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 Reporter October 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Dometic to Debut New Product Line at Workboat

New products on display will include the Dometic Cup Cooler, the Smart Touch Integrated Intelligence Control system and the Dometic Sea Xchange watermakers; attendees

Insights: Morton S. Bouchard III

Insights: Morton S. Bouchard  III - President and CEO, Bouchard Transportation Co., Inc. When it comes to iconic, East Coast mainstays of the U.S. maritime industry,

Andrews to Lead CWind’s O&M Division

Lee Andrews has been appointed as CWind’s new global head of operations for maintenance and asset management (O&M) services.   Andrews joins CWind from Siemens

Shipbuilding

An Efficient Addition to a Strong Fleet

Cvitanovic towing of Belle Chasse, Louisiana has taken delivery of a fourth vessel for its fleet of highly efficient Lugger-style tugs. Built at the Rodriguez yard in Bayou LaBatre,

Ferus Smit to Launch Newbuild Bulk Carrier

Ferus Smit will launch newbuild general bulk cargo vessel Arklow Brave on Friday, December 12, in Westerbroek.   Arklow Brave is the fifth vessel in a series

Dutch Yards May Need to Rethink Contract Structures

Rotterdam-based law firm AKD said a recent decision of the Dutch courts means that shipyards in The Netherlands may no longer be able to rely on the right to retain

Ship Repair & Conversion

Dutch Yards May Need to Rethink Contract Structures

Rotterdam-based law firm AKD said a recent decision of the Dutch courts means that shipyards in The Netherlands may no longer be able to rely on the right to retain

Andrews to Lead CWind’s O&M Division

Lee Andrews has been appointed as CWind’s new global head of operations for maintenance and asset management (O&M) services.   Andrews joins CWind from Siemens

Seaspan Shipyard's Prompt Response to Canadian Coast Guard

Seaspan Shipyard’s long-standing relationship with the Canadian Coast Guard was proudly showcased in recent days, with simultaneous repair and maintenance work

News

Cathelco BWTS Receives AMS Approval

Cathelco Ltd. has received Alternate Management Systems (AMS) acceptance from the U.S. Coast Guard for their ballast water treatment system.   AMS acceptance

Hagel Resigns as Defense Secretary

U.S. Defense Secretary Chuck Hagel resigned on Monday, the first major change to President Barack Obama's Cabinet since his Democrats were routed in midterm elections three weeks ago.

Ferus Smit to Launch Newbuild Bulk Carrier

Ferus Smit will launch newbuild general bulk cargo vessel Arklow Brave on Friday, December 12, in Westerbroek.   Arklow Brave is the fifth vessel in a series

Marine Equipment

Cathelco BWTS Receives AMS Approval

Cathelco Ltd. has received Alternate Management Systems (AMS) acceptance from the U.S. Coast Guard for their ballast water treatment system.   AMS acceptance

An Efficient Addition to a Strong Fleet

Cvitanovic towing of Belle Chasse, Louisiana has taken delivery of a fourth vessel for its fleet of highly efficient Lugger-style tugs. Built at the Rodriguez yard in Bayou LaBatre,

Dometic to Debut New Product Line at Workboat

New products on display will include the Dometic Cup Cooler, the Smart Touch Integrated Intelligence Control system and the Dometic Sea Xchange watermakers; attendees

Deck Machinery

New McAllister Tug Features JonRie Winch Set

JonRie Marine Winches supplied its fifth ship set of full bollard pull winches to New York’s McAllister Towing for installation on its new tug, Tate McAllister.

JK Fabrication Wins Emergency Tow Reel Order

JK Fabrication (Nordic Machine) wins emergency tow reel order from Olympic Tug and Barge Olympic Tug and Barge, a Harley Marine Services Company, has selected

Logistics

US Port Congestion Hides Deeper Issues

Ports on the U.S. West Coast are currently suffering from chronic congestion, but are there deeper issues affecting their performance?   Drewry’s new report Container

Hamburg Cargo Volumes at Record High

Seaborne cargo throughput of 110 million tons in the first nine months sets new record for Port of Hamburg    With total throughput of around 110 million tons,

Belgian Port Workers Strike

Port workers in Belgium began a 24-hour strike today, November 24, which will end at midnight, Inchcape Shipping Services (ISS) reported. It is anticipated that

 
 
Maritime Security Maritime Standards Navigation Pod Propulsion Port Authority Salvage Ship Electronics Ship Repair Ship Simulators Winch
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: 0.2669 sec (4 req/sec)