WHY HAS DENMARK BECOME A SUCCESSFUL SEAFARING NATION?
Despite the fact that Denmark is one of the smallest countries in the world it comprises more than 400 named islands and islets and has a total shoreline of more than 7,300 km which is longer than the shoreline of other much bigger countries. Life in Denmark has therefore always required close contact to the sea.

Over a thousand years ago the Danish Vikings sailed not only in Danish waters but also reached Great Britain, Ireland, France and Greenland and travelled as far as the Mediterranean and the Black Sea. There is also strong evidence that they made it all the way to Vinland which is today known as North America. Thereby, the seeds of a strong seafaring tradition were sown in Denmark and during the next thousand years the country developed into the strong shipping nation that we know today.

Following a marked growth, especially since the new millennium, the Danish shipping industry today operates around 50 million tons deadweight (TDW). The fleet consists of tonnage under both the Danish flag as well as under other flags and is partly owned by Danish shipping companies and is partly chartered tonnage from foreign partners. The Danish merchant fleet is among the most modern in the world and an extensive order programme of approximately 12 million TDW ensures a continued flow of new and effective tonnage. Danish shipping companies’ fleets carry around 10 per cent of world trade at sea which makes Denmark one of the most important seafaring nations in the world.

The Danish shipping industry is characterised by relatively few large companies and many small shipping companies that are active within many different market segments within the industry. It is also noteworthy that five or six of the largest shipping companies are all more than 100 years old while at the same time new shipping companies continue to emerge. Together this gives great variety but the industry is nonetheless characterised by a shared maritime tradition and global view.

Danish shipping companies have never had the benefit of a large or protectionist home market but have for centuries been forced out on the international markets to do business. This has sharpened and strengthened their commercial capabilities and abilities and allowed them reap the advantages of the market fluctuations that are typical of the trade in general. But it has also allowed them focus on the markets with the highest growth – not least in connection with the accelerating need of globalisation for sea transport during the past decade.

This business talent is the reason why chartering of tonnage has developed into a Danish specialty which has provided Danish shipping with a significant volume boost over recent decades, not least with the commercial operation of tonnage financed and owned by Japanese and German interests, among others.

The cost pressure to which Danish shipping companies are subjected in a high-cost country like Denmark is an important factor in considering the future of Danish maritime business talent. Sensible framework conditions could blunt this pressure but it will still be necessary for Danish shipping companies to be innovative and to try to optimise the crew onboard vessels, etc.

Furthermore, throughout the 19th and 20th centuries the maritime tradition has created a maritime cluster in Denmark. The shipping trade is the backbone of this industrial cluster which also includes maritime trading companies, manufacturers, service companies and consultancy companies. Operating in the same arena, as they do, these companies are closely intertwined and subject to the same pressures in an extremely internationally- oriented environment. In fact, the very existence of so many different companies with such versatile expertise is a significant factor in the dynamism of the Danish maritime industry.
      Another factor is the attitude of officialdom: Danish authorities and governments of various persuasions have been generally supportive of the development of Denmark’s shipping industry. This has been done chiefly through the creation of suitable statutory framework conditions, especially with the Danish International Ship Register in 1988 and the tonnage tax system in 2002.
      These legislative developments give Danish shipping companies a sound platform for making progress in the face of global competition.

Furthermore, extensive attempts have been made to fight flag discrimination and market distorting measures as part of the effort to create one global and liberal seafaring market. On the technical-nautical area, the Danish authorities have attempted to promote the regulation of shipping in the UN international shipping organisation, the International Maritime Organization. Generally, Danish governments and authorities have tried to create a basis that allows the Danish shipping industry compete on equal terms with competitors from the rest of the world.

In summary, there does not seem to be one single factor that can explain the global success of the Danish shipping industry. Denmark’s achievements must be said to result from a combination of several factors: very competitive shipping companies, a strong maritime tradition and goodwill from Danish governments and the authorities.

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