COPENHAGEN: Danish Shipowners Association has just published the biannual publication ”Shipping in numbers” which shows the development in the Danish merchant fleet. Danish shipping companies came out of 2014 better than expected despite very difficult market conditions. Denmark is the 8th-largest shipping nation measured by tonnage operated.
The low rates have meant that Danish shipping companies in a number of cases have not renewed or terminated time chartered agreements of vessels. Therefore, in the past year there has been a decline in the total tonnage operations in Denmark. Nevertheless, Denmark is still in 8th place among the largest shipping measured by operating tonnage and controls 4,11 percent of the total commercial fleet across segments.
Foreign exchange earnings set a new record in 2014, consisting of 205 billion kroner, an increase of approximately two percent compared to the year before. Foreign exchange earnings are affected by three factors: cargo volumes, freight rates and the dollar rate. The strong dollar rate was very good news for Danish shipping companies, as most shipments are settled in dollars. The high dollar rate really came through in the second half of 2014, but has brought momentum with it for 2015, when the companies are expected to benefit from this all year.
Furthermore, IMF predicts growth in international trade of 3,7 percent in 2015, which bodes well for the Danish foreign currency earnings in 2015. 2015 may have begun with the worst rates ever and massive overcapacity in many segments, but there are also positive economic trends in Europe, which is the Danish shipping companies’ largest trading area.
