Shipping is important to Norway for trade and commerce. Norwegian shipping is also vital to transport and logistics. Norwegian interests control the world’s third largest fleet, which comprises almost 10% of the total global trading tonnage. COVID-19 had profound impacts on Norwegian shipping. These will also affect how it evolves over the coming decades. Here is a look.

Shipping in Norway

Norway has the world’s fifth largest merchant fleet by value. In 2020 there were 1,804 Norwegian-controlled foreign-going ships. Norwegian shipowners are especially active in shipping offshore service/specialty vessels, oil tankers, bulk carriers, chemical tankers, gas (LNG/LPG) tankers, car carriers, and cruise operations. Norway has a complete maritime industry with world leaders in most segments. These include ship ownership, classification, ship finance, shipyards, and equipment suppliers. Norwegian Shipowners’ Association members control 630 vessels involved in deep sea shipping. They make 30,000 port calls worldwide every year.

Norway is home to some big shipping brands. Farstad is a publicly listed supply shipping company. Abyss Aqua is Norway’s leading supplier of ROV, diving, and workboat services, The FSV Group offers operation and rental of specialized vessels for operations above and below water, as well as for various freight and towing tasks. Leisure boats also have a large market in Norway, with an estimated 800,000 boats of various sizes registered.

The Shipping Economy

Short sea shipping plays a vital role in sea transport. These vessels operate between Norwegian and European ports, and make Norwegian industry competitive. Short sea shipping in Norway carries all types of goods and passengers. Norwegian Shipowners’ Association members control 130 vessels engaged in short sea shipping.

Offshore shipping companies in Norway participate in all phases of petroleum extraction, from initial seismic surveys and exploration to production and decommissioning. The Norwegian offshore fleet features a large number of vessels for transporting supplies and equipment to and from offshore installations. Members of the Norwegian Shipowners’ Association control over 50 mobile offshore units, and a large offshore fleet of more than 500 vessels.

Norwegian shipping companies earn 61% of their revenues from markets outside Norway. These equate to NOK 139 billion (EUR 14 billion) annually. In 2018 the maritime industry of Norway employed 85,000 people. These include general crew, marine engineers, deck officers, marine cooks, stewards, and so on. Many of these professionals are migrants. Expat professionals in Norway regularly support their families with remittances sent via the Ria Money Transfer App and other channels. Maritime crew contribute to value creation worth NOK 142 billion (EUR 13 billion) annually.

Environment And Efficiency

The International Maritime Organization set a goal to reduce greenhouse gas emissions from international shipping by 50% by 2050. Norway aims to cut emissions by 50% by 2030. In October 2019 the European Union, Iceland, and Norway formally agreed to cooperate on reducing greenhouse gas emissions by 40% by 2030. To this end the Norwegian government increased funding for the development of LNG (liquefied natural gas) batteries.

A Norwegian partnership is developing the world’s first zero-emission cargo ship. The vessel is expected to enter service by 2024. A major part of the energy for the vessel will come from renewable sources. The plan is for the vessel to sail mostly in open waters in the North Sea, where the conditions are optimal for wind-assisted propulsion. Wind energy will supplement a hydrogen-fuelled internal combustion engine. The design team is also working to increase the vessel’s energy efficiency by using an efficient hull design A specially developed keel will counter drifting. If successful, this could become the standard blueprint for future vessels.

According to the Norwegian Shipowners’ Association, 30 years from now it should be prohibited for ships worldwide to sail on fuels that are not climate-neutral. The Association commits to exclusively ordering ships with climate-friendly technologies from 2030. The aim is to have a climate-neutral fleet by 2050.

Challenges

The COVID-19 crisis was especially costly for ship owners such as ferry operators and service ship operators. The offshore sector has been in the doldrums. The number of older ships is being trimmed. Despite these events the CEO of the Norwegian Shipowners’ Association, Harald Solberg is fairly optimistic about the prospects in 2021. He said that not everyone in shipping has been hit hard. The tanker and dry bulk fleets and cargo transporters have continued their operations, even though there are fewer crew workers available. The Throughout COVID-19 the Norwegian-controlled foreign-going fleet has experienced steady growth in both tonnage and number of vessels.

About the Author:

Hemant G is a contributing writer at Sparkwebs LLC, a Digital and Content Marketing Agency. When he’s not writing, he loves to travel, scuba dive, and watch documentaries.