Free Articles  >>  Business And Finance >>  Page 3379  >> 

Shipping Companies in Norway Facing New Challenges and Seizing New Opportunities

The economy in Norway is undergoing a period of transformation as it prepares for a post-petroleum era. Norway is facing the challenge of re-inventing its economy. The freight services industry in Norway is also looking to adapt and embrace new opportunities in response to changing market conditions.

Norway is a country that is extremely rich in natural resources and its economy has been largely based on exploiting these natural strengths in oil, gas and minerals. Norway's largest export is petroleum and petroleum products. In fact, petroleum and natural gas currently account for nearly half of its total exports and it is the world's third largest exporter of oil and gas. However, the challenge is now to adapt to the fact that the North Sea has past its peak oil production. Norway's offshore Oil production peaked in 2002 and so the Norwegian government is well aware that it cannot depend on oil revenues indefinitely into the future. The challenge facing Norway is diversification of its economy, so that it can maintain its high standard of living into a post-petroleum future.

So over the last decade, Norway has faced the challenge and begun a process of reshaping its economy by diversifying into new sectors so it can prosper after petroleum revenues decrease. This includes government support to create a competitive private sector with strengths in IT and technology. Norway is now encouraging the growth of small businesses and encouraging new private sector industry in a number of ways. By doing so, it is following the approach earlier adopted successfully by its neighbours Sweden and Finland.

Norway is fortunate in that is in a strong economic position and is one of the world's richest countries per head. Norway has large foreign trade surpluses due to the high cost of oil in recent times. This is enabling the government to invest in developing new industries to support its strategy of diversification.

The Norwegian government is thus able to help support the freight services sector as it faces the challenge of adapting to new conditions.

One of the private sector industries that is robust and growing in Norway in shipping. Shipping companies originally developed in Norway to serve the offshore petrolem industry and have now achieved a dominant market position. In fact, the shipping fleet in Norway is one of the most modern in the world.
Shipping and freight services has therefore been identified as an industry to be further developed and strengthened in future, as a key part of the Norwegian economy.

As shipping companies face the new challenges, the sector is showing innovation as shipping companies identify and seize new opportunities that are relevant for the post petroleum era.

For example, the Norwegian freight company sector is set to break new ground with the launch of the world's first gas-powered ro-ro vessels. Norwegian shipping company Sea-Cargo AS is building the vessels and they are expected to be launched by 2010. With the focus on lower exhaust emissions from short sea and coastal vessels, Sea Cargo AS identified liquified natural gas as the fuel of the future. These vessels will reduce CO2 emissions by 25% compared with a vessel run on conventional fuel.

Another way in which the freight transport sector is facing the challenge of new opportunities is exploiting new markets, created by changing economic conditions. An especially important area of opportunity for shipping companies in Norway is the Baltic Sea Region.

Norway, like its neighbour Finland, has a significant role to play in serving the Baltic region. Although the global economic crisis is having a negative impact on freight forwarding in many countries worldwide, international freight to and from the Baltics remains a growth area. The majority of shipping companies and economic commentators are expecting growth in the Baltic region to continue to be strong in the next few years. This will strengthen the freight services sector in those countries like Norway and Finland on which freight transport to the Baltic region depends.

The Baltic Region is now a main trading area for the freight forwarding and shipping company industry based in Bergen. They offer a frequent service to the Baltic Region, mainly with its fleet of side door vessels.The main item requiring freight transport is frozen fish from Norway, Scotland and Iceland. This is transported to many destinations in the Baltic Region. This is an expanding market, with an increasing demand for fish products as the buying power of cuustomers increases in the countries that make up the Baltic Region.

In ways such as these, shipping companies in Norway are showing that they can identify and seize the new opportunities created by changing market conditions. This means that the freight forwarding and international freight industry in Norway face a bright future as they rise to the challenge of responding to change.
About Author Stephen Willis :

Stephen Willis is Managing Director of RW Freight Services <a href="" target="_blank"></a> a UK based freight transport company, established in 1971 and operating specialist freight services to and from Norway <a href="" target="_blank"></a>

Article Source:
Article Url:

Article Added on Wednesday, March 4, 2009
Other Articles by Stephen Willis

Freight Services in Norway Riding the Wave
Freight forwarding can be challenging in Norway, given that the mountainous terrain, intercut with deep valleys and fjords, can make internal transport and freight services difficult in the harsh winters. However, the freight transport infrastructure in Norway continues to evolve to meet the challenges of the local geography and climate, with the use of transport by sea and waterways particular significant. A recent report by the Norwegian Centre for Transport Research has been a spur to...

Freight Forwarding In Norway Facing The Future With Confidence
Norway's economy is highly dependent on its offshore petroleum industry, centred around Stavanger and a vibrant freight services and shipping infrastructure has been established to support the continued growth of this industry. Norway has the third highest GDP per capita in the world, as well as achieving the top position in the world in 2009 for its UNDP Human Development Index. So Norway is a successful mixed economy with a winning combination of private sector activity and also large state...

