Lloyd’s Register affected by shipping crisis

The British classification and counselling company, Lloyd’s Register, which is closely connected to many of the world’s big shipping companies is also feeling the global shipping crisis. The many newbuilding orders which were placed before 2010 have helped keep the crisis at bay but now it is going to be felt. Thomas Thune Andersen, President of the Lloyd’s Register Board of Directors, has told ShippingWatch that the outlook for 2013 and 2014 is bleak.

“There is a considerable reduction of markets taking place over the next couple of years, especially in 2013 and 2014. This is a development that the entire industry, including Lloyd’s Register, will have to take into consideration. A lot of our clients are under pressure and we will, in close cooperation with the relevant clients, have to find out how we can insure a positive bottom line. It may be done either by looking at the prices of our products or by optimising the ways we operate.”

Suffering same fate

Lloyd’s register is therefore suffering the same fate as their competitors who include Bureau Veritas, DNV and American Bureau of Shipping. As a response to the crisis, Lloyd’s Register plans to develop a closer relationship to their customers and include them earlier in processes in which a large client, e.g. Maersk, plans to build new ships or change its existing tonnage. The classification bureaus in general have big expectations towards the coming surge in orders after the newly adopted environmental protection standards originating from the EU and the IMO. These standards will necessitate adjustments on many vessels e.g. the ones involved on short sea routes in the Baltic Sea and the North Sea. This may involve certification of scrubbers, the industry’s proposal as to how the shipping companies can lower their CO2 emissions. Or maybe it will involve rebuilding existing vessels and have them sail on LNG-technologies, another project in which Lloyd’s Register can earn money.

Under pressure

“Today, many shipping companies focus a lot on the ways to secure efficient operations and save money in doing so. Even though the industry is under pressure it is still dynamic as we have seen an increased focus on safety, environment and operating costs which is very interesting to us. That is why we, to an in "creasing extent, will use our knowledge to become more proactive and involved in the processes of the future” Thomas Thune Andersen says.

Thomas Thune Andersen: "Be true, honest and consistent" 


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