Shipping Industry Not Quite as Upbeat About Future: Analyst

By George Backwell
Tuesday, July 08, 2014
Dock scene: File photo

Overall confidence levels in the shipping industry fell slightly during the three-month period to May 2014, due to concerns that overtonnaging could hit freight rates, but nevertheless remain at their second-highest level for the past six years with shipmanagers in particular remaining upbeat, according to international accountant and shipping adviser Moore Stephens, as reported by shipping industry trade publication 'Maritime London'.

In May 2014, the average confidence level expressed by respondents in the markets in which they operate was 6.3, compared to February's 6.5, which was the highest figure since the 6.8 recorded when the survey was launched in May 2008.


The firm's shipping partner, Richard Greiner, says, “The small dip in confidence revealed by the latest survey is a disappointment. But it has to be viewed in context. Confidence is still at its second-highest level for four years, and the number of respondents planning to make a major investment over the next twelve months is as high as it has been at any time since August 2010. It is difficult to think of another industry, similarly exposed to political, commercial, economic and environmental pressures, which has retained the confidence of its customers and investors to the same degree.”



Ship managers were the only category of main respondent to the firm's latest Shipping Confidence Survey to report an increase in confidence. Owners, charterers and brokers were less confident than they were three months previously, at least in Europe and North America. Confidence levels remained stable in Asia.



Moore Stephens notes that expectations of new investment were maintained over the three-month period but the prospects for higher freight rates receded in the tanker and dry bulk sectors. It adds that uncertainty over the likely effect of an increase in private equity funding, and the consequent potential impact on tonnage supply, meanwhile dominated the thoughts of respondents to the survey.



Despite the small overall decline in confidence levels, a number of respondents to the survey remained upbeat. “Levels of confidence are good, and are expected to improve,” said one, while another noted, “World trade seems to be improving, and shipping will benefit.” 



Others were slightly more guarded in their responses, however. One respondent said, “The market is improving, but there are still some smaller, financially weak companies likely to go bust.” Another observed, “We have noted slight improvements in the market and are confident that more significant growth will take place in the coming months,” while others still remarked, “Demand is still high, even though operational costs have tended to increase,” and, “The shipping markets are not stable at the moment, but will pick up shortly.”


Others were slightly more guarded in their responses, however. One respondent said, “The market is improving, but there are still some smaller, financially weak companies likely to go bust.” Another observed, “We have noted slight improvements in the market and are confident that more significant growth will take place in the coming months,” while others still remarked, “Demand is still high, even though operational costs have tended to increase,” and, “The shipping markets are not stable at the moment, but will pick up shortly.”


Source: Maritime London
 

Maritime Reporter October 2013 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Permanent Magnet Technology for Maritime Propulsion

Multipurpose vessels, especially those that operate primarily at part loads, have been facing pressure when it comes to making money in today’s business environment.

Industry Professionals to Speak at ShipConstructor Conference

The speakers representing various companies at next week's SSI Americas ShipConstructor User Conference, October 7-9, 2014 in Mobile, Alabama, demonstrate SSI's

NY Harbor Supply & Distribution Fall Reception/Buffet

More than 600 attendees are expected at the 52nd annual New York Harbor Supply & Distribution Fall Reception/Buffet for the energy and energy related industries

Contracts

Brent Holds Above $97, Eyes Worst Quarter Since 2012

Brent crude futures hovered above $97 a barrel on Tuesday, aided by firm U.S. and Chinese data, but the oil benchmark was on track for its deepest quarterly drop

MAN Propulsion Packages for New Icelandic Trawlers

MAN Diesel and Turbo inform that Icelandic owners, HB Grandi, Vinnslustodin hf. and Hradfrystihusid Gunnvör, have ordered newbuildings based on two different ship

IRPT, Community College MoA on Maritime Training

The Inland Rivers, Ports and Terminals (IRPT) Trade Association announced today that it has entered into a memorandum of understanding with Lewis & Clark Community

Shipbuilding

Samsung Heavy Venturing Overseas

SHI is ready to invest around $950 million in the overseas shipbuilding facility by 2017, according to SHI’s Chief Financial Officer Chun Tae Heung. Tankers, bulk

Ingalls Shipbuilding Begins Fabrication for Aegis Destroyer

Huntington Ingalls Industries' (NYSE:HII) Ingalls Shipbuilding division today marked the start of fabrication for the future Aegis-guided missile destroyer Paul Ignatius (DDG 117).

Industry Professionals to Speak at ShipConstructor Conference

The speakers representing various companies at next week's SSI Americas ShipConstructor User Conference, October 7-9, 2014 in Mobile, Alabama, demonstrate SSI's

Consulting

DMR Examines Container Terminal Congestion Issues

Container port congestion has been hitting the headlines recently, but the reasons for it vary widely and in many cases it is only a short term issue. Certain world

IMO Takes Important Step Towards Electronic Certificates

In the future, the IMO member States should accept the use of electronic certificates. This is the request of the Facilitation Committee (FAL) and, hence, the road is paved for less paperwork,

ISS Chile Advising on Oil spill at Quintero Bay

Inchcape Shipping Services (ISS) Chile is advising of an oil spill at Quintero Bay, Nr Valparaiso, Chile, following an incident on Thursday 24th September at

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Naval Architecture Offshore Oil Pod Propulsion Ship Electronics Ship Repair Ship Simulators
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2185 sec (5 req/sec)