the Knud Lauritzen
off New Zealand with a full load of containers.
The end of an era
A history of more than 100 Pioneer of the reefer trades atlantic banana trades. JL consequently
years has come to an end with JL was a pioneer in the development played a leading role in the expansion
J. Lauritzen’s sale of its 50% of the reefer trades, carrying citrus from of the reefer business during the 1930’s,
share of NYKLauritzenCool to Spain to England as early as 1905. and JL’s reefer activities were also
NYK Reefers Limited, JL’s pro- During the 1920’s, JL installed electrical extended to include Chile, Ecuador,
fessional and dedicated partner ventilation systems in the cargo holds Brazil, and South Africa.
during the last four years. As of its vessels in order to improve the
a consequence of the transac- still rather primitive carrying conditions On the vessel side, the first of a series of
tion, NYK will take full control for perishable cargoes. Regular services three general cargo vessels were recon-
of the company, which has were established from Italian ports to structed at Elsinore Shipyard in Den-
been renamed NYKCool AB. the UK, from Sicily and Spain to mark, part of the J. Lauritzen Group,
Gdyniain in Poland, and between the in the beginning of the 1930’s. These
Canary Islands and Antwerp in the converted refrigerated vessels played
Netherlands. In 1925 JL opened its an important role in the early phase of
first overseas office in Valencia, Spain. the development of the reefer trades.
During the 1930’s, JL expanded its A new milestone was reached in 1935,
reefer activities considerably. In 1931, when JL took delivery of its first pur-
JL performed its first shipment of pose-built reefer vessel, equipped with
bananas from West Africa to France. specialised cooling machinery, also from
This was a major achievement, since the shipyard in Elsinore. The YRSA,
there was no experience in transporta- later renamed African Reefer, was JL’s
tion of bananas over such long distances. first vessel to carry the “Reefer” name
Also in 1932, JL negotiated a long-term and traded for JL until 1963. During
contract concerning transportation of the second half of the 1930’s, JL fur-
bananas from the West Indies to Europe, ther expanded its fleet of dedicated
and JL subsequently became instru- reefer vessels and the African Reefer
mental in the development of the trans- was followed by a series of sister vessels.
“J. Lauritzen has enjoyed a strong partnership with NYK Reefers and
a very good cooperation with our Swedish colleagues. As a part of
Lauritzen’s overall strategy we decided to sell our reefer fleet in 2006,
and it is therefore only natural that NYK takes over our 50% shareholding
of the joint marketing company.
Torben Janholt, President & CEO, J. Lauritzen
a: JL exits the
Modern reefer vessels change was made in their appearance During this period, JL’s fleet of reefer
In 1953 a new series of modern reefer as these vessels, instead of being white, vessels gradually expanded with bigger
vessels was ordered at the Lauritzen were painted the same JL-red as the ships, and in the late 1970’s four sister
Group’s shipyards in Elsinore and company’s polar vessels. vessels – the Asian Reefer, Balkan Reefer,
Aalborg, Denmark. Major innovations Canadian Reefer, and Ecuadorian Reefer
included replacing inflammable cork Between 1968 and 1974, six sister – were delivered, each with a hold
with glass wool as insulation material vessels were built at Aalborg Shipyard. capacity of 588,000 cbft. and a speed
and replacing traditional wooden grat- These were the so-called Italian reefer of 22 knots. The partnership existed
ings with aluminium gratings. Diesel class, with a cargo carrying capacity of until 1983, when P&O decided to
engines from Burmeister & Wain gave 422,000 cbft. and able to make a laden withdraw. Consequently, JL became
the vessels a service speed of 18 knots. speed of 22 knots. the sole owner of LPR and the com-
pany name was changed to Lauritzen
The pool concept Reefers.
Around 1970, a pool concept was
adopted by J. Lauritzen in order to After 1983, the Lauritzen Reefers’
secure economies of scale through the pool was gradually developed, includ-
control of a larger number of vessels ing JL’s reefer vessels as well as vessels
from other owners. Thus a joint- belonging to other reefer owners. JL
The African Reefer, delivered in 1935, venture with Peninsular and Oriental contributed the majority of the vessels
was J. Lauritzen’s first purpose-built Steam Navigation Company Ltd. employed in the pool, which in the
reefer vessel equipped with specialised (P&O) was established in 1971 under beginning of the 1990’s comprised
cooling machinery. the name of Lauritzen-Peninsular about 65 specialised reefer vessels.
