lauritzen news issue 20 june 2014 lauritzen...

LAURITZEN NEWS · ISSUE #20 · JUNE 2014 1

ISSUE NO. 20 JUNE 2014

LAURITZEN NEWS

FROM SUPPLIER TO VALUED BUSINESS PARTNER

LAST ISSUE OF LAURITZEN NEWS

OCEANS OF KNOW-HOW

BETTER THAN EXPECTED START TO THE YEAR

STRONG BUSINESSSTRATEGY

THE J. LAURITZEN

DNA

LAURITZEN NEWS · ISSUE #20 · JUNE 20142

Editorial ................................................... 3

Better than expected start to the year ..... 4

The DNA of J. Lauritzen .......................... 6

Strong business strategy ........................ 8

Celebrating 25 years and growing .......... 10

Stronger than any typhoon ..................... 12

Director general of a modern trade organisation ................................... 14

Setting the global maritime agenda ........ 15

From supplier to valuedbusiness partner ..................................... 16

Hedvig Bulker rescues rowers from sea ...................................... 18

Tilda Kosan’s crew rescues three sailors ............................................ 19

J. Lauritzen’s canteen chef to participate in the catering world championshipsin Luxembourg ........................................ 20

Historical honour for the Lilla Dan ........... 21

JL expands its shipping programme ....... 22

Two interns join J. Lauritzen Singapore ............................................... 22

Staff news ............................................... 23

Implementation of JL’s compliance programme .......................... 24

TABLE OF CONTENTS

CELEBRATING 25 YEARSAND GROWING 10Leading the market in ocean transportation of liquefied gases, Lauritzen Kosan prioritises personal contact with its global customers.

THE DNA OF J. LAURITZEN 6

For many years, Bent Østergaard has been part of a company not afraid to venture into new opportunities.

DIRECTOR GENERAL OF A MODERN TRADE ORGANISATION 14Strengthening the world-class shipping in-dustry in Denmark, Anne H. Steffensen works together with maritime decision-makers nationally and internationally.

SETTING THE GLOBAL MARITIME AGENDA 15Attracting maritime leaders and experts from around the world, the Danish Maritime Days and the Danish Maritime Forum are ambitious events.

STRONGER THAN ANY TYPHOON 12

In the aftermath of terrible devastation from typhoon Yolanda in november 2013, a rally-ing cry for many Filipinos was:“our spirit is stronger than any typhoon”.


Going forward, we will concentrate our efforts on dry cargo and gas while we retain our 34 percent shareholding of Axis Offshore. The sale of the product and shuttle tanker fleets has strengthened our balance sheet and our cash reserves, providing us with the ability to now grow our already strong platforms in dry cargo and gas.

In dry cargo we have been busy during the late part of 2013 and early 2014. Here we have ordered eight newbuildings from Chinese and Japanese shipyards, our first newbuilding orders since 2010. We have also secured longer charters with various options on about 16 newbuildings primarily from Japanese owners, delivering from 2014 to 2017.

In our gas activities, which have always devel-oped at a pace different from dry cargo, we have added to the fleet through recent charter arrangements. We are here looking for the right project on the newbuilding side and trust that 2014 will be a year where we will find that.

We firmly believe that 2013 has been the turning point in most shipping markets and that the coming years will show improved earnings. The result for the first quarter of 2014 turned out to better than expected. Having said that, excess global yard capacity remains an unsolved structural challenge and uncertainties in geopolitical develop-ments will be sure to provide pot-holes in the road to market recovery. There is much to be navigated, but at least there is now volatility – the sign that things are about to change. Although there is still some way to go, I am confident that we have now started to move in the right direction.

We are looking forward to the challenge.

THE MAGAZINE YOU ARE NOW READING WILL BE THE LAST ISSUE OF LAURITZEN NEWS. THE MAGAZINE HAS OVER THE YEARS SERVED US WELL AND HAS ALWAYS HAD A LOYAL AND DEVOTED FOLLOWING AMONGST THE MANY DIFFERENT GROUPS OF PEOPLE WITH AN INTEREST IN OUR COMPANY.

The internet has brought us new means of communication, the main feature of which is that they are instant and interactive. We are all now used to being updated on events almost as they unfold.

Late last year, we launched a new version of our website and you will now also find JL on LinkedIn. Here, we have the possibility of communicating our stories while they are still fresh, reach readers who are not enshrined in our address lists, use moving pictures and provide space for stories that may not be corporate mainstream but nevertheless have angles that make them interesting. None of which a printed magazine will allow us. So while saying goodbye to Lauritzen News is of course sad, we are excited about the oppor-tunity our new communication platforms will provide us with.

I can assure you though that you need not worry – I shall not start tweeting….yet!

Sincerely, Jan Kastrup-Nielsen, President & CEO

DEAR READER

2014 HAS STARTED WITH A LOT OF ACTIVITY IN JL.

WE HAVE BEEN SUCCESSFULLY DELIVERING THE PRODUCT TANKER FLEET TO THE NEW OWNERS WITH THE LAST SHIP CHANGING HANDS IN MARCH. EARLY IN THE YEAR AN AGREEMENT WAS REACHED WITH KNUTSEN/NYK ON THE SALE OF OUR THREE SHUTTLE TANKERS. WE EXPECT TO DELIVER THE VESSELS BEFORE SUMMER.


Q1 2014 EBITDA from continuing operations amounted to USD 9.6m and was up by USD 13.7m compared to the same period last year. The improvement mainly related to our bulk carrier activities.

JL’s result for Q1 amounted to USD 1.9m, up by USD 27.7m on Q1 2013. The result included profit from discontinuing operations of USD 10.6m. In many ways, Q1 2014 turned out as expect-ed with challenging market conditions and the scheduled completion of the sale of our product tanker fleet. The better than expected result was mainly due to conservative earn-ings estimate related to the remaining product tanker operations as the exact delivery dates of the vessels to the new owner were uncer-tain but also due to improved earnings from our handysize bulk carrier operations.

Main events during Q1 2014:• Delivery of the remaining seven wholly-

owned product tankers and four long-term time-chartered product tankers to the new owner Hafnia Tankers.

• Sale of three shuttle tankers to Knutsen NYK Offshore Tankers, Norway, with expected delivery during Q2 2014.

• Four ECO design supramax and two ECO design handysize bulk carrier newbuildings with delivery in 2016-17 were contracted.

• Formation of joint venture with Sincere Industrial Corporation, Taiwan, together with joint ordering of two ECO design handysize bulk carrier newbuildings with delivery in 2017.

• Four handysize and two supramax bulk carrier newbuildings were taken on long-term time-charter for delivery in 2015-16, all with extension options and three with purchase options.

Net financial and cash positionNet financial items amounted to USD (10.6)m compared to USD (6.7)m in Q1 2013 which included significant currency exchange rate gains.

Net interest bearing debt amounted to USD 493m, down USD 138m on year-end 2013 due to sale of assets.

Cash improved significantly not only due to sale of assets but also due to continued focus on cost control and working capital.

“I am impressed by the improvements in work-ing capital implemented during the past 18 months”, says Birgit Aagaard-Svendsen. AssetsTotal assets amounted to USD 1,655m down USD 222m from year-end 2013. The change relates to assets held for sale offset by in-creased cash.

Outstanding deliveries of newbuildings amount to 27, of which ten owned and part-owned vessels are for delivery in 2015-17. The newbuilding programme of owned vessels is part of the tonnage reshuffling strategy announced in 2013 and is thus cash neutral in the long term perspective.

Outstanding deliveries of long-term time- chartered vessels amounts to 17, of which 14 with purchase option. Vessels will be delivered in 2014-17.

Outlook for 2014EBITDA for continuing operations for the full year is expected to be in the range of USD 80-100m.

Total net result for 2014 is estimated at USD 15-40m, up by USD 40-45m on earlier estimate.

BETTER THAN EXPECTED START TO THE YEAR“EBITDA FOR THE FIRST QUARTER OF 2014 WAS BETTER THAN EXPECTED DUE PARTLY TO IMPROVED EARNINGS FROM OUR HANDYSIZE DRYBULK ACTIVITIES, MORE THAN OFFSETTING THE IMPACT FROM CHALLENGING GAS MARKETS.”Birgit Aagaard-Svendsen, Executive Vice President & CFO.

