Two-Thirds of Shipping Industry Optimistic: Survey

by Ship & Bunker News Team
Thursday February 27, 2014

Sixty-nine percent of shipping industry respondents to a new Norton Rose Fulbright survey say they are optimistic about market conditions, compared with 81 percent in rail and 75 percent in aviation.

The largest reason for optimism is the emergence of new opportunities, cited by 48 percent of shipping respondents.

On the other hand, overcapacity is by far the biggest worry in the industry, with 40 percent choosing that problem as the most significant reason for concern.

In response to a question about investments, 28 percent of shipping respondents said the best choice is the acquisition of more ships, while developing new markets and entering into a joint, venture, alliance, or pool were each chosen by 19 percent.

"There is a real disconnect between those in the shipping sector who believe that the purchase of additional assets is the most beneficial investment for their business and those worried about overcapacity," Harry Theochari, global head of transport at Norton Rose Fulbright, told Reuters.

"While optimism is growing in the shipping sector, a further imbalance in supply and demand risks throwing the current fragile recovery off course."

Maersk Line's Thomas Knudsen said last month that overcapacity is likely to remain a problem for the industry at least through 2015.

Ship & Bunker News Team
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