Shipping survey paints pessimistic picture

Shipping survey paints pessimistic picture

Law firm Norton Rose Fulbright’s annual transport survey shows confidence in the shipping sector is at an all-time low.

Only 15% of those surveyed saw current market conditions as positive, the lowest level since the poll began in 2009.

“The (shipping) industry is currently in the grip of the worst recession in living memory and while most of our respondents envisage an upturn in freight volumes in the next five years, any major economic shock would further exacerbate an already fragile industry,” Norton Rose Fulbright’s global head of transport Harry Theochari said.

“Bank debt is expected to remain the industry’s principle source of funding, although for many shipowners funding remains thin on the ground and few respondents believe access to finance is set to become easier,” Theochari added.

The lawyer concluded: “Shipping continues to feel the effects of overcapacity in many markets, and an increase in enforcement actions is widely predicted.”

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

Related Posts