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SBW Increases Cargo Tonnage |
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Written by B. Tyril
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Wednesday, 16 April 2008 |
After a severe winter that brought disruptions for Iceland in particular, freight forwarder Smyril Blue Water moves to secure more capacity for its North Atlantic transport service — meanwhile gaining market share in the Faroes.
In spite of operational disruptions caused by heavy weather during the winter of 2007/08, North Atlantic freight forwarding company Smyril Blue Water pressed ahead with plans to increase its chartered tonnage the following season.
Director Bent Rasmussen told this publication in March that Smyril Blue Water, in addition to its year-round slot charter agreement with Smyril Line superferry Norröna, had decided to charter a second ro-ro (roll-on/roll-off) ferry for “a more extensive period” compared to last season. In order to secure sufficient capacity for its cargo service to restore service in Iceland and meet growing demand in the Faroe Islands, Smyril Blue Water was working to charter a suitable vessel to offset potential bottlenecks caused by overlap between freight and passenger traffic, Mr Rasmussen said.
An extraordinarily stormy winter brought chaos more than once to the North Atlantic region, forcing Smyril Line to temporarily cancel scheduled sailings. On 31st March, the Norröna was set to resume the summer-half schedule but it remained unclear whether the ferry operator would reinstate winter sailings with regard to the stretch between Iceland and Faroe.
Smyril Blue Water, however, appeared determined to honor commitments in Iceland.
“We’re looking at offering a year-round service for our Icelandic customers and that means the period from the beginning of October to the end of March will have to covered,” Mr Rasmussen said.
“We are already investigating the market to locate the perfect ship,” Smyril Blue Water announced earlier as the Norröna was going out of service for repairs.
“Until successful, we have agreed with Smyril Line that the freight capacity onboard Norröna will be expanded again.”
Founded in 2005, Smyril Blue Water was established as a joint venture between Blue Water Shipping and Smyril Line to handle freight activities related to the Norröna. Some 130 trailers can be loaded on board Smyril Line’s ferry and the arrangement enables Smyril Blue Water to offer transport direct from shipper to consignee in an unbroken reefer chain without reloading of temperature-controlled goods.
With its large vehicle deck, the Norröna is seen as an unbeatable combination of passenger/freight ferry, ideal for the rolling cargo concept offered by Smyril Blue Water to link Scandinavia, Europe and the North Atlantic countries. For chilled or frozen seafood, using reefer trucks and a ro-ro ferry is by many exporters considered the fastest and safest way for their products to reach clients on the European continent.
“To secure as stable conditions as possible throughout the process, we use pallet wide trailers that move on wheels,” Mr Rasmussen said. “It’s a system that offers a quick and secure service in an unbroken chain.”
But with North Atlantic destinations becoming increasingly popular, summer tourism is placing growing numbers of passengers with cars on board the Norröna, jostling with cargo.
“We’ve been chartering a second ro-ro ferry to supplement the Norröna during the peak of the summer season,” Mr Rasmussen said.
“To cope with growing demand for transport and logistics services, we’ll be signing a contract for a more extensive period this year. We’re planning for a six-month chartering agreement rather than the three-month period we got last year.”
Another reason to charter more tonnage than earlier: the resurgent aquaculture industry in the Faroes. “We’ve been expecting an increase in the export of farmed salmon which started to pick up last year; it’s obvious that shipments will be more frequent this year with larger quantities.”
While moving goods from the Faroes to continental Europe is keeping Smyril Blue Water busy throughout the year, transporting cargo the other way around has taken on a growing importance as well. SBW Express, the company’s airfreight and courier service division has proved highly successful, establishing itself at the top of the market.
“We have noted a dramatic growth in imports to the Faroes in the past two-three years or so. The bulk of the volume is of course surface cargo but airfreight has been growing at a surprisingly high rate. SBW Express has full access to the worldwide Blue Water infrastructure and Blue Water has long been an IATA agent, all of which contributes to make our service competitive.”
As he came to the Faroes to temporary replace the former general manager who jumped ship to join a Tórshavn wholesaler, Mr Rasmussen commented: “In this business, the only sure thing is that everything keeps moving.”
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Maritime & Related