Reefers (LPR). The company was owned
on a fifty-fifty basis between JL and JL/LR became a market leader with
In the second half of the 1950s more P&O, but vessels belonging to other regards to trade development as well as
new vessels were ordered, and the ves- reefer owners were also operated by technological innovation. An example
sels’ carrying capacity was increased LPR. By 1975, LPR controlled a com- of trend-setting technological innova-
to almost 250,000 cbft. A noticeable bined fleet of some 25 reefer vessels. tion was the development of the Family
“It is obviously emotional for us to leave the reefer business and we
wish NYKCool a fair wind. We want to thank all our trustworthy cus-
tomers worldwide for their continued support. We also thank the many
dedicated employees of JL who over many years worked hard to meet
our customers’ demands.”
Torben Janholt, President & CEO, J. Lauritzen
Class reefer vessels (758,725 cbft. Lauritzen Reefers and Cool Carriers, created. Finally, NYK acquired the
capacity under deck and 118 FEU creating LauritzenCool. Following this remaining 50% of NYKLauritzenCool,
reefers on deck) delivered from initial strategic move, JL became effective 1 June 2007, thereby taking
Danyard (Aalborg and Frederikshavn instrumental in the consolidation of full control of the company.
Shipyards) in 1990-91. A reefer-in- the reefer industry. Lauritzen Reefers
dustrial cluster had gradually evolved and Cool Carriers were a perfect Ongoing excellence
within the Lauritzen Group, which strategic fit, which combined two of For JL, the recent transaction marks
included construction at Danyard of the strongest brand names in the the end of an era with intimate cus-
state-of-the-art reefer vessels equipped industry, with robust market positions tomer relationships and great col-
with advanced cooling machinery pro- in all major trades, strong conceptual leagues. We thank them all for their
duced by Sabroe Refrigeration, owner- skills, and long-lasting customer rela- trust and support, and wish them all
ship of reefer vessels by J. Lauritzen, tionships. Furthermore, both compa- the best of luck in the future.
and commercial management of ton- nies had experience with land-based
nage by Lauritzen Reefers’ pool. reefer logistics as a supplement to J. Lauritzen will endeavour to bring
ocean transportation, and on that the entrepreneurship, innovative skills,
Over the years Lauritzen Reefers worked basis LauritzenCool Logistics (LCL) and flexibility that we have gained
diligently to optimise the return on was established. within the reefer industry with us
voyages by exploiting the flexibility in our constant effort to become a
of the reefer ships’ holds to carry dry In August 2003, a strategic partnership world-class shipping company, irre-
cargoes on return voyages. The reefer was established between NYK Reefers spective of within which segments of
trades are characteristically from the and LauritzenCool. This was shortly shipping we concentrate our efforts.
southern to the northern hemisphere, followed by NYK’s acquisition of 50%
and the ability to carry packaged of LCL in January 2004 and NYK’s
goods or, at a later date, containers on subsequent 50% acquisition of Background source for article:
the return voyages could significantly LauritzenCool in September 2005, Søren Thorsøe. “J. Lauritzen 1884-1984.”
improve the bottom-line. This concept whereby NYKLauritzenCool was The World Ship Society, Kendal, 1984.
peaked during the years of cooperation
with the NOBOA group, with
bananas and other fruits as fronthaul
cargoes for the US and Japan markets
and cars as backhaul cargoes from
Japan to Chile, Peru, and Ecuador.