108106104102100989694929088

18. Jan.2013

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10.5% JL 2010/2015 (JLA 01) FRN JL 2012/2017 (JLA 02)

25.0

20.0

15.0

10.0

5.0

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(10.0)

Continued operations Tank/shuttler tank (discont.)

2013 2014Q1 Q2 Q3 Q4 Q1

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Bullit bank loans - to be refinanced

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Net interest bearing debt (LHS) Cash (RHS)

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EBITDA USDm Net interest bearing debt and cash USDm

Please refer to www.j-l.com for the full report for Q1 2014.


108106104102100989694929088

18. Jan.2013

18. Mar.2013

18. May.2013

18. Jul.2013

18. Sep.2013

18. Nov.2013

18. Jan.2014

18. Mar.2014

18. May.2014

10.5% JL 2010/2015 (JLA 01) FRN JL 2012/2017 (JLA 02)

25.0

20.0

15.0

10.0

5.0

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(10.0)

Continued operations Tank/shuttler tank (discont.)

2013 2014Q1 Q2 Q3 Q4 Q1

300

250

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2014 2015 2016 2017 2018

Bullit bank loans- refinancing in place

Bullit bank loans - to be refinanced

Repayment Maturing bonds

1000

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500

400

300

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0

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Net interest bearing debt (LHS) Cash (RHS)

2013 2014Q1 Q2 Q3 Q4 Q1

CLOSE INVESTOR RELATION DIALOGUESIn JL, we finance our activities through equity, ship finance (mortgaged vessels) and unse-cured bonds.

Bonds listed on the Oslo Stock Exchange were introduced in 2010 and yet again in 2012, and since the initial issue, JL has maintained an ongoing dialogue with in-vestors and analysts. Currently, JL is being followed by credit analysts from SEB, Danske Bank and Nordea. For further details, please visit our website www.j-l.com/investorrelations.

During the past months, focus has been on keeping the market updated on the strategic decisions adopted in August 2013 and the subsequent sale of assets and other initiatives.

“INVESTORS AND CREDIT ANALYSTS HAVE IN GENERAL APPLAUDED THE SWIFT IMPLEMEN-TATION OF THE ANNOUNCED ADJUSTMENTSTO JL’S STRATEGY – THE JL BONDS HAVE BEEN TRADED MARKEDLY UP.”Jacob Winthereik, Financial Investor Relationship Manager

JL’s unsecured bonds maturing in 2015 and 2017 respectively were both traded on the

Oslo Stock Exchange on Monday 18 May at NOK 105.5 up from NOK 99 and NOK 98, respectively, at the same date in 2013.

REFINANCING OF JL’S EXISTING LOANSIn JL, we are moving in the right direction – in a shipping market perspective as well as from a financing perspective.

The refinancing of our existing bank loan facilities maturing in 2015 and 2016 are well underway.

“EXISTING LENDERS HAVE INDEED CONFIRMED THEIR WILLINGNESS TO FINANCE JL.”Head of Treasury, John M. Jørgensen, Senior Vice President

“Competitive terms have been receivedfrom our core banks regarding the refi-nancing of facilities maturing in 2015 as well as a substantial part of the facilities maturing in 2016,” says John M. Jørgensen.

At the moment, the Group Treasury depart-ment is completing the necessary docu-mentation and expect to have finalised a substantial part of JL’s refinancing in the nearest future. Having finalised the refinancing, JL’s repayment profile has changed significantly.

As earlier reported, JL expects to repay its 2015 maturing bond in full without issuing a new bond.

Repayment profile of outstanding debt.Forecast amount per year in USDm

Follow our Investor Relations activities on www.j-l.com/about/investor-relations

Traded price (NOK) for JL’s unsecured bonds


One of J. Lauritzen’s (JL) core values is ‘entre-preneurship’ and this is truly reflected in the history of the company and its ability to face challenges by seeing opportunities. During Bent Østergaard’s career, which spans 45 years with JL, he has seen this core value in action. Diverse business areas have been explored and business opportunities seized, enabling the company to deliver competitive and reliable services around the world.

“Because we have been able to grow various different business activities, we have also had the possibility to sell some of our business units, putting us in a much better position than we might otherwise have been in. Now we are ready for growth again and in fact we already have a sizeable order book,” explains Bent Østergaard.

New markets, new opportunitiesEven in Bent Østergaard’s early days at JL, the company demonstrated its willingness to go after different markets and follow opportunities. In 1973, JL entered the bulk business when it acquired the bulk carrier, Silja Dan. “It was a new and very exciting time,” says Bent Østergaard. “In the 1970’s, JL did a lot of research and realised it was a good time to enter the bulk market. We had quite a number of bulk carriers through to the 1990s. In 1993, when I came to the hold-ing company, the bulk market grew a lot,” he explains. The bulk activities have since evolved considerably and Lauritzen Bulkers is today JL’s largest business area, specialising in transporting dry cargo.

Pioneering early daysAlso in the 1970s, JL entered into a joint venture with P&O for reefer ships, which lasted more than a decade. This is a good example of the entrepreneurial spirit of JL, which pioneered the whole reefer industry. “There are many other ex-amples of this pioneering and entrepreneurial spirit at JL,” explains Bent Østergaard. “We have always wanted to have diverse business areas. JL increased its base by joining forces with P&O, which was a success. The business grew geographically and we had several other companies joining the reefer pool. There was really an opportunity to grow the market there.”

However, in the late 1990s the reefer market was depressed: “We then decided to get out of reefers,” explains Bent Østergaard. “We did this in a good way by acquiring Cool Carriers, expanding the base for reefers and creating Lauritzen Cool. Then, in 2005, we sold 50% of Lauritzen Cool to NYK of Japan and finally exited the reefer business in 2007, when NYK acquired the remaining 50 percent.”

Entrepreneurial market leadersIn 1989, JL explored yet another business area and entered the gas business with the acquisi-tion of Kosan Tankers from the Tholstrup Group, forming Lauritzen Kosan Tankers, later renamed Lauritzen Kosan (LK). Today, LK is a recognised supplier of the ocean transport of petrochemicals and liquefied gasses, and is a key part of JL’s business portfolio.

“Timing is crucial because the market is con-stantly changing and the changes happen even faster these days. So even if it looks right at the time you make a decision, it might turn out to be a short-lived, good decision,” says Bent Østergaard.

In 2008, Lauritzen Offshore was established as an independent business. “We rebuilt one of the product tankers to a shuttle tank-er and after extensive reconstruction of a

THE DNA OF J. LAURITZENFOR MANY YEARS, BENT ØSTERGAARD HAS BEEN PART OF A COMPANY NOT AFRAID TO VENTURE INTO NEW OPPORTUNI-TIES. AS CHAIRMAN OF J. LAURITZEN’S BOARD OF DIRECTORS, HE HAS SEEN THE ORGANISATION SUCCESSFULLY DEVELOP, CONSOLIDATE, AND SELL MANY DIVERSE BUSI-NESS AREAS.


former Ro-Ro vessel, the company’s first Accommodation and Support Vessel (ASV), Dan Swift, was a reality. Again, we saw an opportunity to get into a new market after we left reefers and it turned out to be good business,” says Bent Østergaard.

The JL DNA“JL has always been willing to look at new possibilities – maybe this is in the DNA of the company,” says Bent Østergaard. “If you look back to the founders of the company, they were also willing to try different things! JL has served, for example, Finland, Greenland and the Antarctic with ice strengthened vessels – so we have always been pioneering and looking for new opportunities, which I think is a big strength.”

Strong foundationOwned by the Lauritzen foundation, J. Lau-ritzen A/S is a private (non-listed) company incorporated in Denmark. Bent Østergaard explains: “Being owned by a foundation pro-vides stability and it is an advantage because you can take the long-term view. The owner-ship structure facilitates efficient decision making and supports the company as busi-ness is developed. But the foundation doesn’t interfere in the company’s running and the board and management are independent, which is very important and offers a big ad-vantage.” Although 100% owned by the foundation, JL largely behaves like a stock- listed company in terms of transparency: “It’s important for the company to be transparent,” says Bent Østergaard.

