NORDEN is a global operator of tanker and dry cargo vessels with a clear ambition to position itself as a service company which delivers high quality to customers. In order to do this, we continuously develop our customer focus and adjust our portfolio of capacity and cargoes. Through our offices in North America, South America, India, China and Singapore we approach customers locally and accommodate our services to their needs. Furthermore, we focus on building long term partnerships with both shipyards and customers. A competent and dedicated staff is a prerequisite for our success.
Our business model is based upon four cornerstones:
- A modern flexible fleet
- Coverage of capacity
- Customer focus
- The right people
We have built critical mass in our operations and we can offer customers a high degree of flexibility.
NORDEN is flexible in the way we obtain our fleet capacity – we have owned vessels, long term chartered vessels and vessels which are chartered in for a short period or even for a single trip. This gives us the flexibility to choose the form which we believe is optimal under the given market conditions.
In addition, a large part of our long term chartered fleet has purchase options (POP) and extension options attached. This enables us to expand the fleet, if the market is strong without any obligation to keep the vessel beyond the fixed period if markets weaken. Also, we get the upside from the asset play without investing capital in a fleet.
Buying and selling vessels are an integral part of NORDEN’s business model. We do it quite pragmatically by weighing the profit to be gained from selling a vessel against the benefits of keeping it. If the profit is attractive and we are able to cover our capacity needs in other ways, we sell. Dry cargo fleet Tanker fleet
On the employment side, NORDEN uses both contracts of affreightment (COA) and charter out (TC out) agreements to seek coverage - so our capacity expansion is not simply a play on the direction of the spot market. We focus intensely on partnering with customers in order to obtain an appropriate level of coverage on the fleet.
To manage our exposure, NORDEN applies a detailed risk-management system which incorporates all the major variables that affect our obligations – charter payments and income, bunker prices, interest rates and exchange rates. This means that our expansion can be planned within firm limits and enables us to make swift decisions based on a complete overview without running the risk of over-exposing the company. Risk Management
A competent and dedicated staff is a prerequisite for our success. This means, that NORDEN basically is a ‘software’ company; our main assets walk around in the offices, at our ships and in the ports.
It takes dedicated, highly skilled people and broad corporate experience within chartering, operations, ship management and finance, as well as a strong culture, and strong systems and business practices to make it all work. People
NORDEN's business model is based on 2 main parts
- Exploiting the cycle
- Value creation throughout the cycle
The timing of changes in the exposure to the market can be crucial within tramp shipping, but over the years, NORDEN has also been able to create added value in daily operations in both upward and downward markets on the basis of a strong organisation, a recognised brand and optimised processes and systems.
The 2 main parts of the business model are strongly connected. Some activities are directly overlapping e.g. long-term cargo contracts, which are coverage of market exposure, but at the same time constitute an essential element of the operator business and the optimisation of this. NORDEN strives to make use of competences and knowledge across the 2 main parts.
The foundation of both parts is the daily effort of highly qualified employees, which is based on the Vision of open minded team spirit. Cooperation across sections and organisational divisions is vital to achieving success and creating more value than the industry average.