Lauritzen Reefers’ pool was terminated
in 1996, after which LR was established
as a stand-alone entity operating ton-
nage solely owned and time-chartered
In December 2000, JL acquired Cool
Carriers from Norwegian Leif Hoegh Hiroshi Yamafuji (on left), CEO, NYK Reefers and Torben Janholt,
& Co. and subsequently merged President & CEO, J. Lauritzen
A Capesize milestone
Lauritzen Bulkers places to strengthen the Lauritzen Bulkers ships on order at Hyundai are being
first-ever order for Capesize fleet, which is today at a record level built to meet the latest CSR (Common
newbuildings with Korea’s of more than 85 ships.” The growth Structural Rules) and PSPC (Performance
Hyundai shipyard. strategy is further evidenced by the Standard for Protective Coating) stan-
fact that Lauritzen Bulkers is awaiting dards. The application of these stan-
Although Lauritzen Bulkers acquired delivery of more than 40 other vessels, dards serve various purposes, namely
two time-charter Capesize vessels last including purchased, contracted, and to prolong the service life of the vessel,
year, the order with Hyundai is the time-chartered ships. They are to be increase its safety, and at the same time
first for newbuildings of this size. delivered between now and 2011, and, reduce its maintenance. They will be
They are scheduled for delivery during encompassing a variety of vessel sizes used primarily to transport iron ore,
the last quarter of 2009 and the first and types, indicate Lauritzen Bulkers’ and are 292 metres long, have a 45
quarter of 2010. In addition, two sim- determination to increase its fleet across metre beam, and draw an 18-metre
ilar Capesizes have been ordered from all segments. draft fully loaded. Because of the enor-
Japanese yards. “At 180,000 tons dead- mous pressure of being loaded at rates
weight, they’re the biggest ships we’ve Capesize ships – so called because they of up to 15,000 tons per hour, the
ever ordered,” says Jens Ditlev Lauritzen, are too large to traverse the Panama four new vessels will also incorporate
president of Lauritzen Bulkers. “In Canal and therefore must round the a stress-monitoring system to protect
the larger picture, these four Capesize Cape of Good Hope and Cape Horn their hulls.
purchases are part of our ongoing to travel between oceans – represent
strategy of taking every opportunity the largest type of bulker carriers. The
“In the larger picture, these four Capesize
purchases are part of our ongoing strategy
of taking every opportunity to strengthen the
Lauritzen Bulkers fleet, which is today at a
record level of more than 85 ships.”
Jens Ditlev Lauritzen
President, Lauritzen Bulkers
the city limits
For the past 12 months, JL’s working
environment has been slightly different
from our posh neighbourhood in downtown
At Sankt Annae Plads our nearest and an increase in population, the
neighbour is the new Opera house. interest in allotment gardens increased.
At our temporary premises at Amager In that period the city of Copenhagen
Strandvej the Opera House has been broke its old boundaries and many
replaced with a small green enclave large, dense five-story buildings were
containing a concentration of small, constructed. These flats were often
unique sheds – so-called allotment very small, some with only a view of a
gardens. Compared to the downtown backyard, and the residents longed for holders spent most their leisure hours
neighbourhood with its charming natural surroundings and the outdoors. in their gardens, taking great pride in
boutiques, art galleries, and gourmet As a result, areas in the vicinity of the creating a small paradise of their own.
restaurants at every turn, the contrast city were rented by the municipalities Where there used to be squares with
of the new surroundings is striking. for allotments, so that people could heaps of rubbish outside the city, the
get into contact with nature and live a outskirts now offered wide green areas,
Allotment gardens form a characteris- healthy outdoor life. fruit trees, and neat little houses.
tic feature of Danish cultural life, and However, the allotment gardens have
the roots of this phenomenon can be Rest and recreation – and necessity not only served as place of pure rest
tracked back to the late Middle Ages, The size of the gardens ranged between and recreation: during the Second
when gardens were situated outside 200 and 400 square meters, and often World War, they provided a welcome
town walls and served as an important the plots included a small shed built and vital supply of vegetables and
food supply. In the 1890s, due to the with the aid of the most primitive fruits for a nation suffering under gov-
Industrial Revolution, poor housing, tools and materials. The allotment ernment rationing.
While allotment gardens in the past roughly means to be cosy and relaxed the allotment gardens’ atmosphere of
were an integral part of urban working in warm surroundings with friends tranquillity for the bustling environ-
class culture, today they are more likely and family. Many allotment holders ment of Frederiksstaden, with its cul-
to be associated with a summer getaway put a great deal of effort into creating tural institutions, wide avenues, and
for urban families with children – and that cosy and comfy atmosphere in opulent dwellings.
even for the highly paid. It is the free- their allotments.
dom to get out of the apartment for
the summer and take a break from the For almost a year now JL has taken a
demands of modern life that attracts. break from the throbbing life of the city.