It is no secret that there have been some very tough times for JL, with large losses and huge drains on cash. “In this situation, it has been a privilege to be owned by a foundation because in the years when the business was going well we paid a dividend to the foundation and then, when the market went down, the foundation was prepared to give the dividend money

“WE HAVE SHOWN IN THE LAST YEAR AND A HALF THAT WE DO WHAT WE SAY WE WILL DO. AND NOW WE ARE IN A SITUATION WHERE WE CAN GROW THE BUSINESS AGAIN AND I AM SURE THAT THIS WILL HAPPEN.”Bent Østergaard, Chairman of the Board of Directors, J. Lauritzen

back to the company,” explains Bent Øster-gaard. “In this way, the foundation helped secure JL’s future and ensured it is still here and still a very sound company.”

Trust and accountability“We also recently decided to sell the product tanker and shuttle tanker business in order to be sure that we can be in charge and make our own decisions – even in difficult times,” con-tinues Bent Østergaard. “This is also part of the JL DNA: We stick to our contracts and customers as well as business partners can trust us! One of our cores values is ‘accounta-bility’ and this is crucial. The business world knows that we are accountable.”

Bent Østergaard describes the good coopera-tion that exists between the executive man-agement and the board of directors; “There is a lot of mutual trust between board and man-agement. I have also been impressed by the speed and ability of people to execute deci-sions. For example, when we decided to sell the product tankers, this decision was execut-ed very well. Knowing when to take action and be decisive is important and we, as a compa-ny, are very good at that.”

This freedom and independence to execute decisions makes JL a satisfying place to work. There is a lack of bureaucracy and people are supported in their decisions: “I believe people are excited by their jobs at JL,” says Bent Østergaard. “There is a special camaraderie that exists and it is a challenging and reward-ing place to be. It is difficult to explain what exactly the ‘JL spirit’ is but in my time I have seen people leaving only to return to JL because the JL spirit was missing in other companies.”

Optimism for the futureLooking to the future, Bent Østergaard is opti-

mistic: “We have shown in the last year and a half that we do what we say we will do. And now we are in a situation where we can grow the business again, and I am sure that this will happen. I know that it is not an easy task and I guess that it might become even more difficult to run a shipping company. But we have the management, the employees, and the organi-sation that are all able to make the necessary changes. After all, the ability to adapt and pursue new opportunities is in the JL DNA. We also have the experience gained from re-developing the business many times over the years, so I am optimistic about the future.”

Bent Østergaaard, Chairman of JL’s Board of Directors has had a career with the Lauritzen Group that spans almost 45 years. He has held a range of managerial positions, including CFO in J. Lauritzen A/S. Since 1993, Bent Østergaard has been CEO of the Lauritzen Foundation, and he has been Chairman of the Board of Directors at J. Lauritzen A/S since 2003.

Bent Østergaard


Lauritzen Bulkers (LB) continues to develop its strong presence in the Handysize segment, running one of the world’s largest fleets of handysize vessels. LB is also expanding into the neighbouring Supramax segment, which because of its higher liquidity allows LB more opportunities to act as operators and conduct arbitrage business in the market.

“We continue to offer our clients competitive and reliable global dry cargo transport,” says Peter Borup, president of Lauritzen Bulkers. “The Handysize segment continues to be a fo-cus, where we have the justification, the size, the name, and the presence – and we want to make sure we protect it and build on it. We will also build up the Supramax segment, where there is more liquidity.”

The overall market liquidity is a unique feature of the dry cargo markets and, as such, it is crit-ical to have sufficient scale in any segment where LB operates in order to manage the risks associated with freight contracts and vol-atility in geographical submarkets.

“The Supramax market has more competitors

and less perceived ownership, compared to the Handysize market,” says Peter Borup. “There are more ships in this segment and the market is more open. In both these segments, I believe we can maintain and build sufficient scale, whereas we have ceased our activities in the Panamax segment and, with the expiry of time-charter commitments, we will act strictly as shipowners under long-term char-ters for our remaining Capesize activities.”

Right place, right timeIt is important that LB uses its resources to its advantage. “Because we have such a high turnover of decisions and so many ships in our fleet, we have a lot of knowledge about trade flows and the market. It is crucial to use this information to take more positions instead of just covering positions,” says Peter Borup. LB is increasingly becoming a knowledge organisation: “It matters much more that we hire the right people than the number of ships that we own,” he says. “We can always get ships. The important thing is to attract smart and ambitious employees who are willing to take a stand.”

STRONG BUSINESSSTRATEGY THERE ARE AMPLE OPPORTUNITIES FOR BOTH SHORT - TERM AND LONG-TERM COVER IN THE FRAGMENTED DRY BULK MARKETS.


Wise investments“Because of the volatile market, we can make small gains when it turns. For example, we’ll put vessels out on charter and take cargo, and then make money taking ships into port with this cargo in a lower market,” explains Peter Borup. On a larger scale, LB sold a couple of ships in December last year at a very attractive price and then bought less expensive, fuel- efficient ships. “This is an example of taking advantage of the cycles in the market – we sell an older ship, get a much better new one built for us and make money in between.”

As part of their on-going strategy work, all LB employees gathered for a strategy workshop in Klithuset during April. Employees flew in from Stamford, Singapore, and Shanghai and participated with Copenhagen-based staff in the event, which included an external pres-entation about global trends and perspectives.

Following the presentation, meeting partici-pants worked with these global trends to determine how LB should be positioned in 2020. Participants provided input on themes ranging from “LB as a software organisation” to “our values” and discussed how to continue to attract top talent for tomorrow’s needs and how to drive the business forward.

Former Danish badminton star Peter Gade joined the event as a pre-dinner speaker and provided insight on the determination and commitment required to get to the top and stay there.

“THE HANDYSIZE SEGMENT CONTINUES TO BE A FOCUS, WHERE WE HAVE THE JUSTIFICATION, THE SIZE, THE NAME, AND THE PRESENCE – AND WE WANT TO MAKE SURE WE PROTECT IT AND BUILD ON IT.”Peter BorupPresident, Lauritzen Bulkers

GLOBAL STRATEGY EVENT FOR ALL LAURITZEN BULKERS’ STAFF

Peter Gade, Peter Borup and Martin Sato

Lauritzen Bulkers combined order

programme comprises six wholly-owned

and two part-owned vessels as well as 16

long-term time-chartered newbuildings for

delivery in 2014-17.


Lauritzen Kosan (LK) is fast approaching its 25th anniversary in the J. Lauritzen group. In 1989, Kosan Tankers was acquired by J. Lauritzen. Kosan was already a well estab-lished company in the coastal distribution of LPG, having built the first ever purpose-built gas carrier as early as back in 1953. “In terms of brand, the Kosan name is here to stay. It is well-known and respected by customers,” explains Thomas Wøidemann. “We have changed our logo, from the ‘K’ to the ‘JL’ shield, bringing us closer to the J. Lauritzen brand, but we will keep ‘Kosan’, because this is what we are known for.”

“However, it is also very important to let cus-tomers know that our name is also Lauritzen, because this name comes with an even

longer history, dating back to 1884. J. Lau-ritzen has demonstrated that it can last, even through tough times, and I think this is a very important part of the story,” says Thomas Wøidemann. “Although the customers may see us primarily as ‘Kosan’, they are also reassured that we are part of the Lauritzen family and owned by the Lauritzen Foundation”.

Meeting customers’ needsThe LK fleet is made up of a mixture of owned, part-owned, and chartered vessels, as well as vessels owned by partners. Key to the business strategy is to actively manage the fleet portfolio via cargo and period cover, and sale and purchase of vessels.

“Some of our vessels are getting older, so they have to be renewed,” says Thomas Wøidemann, “but instead of simply building the same ship again, we consider the chang-ing needs of our customers. They may want different ships now. The world is changing around us with new regulations, especially in Europe and the US, coming into force. So we engage in close dialogue with our customers to get a commitment from them before we consider building.”

