Stig Tenold

A most convenient flag--the basis for the expansion of the Singapore fleet, 1969-82

Singapores brief stint as a fully-fledged Flag of Convenience from the late 1960s to the late 1970s facilitated the strong expansion of the countrys merchant marine. This article outlines the basis for the introduction of Flag of Convenience-facilities in Singapore, analyses the transformation of the fleet in the period 1969–82 and examines the tightening of the registration requirements from the late 1970s onwards. Certain characteristics of the Singapore fleet and the pragmatism of the authorities in establishing and disbanding the open registry distinguish the Singapore registry from some of the other important Flags of Convenience.

Strategies, market concentration and hegemony in chemical parcel tanker shipping, 1960–1985

The article analyses the emergence of chemical shipping as a specialised shipping segment. In the 1950s and 1960s seaborne transport of chemicals was characterised by rapid technological development, based on the introduction of parcel tankers, which could carry chemicals in bulk. By the early 1970s two Norwegian companies had built up substantial market shares, but were challenged by financially stronger British companies. The article traces the background of the main companies involved in chemical shipping in the 1970s, by which stage market concentration was evident. We look at their entry into the market and their strategies. First mover advantages, determination to remain market leaders, fleet structure and timing go a long way to explaining why by the mid-1980s the Norwegians had managed to fend off the British challenge.

Vernon's product life cycle and maritime innovation: Specialised shipping in Bergen, Norway, 1970-1987

One of the most important developments in the post-war shipping industry has been the introduction of specialised ship types that have gained market shares in the transport of a large number of cargoes. The share of specialised tonnage in the Norwegian fleet increased from less than 1% in 1960 to more than 30% by 1987. This trend towards increased specialisation did not occur to the same extent in all maritime centres. In an international perspective, Norwegian owners held a large share of the new specialised ships. This can partly be explained within the framework of the Vernon product life cycle. However, even within Norway there were substantial differences in the degree of investment in specialised tonnage. Specifically, a disproportionate share of the specialised Norwegian ships was owned by shipping companies in the city of Bergen. In 1977 Bergen companies owned around 13% of the aggregate Norwegian fleet, but more than 40% of the specialised tonnage. The Bergen presence was particularly strong in two segments; chemical tankers and open hatch bulk shipping. Through closer studies of the companies involved it becomes evident that three factors – co-operation between individual companies, vertical integration and technological innovation – can explain Bergens strong position within specialised shipping.

Steaming ahead with stainless steel : Odfjell's entry and expansion in the chemical tanker market, 1960-1974

The objective of this essay is twofold. The first is to give a brief introduction to the market for chemical transport, which grew rapidly and evolved as a fullfledged segment of the tanker market during the 1950s and 1960s. Although the chemical tanker market was one of the most vibrant sectors of the shipping industry in this period, very little has been written on its early development. The second aim is to analyse how a fairly small Norwegian shipping company managed to become one of the main players in this sector. Among the features emphasised are investment strategies, cooperation with other shipowners and technological and logistical developments. 1 The article consists of three parts. After a brief introduction to the Odfjell group, the transformation of its fleet in the period 1960-1974 is described. Subsequently, the establishment of chemical transport as a distinct segment of shipping is presented. Finally, the main part of the paper examines the basis for Odfjells prominent position in the chemical tanker market.

Norway's interwar tanker expansion : a reappraisal

Abstract The topic of the article is the Norwegian expansion within oil tanker shipping in the interwar period, which is analysed on the basis of new empirical evidence. By means of a purpose-built database, the basis for the expansion is analysed and traditional accounts of the growth of Norwegian tanker shipping are challenged and modified. Previously, the purchase of second-hand tankers from Anglo-Saxon Petroleum Co. has been seen as the most important basis for the growth of Norwegian tanker shipping. This article claims that the Anglo-Saxon tankers were relatively unimportant. The dynamic relationship between Oslo-based shipowners, primarily companies without previous experience of the tanker industry, and foreign, in particular Swedish, yards is the key to understanding the development.

