TTJ: HOW HAVE SCOTLINE’S TIMBER AND WOOD PRODUCTS OPERATIONS DEVELOPED OVER THE LAST YEAR?

Cindy Crancher: Despite many importers expressing lack of demand, falling prices and high costs of raw materials, we’ve maintained steady volumes of timber from Sweden, Latvia and Germany, with several months reaching record volumes. Last year Scotline shipped over 1 million m3 into the UK and Ireland. If we can maintain current levels, until the end of this year, we expect to see an increase again for 2023. We have gained volume from trailer traffic via ferries, as hauliers are still reluctant to send vehicles. We also have contracts shipping packaged timber, logs, RDF (Refuse Derived Fuel), OSB, cement and project cargo throughout northern Europe.

The shipping industry is also faced with continued increased costs – the price of new build vessels has gone up by 50% in five years. Ship spare parts and consumables have also sky rocketed. There’s a decreasing number of shipyards that can carry out routine maintenance and repairs, insurance premiums have escalated and the cost of installing ballast water treatment systems across our 11-strong fleet has been costly. Additionally, green environmental rules are becoming more stringent and costly to implement, resulting in ships being sold outside northern Europe. Operational costs across the board have increased significantly and this will make steep increases in freight rates necessary to maintain service levels.

TTJ: HOW SIGNIFICANT WAS THE ADDITION OF THE NEW SCOT TRADER TO YOUR FLEET THIS YEAR ?

CC: It further enables us to fulfil our contractual obligations and look after our customers. She is the latest in a series of vessels built by Royal Bodewes in Holland and the first built at their new Foxhol yard. A sister vessel to Carrier, Explorer, Ranger and Isles, she is a box-shaped single decker with a timber fitted capacity of 7,000m3. Our next new build will be under way shortly, to be launched next June/July and we have options for a further two for 2025 and 2026.

TTJ: HAS SCOTLINE UNDERTAKEN ANY OTHER CAPITAL INVESTMENT RECENTLY?

CC: We have orders in the pipeline for new cranes and more forklift trucks to keep the terminals at Rochester at full capacity.

TTJ: WHAT IS SCOTLINE DOING IN TERMS OF ENVIRONMENTAL PERFORMANCE?

Rob Millatt: We have been on a campaign of modernising the Scotline fleet to ensure that the vessels are built with latest technology. But the market for alternative fuels is currently like the VHS vs Betamax debate. LNG looked like the future fuel but has now disappeared. We are involved in a number of other initiatives and working with technology suppliers. These include battery hybrid technology, exhaust stream carbon capture, hull modifications for efficiency and hybrid methanol-electric powertrains.

On the terminals, we’re involved with various pieces of work, including new electric plant with solar charging, ammonia power generation (which produces greener energy than the grid), energy management and revisiting the whole system of how we handle goods.

TTJ: HAS WAR IN UKRAINE IMPACTED?

CC: The volume shipped ex Riga in 2022 was initially impacted, and we saw a reduction in volume shipped as expected. We reduced the frequency of our sailings at the beginning of this year but for the last few months we have seen increased volume and are now operating a fortnightly service into Rochester and Inverness, which we’re confident will resume to weekly / every 10 days soon.

TTJ: HAVE THERE BEEN ANY DEVELOPMENTS IN SCOTLINE’S COMMUNICATION AND MARKETING?

CC: We think that it’s important to meet face-to-face with our customers on site at Rochester where we can showcase our operation and listen to views from their side of the fence. Together we can discuss ideas and find solutions to enhance our operation, promoting their business as well as ours. We’re keen to invite people to look around our terminals at Rochester and show them onboard our ships. Ahoy there, please get in touch if this is of interest!

TTJ: HOW DOES THE COMPANY SEE ITS TIMBER AND WOOD PRODUCTS OPERATIONS DEVELOPING NOW?

CC: The past three years have been challenging, we are in the business for the long term and together with a loyal team of skilled and experienced personnel, complemented by long standing port agents, we will continue to grow and further develop our business to support our customers.