Shipping Confidence Reaches Three-Year High: Moore Stephens

Moore Stephens says shipping confidence reached its equal highest rating in the past three years.

Moore Stephens UK (Moore Stephens) says shipping confidence reached its equal highest rating in the past three years during the three months ending May 2017, with the average confidence level up to 6.1 out of 10.00 from 5.6 in the previous survey in February 2017.

"In our latest survey, the figure stands at 6.1 which, given geopolitical, economic and industry developments, must be seen as a robust rating," said Richard Greiner, Partner, Shipping & Transport at Moore Stephens.

"Moreover, confidence today of making a major new investment is the highest it has been for almost three years. The positive sentiment on freight rates is welcome, although this must be weighed against the lows to which they have fallen and from which they must continue to recover."

Responses to the most recent survey saw brokers' average confidence rating rise from 4.6 to 6.4, while owners' average rating increase from 5.6 to 6.1.

Meanwhile, confidence of charterers and managers was up from 5.9 to 6.4, and from 6.0 to 6.2, respectively.

In Asia confidence levels remained unchanged from the previous survey at 5.6, but were up in Europe from 5.5 to 6.2, while North American confidence levels rose from 6.1 to 6.4.

"Even for an industry which is familiar with the volatile nature of international commerce, shipping's ability to survive adversity is worthy of comment," said Greiner.

"Our latest survey found many of our respondents in watchful mode, mindful of the fact that there are still too many ships, but encouraged to believe that increased demolition and more pragmatism by industry stakeholders will help to redress this imbalance."

In February, Ship & Bunker reported that average shipping confidence had held steady from the previous survey in November 2016 at 5.6 out of 10.0.