People are able to socialize and relax But we will soon leave these natural
in the atmosphere they have created. surroundings behind in order to return
There is a Danish word that fits this to our renovated headquarters on 24
lifestyle perfectly – hygge. Although September. Who knows – perhaps we
Danes say it cannot be translated, it will feel a little nostalgic about trading
to the real thing
As of 1 August three trainees made the
transition to real jobs, more responsibility . . .
and larger paycheques.
Jannik Jarnsborg, first, but I think that’s one of the most
Assistant Chartering Manager, valuable parts of the trainee programme
Lauritzen Bulkers – learning how to juggle competing
demands on your time and to be
Like all J. Lauritzen trainees, Jannik aware of how you’re doing the job.”
Jarnsborg has completed a two-year He recently had the chance to spend
programme of general shipping educa- two weeks at J. Lauritzen’s Singapore
tion courses supplemented by equally office gaining direct experience of
intensive on-the-job training – spend- overseas operations and seeing exactly
ing his first year of training with how they do their jobs. “I’m looking
Lauritzen Kosan and the second one forward to being a full-fledged
with Lauritzen Bulkers. His final aca- employee after 1 August,” he says.
demic project was to write and defend “To being an equal among equals
a paper on the time-charter business, and giving it my best effort. And,
which brought together his studies of course, to collecting a bigger
and his practical experience with the paycheque . . . that’ll be nice, too.”
sales and purchase of vessels and time
charters. Being rapidly immersed in the Monica Christensen,
details of vessel purchasing and time Assistant Operations Manager,
chartering was demanding, he says, but Lauritzen Kosan
mastering the technical details wasn’t
the most challenging part of the trainee For the past two years, Monica Chris-
programme. tensen has balanced the theoretical side
of her trainee education with almost
“If you can handle it, you’re given daily contact with ship captains and
pretty much responsibility right away. agents. As a member of the operations
That means the phone is ringing, you department of Lauritzen Kosan, she
have people pulling you from all sides, has literally been at the crossroads of
and it’s up to you to find out how to worldwide shipping activity, engaged
prioritize everything. It was tough at in everything from coordinating load-
ing and discharge ports and determin- and complex side of the business. “It’s ing to cope with serious job responsi-
ing cargo discharge temperatures to a challenge,” she says, “but that’s what bilities right from the start. “This was
appointing agents and updating sched- I love about this job. You never know especially true when I first started with
ules. “Our academic classes in ship- for sure what’s going to happen next.” the Bunkers Department,” he says.
ping gave us a solid background in the “One day, about a month after I began,
shipping business, but the actual job Christian Grønlund, I realized that – at age 21 – I was buy-
training has definitely been ‘learning Assistant Chartering Manager, ing oil for ten vessels and trading for a
by doing’,” she says. “After 1 August, Lauritzen Kosan total amount of about USD 10 million.
I know I’ll have the feeling of more Let’s just say it both made me nervous
responsibility, but in reality I’ve been Christian Grønlund has already had and really focused me on not making a
allowed to do my job pretty independ- broad practical experience, even by JL mistake.” Christian Grønlund credits
ently already.” trainee standards. After spending his all his senior colleagues – but especially
first year in JL’s Bunkers Department his assigned mentors – for providing
Her training has also included rotating trading oil, he moved to Lauritzen the help and advice he needed. Asked
one-week stretches as a duty officer on Kosan, where he has worked in both about the future, he points out that
call for captains, agents, or charterers the Operations Department and there is always room for growth within
who need to contact Lauritzen Kosan the Chartering Department. As of 1 the shipping industry – and always
outside of regular office hours. Usually August he will continue with Lauritzen something more to learn. On that note,
this isn’t a problem, but, she observes Kosan as an assistant chartering man- he is soon travelling to Korea to get a
that “if you’re very unlucky you might ager. “Basically, my job is to keep ves- firsthand view of Lauritzen Kosan’s
have to work through the night, so it sels employed, to make sure they have newbuilding projects. The future looks
can be demanding. But even as a trainee cargo to sail with,” he says. “You could wide open.
you get to be the one who sorts things compare it to a hotel, which ideally
out and solves problems, and that’s would maintain 100% occupancy. We
exciting.” In the next few years Lauritzen try to come as close to that as we can
Kosan will be taking delivery of tech- for our ships, largely on contract, but
nically advanced newbuildings from also through the spot market.”
