Shipping industry loses confidence

The survey which was first launched in May 2008, has recorded the lowest figure after three successive quarters of improved confidence within the market. Respondents recorded an average confidence level of 5.3 on a scale of one (low) to ten (high), compared to the 5.7 figure recorded in the previous survey in May 2012.

Once again, demand trends, competition and finance costs featured as the top three factors as those likely to influence performance over the coming 12 months.

Depressed shipping markets due to the combination of political and economic uncertainty meant that overtonnaging was on most respondents’ minds. One respondent commented: “More owners are now tempted to order new ships as building prices will be at their lowest level for many years.”

Geographically, Asia hit a new survey low while Europe also dropped. Demand trends remained a dominant feature for respondents in both Europe and Asia, with finance costs and competition not far behind.

It wasn’t all doom and gloom though, some reported potential advantages in the current situation with expectations of making major investment or significant development over the next 12 months remaining stable.