Anne-Louise Dam-Rasmussen and Nicolai Bro Johncke, NORDEN, Denmark, explain the importance of identifying new opportunities in the dry bulk industry.
A growing demand for new services to help customer service, paired with an increasingly transparent and standardised dry cargo freight market, has created the need for identifying new ways of assisting clients.
From a single voyage to a 15 year running contract, NORDEN can offer solutions and add value. One way the company has grown is in offering an integrated freight package combining freight with a logistic solution, which takes the form of the company’s Industrial Bulk team and port captains. The Industrial Bulk team handles all dry cargo freight contracts over two years globally, as well as special projects, and generally works to spot new business opportunities that can fit in to the day-to-day business in NORDEN’s dry cargo unit.
The two main focus areas for Industrial Bulk are increasing long-term contracts of affreightment (COAs), which will be a crucial generator of activity and arbitrage opportunities, and to engage in logistic solutions complementary to the dry bulk business to create long-term revenue streams – all supporting the changing needs in the market and identifying new opportunities.
Partnering for long-term growth
For the company, being able to offer integrated freight solutions goes hand in hand with long-term contracts. Conventional COAs are becoming less frequent and the competition is unsurprisingly steeper. In combining the existing freight platform by offering a deeper service in the supply chain solving port bottlenecks, the company believes it can become more attractive to certain customers.
Since its inception in 2011, Industrial Bulk has developed a foundation for further growth and the aim now is to accelerate this growth and continue to identify local partnerships that complement the business.
This is an abridged version of an article that was originally published in the November 2020 issue of Dry Bulk Magazine. The full version can be read here.
Read the article online at: https://www.drybulkmagazine.com/dry-bulk/04112020/opportunities-at-the-door/