Denmark’s ties to the maritime world can be seen peppered around the capital city of Copenhagen.
The distinctive yellow houses in Nyboder built by Christian IV to house his growing navy, the often-spotted seven-pointed star of AP Moller-Maersk and the cluster of maritime heavyweights found in affluent Hellerup are all prominent reminders.
As a shipping nation, we are definitely punching above our weight. We do that because of the skills that have been built here for generations and the focus we have had here about getting the right framework politically
Jan Rindbo
As a pure owner of merchant tonnage, Clarksons ranks Denmark in 10th place for global gross tonnage, with 1,513 vessels or nearly 38.4 million dwt, placing it just behind Italy and ahead of Taiwan.
However, by operated fleet, the nation of fewer than six million people is ranked in sixth position, between the US and Germany, according to Danske Rederier, the trade group also known as Danish Shipping.
Highly engaged
“As a shipping nation, we are definitely punching above our weight,” says Jan Rindbo, chief executive of Hellerup-headquartered Norden.
“We do that because of the skills that have been built here for generations and the focus we have had here about getting the right framework politically.
“We have for generations been able to attract high-calibre people. We should not take that for granted going forward, because there is a fight for talent. But I think we have a fascinating proposition: where we sit in the heart of world trade you can make a difference [by] connecting the world around you.”
Shipping directly employs 23,000 people, including 6,157 land-based jobs and is a major contributor to the nation’s economy. More broadly, just shy of 100,000 people are employed in maritime-related businesses across the so-called Blue Denmark network.
“Cluster wise, it never seems to stop growing,” says Peter Kolding, vice president of Hafnia Management, which has just received an influx of tonnage after the merger of Hafnia Tankers and BW Tankers.
Maersk at the helm
Almost 60% of the Danish fleet is accounted for by Maersk Line, the world’s leading operator of vessels. Bulkers, a major growth area of the past half-decade, account for one-fifth of the operated vessels, with product tankers accounting for a similar proportion, Danish Shipping data shows.
At the same time, the Danish flag was the fastest growing in the world last year. A 25% increase in ships sporting the country’s colours was helped by the abolition of registration fees. The number of vessels trading under the Danish flag had risen to 567 by March this year, placing the register 12th globally, behind Cyprus, according to Clarksons.
Carsten Mortensen, the former chief executive of Norden and BW Group, says: “The authorities and politicians in Denmark have been very progressive in strengthening the cluster, without the same kinds of funds that you have, for example, in Singapore.
“There is a lot to be optimistic about. We have a competitive flag/registry, we have technical competency, we have financing and we have a long tradition, helped a lot by Maersk over the years, of recruiting a lot of young talent, educating and empowering them at a relatively young age."
Anne Steffensen, director general and chief executive of Danish Shipping, attributes some of the strength of Danish shipping to broad political support that the maritime industry has received from all parts of parliament.
“Whether it’s a ... Liberal/Conservative government or a Social Democratic government, they have all over the years been supportive to shipping,” she says.
Impacted equally
Given the country's current healthy position, Steffensen believes the challenges facing Danish Shipping are the same as those felt by the industry globally.
One is the pending challenge of meeting IMO 2020 compliance.
“We are ready. Danish shipowners have done everything possible to be ready for this. But we still don’t know exactly how this will influence, not only the Danish, but the global shipping industry,” she says.
Steffensen is also positive on the country meeting the challenges of an increasingly digital environment and embracing a tighter environmental legislation.
“In Danish Shipping, we have chosen to be positively engaged in that debate,” she says. “We want to be on the right side of history in terms of finding ways to make sure we are influencing positively the regulation, which is going to be a huge task for us in reducing our CO2 emissions.”
