Shipping industry fears ambitious China

Overall confidence levels in the shipping industry have shown a slight improvement over the past three months – up from 5.5 in May to 5.7 in the recent survey, on a scale of 1 to 10. The survey, by shipping accountant Moore Stephens, shows that “owners, managers and charterers all exhibited increased confidence in connection with the shipping markets in which they operate”.

A number of the respondents say that a recovery is on the way. However, many respondents are aware of the oversupply of ships, which likely will influence the pace of the recovery, as one respondent said: “Because two newbuildings are being delivered for every vessel scrapped, the shipping market will not be able to pick up over the next three to four years. And it may deteriorate even further, with a number of owners forced into bankruptcy.”

Many respondents expressed their concern about developments in China: “China is now the producer, the consumer, the trader, and the transporter, it has got the cheapest and the most plentiful supply of labour, and it is possibly the richest country in the world. None of these things can be good for the international shipping industry.” (source: www.ShipGaz.com).

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