Shipping Industry Gloomiest Since 2009, Survey Finds

By Bill Lehane

(Bloomberg) — The transport business is essentially the most pessimistic in six years about its prospects as a fleet surplus persists, based on a survey by regulation agency Norton Rose Fulbright.

Two thirds of respondents working within the business stated they had been pessimistic about its prospects, essentially the most damaging outlook since 2009, the London-based firm stated in a press release. The largest contributor to their damaging view was extra fleet capability.

While components of the maritime business corresponding to the marketplace for hauling oil are surging this yr, others are slumping. Rates for delivering Saudi Arabian crude to Japan, a benchmark route, simply had the best first half of a yr since not less than 2009. The Baltic Dry Index, measuring coal and iron ore freight, had the worst first six months ever.

“Shipping is a notoriously speculative business,” Harry Theochari, the agency’s world head of transport, who has labored within the business for greater than 30 years, stated by telephone. “We have this huge overcapacity but a lot of shipowners are still going out and ordering ships.”

The survey collated responses from 94 individuals working throughout the maritime business. More than half noticed over-capacity as transport’s largest problem, and persevering with orders for newbuild vessels has led to elevated pessimism, based on Theochari.

Tanker charges from Saudi Arabia to Japan averaged $63,476 this yr, based on Baltic Exchange knowledge. The Baltic Dry Index averaged 627 factors, the bottom for the beginning of a yr because it was first revealed three a long time in the past.