Finance and Insurance

Wilbur Ross urges greater consolidation

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.

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.
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