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Only nine months ago the world believed that the financial crisis was confined to the US housing market and that only financial institutions, primarily in the US, were exposed to it. At the time of writing world governments and central banks have put in place tremendous aid and stimulus packages to avoid a collapse in the economy. The general consensus is, however, that the global economy has not completed its downturn, and most major and mature economies are in recession. Market outlook is therefore highly uncertain, and the next couple of years will be challenging for all shipping companies, ourselves included.
We are fit for fight, and we are well prepared. We have:
• a modern fleet, acquired or chartered in at favourable prices and terms. The average age of the fleet is 11.4 years.
• a flexible and adequate fleet, and we are able to adjust to changing market conditions and trading patterns.
• expanded our network of tank terminals along our major shipping lanes and at important petrochemical junctions.
• a worldwide marketing organization with experienced people at important and strategic locations.
• dedicated in-house commercial ship operation with port captains at key locations.
• in-house ship management with skilled technical personnel together with well trained and experienced Norwegian
and Filipino mariners.
• modern ICT- and communication systems.
• a sound financial situation with no major refinancing needs prior to 2011.
We could, of course, have wished for a higher equity ratio. The disappointing retroactive shipping taxes imposed in 2007 took away more than USD 100 mill. of our equity.
We just cannot accept it, and we will fight the decision in court, claiming that it is unconstitutional.
The parcel tanker industry is maybe the most complex and demanding of all shipping segments. In a market downturn, performance is even more important than in a “normal” market. In addition to strict regulatory requirements,
customers become even more demanding.
Our focus shall be on safety, quality, efficiency and cost-effectiveness within our core business segments, always taking into consideration our responsibilities in the areas of environmental protection and social responsibilities.
By doing so, I am confident that Odfjell will maintain its
position as a leading company within the industry of seaborne transportation and storage of chemicals and other speciality bulk liquids.
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