Moore Stephens Says Banks Will Take a Firmer Grip

Press Release
Monday, January 07, 2013

International accountant and shipping consultant Moore Stephens says the banks will exert more control over the shipping industry in 2013.

 

It also expects vessel values to fall further, and the cost of regulatory compliance to increase.


Moore Stephens partner Julian Wilkinson says, “For shipping in 2012, it was not so much a case of ‘Crisis, What Crisis?’ as ‘Crisis, Which Crisis?’ This year will be equally challenging.  Operating costs are going to go up. Like a commuter facing another increase in rail fares, and no extra money coming in, shipping will most likely have to absorb the costs of more expensive fuel, more costly labour, and dearer raw materials on the back of declining freight income. Even Mr Micawber, the Dickens character who always believed that something would turn up, would have taken one look at the shipping industry’s prospects for 2013 and cried, ‘I’m off!’   


“In 2013, the banks will exert more control over the shipping industry as debt-to-equity ratios deteriorate. Restructuring, deferred payment, impairment and provision have become common coinage in shipping. Openness and the avoidance of unnecessary delay will be key elements to successful financial restructuring. Even if there really are cash-rich banks in China prepared to underwrite shipping deals, nobody is waiting for them to start lending before planning their next move.
 

“This year will see continued efforts to accelerate scrapping, which is only made more attractive by the approach of expensive classification special survey deadlines. Despite record scrapping levels in the past twelve months, there still exists a considerable gap between the volume of newbuilding deliveries coming onto the market and both the amount of tonnage scrapped and the availability of suitable demolition facilities. Newbuilding deliveries have been running at record levels for three years. One major operator said recently, ‘Global tonnage oversupply is irrelevant.’ It isn’t, but the fact remains that now is a good time to build eco-friendly ships at reasonable prices for which there will be strong demand in the future.


“Expect vessel values to fall further in 2013, last year having closed with a VLCC selling for the lowest price since the mid-90s. The danger is that each successive fall creates a new benchmark. Expect also further increases in the cost of regulatory compliance. That will have to include planning for the BWM convention. Ballast water is not sexy, but it is expensive. Once the percentage of worldwide tonnage is met in the near future, the convention will enter force twelve months thereafter. Owners need to be thinking now about where the money for retrofitting – and it is a lot of money – is coming from.


“Remarkably, the Moore Stephens Shipping Confidence Survey shows that the industry closed 2012 more confident than it ended 2011. Now remains a good time to buy for those with cash and a following wind. New investors, or existing stakeholders embarking on new projects, will be putting money into a leaner and greener industry than the one which was making good money before the economic gloom kicked in.”
 

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter July 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

Damen PSV for Wilson Sons Ultratug Offshore

Wilson Sons Ultratug Offshore, a joint venture between Wilson Sons and the Chilean maritime services provider Ultramar, has taken delivery of a Damen PSV 5000.

VARD Bags Three-vessel Contract

Vard Holdings Limited (“VARD”), one of the major global designers and shipbuilders of offshore and specialized vessels secured a contract for the design and construction

ATB Design Comes of Age

The emerging trend of marrying the design of an articulated tug and barge (ATB) to a particular propulsion system to maximize efficiencies of that system has, of late,

Ship Repair & Conversion

India Govt, Cochin Shipyard Pact on FY17 Growth Targets

Cochin Shipyard Limited (CSL) has entered into a Memorandum of Understanding (MoU)  with the government of India for the ongoing fiscal under which targets agreed

CNCo Orders Remote Monitoring for 35 Vessels

Radio Holland, a global NavCom and service company in the maritime industry, said it has concluded  a maintenance and remote monitoring agreement with The China

BMT to Lead Repower for Historic USCG Eagle

BMT Designers & Planners, a subsidiary of BMT Group, an international maritime design, engineering and risk management consultancy, is leading the effort to repower the historic U.

