Transport company Eitzen Chemical expects shipping volumes to grow in 2012
One of the world's largest chemical transport company, Eitzen Chemical, expects shipping volumes to grow next year even as world trade slows, CNA reports.
Norwegian-listed Eitzen said last week's European summit that introduced tougher fiscal rules for the Eurozone has brightened the outlook for the sector in Singapore.
Theodor Berg, Vice President, Eitzen Chemical, said: "There will be more tankers and containers coming into Singapore but there is an overhang of tonnage. There are too many ships built, both tankers and chemicals, which is why (it is) difficult to make money, even though we are seeing increased volumes. The volumes need to come up significantly to eat into the overhang of ships and when we see that happening, then there will be profit also in the shipping segment."
Mr Berg also expects an improvement in bank credit to the shipping industry with fiscal discipline in Europe, provided the global economy turns positive.
He was speaking at a port of Singapore ceremony to celebrate the crossing of two billion gross tons in annual vessel arrival tonnage.
It was just seven years ago that the port reached the one-billion-ton mark.
Transport minister Lui Tuck Yew said the milestone reflects the strong growth achieved by the port of Singapore.
However he warned that 'dark clouds' were accumulating because of economic uncertainty.
And he said it was inevitable Singapore's maritime activity would be affected for the next few years.
For the first 11 months of this year, the port registered a 10.2 percent year-on-year growth in vessel arrival tonnage.
In the same period, 39.3 million tonnes of bunker sales were made.
This is set to surpass last year's record of 40.9 million tonnes in annual bunker sales.
Norwegian-listed Eitzen said last week's European summit that introduced tougher fiscal rules for the Eurozone has brightened the outlook for the sector in Singapore.
Theodor Berg, Vice President, Eitzen Chemical, said: "There will be more tankers and containers coming into Singapore but there is an overhang of tonnage. There are too many ships built, both tankers and chemicals, which is why (it is) difficult to make money, even though we are seeing increased volumes. The volumes need to come up significantly to eat into the overhang of ships and when we see that happening, then there will be profit also in the shipping segment."
Mr Berg also expects an improvement in bank credit to the shipping industry with fiscal discipline in Europe, provided the global economy turns positive.
He was speaking at a port of Singapore ceremony to celebrate the crossing of two billion gross tons in annual vessel arrival tonnage.
It was just seven years ago that the port reached the one-billion-ton mark.
Transport minister Lui Tuck Yew said the milestone reflects the strong growth achieved by the port of Singapore.
However he warned that 'dark clouds' were accumulating because of economic uncertainty.
And he said it was inevitable Singapore's maritime activity would be affected for the next few years.
For the first 11 months of this year, the port registered a 10.2 percent year-on-year growth in vessel arrival tonnage.
In the same period, 39.3 million tonnes of bunker sales were made.
This is set to surpass last year's record of 40.9 million tonnes in annual bunker sales.