British financial, managerial and technical assistance in establishing the global shipbuilding giant, Hyundai Heavy Industries:

The aim of this article is to present the early history of Hyundai Heavy Industries, currently the world’s largest shipbuilder. The company was established by the prolific South Korean entrepreneur Chung Ju-Yung in the early 1970s. Due to limited experience in shipbuilding, the establishment relied heavily on foreign assistance. This article sheds new light on the crucial relationship between Chung and two British companies: the Newcastle-upon-Tyne-based consulting firm A&P Appledore International Limited, and the Lower Clyde shipbuilders Scott Lithgow Limited, during the beginnings of large-scale South Korean shipbuilding. The article is based on a combination of British and South Korean archival sources, as well as secondary literature and the oral and written testimony of consultants and workers involved in the project.

Saving a Sector – But Which One? The Norwegian Guarantee Institute for Ships and Drilling Vessels Ltd.

The beginning of the 1970s was a watershed in the development of the international market for shipping services. Rapid growth in the volume of seaborne trade in previous decades was replaced by stagnation or outright contraction, leading to a crisis in the sector. During the 1970s a massive number of newly-built vessels entered a depressed market, exacerbating the imbalance between demand and supply. The crisis, marked by plummeting freight rates and an increasing number of laid-up vessels, had huge consequences for countries like Norway which were dependent upon shipping for a large share of their foreign exchange earnings. Norwegian authorities responded by establishing the Norwegian Guarantee Institute for Ships and Drilling Vessels Ltd. (GI) to try to alleviate the financial difficulties faced by the industry and to preserve tonnage in Norwegian hands. The GI played an important role after its formation in 1975, and several owners avoided bankruptcy due to loans secured through its guarantees. But shipowners were not the only ones to benefit, for it was also important to domestic shipbuilders and to the stability of internal financial markets. This essay analyses the establishment, operation and effects of the GL First, I look at the effects of the shipping crisis on Norwegian maritime industries. Second, I examine the discussions in the Norwegian parliament and the creation of the Institute. Finally, there is an analysis of its effects on a variety of sub-groups shipowners, shipbuilders and state-guaranteed and private financial institutions.

Coping with the International Shipping Crisis of the 1970s: A Study of Management Responses in Norwegian Oil Tanker Companies

The aim of this essay is to analyse management responses to the international shipping crisis of the 1970s and to explain why its effects were not distributed uniformly among shipowners. The article begins with an exploration of the causes of the crisis. We then analyse reactions by some leading Norwegian shipping firms and the government. The principal conclusion is that prudent management included cancelling newbuilding orders, diversifying risk, and implementing financial restructuring. When managers hesitated, financial ruin often resulted.

Maritime trade and merchant shipping: The shipping/trade ratio since the 1870s

This article discusses the development of countries’ market shares in world shipping over the last 150 years. The analysis is based upon a new and purpose-built indicator: the shipping/trade ratio. This indicator presents the relationship between the merchant marine of a country and the country’s role in world trade. Analysis of the shipping/trade ratio identifies two important developments. First, although the share of the world fleet registered in Europe has dropped significantly, Europe’s role in world shipping over the last 50 years has been more stable than is commonly perceived. Second, there appears to have been an increasing specialisation in the world shipping industry, both among and within continents. Internationally and within Europe, certain ‘super-transporters’ have acquired large market shares, while most countries have relatively limited fleets.

Globalisation and maritime labour in Norway after the Second World War

This article looks at how ‘Globalisation’ – narrowly defined as the causes and effects of increased international economic integration – has influenced the demand for and supply of maritime products and services, with a particular emphasis on maritime labour. A central argument is that the manner in which labour has been affected varies enormously among the maritime industries, and there is also variation among different occupations and countries. Today, the Norwegian maritime industries have found ‘a new equilibrium’, where old and national traditions have successfully merged with the new and global realities. The article is structured around six propositions about the relationship between globalisation and Norwegian maritime labour, and these propositions are discussed and linked to empirical data.