Lloyds List: Hartmann Group takes heart from its solid game plan
The global downturn may be making for turbulent shipping markets but the Leer shipowner is quietly confident that its diversification strategy will deliver further growth, write Patrick Hagen and Frederike Krieger “Owners are now looking for follow-up charters and will have to get used to considerably reduced rates” “When the banks begin to trust each other, trade will flourish again”
The global downturn may be making for turbulent shipping markets but the Leer shipowner is quietly confident that its diversification strategy will deliver further growth, write Patrick Hagen and Frederike Krieger “Owners are now looking for follow-up charters and will have to get used to considerably reduced rates” “When the banks begin to trust each other, trade will flourish again”
Friederike Krieger and Patrick Hagen, Leer - Dienstag 11 November 2008
ALFRED Hartmann has not bought into the hysteria surrounding the impact of the financial crisis on shipping. “It is too early to speak about a catastrophe. Charter rates only started to become problematic four weeks ago,” he says calmly. During recent years, the shipping industry has earned a lot of money — more than enough to endure hard times like these, he says. Besides, he is optimistic that rates will rise again in 2009 and while economic growth is clearly slowing down, basic needs will stay.
As one of the world’s largest and most influential shipowners, active across a wide range of sectors, his attitude should not be dismissed as blind optimism. Capt Hartmann’s strategy of diversification appears to be his greatest defence against the current market volatility. ”We want to achieve a certain amount of market power in every shipping segment we are active in”. It is the same basic thinking that makes Capt Hartmann try to reduce dependency on the charter market. Only around 40% of his fleet is chartered out. Within the Hartmann group there are a number of independent companies, which act as cargo agents for the group’s non-containerised fleet as well as those of other shipowners. With crashing charter rates, this strategy now seems to be paying off.
An exception to this rule is Hartmann’s fleet of containerships, which is fully chartered out to big names such as Maersk Line, Hapag-Lloyd or Hamburg Süd. The strategy appears to be working so far. While other companies have already been hit by the early return of chartered vessels, Capt Hartmann’s various interests have escaped unscathed. “To date none of our charterers have handed vessels back to us ahead of schedule”.
But not all shipowners are going to be so lucky. Some could face trouble as a high number of charter contracts expire in November, December or January, says Capt Hartmann. “Owners are now looking for follow-up charters and will have to get used to considerably reduced rates.” This could be a problem, particularly for shipowners with a small equity base who bought highpriced vessels and now have to cope with the lower charter rates.
Capt Hartmann became an owner in 1981, when he bought his first secondhand 1,400 dwt vessel. During the early years, Capt Hartmann was also the master of his own vessel. A short time later, he bought his second ship. A year later, his first newbuilding was put into service. Some 27 years later, the Hartmann group owns more than 130 vessels, including containerships, bulkers, tankers, liquefied petroleum gas carriers and multipurpose ships. \\\"In the coming years, a considerable number of ships will be added to our fleet,” says Capt Hartmann. The full details of this orderbook is unknown and Capt Hartmann is not about to disclose all his secrets, but his statement should not be taken as an idle boast. Last year, Hartmann built up the largest orderbook by number of vessels of all German owners, with more than 100 vessels on order, according to information collected by German shipping funds expert Jürgen Dobert. Part of Hartmann’s orderbook is a series of 3,400 teu containerships to be built by Blohm+Voss in Hamburg.
Despite his impressive orderbook, Capt Hartmann agrees with the prevailing industry wisdom that a significant number of vessels ordered by shipowners all over the world will never be built or delivered. He believes that shipyards are facing hard times. “There are hardly any new orders at the moment and existing orders are being cancelled on a grand scale,” he says. “Asian shipyards in particular are seeing a high number of cancellations, among them big projects from German shipowners,” says Capt Hartmann, who has already been approached by a number of yards seeking someone to take on a number of ships abandoned by other owners.
