Concordia Maritime focuses on the transportation of refined petroleum products. This segment is one of the most expansive in tanker shipping and offers large opportunities. Although the market may weaken still further due to the global economic climate, there is considerable longterm potential in the transportation of refined petroleum products. As a result of increasingly tough environmental regulations and enormous investment costs, refinery capacity is no longer being built in the Western World at the same rate at which consumption is rising. Instead, new refineries are being built in the Middle East or Asia, which means that distances from the refineries to the end consumers are longer.
At the same time, growing demands are being made on cost-effectiveness, flexibility, safety and environmental considerations. For Concordia Maritime, this translates into excellent opportunities for good business deals.
The company is working continuously to identify and evaluate both general market and specific customer requirements. Its goal is to continue to expand, while maintaining good profitability, together with both existing and new customers.
The MAX concept – world class vessels
Behind the development of the MAX concept is a need for vessels able to operate in waters and ports with draft limitations and loading substantially more cargo. To meet this need, the vessels designed according to the MAX concept are much wider than other vessels in the same size class. Their larger beam gives them a much larger loading capacity on a limited draft. The unique design of the hull and the divided stern give both fuel economy and speed characteristics that are as good as or better than standard tonnage.
At the forefront of safety
The MAX concept takes safety to a new level. The vessels are built with double systems for propulsion and manoeuvring, just like an aircraft. They have two separate engine rooms separated by fireproof and watertight bulkheads. All control systems are separated and each engine has its own fuel system. Additionally, double rudders and propellers provide better manoeuvrability, which is also a major advantage in terms of efficiency and safety. The bridge is designed to provide a 360 degree view and is equipped with a co-pilot system, i.e. double control systems, which enhances safety and facilitates training. A double hull is a matter of course and means that all tanks containing oil or oily water are protected by a hull consisting of two layers.
Three ship types so far
The MAX concept has been developed in close cooperation with primarily Stena Bulk, Stena Teknik and Northern Marine Management. Since the concept began to be developed at the end of the 1990s, three ship types have been produced; V-MAX, P-MAX and C-MAX. Several other MAX vessels are under development.
The fleet in 2008
At the end of the year, the fleet consisted of ten tankers: six P-MAX tankers, two Panamax tankers and two V-MAX tankers. A further four P-MAX tankers have been ordered and will be delivered from Brodosplit Shipyard in Croatia in 2009 and 2010. When all the tankers have been delivered, Concordia Maritime will have one of the most modern tanker fleets in the world.
Based on the philosophy of the MAX concept – transport economy, flexibility, safety and environmental consideration – these vessels are in a class of their own as regards transport economy and safety. Compared with a traditional product tanker of the same size, a P-MAX tanker can transport about 30 per cent more cargo. At the same time, double main engines, propellers and control systems make the vessels far safer. All this means that these tankers are very competitive, not least in areas and ports with extra high demands on safety.
All vessels on order signed to charters
All the vessels, both on order and delivered, have been signed to charters of between five and ten years. These long-term charters give the company stability in terms of revenue, which is not affected by short-term developments in the market. In part as a result of the sale of the two V-MAX tankers in 2004, Concordia Maritime is now in a strong financial position. This creates good opportunities for taking advantage of the business opportunities that arise in a falling market.