| |
| |
 |
| |
|
| |
|
| |
|
SINGAPORE: The liquefied petroleum and natural gas shipping sector is likely to stabilise by next year through better management of capacity.
But maritime bank DnB NOR said on Wednesday that other segments like dry bulk and container shipping are expected to face continued pressure from oversupply and diminished demand.
Global shipping has been facing still waters with the global downturn. With flagging demand, shipping firms have been struggling to stay afloat and this may well last beyond next year.
But experts said for those in liquefied petroleum and natural gas shipping, the prospects for 2010 are turning positive.
Glenn Lodden, equity research analyst, Shipping, DnB NOR, said: "We see some positives with the LPG and LNG shipping sector where you see fleet growth coming down nicely in 2010, and even more so in 2011.
"As for most of the other shipping sectors, we see that vessels are being delivered and there are actually quite a few vessels on the order books at the yards."
DnB NOR predicts some consolidation in the industry given the lower valuations for shipping firms and assets, but said only large firms like AP Moller-Maersk will be in the running for such deals.
According to its estimates, some 10 per cent of the global container shipping fleet is currently idle and spot rates across most shipping sectors are at five-year lows.
It said financing this overhang is also expected to add to the industry's strain, particularly to lenders.
Erik Borgen, regional director, Asia, DnB NOR, said: "We know that a large amount of the vessels that have actually been ordered, going forward, have not been financed. I think the banking sector as such will probably have some difficulties financing all the vessels that are coming on-stream."
As of 2009, estimates put the value of shipping assets in need of funding at around US$350 billion and market players said overhang is not expected to be cleared any time soon, at least not until the next boom cycle.
- CNA/so
|
