The shipping market will recover from 2013

It is well known that the attributes of the today’s shipping crisis include oversupply of vessels, restricted lending and weak freight rates. The difference of that crisis is the funding of shipping with equity from capital markets as shipping banks are not willing to lend enough money for investing in new and second hand ships.

Despite the enormous scrapping activity the crisis remains but the analysts say we have to wait a better balance in the shipping market from 2013.
The shipping market fundamentals will improve when the European economy will stabilize and has a positive growth. It will get 6-12 months to change the image of the market but is going to be a painful process analysts observe.

As they  say “We need to see how the problem in Europe will be resolved and how Chinese economy will be stimulated”. At the same time Chinese shipyards production must be reduced but in connection with the new eco-friendly ships and more efficient vessels to be constructed in the next years a healthier demand and supply balance will be restored.

Full article, ELNAVI, Issue 467, Nove,ber 2012, Page. 8

Read also this article in : Greek

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