Shipping confidence dips to four-year low
Overall confidence levels in the global shipping industry dipped to a four-year low in the three-month period ended August 2012, according to the a latest survey from international accountant and shipping adviser Moore Stephens, Seatrade Asia online reports.
Since the Shipping Confidence Survey was launched in May 2008, the latest figure was the lowest, following three successive quarters of improved confidence.
The main concerns raised by respondents to the survey were the glut of newbuildings entering the market and continuing uncertainty about the global economy.
In August 2012, the average confidence level expressed by respondents in the markets in which they operate was 5.3 on a scale of 1 (low) to 10 (high), compared to 5.7 recorded in the previous survey in May 2012. The survey was launched in May 2008 with a confidence rating of 6.8.
“Companies are burning up cash reserves at a frightening rate, given the appalling earnings currently on offer. Supply trends are still very negative. Banks are increasingly reluctant to put out any money, let alone new money, except in very specific sectors,” a respondent said.
Elsewhere it was noted: “The expectation of a reduction in tonnage by 2015/2016, as a result of 20% of the world fleet being more than 15 years old and therefore finding it difficult to pick up cargoes in many ports, was expected to have a positive effect on charter rates. But, with Greek owners reported to have booked over 400 vessels in Korean yards, excess tonnage is likely to keep the pressure on freight rates, and we shouldn’t expect to see any improvement for the next five years.”
