New York: Wilbur Ross, the architect for much of private equity’s shipping plays, used the podium at yesterday’s Capital Link Forum in New York to call for further consolidation in the industry.
“Shipping’s structural problems can only be solved by massive consolidation,” Ross said.
Mr Ross acknowledged that “irrational exuberance” had led to 10 per cent growth in the world shipping fleet in both 2011 and 2012.
Ross, whose shipping investments have included Diamond S Shipping and Navigator, said if there were fewer lines, then there would be greater willingness to layup ships during slack freight rate periods.
“Shipping’s fragmentation makes it very difficult to idle capacity when supply exceeds demand,” he said.