The successful launch of Faroe Agency little more than three years ago could help the Faroese shipping sector engage more in international transit traffic. Already a contributing factor to sustained growth, the transit trade offers what appears to be an untapped business opportunity from a Faroese standpoint, said Faroe Agency co-founder and partner Karl-Erik Reynheim.
Mr Reynheim pointed out that whereas the number of foreign ships calling at Faroese ports has remained stable if not rising in the last few years, related activities have increased substantially, resulting in more business for the shipping agency. With orders of thousands of tonnes being handled in transit on behalf of trading companies, container shipments from the Faroes to the Far East have become larger and more frequent expected to keep growing for the foreseeable future.
Much of the increase in activities is being attributed to the fact that high oil prices and CO2 emission charges have forced ships to reduce fuel consumption and, in consequence, berth rather than anchor in the roadsteads. In this process, Mr Reynheim said, some of them discover new business opportunities.
I think whats happening is that our clients are starting to see new possibilities in using our infrastructure, he said. With the facilities available today, you can do almost anything, especially if you have the right combination of services at your fingertips which our clients have.
As market leader in the domestic shipping agency business, Faroe Agency offers an array of services ranging from crew change to supplies, storage, repairs, port operations, clearing and forwarding. We work closely with the ports, the transport and logistics sector, the various authorities, and many industries and services, Mr Reynheim said. Some of the ports are well equipped for transit transport, with liner traffic, container terminals, cold storage facilities, stevedoring services, and trucking, all in one place.
In this business, effective coordination is everything and, therefore, something that calls for the expertise of experience.
Professionalism, reliability and knowledge of the business are among the most important qualities And you have to be very well connected, both locally and globally. Our clients trust us to handle their affairs, which is both a privilege and a responsibility. Essentially, what we do in cooperation with our business associates is making sure our clients get everything they need, goods or services. This means we have to work both here and anywhere else in the world, for that matter.
Together with his partners managing director Árni Dam, who is also the Honorary Consul of Russia to the Faroe Islands, and finance manager Maria á Lava Mr Reynheim founded Faroe Agency to serve foreign vessels visiting the Faroes. Making between five hundred and one thousand calls at Faroese ports throughout the year, most of these vessels are Russian. A former sea captain, Mr Dam is credited for pioneering the agency business more than thirty-five yeas ago when he, as a director with Faroe Ship, set out to take care of foreign, primarily Russian ships entering Faroese waters. Like his older partner and friend, Mr Reynheim is also a former master mariner, with decades of experience in domestic and international shipping.
Weve been very busy since we opened, he said. Weve employed new staff lately However Im afraid the question is not if, but when well have to hire additional people.
Providing supplies has also been a growing source of revenue in recent months, partly because more ships are berthing more frequently, and partly because many of them have become more modernized.
Most of our client vessels have started to make more use of the available harbor facilities and therefore theyre getting more familiar with the various services that are available. At the same time, weve seen considerable port development taking place lately and also, new services are being offered
Its a lot of different stuff. For instance, one of the companies that provide packaging materials for the fishing industry has been taking big orders lately as the Russians have started using the materials that they were offering.
Another example: a new bunker facility is being completed in Fuglafjörður, one of the major fishing ports.
The Russians and others as well, will be able to receive the fuel blend of their choice in port, and that will doubtlessly make life easier for them. It will also reduce the risk of environmental hazards associated with bunkering at sea. And, of course, it will generate more business for those involved in the service.
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