NORWAY REPORT A significant weakening in the world economic growth marked 2001. Lower expectations for the world economy also affected the shipping markets negatively in terms of rates and ship values, although with variations between segments. However, Norwegian shipowners' gross freight earnings amounted to more than €10 billion (81bn NOK) in 2001, consolidating the position of shipping as the second most important Norwegian export industry (after oil and gas). More than 50% of all Norwegian service exports revenue derives form shipping. Results from a research project: "Regional Maritime Norway, commissioned by The Maritime Forum in Norway in co-operation with the Research Council of Norway, the Norwegian Industrial and Regional Fund and the NSA, estimates the total wealth creation of Norwegian maritime enterprises in Norway, at nine percent of total wealth creation of Norwegian business and industry". More than 80.000 Norwegians are employed in the maritime cluster. At the beginning of 2002, more than 150 Norwegian shipping companies controlled a fleet of 1.718 ships totalling 48,7 million dwt, compared to 1.730 ship of 50,1 million dwt. in January 2001. The number of ships flying Norwegian flag stood at 1.015 of 33,1 million dwt. constituting close to two thirds of the Norwegian controlled merchant fleet. The market value of the fleet was €18,8 billion - down 1,6 billion from 2001. The reduction mainly reflects a decrease of second hand ship values. The Norwegian controlled fleet of mobile offshore units increased by 7 units and consisted of 62 units in January 2002 at a market value of €5 billion. Norwegian shipowners have a strong position in several specialised markets segments; controlling close to 30% of LPG-tankers, more than 25% of the world's fleet of chemical tankers and combined carriers as well as 10-15% of the world fleet of big car carriers and offshore service vessels. Since the introduction of a Norwegian tonnage tax system in 1996, the maritime policy has been a political battleground in and between the Norwegian Parliament and changing governments. Since 1996 some 20 different proposals weakening the competitive position of Norwegian seamen and shipowning companies have been presented to Parliament, of which many were adopted. No changes were proposed with respect to the tonnage tax system in 2001. For seafarers, a reduction in the scope and rate of tax refund was once more proposed, but also the introduction of a "net wage" system for employees on board ferries in international trade. After several rounds of debate in the Parliament, a net-wage system for ferries in international trade, as of 1 July 2002, and a reduction of the refund rate for seafarers onboard offshore vessels were adopted. However, some political signals in 2001 give hope of a broader political understanding and will to align the Norwegian maritime policy with the positive European trend. This is in the making. Securing sufficient recruitment of qualified seamen and officers, is one of the major challenges facing the international shipping industry. Due to the political uncertainty and deteriorating competitive conditions for Norwegian seafarers in recent years, Norwegian shipping companies are reducing their training activities in Norway. The number of Norwegian apprentices and cadets is expected to be around 450-500 in the coming years. NSA continues its co-operation with maritime education institutions in the Philippines, China and Latvia. As of February 2002 some 64.500 persons of more than 60 different nationalities were employed onboard Norwegian controlled merchant vessels and rigs. Some 18.750 of these were Norwegian nationals, 6.450 of other EEA-nationalities and another 7.700 of other European nationalities. The most important non-European nationalities serving onboard Norwegian controlled vessels were Filipinos and Indians, represented by 20.700 and 3.800 seafarers respectively. Norwegian shipowners placed 33 newbuilding orders during 2001, which is a significant decline compared to 76 orders placed in 2000. The change reflects high ordering activities at the end of 2000, as well as changed expectations regarding demand trends. At the beginning of 2002 Norwegian shipowners had a total of 103 new ships on order, valued at €4,2 billion. This represents nearly a quarter of the existing fleet value. In addition orders for 3 mobile offshore units of a total value of €0,5 billion was placed on the account of Norwegian shipowners. Of the 106 newbuilding contracts 36 were placed at Norwegian shipyards and another 12 at other European yards. More than three quarters of the newbuildings are expected to be registered under the Norwegian flag.