Shipping Confidence Remains at Three-Year High: Moore Stephens

by Ship & Bunker News Team
Wednesday December 20, 2017

Moore Stephens UK (Moore Stephens) says shipping confidence held its highest rating in the past three years during the three months ending November 2017, with the average confidence level remaining at 6.2 out of 10.00 from the previous survey in September 2017.

"A slowdown in newbuilding activity has started to redress the imbalance in supply and demand, and that should be reflected in improved freight rates," said Richard Greiner, Partner at Moore Stephens' Shipping & Transport.

"There is an appetite for investment, and finance is available. The shipping recovery might not yet be fully under way, but 2017 may come to be regarded as the year when the downward spiral was halted."

Broker confidence levels during the period remained unchanged from 6.3, while managers and charterers both recorded increases from 5.8 to 6.1 and from 4.7 to 7.7, respectively - the highest increase ever recorded for charterers.

Confidence levels in Asia increased from 5.6 to 6.4 - their highest levels since May 2014, while levels in Europe grew from 6.2 to 6.3, and North American confidence declined from 6.4 to 5.8.

"Confidence is at its highest level for three-and-a-half years, testament to the industry's remarkable durability," said Greiner.

"Charterers are leading the way in terms of improved confidence and appetite for new investment. There is optimism in the dry bulk trades, and evidence of continuing improved confidence in the gas sector. The Baltic Dry Index, meanwhile, has risen by over 50 percent in the past six months, and net sentiment in all three main tonnage categories remains positive."