Personal contactMembers of the LK commercial team have recently visited as many of the carriers’ core customers as possible. “It is important for us to meet with a customer face-to-face, this is, together with our performance, the way to build relations. We build up trust and under-standing and create a solid basis for future investment and new tonnage,” says Thomas Wøidemann.

Continuing this strong relationship with cus-tomers is crucial: “We have to be proactive and provide our customers with ideas of what we think they need, as well as listen to them closely,” says Thomas Wøidemann. “The close relationship with our customers is demonstrated by the fact that many have re-newed their contract with us every year for more than 15 years”.

Another important consideration in the LK business strategy is consolidation. “We need a certain volume of vessels to service our cus-tomers’ needs,” explains Thomas Wøide-mann. “It is important to find partners that match our culture and are aligned with our beliefs of how to serve customers. We assess other owners to see if they are compatible, so we can make a successful partnership.”

CELEBRATING 25 YEARS AND GROWING

LAURITZEN KOSAN IS A RECOGNISED SUPPLIER OF THE OCEAN TRANS-PORTATION OF LIQUEFIED GASES, LAURITZEN KOSAN PRIORITISES PERSONAL CONTACT WITH ITS GLOBAL CUSTOMERS.


“OUR CLOSE RELATIONSHIP WITH OUR CUSTOMERS IS DEMONSTRATED BY THE FACT THAT MANY HAVE RENEWED THEIR CONTRACT WITH US EVERY YEAR FOR MORE THAN 15 YEARS.” Thomas Wøidemann, President, Lauritzen Kosan

Navigating through challengesFrom 1989 to 2007, Thomas Wøidemann ex-plains that LK was on a journey, moving away from the smaller ships. “We exited the very small gas carriers (1,500-2,500cbm) and built a series of 8,000-9,000 cbm ethyl-ene carriers which linked very well with our existing contract portfolio,” he says. In the same period, LK entered in to the 3,500-4,000 cbm pressurised market, buying second- hand tonnage and by building new. “We entered the pressurised ships market where

there is more liquidity,” explains Thomas Wøidemann. “We expanded our presence by building six ships in China. We used an in-house design and created the most modern, pressurised ships you can find in terms of the layout, the accommodation, and the deck.”

Since this time, LK has decided to increase the fleet by taking vessels on long-term bareboat charter agreements instead of al-ways building or owning ships themselves. “In this way, we take on the technical and

commercial management of a ship for a number of years,” says Thomas Wøidemann. “This is another way that we can build up our fleet and it means that if we are disappointed by the market, we can always return the ships. So it is a more flexible way of looking at our portfolio.”

“We still need to own a fair amount of ships and invest in steel, but these charter agree-ments give us the flexibility and depth we need and help us match our business strategy to the market conditions,” explains Thomas Wøidemann. “It’s crucial that we only take on quality tonnage though. LK stands for quality and we will not compromise on that,” he concludes.

Lauritzen Kosan’s 25th anniversary in the JL Group will be marked with a party on-board the Lilla Dan (see Lilla Dan article on page 21) for all J. Lauritzen employees.


IN THE AFTERMATH OF TERRIBLE DEVASTATION FROM TYPHOON YOLANDA IN NOVEMBER 2013, A RALLYING CRY FOR MANY FILIPINOS WAS: “OUR SPIRIT IS STRONGER THAN ANY TYPHOON”. FROM THE FIRST REPORTS OF THE STORM, JL HAS JOINED IN THAT SPIRIT BY SUPPORTING THE VICTIMS IN THEIR STRUGGLE TO RECOVER.

more about their experience in the sidebar.) There are many more terrible and heart-break-ing stories. It is just a matter of luck that there were no deaths among the LK family. The sit-uation is even now far from normalised, since most affected areas still have no electricity, no public transport, and only scarce public water supply. Government help is almost non-existent, with most aid coming from foreign organisations. All of us at JL can be proud of the fact that we were there from the start.”

In response to Typhoon Yolanda, Lauritzen Bulkers is currently in the process of finalising a plan to provide support for the storm’s vic-tims, as well as support for their crew on owned ships in future disaster situations.

their families. Locating people took nearly a week in many cases, and many crew mem-bers on board ships did not know the fate of their families for days.

Immediate assistance“JL was involved from the start in supporting recovery efforts for our seafarers and for the population in general,” says Claus Winter Graugaard. “On the Wednesday after land-fall, the local doctor notified us that she was involved in a medical mission to the affected areas, and overnight the Lauritzen Foundation provided financial support.”On the same day, JL donated USD 40,000 to Doctors Without Borders (Médecins Sans Frontières) for their work in the area. Within LK, Filipino crews immediately started collecting money and managed to raise USD 15,000 that was dedi-cated to aid for 30 of their fellow LK seafarers whose homes and families had been affected by the storm. Total support from JL and the Lauritzen Foundation has so far amounted to about USD 200,000, which has been donated to assist organizations such as Doctors With-out Borders and given directly to JL seafarers and their families to help them recover from the storm and rebuild their homes.

Flemming Schmidt-Andersen, vice president and head of Lauritzen Kosan in Manila, spent two days in March travelling through the af-fected area together with his wife Marilyn and visited LK crew members. “Whole fami-lies have vanished,” they report.“One of our drivers on the trip lost 20 family members. Many of the dead have been buried in mass graves holding hundreds of bodies, and bod-ies are still being found. One of the storm sur-vivors we met was GP1 Nelson Napoles’s wife Edrina. Her husband has been with LK for about five years. During that time he has saved money to build a small house, which had just been completed when Yolanda hit. It was devastated by the storm. (Please read

“We were following the storm from the moment the news story broke that it was heading towards the Philippines,”says Claus Winter Graugaard, vice president and head of fleet management for Lauritzen Kosan (LK).“JL – and LK in particular – employs a signifi-cant number of Filipinos, and we’ve worked over a period of years to build strong relations with our Filipino crews. So the storm’s impact was a great concern for everyone.” Anxiety mounted as the storm made landfall on Friday 8 November and TV news broad-casted images of increasingly bad conditions, yet LK’s maritime personnel department was unable to get in contact with crew members who were on shore.

Beginning on Sunday, JL allowed all phones on ships to be used by crew members to try to contact their families, which in most cases proved impossible. On Monday morning, LK’s manning agent started the huge job of trying to locate and account for people, starting with a list of people from the affected areas and also by coordinating with crew members on board ships who had been able to contact

ABOUT TYPHOON YOLANDA

Typhoon Yolanda (also called Haiyan)devastated portions of Southeast Asia, particularly the Philippines, on 8 November 2013. It is the deadliest Philippine typhoon on record, killing well over 6,000 people in that country alone. Yolanda is also the strongest storm recorded at landfall, and unofficially the strongest typhoon ever recorded in terms of wind speed. The cyclone caused catastrophic destruction in the Visayas islands of the Philippines, particularly on Samar and Leyte, where cities and towns were largely destroyed. According to UN officials, about 11 million people have been affected and many have been left homeless. As of March, 2014, bodies were still being found.

STRONGER THAN ANY TYPHOON


A NOTE FROM THE LAURITZEN FOUNDATION

The aim of the Lauritzen Foundation has always been to support and look out for employees affiliated with the Lauritzen Group, a social responsibility that, as a business owner, we take very seriously. After typhoon Yolanda hit in November, the Foundation, together with JL and DFDS, acted fast to support the crew affected in the Philippines. “Our focus has been to both help the employees rebuild their homes and support a medical aid mission providing emergen-cy care for people in the most affected areas. Rebuilding homes in chaotic surroundings where most areas still have no electricity and sanitation is a difficult and long-term challenge, but a solid base is important. It gives people the strength to help others in the community and hopefully creates a ripple effect. Our thoughts are with all the people still struggling after this tragic event,” says Inge Grønvold, director of the Lauritzen Foundation.