Ship Sales

India Govt, Cochin Shipyard Pact on FY17 Growth Targets

Cochin Shipyard Limited (CSL) has entered into a Memorandum of Understanding (MoU)  with the government of India for the ongoing fiscal under which targets agreed

Buy and Sell Vessels from a Mobile Device

The maritime software development company SDSD are launching a new web based VSnP - Vessel Sale and Purchase module, enabling Sale and Purchase brokers to buy and

VesselValue.com: $28.4B Worth of Ships Delivered to Date

As the calendar now indicates we have passed the half year mark on 2016, VesselValue.com offers insight on the number and value of all the 2016 built vessels that

Finance

Asia-N.Europe Box Rates Jump 58 pct

Freight rates for shipping containers from ports in Asia to Northern Europe jumped 58 percent to $1,125 per 20-foot container (TEU) in the week ending Friday, a

Gener8 Maritime Net Income Up 91%

Announcing its financial results today for the three and six months ended June 30, 2016 Gener8 Maritime, Inc. reported net income of $38.0 million, or $0.46 basic and diluted earnings per share,

Dynagas 2Q Results Upbeat

The financial results of Greece-based Dynagas LNG Partners LP (DLNG) for Q2 beat Wall Street expectations.    The average estimate of three analysts surveyed

News

Asia-N.Europe Box Rates Jump 58 pct

Freight rates for shipping containers from ports in Asia to Northern Europe jumped 58 percent to $1,125 per 20-foot container (TEU) in the week ending Friday, a

Damen PSV for Wilson Sons Ultratug Offshore

Wilson Sons Ultratug Offshore, a joint venture between Wilson Sons and the Chilean maritime services provider Ultramar, has taken delivery of a Damen PSV 5000.

Gener8 Maritime Net Income Up 91%

Announcing its financial results today for the three and six months ended June 30, 2016 Gener8 Maritime, Inc. reported net income of $38.0 million, or $0.46 basic and diluted earnings per share,

Marine Equipment

Damen PSV for Wilson Sons Ultratug Offshore

Wilson Sons Ultratug Offshore, a joint venture between Wilson Sons and the Chilean maritime services provider Ultramar, has taken delivery of a Damen PSV 5000.

VARD Bags Three-vessel Contract

Vard Holdings Limited (“VARD”), one of the major global designers and shipbuilders of offshore and specialized vessels secured a contract for the design and construction

Insights: Kunkel Weighs in on Propulsion Technology

LNG? Methanol as fuel? Hybrid systems? Tier 4? Reducing noise? Cutting emissions without crushing fuel economy? Marine News readers have questions and Bob Kunkel has answers.

Deck Machinery

Romica Manufacturer Secures DNV GL Approval

U.K. winch maker Romica said it is to “redouble its exports drive” after its Romania-based manufacturing partner successfully acquired accreditation with DNV GL.

NASSCO Bags USS Oak Hill Modification Award

General Dynamics NASSCO-Norfolk was awarded a $42 million cost-plus-award-fee modification to a previously awarded contract for the repair and alteration for the USS Oak Hill (LSD-51).

Harmony of the Seas Equipped with PALFINGER Crane

The world’s largest cruise ship, Harmony of the Seas, is equipped with a PALFINGER MARINE foldable knuckle boom crane. A follow-up order for an identical crane and cruise ship is already received.

Logistics

Asia-N.Europe Box Rates Jump 58 pct

Freight rates for shipping containers from ports in Asia to Northern Europe jumped 58 percent to $1,125 per 20-foot container (TEU) in the week ending Friday, a

LNG Market Needs More Vessels than Currently on Order

Despite the current weakness in LNG shipping rates, Drewry maintains its bullish long-term outlook for LNG shipping and believes that the market will require more

CMA CGM Rolls out Bengal Bay Express

CMA CGM has introduced its new Bengal Bay Express service, operated with 11 vessels of 6,500 TEU on a weekly basis, in a continuous effort to provide its customers with the best quality service.

 
 
Maritime Security Naval Architecture Navigation Offshore Oil Pod Propulsion Ship Electronics Ship Repair Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | 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: 0.1594 sec (6 req/sec)