THE global ocean shipping industry is in much better shape today than it was a year ago, says Singapore Shipping Association (SSA) president Esben Poulsson.
Speaking at a press conference during Singapore Maritime Week, Mr Poulsson said the Hanjin bankruptcy Hanjin Shipping was a wake up call, reported Colchester's Seatrade Maritime News.
"That led to more discipline in terms of the supply side - that has led to rate levels coming back to levels that are beginning to be sustainable," he said.
The shipping industry, in particular dry bulk and containers, has seen a marked improvement over the last 12 months, he said.
Mr Poulsson said there was a lot of optimism at the moment. The Baltic Dry Index is at 1,200 points, compared to its all time low of 290 points in February 2016.
But he also had a word of caution: "I hope we don't repeat the mistakes of the past, we have to hope any ordering will be moderate."
In the container sector, Mr Poulsson noted five mergers and acquisitions in little more than a year, adding that there was "still more to be done", but not be at the pace seen in 2016.
"The tanker market is volatile. The supply side looks stable, but there is a lot of potential supply coming onstream," he said.
"There is an enormous overcapacity that will take time to work through, but it is very much related to oil price," Mr Poulsson said.
"Nonetheless, I'm still optimistic. I don't think there's going to be upturn in the offshore industry over night, but I think the worst is over time it will return to a healthy balance."