Korea that have ethylene capacity,
and, along with everyone else, Monica He also confirms that the most intense
Christensen will be learning a new part of the training period was learn-
It’s back to school
Two members of Lauritzen “Well, at least that’s behind me,” thinks
Fleet Management’s purchasing nearly every graduate who leaves
department earn marine pur- school and gets a job. Not necessarily,
chasing and supply diplomas as Henning Andersen (above left) and
in year-long distance-learning Klaus Christoffersen, both seasoned
programme. J. Lauritzen purchasers with years of
experience, recently discovered. During
the past year, they participated in the
first class of a groundbreaking new
course launched by the International
Marine Purchasing Association(IMPA)
in co-operation with the National Sea
Training Centre (NSTC) and Lloyds
Maritime Academy. After final exams
in July, both men emerged as success-
ful graduates with diplomas in marine trial production companies in mind
purchasing and supply. and are more concerned with stock
planning, production planning, and so
The diploma is intended for all pur- on. This course was developed from a
chasing practitioners in shipowning, strictly maritime point of view, so it’s
operating, and management companies much more useful for shipping com-
as well as all ship suppliers around the panies. It offers a unique opportunity
globe. Comprised of eight discrete to gain a recognised qualification in
modules, the course considers different marine purchasing and supply, which
purchasing models, incorporates appro- is why we’re requiring all our current
priate marine insurance and English and future employees to complete it.”
law, and explains how they interface
with other areas such as finance and The various course modules were
administration. Except for the final created by industry experts with
“Until now, the exam, all course work and testing is specialised backgrounds as diverse as
shipping industry delivered by distance-learning methods, a port captain with customs expertise
via the Internet. and a London law school professor.
has never had a Henning Andersen and Klaus Chris-
specific course for A maritime focus toffersen say that the course offered a
maritime purchas- “Until now, the shipping industry has combination of benefits, both strategic
never had a specific course for maritime and operational. “With our past expe-
ing and supply.” purchasing and supply,” says Henrik rience, we were familiar with a good
Steffensen, head of purchasing for deal of the basic information,” says
Henrik Steffensen Lauritzen Fleet Management and an Klaus Christoffersen, “and that’s just
Head of Purchasing Department, IMPA board member involved with as well since some of the modules, like
Lauritzen Fleet Management establishing the new programme. the one covering English law, were
“Most courses were set up with indus- pretty demanding.”
Newbuildings on order from remaining five will follow in 2011. All
GSI offer attractive combina- six vessels will be owned and operated
tion of price and design. by Lauritzen Tankers. This brings the
total number of ships on order to ten:
two smaller newbuildings are coming
Six new recently purchased medium from Korea early next year and two
range (MR) product carriers are the from Japan in 2010. “In terms of
first vessels Lauritzen Tankers will price negotiation and design flexibility,
take delivery of in China. They are it’s very important to have good long-
to be built at Guangzhou Shipyard term relationships with shipyards,
International Co., Ltd. (GSI), which which we’ve already established in
is a part of China State Shipbuilding Japan and Korea,” says Erik Donner.
Corp. (CSSC), South China’s largest “We’re happy to be able to add GSI
modern integrated shipbuilding enter- to the mix. And we hope that this
prise. “GSI is one of the best – and new established relationship will
An immediate success best known – yards in China building bring additional future newbuildings.”
