Continued decline in gross freights for ocean transport

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Total gross freights for enterprises within ocean transport were NOK 125.9 billion in 2017. The decline has continued in 2017, with a reduction of 10.6 percent from 2016.

Written by: Tom Jonas Billit

A challenging lay-up situation and a weak offshore marked, was contributing factors to the overall reduction in total gross freights for ocean transport in 2017. The operating profit for the industry decreased by NOK 6.3 billion to NOK 9.1 billion in 2017. The operating margin was 7.2 percent in 2017, compared to 10.9 percent in 2016.

Decline for offshore vessels

Offshore vessels reduced their freight income by NOK 7 billion from 2016 to 2017.

More stable situation for coastal traffic

For domestic freight transport, there has only been a marginal change in income from 2016 to 2017. Car ferry services also had more or less the same income in 2016 and 2017.

1 Gross freights excluding commission and management fees.

Figure 1. Gross freights, operating costs and operating profit last five years¹

2013 2014 2015 2016 2017
Total gross freights 122.65 133.10 134.62 129.25 119.90
Total operating costs 114.26 124.77 128.19 125.57 116.78
Operating profit 17.51 19.86 21.91 15.35 9.07

1 Statistics Norway Classification of type of vessel 2008.

2 Includes 5-Offshore vessels, 6-Tug and salvage, 8-Specialized vessels and support, and 9-Other.

Figure 2. Gross freights last five years, by type of vessel¹

2013 2014 2015 2016 2017
1 Tanker 31.1 26.6 30.4 33.4 31.5
2 Bulk vessel 18.4 24.4 14.2 16.6 10.0
3 General cargo/other dry cargo vessel 29.5 32.5 36.6 32.9 31.2
4 Passasenger vessels 5.3 5.5 5.5 6.7 3.7
5 Other vessel types² 34.2 38.5 33.5 27.0 20.0

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