A lot of Chinese shipyards will have to close down, says Capt Hartmann, but the slump will not stop there. “The crisis will not spare German shipyards,” he says, referring to Cassens Werft in nearby Emden, which has had to file for bankruptcy this year. Speaking of financing, Capt Hartmann says that not all banks have stopped ship financing projects for this year. “The banks are very selective but the books are not closed yet,” he says. Far from cancelling existing orders, Capt Hartmann is looking to break into a new sector. The shipowner has ordered 12 anchor handling tug supply vessels from Italian shipbuilder Fincantieri. The deal was financed by German bank NordLB. For the bank, the €420m ($542m) project is its biggest ever in shipping. The ships are due for delivery by mid-2010. It will make Hartmann the third largest owner of anchor handling tug supply vessels in the world.
The move is typical of Capt Hartmann’s stated strategy to own around 40 ships in every segment. “If a fleet is too small, it is not flexible, because you are always dependent on others”. With his prospective fleet of 12 AHTS, Hartmann will be able to work on large jobs independently. Despite this unusually bullish outlook, Capt Hartmann is, of course, not unaware of the downturn hitting shipping markets. He is, however, firmly of the belief that the industry is facing a banking crisis rather than one of the real economy. “When the banks begin to trust each other, trade will flourish again,” he says. He blames the bank’s current behaviour for hampering trades considerably with not accepting and issuing letters of credit. “If the buyer’s bank does not accept the seller’s bank, the deal will not take place or will have to be delayed,” Capt Hartmann says.
This situation is also negatively affecting shipowners who normally are not paid in advance and who also want to have a guarantee that they will get their money. Owners have started to delay discharging the goods until they have been paid. This is slowing down trade but Capt Hartmann also sees a positive aspect. “Cargo, which is normally shipped in 10 days, now needs 13 or 15 days, because the vessel has to wait at each port.” This trend could shorten tonnage and stop the decline of charter rates. “People will not stop eating bread, driving cars and buying a new outfit because they have less money in their pocket. They may choose to buy cheap products from Asia. That would mean more goods are being transported in the container sector,” Capt Hartmann says.
In the bulk sector, one has to differentiate. Big bulkers have mainly transported ore to the booming economies of China and India. “If Chinese imports slow down or when the imports are handled via ports near home, less transport capacity is needed,” says Capt Hartmann. Business for small bulkers up to 50,000 dwt, which carry corn, fertiliser and coal, will proceed as usual, perhaps on a slightly lower level, he says.
Hartmann Group: News
We would like to keep you informed of important activities in the business group as they develop. Here you can find up-to-date information on the Hartmann Group.
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CAPE SIZE CHRISTENING
In August a small delegation set out to China to christen the biggest ships ever contracted by the Hartmann Group - the two Capesize bulk carriers MV Lancelot and MV Percival under construction at New Century Shipbuilding in Jing Jiang City in China. read more more
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MT "GASCHEM HAMBURG" delivered
Hartmann Shipping, settled in Leer, took over the first vessel of the LPG/Ammonia Gastanker seriesLEER. Hartmann Shipping, settled in Leer, took over its newest vessel in Ulsan, Korea in the middle of August 2010. more (PDF)Press release, August 2010 more
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CHRISTENING CEREMONIES IN CHINA
On the 15th and 16th July 2010 another six ISN Newbuildings were christened in China as follows: read more more
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DELIVERY OF UBC SAGUNTO
We have the pleasure to announce, on behalf of our Cypriot clients, that MV UBC Sagunto was delivered on the 3rd August 2010. read more more
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KEEL LAYING OF HULL NO. SH-1188
We are pleased to announce, on behalf of our Cypriot clients, that on the 2nd August the keel of Newbuilding SH-1188 was successfully laid at Saiki Heavy Industries Co. Ltd in Japan. more
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Optimalization safety procedures
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Succesful christening of mv Barentszdiep
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Medium range (MR) product tankers in commercial management
