Oldendorff Centenary Book - Flipbook - Page 256
“Germany’s most important private
shipowner had long had the idea
of having tankers, and when the
German tanker building programme
came, he took action. As Egon
Oldendorff says, ‘Government
at that time had reserved its
right to deploy those ships at its
discretion in times of emergencies’.
Consequently, the owner of the
tankers now only considers it fit that
government should do something
to find employment for the ships it
had wanted in the first place and
subsidised the building of, even
though the market is in the doldrums.
German tanker owners are currently
negotiating with the federal ministry
of transport.
“Oldendorff reckons that to put the
tankers into lay-up in the Geltinger
Bucht (near Flensburg, where up to
nine large German tankers idled),
which the Lübeck newbuildings
can hardly escape considering the
glut of tankers, will cost him 4,336
Deutschmark per ship per day,
perhaps slightly less if the Trave
tankers were to lie in a trot.
“Pure tanker owners like the
Norwegians have been much harder
hit than Egon Oldendorff who
has many dry cargo ships trading
worldwide. Oldendorff is convinced
that no German tanker owner will
go bankrupt.” (He was right.)
“However, the Trave giants will soon
be under way, if only not to let the
builders’ guaranty become time
barred. But on the other hand, the
Kiel shipyard might be persuaded
to add to the guaranty period the
time the ships spend in lay-up.
Oldendorff draws attention to the
WILHELMINE ESSBERGER, another of
the troubled Bonn-inspired tankers
which delivered into a one-year
time charter with Mobil Oil of
New York. He further thinks that
consumers would not be any worse
off if the new German tankers were
to operate. Geltinger Bucht could be
cleared of laid-up ships if only 10%
of German crude imports were to be
carried by the tankers built under
the government-initiated building
programme. 100% of Spanish
crude imports have to be carried
by Spanish-flag tankers. A full
50% of all French imports of crude
oil have been reserved for that EC
neighbour’s flag. ‘In shipping a great
deal depends on politics,’ says Egon
Oldendorff who, in contrast to many
of his shipowning colleagues, is
known for not normally asking for
state aid.
“Oldendorff says that the Arabs
have bought numerous tanker newbuildings and are still buying. He thinks
that Bonn should sanction the sale
of his 240,000 tonners financed with
long-term government loans. But of
course, that would be tantamount to
government admitting to the world
that its tanker building programme
had been a complete failure.”
Government did not oblige. Tanker
buyers in those days would look at
nothing but extraordinary bargains,
not exactly a fitting description
of tankers ordered during the
newbuilding boom. Even if Bonn
had lifted the commitment to fly
the German flag for a certain period
which was part of the terms of the
government loans, and if on top the
owner would have sacrificed his own
investment, the then market price
would still have been considerably
lower. Actual sales concluded during
that time were made on the basis
of no more than 50% of the ex-yard
price. Therefore, very few owners
sold their tonnage, most of them
harbouring hopes for the better.
No employment was found for the
SCHLESWIG-HOLSTEIN that would
have cost the owner less than layup, and thus the grey-and-red giant
made for nearby Geltinger Bucht on
3 February 1976 where she was laid
up. The ship proceeded to Bahrain
at the end of August. Oldendorff
obtained permission in 1978 to flagout the vessel to Panama in a bid to
reduce running costs. In between
two voyages the ship was frequently
252
forced to idle for prolonged periods,
and on 9 September 1981 she was
again laid up, at this time in Dubai, so as
to minimise the positioning voyage.
Sistership NIEDERSACHSEN met with
a similar fate. Both ships were sold
to foreign buyers after seven years
of which they had spent more than
half idling in lay-up.
The tanker adventure had cost the
owner a fortune, but he survived
without outside assistance. All
loans had been redeemed by 1981,
five years after commissioning of
the ships, thanks to revenues of
the rest of the fleet. From that time
onwards Egon Oldendorff solely
relied on his common sense and
his shipping know-how. He never
considered again to look at govern
mental shipping programmes of
whatever nature, nor would he be
lured by subsidies. This was the
time he left the German Shipowners’
Association, having been a member of
many years and having taken active
part in several of its committees.
The association had failed to adjust
its membership fees to changed
circumstances. Fees had traditionally
been calculated on the basis of each
member’s total GRT which resulted
in owners of large bulk carriers and
supertankers paying many times
over the fees due from owners of
smaller tramp vessels. Yet, the latter
had equal voting rights even though
their problems differed materially
from those of the owners of larger
units. With no alteration in sight,
Egon Oldendorff left the association,
simultaneously with Emden ship
owner Hans Heinrich Schulte who
also owned large bulk carriers. As
customary at that time whenever
shipping matters were concerned the
press misinterpreted the move and
suspected quarrels over collective
bargaining agreements as the reason.
The German Shipowners’ Association
and the trade unions negotiated such
agreements which were binding on
all members of the association and
which even the majority of nonmembers would normally abide by.