The morning of 8 November between 6 a.m. and 9 a.m. local time was the most horrifying experience of our lives. This was the time when the strongest typhoon ever recorded was battering our place. We personally observed when the strong winds relentlessly dismantles parts of our home. Debris and other things such as water tanks were literally flying up in the air as if pieces of papers. We were so scared as the wind was so persistent as if its mission was to knock down all standing structures. The walls protecting us as we stayed inside our bathroom on the ground floor were vibrating. We were so thankful that the walls stood firmly and protected us as there was no other safe place for us to take shelter. Few hours after the typhoon was the sad reality as we checked our shattered neighbourhood in disarray.

Some relatives and friends have perished in this painful tragedy caused by typhoon Yolanda. Our beloved city and the entire region including our community down to our homes have been shattered, but it never did break our spirits. Being a survivor from this unmerciful typhoon is more than enough to be thankful for but this as well gives me so many reasons to act and think positively. I can honestly say that the support offered by the Lauritzen Foundation and LK has given us a ‘ray of hope ‘ in this dark part of our lives.

Initially when the wind came, we were hiding under our cement kitchen bench, where we normally have our pots and pans. Luckily our house is made of cement blocks. Then suddenly the water came and flooded everything, all up to the upper frame of the doors. In the panic, I was trapped in the bathroom and my husband in the kitchen next to the bathroom, but in the darkness and all the water, we could not see each other. I was swimming all up under the ceiling and managed to climb up between the roof supporters, while my husband was standing on top of the kitchen bench, holding up our five-months-old daughter, with water all up to his chest. Horrible experience. Meanwhile all roof plates had been blown off. We were in this position for hours, until the water retreated. All in our house and right outside was filled with dirty water, and we were shivering of coldness. Later my brother came and helped us.

We are very grateful for the support that was offered by the Lauritzen Foundation and JL in the aftermath of the typhoon, which has made it possible to rebuild our house and our lives.

EXPERIENCE OF CAPT. JASON PLAZUELA AND HIS WIFE, ROSIE O. PLAZUELA

EXPERIENCE OF GP1 NELSON NAPOLES AND HIS WIFE, EDRINA N. NAPOLES

Inge Grønvold

Photos: Flemming Schmidt-Andersen


DIRECTOR GENERAL OF A MODERN TRADE ORGANISATION

What are the main challenges facing Danish shipping?“Danish shipowners have been through some tough times, but overall the industry is in good shape. We have a lot of development and growth coming our way, if we combine the commercial competences amongst shipowners with the ambition in the political system to develop Danish shipping. It is vital that the government, EU, and the IMO agree on a framework of conditions, regulations, and enforcement to make quality shipping commercially viable. The biggest threat for Denmark is if we can’t offer a competitive, business-friendly environment. So that’s what we aim to maintain and improve.”

How are you contributing to the Danish shipping community?“In the Shipowners’ Association we have competences within the political field that I believe benefit the Danish shipping communi-ty in many ways. I am developing the strategy and organisation to make it fit for the future, focusing on our members. We must listen very carefully, but we must also provide ser-vices to our members that they maybe didn’t realise they needed or could have.”

What are your short-term and long-term goals?“First and foremost the well-being of our members – it’s our obligation and my ambi-tion to make sure that we are aligned with our members’ needs at all times, providing the best advice and results, both for political issues and as an employer organisation. In the longer-term, it’s my ambition to create a state-of-the-art organisation, providing what is crucial for our members at a cost-efficient rate.”

After working in the Danish Foreign Service for many years, Anne H. Steffensen became the Director General of the Danish Shipown-ers’ Association in October 2013. In this inter-view, she reflects on the current challenges facing the shipping industry and describes how the Danish Shipowners’ Association works to maintain and develop the competi-tiveness of Danish shipping on a global scale.

How have the first six months in your new job been?“It’s been hectic, challenging, and exciting. I have been visiting our members to gain knowledge about their needs and concerns. At the same time, it’s been important to get to know the staff, the organisation, and the scope of daily tasks.”

In the Danish Foreign Service you have represented Danish business at large; how is it to now represent the shipping industry?“It’s a privilege to get to know this industry and hopefully bring value to it through the knowledge and experience from my previous job. Shipping is not just another industry – it is part of Denmark’s DNA, the backbone of glo-balisation, and a strong enabler of trade. As such, it provides value not only to the Danish economy and society, but also to the coun-tries we serve. It also has a bright future as a strong and sustainable means of transport. I am very pleased to be able to represent it.”

STRENGTHENING THE WORLD-CLASS SHIPPING INDUSTRY IN DENMARK, ANNE H. STEFFENSEN WORKS TOGETHER WITH MARITIME DECISION-MAKERS NATIONALLY AND INTERNATIONALLY.

Prior to becoming the Director General of the Danish Shipowners’ Association, Anne H. Steffensen was with the Ministry of Foreign Affairs:

• 2011 – 2013 Danish Ambassador to London

• 2009 – 2011 State Secretary for Trade & Corporate Affairs, Ambassador, Ministry of Foreign Affairs

• 2006 – 2009 State Secretary, Head of the Trade Council, Ambassador, Ministry of Foreign Affairs

Education:

1990 M.A. in Economics and Political Science, University of Århus, Denmark

1988 Master of Science, London School of Economics and Political Science, England

Anne H. Steffensen


Danish Maritime Days is a new initiative started by the Danish government and the maritime sector. Its overall objective is to better promote and showcase the “Blue Denmark”, a term used to encompass all maritime companies and professions in Denmark. The initiative will consist of a number of maritime events during the week of 6-10 October 2014, which are to show not only what the Blue Denmark stands for, but also to bring together a broad spec-trum of stakeholders from the global maritime industry. They will gather to discuss some of the major challenges confronting the industry, such as how to cope with the consequenses of globalisation and the significant further in-crease in maritime transportation demands forseen over the coming decades. The events, including exhibitions, symposia, and confer-ences – some of them sponsored by other international organisations – will take place all around Denmark.

The main focus of the week’s activities will be the Danish Maritime Forum, which will take place in Copenhagen on 8-9 October. A by-invitation-only event, the Forum will bring together key leaders in the global maritime industry along with policy-makers, experts, and other influential decision-makers and opinion shapers. The aim is to create an international event, focussing on advancing the maritime industry in today’s competitive business environment – for the benefit of everyone. Flemming Jacobs, a former A.P. Møller Maersk senior executive with many

years of executive experience from the ship-ping world, has taken on the challenge to lead Danish Maritime Days & Forum as Sec-retary General. He points out that it is no exaggeration to say that these events, and the Forum in particular, can affect us all, as it already does with the estimated 10 billion tons of cargo transported by sea every year. This actually translates to 1.4 tons of cargo for every person in the world population.

The Davos of shipping“Denmark has a rich maritime heritage and is a natural hub in Europe,” he says. “We are inviting high-level maritime stakeholders to come and participate in a two-day forum. It is still early days, but the aim is to attract 200 to 300 people to this event and to make it an annual occurrence.” The objective is to work to achieve a common goal of unleashing the full potential of the global maritime industry. Drawing inspiration from other outcome- oriented, high-level meetings – such as the World Economic Forum’s annual meeting in Davos, Switzerland – the Danish Maritime Forum will be a creative workspace, where par-ticipants will be invited to work together to make the most of their joint experience and visions with a clear goal in mind: to generate new ideas and solutions to the most important challenges and opportunities facing the maritime industry today and in the near future.

“This is exactly what distinguishes this forum from many others around the world,” says Flemming Jacobs.“The emphasis is not simply on meeting, but on doing – on tackling issues, creating new business ventures and partnerships, and discovering new ways of doing things. The overall outcome we’re looking for is the opportunity to actively carry ideas forward. The forum will consider the challenges that the industry is already facing and also ask what outside trends and influenc-es will mean for the maritime industry.” These outside influences include energy issues

SETTING THE GLOBAL MARITIME AGENDA

ATTRACTING MARITIME LEADERS AND EXPERTS FROM AROUND THE WORLD, THE DANISH MARITIME DAYS AND THE DANISH MARITIME FORUM ARE AMBITIOUS EVENTS.

WHERE AND WHEN

The Danish Maritime Forum will take place in Copenhagen on 8-9 October 2014. It is part of a larger platform, Danish Maritime Days, which will bring together a broad spectrum of stakehold-ers from the global maritime industry in Copenhagen and throughout Denmark during the week of 6-10 October 2014.

and the environment, new technologies, globalisation, and changes in the economic landscape, as well as shifting demographics. “We are also inviting NGOs and people out-side the industry to participate, to gather their insights,” he says.

