ShippingWatch

Novenco: Change from commercial ships to offshore has occurred

The supplier industry will have to change its focus from commercial ships to offshore as offshore has already taken over the role as the industry in which money are to be made, Novenco CEO Steen Rasmussen tells ShippingWatch.

Novenco sells three times as much heating, cooling and aircondition equipment to the offshore sector than it does to the commercial ship sector. This is the new reality and the development has taken place in recent years as commercial ships have lost their momentum due to overcapacity and historically low freight rates whereas the offshore industry has benefitted from the financial development and thereby gained a good position in the hearts of the suppliers.

“We have witnessed an extreme focus on cheaper commercial ships and even though we are in a market leading position in commercial shipping we perceive it as a market under much pressure. We experience a market which is more and more focused on retrofits instead of newbuildings as the shipowners may compromise on certain issues of they want the cheap solution and thereby a less expensive ship. That is why our client group is among the bigger and more technically oriented carriers looking to create good working conditions – possibly by retrofits,” Steen Rasmussen tells ShippingWatch.

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