U.K. Shipping Sector More Confident, Survey Finds
The survey indicates freight-rate improvements and greater likelihood of new investment in the next 12 months.
Overall confidence levels in the international shipping industry recovered to their highest level for two years in the three months ending February 2013, while U.K.-based manufacturers expect output to accelerate sharply in the next three months.
The latest Shipping Confidence Survey from Moore Stephens says there was improved expectation of freight rate increases over the next 12 months, particularly in the dry bulk sector, and greater likelihood of new investment in the industry.
In February 2013, the average confidence level expressed by respondents in the markets in which they operate was 5.8 on a scale of 1 (low) to 10 (high), compared to the figure of 5.6 recorded in the previous survey in November 2012. The survey was launched in May 2008 with a confidence rating of 6.8.
A number of respondents felt that there were positive signs that a recovery was on the way. One said, “Scrapping continues apace, and new orders have all but dried up. These are two of the main drivers for recovery, the third being demand, which will improve, with the result that we should see a measurable upturn by year-end.” Another noted, “Demand trends for seaborne trade are generally positive and tonnage reaching obsolescence due to age and regulation will exit the market. Finance is competitive where available and, where it isn’t, owners and their ships will leave the market. Patience and strong cashflow management are essential.”
Source: Moore Stephens