Shipping Confidence Steady in August

Richard Greiner of Moore Stephens said the industry is getting more optimistic

Shipping industry confidence held steady from May to August at the highest level since November 2010, a survey by shipping adviser Moore Stephens found.

The average confidence level in August was 5.9 on the 1 to 10 scale used for the Shipping Confidence Survey, which kicked off in May 2008 with a confidence rating of 6.8.

Ten percent of respondents cited fuel costs as a factor likely to influence industry performance, the same percentage as in May.

Twenty-four percent mentioned demand trends as an issue, 19 percent cited competition, 16 percent chose finance costs, and 13 percent pointed to tonnage supply.

Many in the industry said regulatory issues and new rules, including requirements for the use of low-sulfur fuel, will be an issue.

"Current high fuel costs will be significantly compounded by low-sulphur regulatory requirements from 2015 onwards," one response said.

Another respondent said low ship prices offer an opportunity in the current market.

"This is the right time to pick up assets as prices are at low levels, and anyone with funding should opt to buy new fuel-efficient tonnage, at the lowest price levels," the person said.

"It is now a full 12 months since we recorded a decline in shipping confidence," said Moore Stephens shipping partner Richard Greiner.

"This is a clear indication that shipping is feeling optimistic about its future, as well as more comfortable with the state of the political and economic climate in which it operates."

One year ago, Moore Stephens reported industry confidence stood at 5.3 on its scale, having fallen from 5.7 in May 2012.