02 | Why Hafnia
Best commercial performance
Over the years, we have benchmarked ourselves against our peers to evaluate our commercial performance, while adjusting for fleet composition, age, speed and consumption. When we look at these ‘apples to apples’ benchmarks, we are at the absolute top in all of our segments.
This is the result of the quality of our daily commercial decision-making which is supported by tracking our own and our competitors’ trading patterns. We constantly improve our understanding of cargo flows and seasonal patterns of the product tanker market.
Lowest operating and funding cost
Our operational cash flow breakeven is below USD 14,000 per day – the lowest in the industry. Our industry leading low interest margins, our solid balance sheet and our low Selling, General and Administrative (“SG&A”) expense of USD 800 per day are also key contributors to our competitiveness.
USD 23.0 million in earnings from the pools and other fee-generating activities
Focus on Environmental, Social and Corporate Governance (ESG)
E: In Hafnia, we believe that joint global efforts are needed to combat climate change. As a leading shipping company, it is Hafnia’s goal to keep providing safe, sustainable and efficient hydrocarbon transportation solutions, and thereby contribute to the shipping industry’s efforts to reduce environmental impact.
S: Additionally, we have continued to promote diversity at sea and ashore. By 2024, we strive to have 40% female colleagues throughout the organisation, including in key management positions. We also continue to develop an inclusive and diverse working environment with our newly introduced culture and leadership academy, a project which encapsulates the heart of Hafnia.
G: The development, implementation and maintenance of good and well-functioning governance policies and practices are important processes and focus areas for Hafnia.
A firm believer in consolidation. We see three obvious benefits:
1. Our large scale in number of vessels enables better performance in chartering, operations, bunker and back-office.
2. Clear cost synergies. We have seen examples of how smaller platforms of 20-25 vessels could have reduced the daily SG&A per vessel by more than USD 1,000 per day, and saved a total of more than USD 20 million per year, including better financing.
3. Digitalisation across a large fleet improves data intelligence significantly and enables faster and better decision making. Smaller platforms lack the scale needed to properly utilise the added information from a big fleet.
As an example, a trial we are conducting in Hafnia involves installing sensors on board on part of our fleet. On each vessel, the sensors collect 3,000 to 5,000 data points every 30 seconds, allowing for:
- Data-based fuel consumption optimisation,
- Emission reduction programs with tracking and reporting,
- AI-based predictive maintenance application,
Fully automated hull efficiency monitoring,
- Automatic performance reports,
- Notifications, alarms and warnings, and
- Compliance applications.