Shipping Companies in Norway - Facing New Challenges and Seizing New Opportunities

The economy in Norway is undergoing a period ofNorwegian economy.
transformation as it prepares for a post-petroleumAs shipping companies face the new challenges, the
era. Norway is facing the challenge of re-inventing itssector is showing innovation as shipping companies
economy. The freight services industry in Norway isidentify and seize new opportunities that are relevant
also looking to adapt and embrace new opportunitiesfor the post petroleum era.
in response to changing market conditions.For example, the Norwegian freight company sector
Norway is a country that is extremely rich in naturalis set to break new ground with the launch of the
resources and its economy has been largely based onworld's first gas-powered ro-ro vessels. Norwegian
exploiting these natural strengths in oil, gas andshipping company Sea-Cargo AS is building the
minerals. Norway's largest export is petroleum andvessels and they are expected to be launched by
petroleum products. In fact, petroleum and natural2010. With the focus on lower exhaust emissions
gas currently account for nearly half of its totalfrom short sea and coastal vessels, Sea Cargo AS
exports and it is the world's third largest exporter ofidentified liquified natural gas as the fuel of the future.
oil and gas. However, the challenge is now to adaptThese vessels will reduce CO2 emissions by 25%
to the fact that the North Sea has past its peak oilcompared with a vessel run on conventional fuel.
production. Norway's offshore Oil production peakedAnother way in which the freight transport sector is
in 2002 and so the Norwegian government is wellfacing the challenge of new opportunities is exploiting
aware that it cannot depend on oil revenuesnew markets, created by changing economic
indefinitely into the future. The challenge facingconditions. An especially important area of
Norway is diversification of its economy, so that itopportunity for shipping companies in Norway is the
can maintain its high standard of living into aBaltic Sea Region.
post-petroleum future.Norway, like its neighbour Finland, has a significant role
So over the last decade, Norway has faced theto play in serving the Baltic region. Although the global
challenge and begun a process of reshaping itseconomic crisis is having a negative impact on freight
economy by diversifying into new sectors so it canforwarding in many countries worldwide, international
prosper after petroleum revenues decrease. Thisfreight to and from the Baltics remains a growth
includes government support to create a competitivearea. The majority of shipping companies and
private sector with strengths in IT and technology.economic commentators are expecting growth in the
Norway is now encouraging the growth of smallBaltic region to continue to be strong in the next few
businesses and encouraging new private sectoryears. This will strengthen the freight services sector
industry in a number of ways. By doing so, it isin those countries like Norway and Finland on which
following the approach earlier adopted successfully byfreight transport to the Baltic region depends.
its neighbours Sweden and Finland.The Baltic Region is now a main trading area for the
Norway is fortunate in that is in a strong economicfreight forwarding and shipping company industry
position and is one of the world's richest countriesbased in Bergen. They offer a frequent service to
per head. Norway has large foreign trade surplusesthe Baltic Region, mainly with its fleet of side door
due to the high cost of oil in recent times. This isvessels.The main item requiring freight transport is
enabling the government to invest in developing newfrozen fish from Norway, Scotland and Iceland. This is
industries to support its strategy of diversification.transported to many destinations in the Baltic Region.
The Norwegian government is thus able to helpThis is an expanding market, with an increasing
support the freight services sector as it faces thedemand for fish products as the buying power of
challenge of adapting to new conditions.customers increases in the countries that make up
One of the private sector industries that is robustthe Baltic Region.
and growing in Norway in shipping. Shipping companiesIn ways such as these, shipping companies in Norway
originally developed in Norway to serve the offshoreare showing that they can identify and seize the new
petrolem industry and have now achieved a dominantopportunities created by changing market conditions.
market position. In fact, the shipping fleet in NorwayThis means that the freight forwarding and
is one of the most modern in the world.international freight industry in Norway face a bright
Shipping and freight services has therefore beenfuture as they rise to the challenge of responding to
identified as an industry to be further developed andchange.
strengthened in future, as a key part of the