The 2006-2007 course, the first one tankers. They focus exclusively on
of its kind, was even more successful product carriers, and count other
than anticipated, with 60 people sign- Danish shipping companies among
ing up. The second year, with more their customers,” says Erik Donner,
than 40 people enrolled, has followed vice president of operations and
suit. Participants in 2006-2007 were chartering for Lauritzen Tankers.
chiefly from European companies,
but also included representatives from In the past, Lauritzen Tankers has
companies in Japan, Hong Kong, worked with shipyards in Korea and
and the Middle East. In addition to Japan, but GSI was able to offer an
J. Lauritzen, other major Danish attractive combination of price and
shipowners such as AP Moeller Maersk, design – all six ships will be built to
Torm, and Scanlines took part. meet the latest IMO II/III regulations.
“This new design is 50,500 dwt.,” says “This new design is
As for the return to the routine of Erik Donner, “which fits with our
studying and taking tests, it seems as if strategy of concentrating on the larger
50,500 dwt, which fits
little has changed. “It’s a good thing to end of the MR scale. Because these with our strategy of
do the course together, the way Klaus ships have a larger cubic capacity concentrating on the
and I did,” says Henning Andersen. (58,000 cbm), they’re able to handle a
“That way you’ve got someone to broader range of voyage combinations
larger end of the MR
compare notes with – and someone to than smaller MRs. This gives us greater scale.”
keep up with.” trading flexibility and potentially higher
earnings.” Erik Donner
Vice President, Operations and
The first of the ships will be delivered Chartering, Lauritzen Tankers
in the fourth quarter of 2010, and the
20 January 2007
Sofie Bulker delivered from the Shin Kurushima Dockyard.
Sponsor: Sofie Wegeberg, daughter of Carl Wegeberg, Vice President,
Lauritzen Bulkers–Tonnage Procurement.
19 February 2007
Freja Dania delivered from the Shin Kurushima Dockyard.
Sponsor: Tove Elisabeth Nielsen, Senior Vice President, J. Lauritzen.
12 March 2007
Mrs Karen Heering (far right) was spon- Belaia delivered from Imabari Shipbuilding Co., Japan. Sponsor:
sor for the Freja Selandia on 28 March Margarita Tidemand, spouse of Sverre Tidemand, Managing Director
2007. and member of the BOD of Belships ASA.
28 March 2007
Freja Selandia delivered from the Shin Kurushima Dockyard.
As reported in this and earlier issues of Sponsor Karen Heering, spouse of Niels Heering, attorney-at-law,
Lauritzen News, J. Lauritzen’s current member of the BOD of J. Lauritzen.
newbuilding programme is extensive,
including more than 50 vessels to be 12 July 2007
delivered within the next couple of Freja Fionia delivered from the Shin Kurushima Dockyard.
years. Sponsor: Cheryl Talam Hansen, spouse of Tom K. Talam Hansen,
Managing Director, J. Lauritzen Singapore.
When a newbuilding is delivered, it’s
time for festive activities at the Far 23 July 2007
Eastern shipyards involved. Each Perla Bulker delivered from the Tsuneishi Fukuyama Shipyard.
delivery is celebrated at the shipyards Sponsor Anne Bruun Larsen, Senior Operations Manager, Lauritzen Bulkers.
by representatives from the yard,
7 August 2007
the shipowners, clients, business
Charlotte Bulker delivered from the Hakodate Shipyard.
associates, representatives from the
Sponsor Charlotte Warsberg, daughter of Torben Warsberg,
J. Lauritzen Group – and not least
Vice President, Lauritzen Bulkers-Chartering/Capesize.
by the sponsors.
Editors J. Lauritzen A/S Editorial support and design Lauritzen News is a semi-annual
Torben Janholt Sankt Annæ Plads 28 Cross-Border Communications publication. Reproduction
Tove Elisabeth Nielsen 1250 Copenhagen K Copenhagen permitted only after agreement
Jens Søndergaard Denmark with the editors.
Tel: +45 3396 8000
Facts on J. Lauritzen A/S
J. Lauritzen A/S operates globally through these business units: Lauritzen Bulkers, Lauritzen Kosan, and Lauritzen Tankers.
JL employs a staff of approximately 600 persons and together with partners/associates controls a combined fleet of about 200 vessels representing bulk
and gas carriers and product tankers.
For more details on JL’s business activities and on the fleet, see www.j-lauritzen.com