Denmark's shipping industry looks set for better times thanks to the economic recovery in Asia and the strengthening dollar, the Danish Shipowners' Association said. Association chairman Steen Krabbe said 2000 is expected to not only bring stabilization but also an improvement for the shipping sector.
In 1999, Denmark's 600-vessel merchant fleet was the country's second biggest foreign currency earner, after manufacturing industry, generating turnover equivalent to $6.1 billion, up from $5.6 billion in 1998.
"The trend we have seen in the past year will continue into 2001 and 2002, this means steadily increasing foreign currency earnings," Krabbe said.
The strong dollar was mainly responsible for the favorable trend, with growing cargo volumes lending a helping hand. But an anticipated rise in freight rates had not yet materialized, the association said. This was partly due to excess capacity caused largely by heavily subsidized newbuilding activity at South Korean shipyards, the Danish shipping lobby said, adding that it hoped that market forces would be allowed free play in a liberalized market.