We are pleased to advise that the two MR product tankers, FSL Hamburg and FSL Singapore, have entered into commercial management with UPT. more
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UOS ENTERPRISE welcomed to the fleet
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AHTS no. 8 "UOS Freedom" delivered
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Delivery of UOS Liberty
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KEEL LAYING OF HULL NO. HCY-132
We are pleased to announce, on behalf of our Cypriot clients, that the keel of Newbuilding HCY-132 was successfully laid on the 25th June at 09.38lt at Shandong Huanghai Shipbuilding Co. Ltd in China. more
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LAUNCHING OF HULL HCY-131
We are pleased to announce, on behalf of our Cypriot client, that the launching of the Newbuilding HCY-131, to be named UBC Cyprus, took place on the 24th June at 11.08lt at the Shandong Huanghai Shipbuilding Co. Ltd in China. more
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Employees wanted
Due to our growing fleet, we are expanding our team. Read more more
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ISN readies to receive first capesizes
Article featured in Seatrade magazine, Issue 3, June 2010 p.73 more
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News article from Seatrade, Issue 3, June 2010
Article featured in Seatrade magazine, Issue 3, June 2010 pp.69-70 more
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CHRISTENING CEREMONY OF HULL SH-1186
On the 7th June 2010 the hull SH-1186 gracefully received her name at Saiki Heavy Industries Co. Ltd in Japan. read more more
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LAUNCHING OF HULL BC-0117636
We have the pleasure to announce, on behalf of our Cypriot clients, that the successful launching of newbuilding BC-0117636 took place on the 6th June 2010 at New Times Shipbuilding Co. Ltd in China. read more more
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Transas shiphandling and engine room simulators supplied for two Intership Navigation capesize bulkers
read more more
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Launching of LPG/E/C "GasChem Warnow"
On 04th May 2010, LPG/E/C "GasChem Warnow" was launched from her building yard Altintas in Yalova, Turkey more
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LAUNCHING OF HULL RC-20
We have the pleasure to announce, on behalf of our Cypriot clients, that the successful launching of hull RC-20 took place on the 11th May 2010 at Rongcheng Shipbuilding Industry Co. Ltd in China. more
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KEEL LAYING OF HULL NO. BC-0117637
We have the pleasure to announce, on behalf of our Cypriot clients, that the keel of Newbuilding BC-0117637 was successfully laid on the 30th April 2010 at New Times Shipbuilding Co. Ltd in China. more
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LAUNCHING OF HULL HCY-61
We are pleased to announce, on behalf of our Cypriot clients, that the launching of hull no. HCY-61, to be named Seaboard America, took place on the 16th April 2010 at Shandong Huanghai Shipbuilding Co., Ltd in China more
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Cape Talara delivered
We are pleased to announce that the above LR1 new building from New Times Shipbuilding Co. in China entered into commercial management with UPT on 3rd May 2010. more
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Christening LPG/E "GasChem Adriatic"
On Saturday, 20th March 2010, LPG/E "GasChem Adriatic", the third of a series of four 17.000 cbm Ethylene carriers for Harpain Shipping, was christened by Ms. Elke Schmidt in Warnemünde. more
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Intership strategy makes crewing numbers work
Long-term planning has been the key to [...] Intership getting its crewing requirements absolutely right. Article published on TradeWinds, 19 March 2010 more
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SCHOOLCHILDREN ONBOARD UBC CARTAGENA
Friday the 12th March was indeed a great day for a small school class from Almirante in Panama. They were welcomed onboard MV UBC Cartagena by the crew and was treated to a full tour of the vessel followed by lunch. Organiser of this fun day was Mr. Ad Ligthart, Operations Manager at Changuinola Civil Works Joint Venture Inc. (CCWJV), the vessels' charterer. read more more
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Hartmann continues the "green course" with new deliveries
