Global shipping confidence is at all-time low: survey
STRUGGLING with a glut of ships, a faltering global economy, weaker consumer demand and Britain's vote to leave the EU pressure is building up on parts of the container shipping industry already suffering from its worst downturn.
In an annual survey by international law firm Norton Rose Fulbright, just 15 per cent of respondents saw current market conditions as positive, the lowest level since the poll began in 2009, with shipping the gloomiest transport sector canvassed, reported Reuters.
In the poll of 200 respondents across the transport industry, 68 per cent of respondents said a global recession posed the greatest threat to shipping in coming years. That compared with 38 per cent who saw this risk in aviation and 20 per cent in rail.
"The (shipping) industry is currently in the grip of the worst recession in living memory and while most of our respondents envisage an upturn in freight volumes in the next five years, any major economic shock would further exacerbate an already fragile industry," said the firm's lead transport counsel Harry Theochari.
"The UK's vote in favour of a Brexit has meant that shipowners are likely to be assessing how it impacts upon their various regulatory obligations and their access to finance in a key shipping finance market," he said, referring to the role of the City of London.
Shipping faces a global funding black hole, estimated at US$30 billion, caused in part by banks cutting lending to the sector.
"Bank debt is expected to remain the industry's principle source of funding, although for many shipowners funding remains thin on the ground and few respondents believe access to finance is set to become easier," Mr Theochari said.
STRUGGLING with a glut of ships, a faltering global economy, weaker consumer demand and Britain's vote to leave the EU pressure is building up on parts of the container shipping industry already suffering from its worst downturn.
In an annual survey by international law firm Norton Rose Fulbright, just 15 per cent of respondents saw current market conditions as positive, the lowest level since the poll began in 2009, with shipping the gloomiest transport sector canvassed, reported Reuters.
In the poll of 200 respondents across the transport industry, 68 per cent of respondents said a global recession posed the greatest threat to shipping in coming years. That compared with 38 per cent who saw this risk in aviation and 20 per cent in rail.
"The (shipping) industry is currently in the grip of the worst recession in living memory and while most of our respondents envisage an upturn in freight volumes in the next five years, any major economic shock would further exacerbate an already fragile industry," said the firm's lead transport counsel Harry Theochari.
"The UK's vote in favour of a Brexit has meant that shipowners are likely to be assessing how it impacts upon their various regulatory obligations and their access to finance in a key shipping finance market," he said, referring to the role of the City of London.
Shipping faces a global funding black hole, estimated at US$30 billion, caused in part by banks cutting lending to the sector.
"Bank debt is expected to remain the industry's principle source of funding, although for many shipowners funding remains thin on the ground and few respondents believe access to finance is set to become easier," Mr Theochari said.