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Decline in Norwegian gross freights for ocean transport

Staff Writer | June 4, 2018
Following a continuous increase since 2009, the total gross freights for enterprises within ocean transport fell for the first time by 6.1 percent from 2015, and constituted NOK 140.9 billion in 2016.
Norwegian ocean transport
Shipping   Lower activity followed the lay-up of offshore vessels
Lower activity following the lay-up of offshore vessels caused by the dramatic situation in the offshore market, with volatile oil prices and overcapacity of ships which continued in 2016, largely explains the reduced total gross freights for ocean transport in 2016.

Operating profit for the industry decreased by NOK 6.6 billion, to NOK 15.4 billion in 2016. The operating margin was 10.9 percent, compared with 14.6 percent in 2015.

Voyage freights fell from NOK 31.1 billion in 2015 to NOK 22.5 billion in 2016, equivalent to a decline of 27.7 percent. Freight income from the foreign time charterers decreased by 7.5 percent, to NOK 25.9 billion in 2016.

Offshore vessels reduced their freights most in the industry by NOK 5.8 billion in the same period, to NOK 24.6 billion in 2016. Freight income from general cargo vessels decreased as well, from NOK 36.6 billion in 2015 to NOK 32.9 billion in 2016.

Bunker and other voyage-dependent costs fell by 21.2 and 14.3 percent respectively from 2015 to 2016. Gross wage and social benefits to crew members decreased by 9.8 percent, to NOK 17.3 billion in 2016. Costs for renting manned foreign vessels, however, rose by 24.6 percent, to NOK 19.2 billion in 2016.

Domestic passenger transport, with NOK 5.3 billion in turnover in 2016 compared with NOK 3.8 billion in 2015, explains the growth for coastal water transport in 2016.

For domestic freight transport, the turnover has remained almost unchanged from the previous year and amounted to NOK 3.8 billion in 2016. Car ferry services reduced their freights by 18.7 percent, to NOK 2 billion in 2016.