Utilization of the Wintergas fleet for shipping Ethylene gas and BTX+S chemicals in China, South Korea and Taiwan : a strategic study

Abstract

The purpose of our study is to guide Norgas in the commercialization of the Wintergas (WG) fleet. We will do this through gathering, systematization and analysis of data and information. The Wintergas fleet consists of three ships: Cathinka, Pan and Camilla. The ships are smaller and wider than Norgas’ existing vessels, but have the ability to carry both chemicals and petrochemical gases. Their features are unique and could potentially be a source of competitive advantage for Norgas. Norgas is currently struggling with the commercialization of their new concept, partly due to a weak chemical market, but from our point of view, also because they are lacking important internal resources. Furthermore the authors will provide Norgas with analysis of the external environment and the company itself. This thesis includes both the collection and analysis of primary and secondary data. The case study research involves in-depth which were done by the authors. We have found that the petrochemical shipping industry is overall attractive and the demand for shipping services is growing with the growing GDPs in the selected countries. However, we have identified some mismatches between the key resources and capabilities needed to be able to succeed with the Wintergas concept, and those of Norgas. Based on the analytical part and our interview findings, a sound strategic plan has been crafted to enable Norgas to reach their operative and strategic goals. The two proposed trade route goes from Taiwan to China and from South Korea to China. It can earn Norgas a Time Charter Yield (TCY) of 12,000USD per day, given that they find cargoes that go in that pattern and a customer. The authors have recommended Norgas to implement and make use of their new CRM system, which is currently not in use. This Customer Relationship Management system can be a vital asset to the company in order to provide superior service to their customers, and building strong relationships. Furthermore, it has been recommended that Norgas employs people with extensive knowledge and network within the chemical market, and ensure thorough education of the commercial employees.