LONDON ship accountants and consultants Moore Stephens expect hard times ahead for global shipping faced with overcapacity and a difficult financing environment in paying shipyards for newbuildings.
LONDON ship accountants and consultants Moore Stephens expect hard times ahead for global shipping faced with overcapacity and a difficult financing environment in paying shipyards for newbuildings.
"We may see government in 2012 rescuing ailing yards, at least those governments in a position to intervene. 'Impairment' is likely to become a more familiar term in shipping circles, along with 'Chapter 11'," said Julian Wilkinson, head of the firm's shipping section.
Yet he found the industry mood was surprisingly buoyant. "Shipping's glass is still, remarkably, more half-full than half-empty. Many owners, managers and charterers are reasonably confident of making a major new investment, or development in 2012."
Less optimistically, he said: "Markets are languishing and are likely to fall further. More owners and operators are likely to seek to renegotiate agreements with their financiers or with the yards building their ships, or both. And we can expect finance costs to increase, along with operating costs."