On the 11th and 12th March 2010 the shipping company took over two modern 2.000 TEU container vessels.LEER. The Hartmann Reederei of Leer/Germany, announced that it successfully took over two 2000 TEU modern container vessels with Hyundai Mipo Shipbuilding in Korea. The modern gearless container vessels MV "FRISIA BONN" and MV "FRISIA NÜRNBERG" have a capacity of 1388 TEU basis 14 mts homogeneous intake as well as a high reefer capacity of 442 FEU. more (PDF)Press Release, March 2010 more
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Third AHTS delivered to Hartmann Offshore
October 5, 2009, at 12:00 hrs local time Hartmann Offshore took over the UOS COLUMBIA on behalf of the ship-owning KG. The UOS COLUMBIA is the 3rd of in the series of 12 AHTS vessels ordered from Fincantieri in Italy.The UOS COLUMBIA will join the UOS AHTS Offshore Pool, managed by UOS United Offshore Support. Hartmann Offshore is responsible for the technical management and crewing.A special thank goes to Gerrit Faber, who assured the excellent quality of the vessel together with his supervision team at the yard! more
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Delivery of UOS CHALLENGER
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UOS DISCOVERY delivered
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Hartmann Offshore fleet expanded
On Thursday, March 11, and Monday, March 15, 2010, Hartmann Offshore took delivery of the AHTS vessels UOS ENDEAVOUR and UOS EXPLORER. The vessels are no. 5 and 6 of the series of in total 12 AHTS vessels built with Fincantieri’s naval vessel division in Italy. The vessels will be commercially managed by UOS and will join the UOS AHTS Pool. Hartmann Offshore will be in charge of the technical management. We wish the captains and crews always calm seasons and a happy return! more
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Software aims to harmonise format of plans and manuals
[...] United Arab Shipping Co is trying to get manufacturers involved in some of its newbuildings to deliver electronic plans and instruction manuals in a single common electronic format... - Lloyd's List, Tuesday March 2,2010 more
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Two handies delivered
We are pleased to announce that Mount Everest and Mount Kibo have been delivered from Hyundai Mipo Dockyard and have entered the UPT Handy Pool. more
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KEEL LAYING OF HULL NO. SH-1186
We have the pleasure to announce, on behalf of our Cypriot clients, that the keel of Newbuilding SH-1186 was successfully laid on Friday 05th March 2010 at Saiki Heavy Industries Co. Ltd. in Japan. more
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Shipdex Sets the Standard
The 4th Shipdex Conference took place at the MAN Diesel PrimeServ Academy in Augsburg, Germany on 16 February, where the Shipdex protocol was declared ready and available for use. Read more in the attached press release. more
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Farewell LPG/E "GasChem Ben Flor"
After 14 years in service under commercial management of GasChem Services, LPG/E "GasChem Ben Flor" was sold by Bernhard Schulte and delivered to her new owners. more
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TWO UNIQUE VESSELS WITHIN THE MCP POOL
MCP Paphos and MCP Pachna are two very unique ships. The two vessels are part of the successful MCP Pool, a commercial pool of same-type feeder vessels consisting of 27 exact sister ships, that was founded in Cyprus in July 2005 by a small number of shipowners who decided to invest in a series of these 630 TEU feeder vessels. read more more
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UBC Tilbury christening (video)
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Lloyds List - Business built from scratch becomes a family legacy
HARTMANN Group’s headquarters are based in the East Frisian town of Leer, 48 miles from the sea and 148 miles from the country’s maritime hub Hamburg. From Leer, Alfred Hartmann and his staff have to drive about one and a half hours to the next international airport. And yet, despite this apparent dislocation from the typical German shipping operation, Capt Hartmann controls a widespread group with affiliates in the Netherlands, Cyprus and Singapore from his three-storey, newly-built but modest office building in a remote corner of Germany, writes Patrick Hagen. more
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Lloyds List: Hartmann Group takes heart from its solid game plan
The global downturn may be making for turbulent shipping markets but the Leer shipowner is quietly confident that its diversification strategy will deliver further growth, write Patrick Hagen and Frederike Krieger “Owners are now looking for follow-up charters and will have to get used to considerably reduced rates” “When the banks begin to trust each other, trade will flourish again” more