Financing and support for Danish Maritime Days comes from different Danish funds and the Ministry of Business and Growth. A large coordination job lies ahead for Flemming Jacobs and his team members in the secretariat: “It is quite a challenge to bring it all together, but this is an industry I love, and I am honoured to have been asked to help make this ambitious project happen.”

Flemming Jacobs


JL’s Bunkers department is right at the heart of J. Lauritzen’s core shipping operations, handling worldwide fuel purchases for two internal business units (Lauritzen Bulkers A/S and Lauritzen Kosan A/S) and four major external companies (DFDS A/S, Hafnia Man-agement A/S, Straits Tankers Pte Ltd, and Maestro Reefers A/S).

“There are no hidden costs,” says Claus Kest-ing, head of the bunkers department. “We have a fixed commission and customers get the price we negotiate with the supplier.” In 2013, the department purchased from 160 suppliers in 256 different ports, and their business model resulted in the department carrying out 2,100 transactions and purchas-ing 1.1 million tonnes of fuel, with a value of more than DKK four billion. With a competitive and transparent price structure, J. Lauritzen’s Bunkers department is a cost-efficient and valued business partner for its customers.

Performance cultureAnother focus in the department is enhancing their overall value proposition through clear performance indicators. In a fluctuating market, purchasers must evaluate the best time to buy. Orders are typically received one to ten days before delivery, and it is important to purchase on the right day for the best price. One of the department’s KPI’s is benchmarking the purchase price against Platts on a particular date. “Platts is an inter-national company providing bunker figures in the major ports. We compare to see if we purchased at prices better than those Platts projected,” explains Claus Kesting. Last year, the Bunkers department participated in a large benchmark analysis done by Boston Consulting Group on a number of shipping companies buying fuel. The analysis showed that the JL Bunkers Desk had some of the best benchmarks. The Bunkers department will also be participating in the analysis this year. The department also tests whether the

FROM SUPPLIER TO VALUED BUSINESS PARTNER WITH CONTINUED FOCUS ON COMPETITIVE PRICES AND PERFOR-MANCE, INCREASED PRESENCE IN ASIA AND IMPROVED STANDARD CONTRACTS, JL’S BUNKERS DEPARTMENT PLANS TO ATTRACT MORE EXTERNAL CUSTOMERS.

From left: Katja Paramonova, Claus Kesting, Kasper Kofoed Dam, Torill T. Kleve and Mathias B. Rasmussen


right day was chosen for the purchase by comparing with a three-day average of Platts prices. Additionally, “creative savings” are analysed: “We save our customers’ money by offering alternative ports to purchase in,” says Claus Kesting. “We have created good savings for vessels calling in Far East Russia, for example.”

Closer to Singapore The department recently initiated closer contact with the market in Singapore. “In October, we placed a bunker purchaser, Kasper Kofoed-Dam, in the Singapore office, which is a significant advantage, as we saw a clear rise in physical presence in the Asian market,” says Claus Kesting. “Singapore is our biggest port, where we are purchasing around 125,000 mts. annually. Singapore is the world’s biggest bunker hub, with around 70 licenced sup-pliers. The port is known for cheap bunker prices but also for creative tricks being played by the suppliers to cheat the vessels on the quantity delivered. By placing an employee in Singapore, we have been able to get closer contact with the local suppliers and traders and get a better understanding of the market in Singapore.” The new man in the JL Singapore office is already getting in-depth knowledge of ports and suppliers and is in practice handling all the Bunkers department’s purchases from India to New Zealand. Purchasing for the rest of the world, including Far East Russia, is managed by the three purchasers and one trainee working in the Copenhagen office.

Standardising processesIncreasing transparency through standard-ising processes is a driver for change. “His-torically, bunkering has been on suppliers’ terms and conditions. I asked other buyers if they would be interested in a standard contract with suppliers,” explains Claus Kesting. His idea resulted last year in a

working group in BIMCO, the Danish based shipping association that develops stand-ard contracts and promotes fair business practices. “I got a good response, so I con-tacted BIMCO. We hope this new standard will be widely adopted, helping to make deals more transparent and facilitating claims.” The working group in BIMCO is to create a new standard contract between fuel suppliers and purchasers, which is expected to be finalised by the end of 2014.

Future focusNext year, stricter emission requirements for sulphur content in fuel oil will be introduced for the areas off the US and Canada coastlines and in the North Sea and Baltic. “From 1 January 2015, fuel oil can have a maximum of 0.1 per-cent sulphur – raising fuel prices by up to 50 percent in these areas,” explains Claus Kesting. “We are mapping possibilities for ensuring this fuel is available and obtaining price indications.”

The Bunkers department plans to maintain its focus on purchasing at competitive prices and on attracting more external customers into the portfolio in 2015. “There are many benefits to being part of a group with more purchasing power and the ability to obtain better prices and resolve claims successfully,” concludes Claus Kesting. The Bunkers department also hope to work with selected suppliers on corporate responsibility (CSR)-related areas in 2015, as part of the implementation of IMPA ACT, a responsible supply chain manage-ment programme.

“THE MORE BUNKER VOLUME WE CAN GENERATE, THE BETTER PURCHASES WE CAN MAKE.”

Claus Kesting, Head of Bunkers Department, J. Lauritzen

160 suppliers

in 256 different ports

2,100 transactions

Purchasing

1.1 million tonnes of fuel, which is equal to the energy used in

400,000 Danish homes or an average car driving

384,000 times around the globe


of the Hedvig Bulker were involved in the op-eration. The weather conditions – very rough seas and poor visibility due to heavy rain – contributed to the challenge. It was in the middle of the night and the rowboat was very small and hard to see clearly. The fact that the Hedvig Bulker was in ballast with high free-board also made it difficult to manoeuvre. It took several attempts to get close enough to rescue the rowers, but we finally succeeded.”

How were the rowers once you brought them on board the Hedvig Bulker?“They were unharmed and in good condition. They thanked us for rescuing them and were happy but, of course, had had a traumatic ex-perience. We gave them food and helped them recover.”

Where did you put them ashore?“We put the four rowers ashore in Beaumont Texas, USA, ten days after rescuing them. This was where our vessel was scheduled to load and from there they could fly home.”

The crew of the Hedvig Bulker battled stormy seas and heavy rain to successfully rescue a four-member British rowboat team who were stranded in the Atlantic Ocean after their boat became disabled 51 days into an 18-boat race called the Talisker Whiskey Atlantic Challenge in mid January 2014. The rowers were in dire straits: electricity and steering had failed, food and water were running out, and then the rud-der snapped. In this interview, Captain Razon of the Hedvig Bulker describes this difficult rescue operation in high waves.

When did you first hear about the dis-tress call from the rowboat?“The distress call was picked up by the U.S Coast Guard in Puerto Rico on 23 January. The coast guard then called our vessel and asked if we could assist. We immediately checked the position of the rowboat, named Clear Run, to find out how far she was from our vessel. After informing Lauritzen Bulkers in Copenhagen about the situation and our in-tention to assist the boat in distress and res-cue the four people onboard, we called back the U.S. Coast Guard and told them that we were changing our course and proceeding to the position of the rowboat.”

How long did it take you to reach the rowboat?“We started the actual rescue operation after getting to the position of the rowboat on 24 January. They were about 48 miles from our vessel, and it took about five hours to reach them due to very rough sea conditions, with about three to four metres of sea swell, and strong winds and heavy rain.”

Can you describe the rescue operation and the main difficulties?“We had to approach the boat from various angles due to the movement of our vessel, which was rolling heavily. All 20 crew members

HEDVIG BULKER RESCUES ROWERS FROM SEA BRITISH ROWBOAT TEAM PULLED FROM STORMY SEAS 1,200 MILES EAST OF PUERTO RICO.

