Troubled global shipping market will start to recover by 2014 when tonnage oversupply is alleviated.
Busan Development Institute (BDI)'s Maritime Exchange Information Center (MEIC) published a report 'When will protracted depression over shipping market be recovered?' on November 26.
The report said shipping market seems would find it hard to improve in 2013 due to global economic uncertainty, continued oversupplied tonnages, slowdown in tonnage demand growth, etc.
Dry cargo market will continue to see imbalance between demand and supply until 2013, while boxship and tanker segments are predicted to see a little improvement of demand-supply imbalance.
Analyst Choi Jung-Suk, who made the report, said "Shipping industries need to streamline of fleet management, risk manage against changes in newbuilding prices, fuel prices and foreign exchanges, establish stable profit-making basis through contracting long-term charter, etc."
He emphasized the government's support for shipping and shipbuilding industries in order to overcome protracted depression by establishing ship finance specialized institutions, supporting to foster shipping experts and creating aiding systems such as tax reformation, international ship registration, etc.
Published : November 28, 2012
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