Freight Services in Norway The Impact of the Green Agenda
There is a paradox at the heart of the Norway economy. It is a paradox that the government is wrestling with and that has a significant impact on the freight forwarding industry in Norway. The paradox is that Norway is one of the countries most committed to taking action to combat climate change - and is also one of the countries most directly responsible for causing it. The mainstay of Norway's economy has long been its gas and petroleum exports. In other words, it is dependent on...

India An Increasingly Important Export Market for the UK
India is one of the fastest growing economies in the world, in fact it is the second fastest growing of the developing economies after China. With a population of over 1 billion and a rapidly developing infrastructure as well as a fast growing middle class, India represents a very interesting new growth market opportunity for British businesses in a number of sectors. The freight forwarding industry has been gearing up to cater for this developing market and there are now many freight...

International Freight Adapting To Global Challenges
The international freight industry has benefited from an increasingly globalised world economy in recent years. The development of extended supply chains has led to significant growth in levels of international trade and this has of course led to growth in the freight forwarding industry. The growth in profitability for freight forwarders has led to many changes in what used to be a very conservative industry. Recently, there have been a large number of mergers and acquisitions from which a...

Freight Forwarding in Scandinavia Hotbed of Innovation
As home to some of the most innovative companies in the world – Nokia, Ericsson and Volvo to name but a few – it may come as no surprise that Scandinavia has also led the way in the freight forwarding market. The Nordic countries have often been a hotbed where the international freight industry has tested innovative developments. For example, when British Airways first tested freighter flights in the nineties, they looked to Gothenburg in Sweden rather than their major markets. A fleet of...

Freight Forwarders Face New Challenges
With increases in fuel prices and a slowing economy worldwide, the international freight industry faces new challenges. So what are the trends we are seeing in the international freight market and how will they affect the customer? The global freight forwarding market stood at 116.8 billion Euros in 2007, growing by just under 11%. This was the lowest level of growth seen by the international freight market for four years. The slowdown was caused mainly by the impact of the weak economy in...

Freight Forwarding in Finland Leading the Way
Finland used to be regarded as a remote, far flung destination but contrary to common public perceptions, it is a powerful business centre and a model for efficient freight forwarding operations. The country’s positive approach to international freight is part of a comprehensive strategy to build its global competitiveness. Finland has the second highest penetration of broadband internet in the world (second only to the US) and it has the very highest penetration of mobile phones in the world....

The International Freight Sector Supporting Sweden s Free Trade
Sweden is a staunch advocate of free trade and this is enshrined in Sweden's liberal trade policies. The whole concept of free international trade is at the heart of Sweden's economic policies and its roots were established as much as a thousand years ago. Sweden is not blessed with a terrain or climate that is good for agriculture and this led to Sweden starting to import from Russia and South East Europe as long ago as the 11th century. It is strange to think that even at that time and long...

Freight Forwarding Delivering What Customers Want
A new report on the freight services industry by Accenture says that two things separate the best performing freight companies from other shipping companies– mastery of standardised processes and the use of integrated IT. By applying automated processes, companies can cut the costs of freight transport, reduce errors and accelerate speed to market. Meanwhile, the use of integrated IT creates transparency for both freight companies and their customers as well as streamlining processes,...

Click here to see More Articles by Stephen Willis
Publishers / Webmasters
Article ID: 118100
DELINK URL from Authors Bio
REMOVE Article
Tell A Friend
Leave A Comment!
Download this article in PDF
Report Article!
Search through all the articles:

150 Users Online!!
Related Articles:
Latest Articles:
Business And Finance >> Top 50 Articles on Business And Finance
Category - >
Advertising Advice Affiliate Programs Automobiles
Be Your Own Mentor Careers Communication Consumers
CopyWriting Crime Domain Names DoT com Entrepreneur Corner
Ebooks Ecommerce Education Email
Entertainment Environment Family Finance And Business
Food & Drink Gardening Health & Fitness Hobbies
Home Business Home Improvement Humour House Holds
Internet And Computers Kiddos and Teens Legal Matters Mail Order
Management Marketing Marriage MetaPhysical
Motivational MultiMedia Multi Level Marketing NewsLetters
Pets Psychology Religion Parenting
Politics Sales Science Search Engine Optimization
Site Promotion Sports Technology Travel
Web Development Web Hosting WeightLoss Women's Corner
Writing Miscellaneous Articles Real Estate Arts And Crafts

Disclaimer: The information presented and opinions expressed in the articles are those of the authors
and do not necessarily represent the views of and/or its owners.

Copyright © AwareINDIA. All rights reserved || Privacy Policy || Terms Of Use || Author Guidelines || Free Articles
FAQs Link To Us || Submit An Article || Free Downloads|| Contact Us || Site Map  || Advertise with Us ||
Click here for Special webhosting packages for visitors of this website only!
Vastu Shastra

Web Hosting Provided By AwareIndia

Company IDS