“THE CREW OF HEDVIG BULKER BATTLED STRONG WINDS, VERY TURBULENT SEAS, AND HEAVY RAIN TO MAKE A SUCCESSFUL RESCUE. IF IT WASN’T FOR THE COMMITMENT AND PERSEVERANCE OF THE CAPTAIN, HIS OFFICERS, AND CREW I BELIEVE I WOULD NOT BE HERE AND FOR THAT I CAN-NOT SHOW ENOUGH GRATITUDE TO THOSE FINE MEN.”

Warren BurnsRoyal Air Force Officer and crew member of the rowboat, Clear Run


“A STRONG BELIEF AND TEAM COLLABORATION MADE THIS MISSION A SUCCESS IN SPITE OF ALL THE OBSTACLES.I AM SO GRATEFUL FOR MY CREW, WHO DID A GREAT JOB. THE COU-RAGE, BRAVERY AND DETERMINATIONS I EXPERIENCED FROM THEM WAS EXCEP-TIONAL.” Capt. Jose Noel N. DionisioMaster/Tilda Kosan

distressed sailors in those conditions requires tremendous concentration and can be very challenging.”

A relief in the stormThe search went on for approximately five hours and at 01:55 hours (local time) the crew of the Tilda Kosan finally managed to locate the life raft. The rescue operation was successful and in spite of the high waves the crew of the Tilda Kosan managed to get the sailors, two men and one woman as well as a dog, safely on board at wind force BF 7.

In view of circumstances the three sailors were all in good condition and the crew treated them with dry clothes, hot soup, etc. The people rescued were two UK citizens, a married couple and one male Belgian citizen. Following the rescue Lenard Rorke, Captain of the Blue Pearl - the sailboat which sank in the storm – had a chance to put words to the experience: “The overwhelming feeling of elation when we sighted the ships focusing searchlights on our tiny life raft in a menacing sea in the dead of night is a feeling that cannot be properly described in words”.

Both Mr. Rorke, his wife and their seaman were very relieved after the rescue episode and showed great appreciation to the crew as well as to LK’s Copenhagen office for their handling of the situation.

Rescue adds team spiritThe rescue of the three distressed sailors is not just ‘another day at the office’ onboard Tilda Kosan nor the Copenhagen office. “Our crew on-

TILDA KOSAN’S CREW RESCUES THREE SAILORS

Late in April 2014, the Lauritzen Kosan gas car-rier Tilda Kosan was heading towards Mexico, when captain Jose Noel Nalas Dionisio received a call from a US Based rescue coordi-nation centre. The message was that there were people floating in a life raft approximately 32 nautical miles from their vessel. This was the beginning of a life-saving mission.

After receiving the distress signal at 20:45 hours (local time) Captain Jose Noel Nalas Dionisio and his crew onboard Tilda Kosan to-gether with LK’s office in Copenhagen swiftly decided to turn around and look for the life raft which was drifting around 900 nautical miles off Bermuda in rough weather (wind force BF 7).

However, this was not an easy task, “A search and rescue operation in this kind of weather condition is a very demanding task,” says ves-sel manager Kim Kjær, who handled the con-tact between the head office and Tilda Kosan during the rescue. The search operation was further complicated by the fact that the rescue call was received at night and that the area of operation was enormous. Kim Kjær elaborates: “The crew needed to locate the life raft in a large area – and at the same time in high waves and at night with very bad visibility. Scanning the sea and horizon for any sign of the

Tilda Kosan is a 6,387 cbm semi-refriger-ated gas carrier with 15 crew onboard. The vessel was built in 1999 and is registered at the Isle of Man.

The rescue was conducted on Thursday, 24 April 2014 and following the rescue the crew of the sailboat Blue Pearl were all safely escorted to Bermuda, St George, where they arrived on Monday 28 April. They were handed over to LK’s local agent and further arrangements were made in accordance with their wishes. The Tilda Kosan thereafter continued its voyage to Mexico.

FACTS ABOUT THE VESSEL AND RESCUE

board Tilda Kosan proved that endurance and team-spirit can do wonders even in the most challenging circumstances,” says Claus Winther Graugaard, vice president and head of fleet management in LK, “This has been very in-spiring for all of us in the office as well”.

After the three sailors were saved a close dialogue with the vessel continued, “We have obviously been in close contact with Captain Jose Noel Nalas Dionisio and his crew to sup-port and encourage the mission that they have accomplished with great distinction,” says Claus Winther Graugaard. He concludes that the life-saving mission has created enthusiasm on-board the ship and that it is an example of team spirit that all in LK and JL are very proud of.


J. LAURITZEN’S CANTEEN CHEF TO PARTICIPATE IN THE CATERING WORLD CHAMPIONSHIPS IN LUXEMBOURG

Whether it is hot off the grill, farm fresh salads, or casseroles from an old family reci-pe, Kenneth and his team create a unique and unparallel lunch experience to the benefit of all employees and guests of the company. But as of November 2014, his skills will also be to the advantage of Denmark as a whole when Kenneth participates in the Catering World Championships in Luxembourg as part of the National Catering Team of Denmark.

Innovate Danish culinary heritageThe National Teams focus is to promote the know-how and creativity of canteen and catering professionals, while discovering new culinary formulas for the catering busi-ness. Furthermore, the aim is to innovate Danish culinary heritage by optimising the meals that are served in Danish canteens each day.

Other than Kenneth, the National team consist of seven of Denmark’s best, gastronomic pro-files within canteen operation and when the team reaches the championships in November,

vying for the world’s highest title in the catering business, they have to prepare a buffet with different dishes encompassing the theme of the World Championship: Europe meets Asia. The team will compete against 13 other national teams, and the goal is clear: “This is the first time that Denmark will participate in this competition, but we still hope to be

amongst the top three,” says an optimistic Kenneth Sørensen.

We are proud of Kenneth and wish him and the national team all the best for the cham-pionships and will of course report from the Championship in November – hopefully with news about a top rank for the team.

EVERY DAY, KENNETH SØRENSEN, THE CANTEEN CHEF OF J. LAURITZEN’S CANTEEN AT THE HEAD OFFICE IN COPENHAGEN, MAKES SURE THAT EMPLOYEES AND GUESTS OF THE COMPANY ARE SPOILED WITH HIGH-QUALITY AND TASTY FOOD IN A GREAT ATMOSPHERE, MAKING THE CANTEEN A COMFORTABLE AND WELCOMING PLACE TO EAT EACH DAY.

Kenneth Sørensen


The Lilla Dan was built in 1951 by J. Lauritzen as a training ship. In 1996, she was complete-ly renovated and put to work as a charter ship. Last year, the Lilla Dan received recognition as a Historic Monument from the Danish Ship Preservation Trust, which presented the award to the Lilla Dan during a race around the island of Funes in Denmark. “We applied for this status last year,” explains the captain of the Lilla Dan, Jesper Hjorth Johansen. “We officially received the honour during the Round Funen race in July 2013. It was a very nice recognition, and made up for the fact that we didn’t win the race!”

The Lilla Dan joins an elite group of vessels in Denmark who have received this designa-tion. “There is a link to the past with our ship, which is quite rare. There are only four or five vessels in Denmark that have received the award. They are all different types, such as a steam ship and a ferry boat,” says Jesper Hjorth Johansen.

Based on the information provided in the application, the Danish Ship Preservation Trust evaluates ships to see if they can be granted the status as a Historic Monument. Among the criteria taken into account are whether the vessel:• Is a typical Danish utility vessel or yacht• Retains its original appearance and, if any

changes, reflect a distinctive development in history

• Has been maintained in good condition

HISTORICAL HONOUR FOR THE LILLA DAN

DOCKED ALONG THE QUAYSIDE OF COPEN-HAGEN’S PICTURESQUE WATERFRONT DURING THE SUMMER IS THE 35-METRE TOPSAIL SCHOONER, LILLA DAN, WHICH HAS BEEN DES-IGNATED AS A HISTORIC MONUMENT.

The Lilla Dan received a special diploma and a bronze plate, which is now mounted on the ship so that people can see it from the quay-side.

