(Introduction)
When I walked into Torvard Klaveness’ Singapore office, I saw a large display of electronic nautical charts at the back of the main floor. Torvard Klaveness was founded in 1946 and the Singapore office opened in 2006, so the name of this historic tramp shipping company is not unfamiliar to anyone. However, I became clearly aware of the name Klaveness when Mikael Jorgensen visited the country in October 2018 and I interviewed him about Klaveness Digital. At the time, I felt that. “Do we need digital in the tramp business? Five years later, my doubts have changed drastically. Digital is essential for shipping.
■Experienced Dry operator and chartering
”Klaveness has KCC, Klaveness Dry, and Klaveness Digital under the umbrella of its holding company. Our colleagues in Singapore focus on three main businesses within Klaveness Dry: Pools, Market Manager, and Klaveness Chartering”.
Michael Jorgensen, Senior vice president Head of Dry, whom I had not seen for five years, briefly described the Singapore office.
Klaveness Dry covers chartering and forwarding in the Pacific and Indian Oceans, with a focus on Panamax.
Chartering is a very important part of Klaveness Dry. It is important to know when to use ships and how to transport cargo efficiently.
Eivind Lyford, Vice president Head of Pacific C&T, who is responsible for chartering, describes Klaveness Dry’s chartering activities as follows: “Klaveness Chartering charters about 450 vessels a year, based on the group’s vision of “improving the nature of shipping” by drawing on its 75 years of experience and the wealth of knowledge it has gained along the way. We don’t just work within the market, we offer our services 24 hours a day, 7 days a week.
-We don’t just work within the market.
What does Ivan mean by that?
Michael explains.
”For example, in 2020 we started a pool operation with Marubeni, a large Japanese trading company, focusing on Panamax. The dry market is very volatile. When we see the market going up, we call the owner. We ask them if they want to lock in their charter rates for the next three months before the market goes down. Very few pool managers do that. But we always want to develop the pool together with the owners. That’s why we communicate in this way. After a successful partnership for 3 years, Marubeni Ship Department and Klaveness Dry Bulk have increased to increase collaboration where Marubeni through investment are taking 25% ownership.
■Key element of Klaveness
Another “weapon” Klaveness Dry has is the digital approach to shipping.
In 2015, at a time when the shipping industry had little to do with digitalization, Klaveness stated in its strategy document: “Digital is the future of shipping. What impact will digital have on shipping in the future?
Michael explains.
For the first 3-4 years, we didn’t really know what digital meant to us. We didn’t really know what it was. But the seeds of digital were planted in 2015, and now, seven to eight years later, we are reaping the rewards”.
The digital tools available to the market do more than just optimize routes and provide at-a-glance satellite data such as ship position and course.
The company offers two services: “Cargo Value” for best-in-class management of inventories & demurrage for industrial clients and Market Manager for optimized freight decision-making for owners, charterers, traders & operators.
Michael explains.
”When we went to Japan in 2018, we briefed each operator. For example, a coal-fired power plant needs to manage its coal inventory and consumption, as well as its supply by ship. With the help of Cargo Value, they can optimally plan their marine transportation and adjust their inventory levels to the right level. Now we not only handle the cargo aspects but also the key freight decisions through the market manager, again Improving the Nature of Shipping”
Klaveness is the most advanced digital advancement among the world’s tramp fleets. It is an initiative that had already started in 2015.
But at the same time, Michael also talks about the importance of communication among his colleagues.
”I try to listen to my colleagues at Klaveness Dry, including Haruki Chua, Market Manager, and Daisuke Fukuda, Senior Marketing Manager, who works for Marubeni Corporation. Sometimes there are opinions I don’t like to hear. I think these opinions are important. Everyone is a professional. So, I consider it my job to create an atmosphere in which my colleagues can express their opinions freely.
Digital and communication skills.
My visit to Klaveness’ Singapore office gave me a clear sense of the key elements required by the next generation of shipping companies.