Now is the time to buy cheap ships, and then pay off debts when the good times return, a panel at Marine Money’s Singapore conference asserted today.
Chales Maltby, chairman and CEO of Epic Gas, told the audience: “Asset prices are low which means it is time to buy, and when the market is good it’s time to pay off debts.”
“That’s good,” replied the session’s moderator, Andreas Sohmen-Pao, the chairman of BW Group, “as we’ve been investing in gas ships.” Sohmen-Pao was referring to the stake BW acquired in Norway’s Aurora LPG this week.
Edward Buttery, CEO of Hong Kong bulker outfit Taylor Maritime, talked of how he was building up a fleet of Japanese-built handies with a view to later on moving for some newer eco-friendly tonnage.
“Nobody knows when a recovery is coming, so we have to work on ensuring we have the legs to last,” Buttery said.
Buyers should look at the whole market first.
Will I increase the supply glut or reduce it with this newly built ship? Will I bring balance to the market or further imbalance it?
No one benefits in the long run from building unnecessary tonnage today, while having to go bankrupt in the future. A slower market will keep business coming long term, while the architects, engineers and shipbuilders can come up with even more efficient, ergonomic and smart ships.
I think they are talking mainly about secondhand tonnage