Summer tours and races in 2014A busy summer lies ahead for the popular Lilla Dan, which is one of three historic wood-en ships that can be rented through United Sailing Ships. The chartered tours and races on offer are for everyone and no prior sailing experience is necessary. “We provide the whole experience,” says Jesper Hjorth Johansen. “We train people and they usually take on one isolated job during a race. We were booked up for all the races for this season within 48 hours.” These include the Rum Regatta in May, Round Funen in July, and a race around Limfjorden in September.

Charter tours usually start from Copenhagen and can last anything from five hours up to five days or more. “During a five-hour trip, we serve dinner and people help with the ship, for example by putting up the sails,” explains Jesper Hjorth Johansen. “We also offer three weeks on the west coast of Sweden in the Archipelago in June and July. Anybody can sign up and everybody participates in the running of the ship, including the cooking. It’s a fantastic experience!”

You might not be aware that the 35-metre schooner is suitable for families, individuals, couples, or for a company outing and a variety of tours and races are available. For more information see:www.j-lauritzen.com/about/who-we-are/lilla-dan/cruises

Or contact United Sailing Ships:www.unitedsailingships.com

For more information on the cruises:www.deforenedesejlskibe.dk/pics/451.pdf

ENJOY AN OCEAN EXPERIENCE ON-BOARD THE HISTORIC LILLA DAN

Jesper Hjorth Johansen


JL EXPANDSITS SHIPPING PROGRAMME

TWO INTERNS JOIN J. LAURITZEN SINGAPORE

This year, JL is expanding its shipping programme and hiring seven new trainees to embark on a shipping career with J. Lauritzen. The seven include four new trainees in Copen-hagen, two new trainees in Singapore, and, for the first time, a trainee in the USA. They will all begin their employment later this year and enroll in the Danish Shipping Academy for the coming two years. “The number of applications received from highly qualified candidates for the seven vacancies in our shipping programme tells us that we are considered an attractive employer with good career opportunities,” says HR man-

On 19 May 2014, J. Lauritzen Singapore wel-comed Hans Benjamin Carter and Liu Siqing, who will both embark upon a ten-week internship during which they will be exposed to the office in Singapore as well as the head office in Copenhagen.

Hans Benjamin Carter currently attends Singapore Management University and is studying for his bachelor degree in Business Management. Liu Siqing is a student at Singapore Nanyang Technological University (NTU) and is currently completing her bache-lor’s degree in Maritime Studies.

The Global internship AwardThe internship is an agreement with the Mari-time and Port Authority of Singapore (MPA) and J. Lauritzen. Singapore has committed to take in a number of undergraduates from the local universities and expose them to daily op-erations for ten weeks. The candidates for The Global Internship Award represent three different universities and have to qualify for the internship via their academic results and performance as well via personal interviews.

ager Jan U. Nielsen. The coming years will bring an even closer partnership between JL and universities and business schools around the world. Jan U. Nielsen elaborates: “Over the years we have had a great cooper-ation with NTU, Singapore, and we are look-ing forward to expanding a similar model to other universities, both in Denmark and overseas. The students gain insight into the everyday challenges in shipping, and JL gets the opportunity to identify high-poten-tial students. We will continue to make use of scholarships and internships in this process.”

The Global Internship Award was conceptual-ised as part of MPA’s ongoing effort to promote maritime careers amongst the young talent pool in Singapore. The aim is that this type of partnership between the MPA and the shipping community will help build a pool of maritime talent to the benefit of all parties in the long run. At an award ceremony on Monday 12 May, Hans Benjamin Carter and Liu Siqing and 21 other recipients received their awards marking the fully-spon-sored, maritime-focused, ten-week internship with international maritime companies.

According to Martin Sato, Managing Director of J. Lauritzen Singapore the internship serves two important purposes: “I believe that we as a company have a responsibility to play an active role, when it comes to educating young people for the industry. Offering them real exposure to our business during their studies, is a valuable way for them to gain some in-sights of the industry before they have to make the transition from studies into the ‘real world’. The internship is very valuable for the students and also gives us the opportunity to

see them in action – it can and has already become an important and very effective way of scouting young talents that we potentially want to take on for permanent positions with-in the company.”

From left: Martin Sato, Liu Siqing, Hans Benjamin Carter

“A CLOSE COOPERATION BETWEEN US AND THE SHIPPING UNIVERSITIES IS BENEFICIAL BOTH WAYS.”

Jan U. Nielsen, HR manager


Anders Hansen will take up the position of general manager with J. Lauritzen (USA) Inc. as of 1 July 2014. Anders began his shipping career with JL in 1993 as shipping trainee, but left JL in 2000 in order to work for DS Norden in various positions, including a four-year stay in Brazil as general manager. Before joining LB again in 2011 he worked for Noble Group, Hong Kong, heading their Panamax desk.

As of 1 August 2014, Jesper Mehlsen Bab will return to the Head Office in Copenhagen as vice president and head of the Supramax team after almost five years heading the Stamford office. Jesper also began his career with JL as shipping trainee and has held vari-ous position within JL since then, including various overseas postings.

STAFF NEWS

Anders Hansen

Jesper Bab

Mikael Schultz, previously vice president of the LB economy department, will transfer to the position of vice president, business intelli-gence. The purpose of the new position is to inspire and assist business units and group functions in structuring optimal collection, validation, registration, and utilization of data employed in decision making. Furthermore, Mikael will seek to optimise the utilisation of systems and databases already in use or available for JL.

Mikael Schultz

DEDICATED FOCUS ON BUSINESS INTELLIGENCE

As of June 2014, a new joint Maritime Control department will be established in J. Lauritzen’s Corporate Control department by centralising the Lauritzen Bulkers (LB) and Lauritzen Kosan (LK) control teams. The aim of the consolidation is to improve flexibility and ensure better utilisation of resources, without compromising a close relationship with the two business units. The new Mari-time Control department will be headed by Kim Nielsen.

He holds a B.Sc. in Naval Architecture from the Technical University of Denmark/Uni-versity of Strathclyde, UK. His previous experience includes various positions with Det Norske Veritas in Denmark, Canada, and Croatia, as well as with Carl Bro Marine, part of Grontmij, one of Europe’s largest engineering consultancies.

Kim Nielsen

NEW MARITIME CONTROL DEPARTMENT

CHANGE OF GUARD AT LAURITZEN BULKERS/STAMFORD

Claus Winter Graugaard

IN NOVEMBER 2013, CLAUS WINTER GRAUGAARD JOINED LAURITZEN KOSAN AS VICE PRESIDENT AND HEAD OF FLEET MANAGEMENT

Claus comes from a position as head of cus-tomer service and business development at Det Norske Veritas in Denmark and brings a strong technical and customer-oriented business background. Read more about Claus Winter Graugaard on our website: www.j-l.com/new-man-job


EditorsJan Kastrup-NielsenJens SøndergaardMaj FaurholmKathrine Geisler Madsen

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J. Lauritzen A/SSankt Annae Plads 281250 Copenhagen KDenmarkTel: +45 3396 8000

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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) and Lauritzen Kosan (petrochemical and liquefied petroleum gases.

JL employs a staff of approximately 1,300 persons and together with partners/associates controls a combined fleet of around 200 vessels including short-term time-charters consisting of bulk carriers and gas carriers.

For more details on JL’s business activities and fleet, see www.j-l.com

The implementation process got off to a strong start in 2014 with Group General Counsel Dorte Rolff conducting compliance seminars for J. Lauritzen’s offices in Copenhagen, Singapore, and Stamford. The seminars enabled questions and discus-sions about anti-corruption, fraud, anti-trust, and related areas. During the second half of 2014, the seminars will be adapted as part of planned crew seminars.

During 2014, a gift and hospitality policy has also been introduced to guide all JL personnel about gifts and hospitality. We deem this helpful, as we operate globally within different cultures and practices where gifts, travel, lodging, meals, and entertainment may be a part of business relationships.

Our Anti-Corruption programme enjoys strong commitment from the Board of Directors, Executive Management, and the Executive Committee. We continue to support and be members of the Mari-time anti-corruption network (MACN) and thus participate in different MACN working groups delivering shared tools for implementation.

IMPLEMENTATION OF JL’S COMPLIANCE PROGRAMME

JL US office

lauritzen news issue 20 june 2014 lauritzen...

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