Shipping confidence hits 15-month high, but newbuildings cloud future

A SHIPPING confidence survey for the next year from shipping tax advisor Moore Stephens' reveals a 15-month high in confidence, but an overall dampening of spirit on freight rate increases on the back of newbuilding that will upset the supply and demand balance.

According to its latest report for the diminishing orderbook overhang and booming scrappage will make 2010 less tough than anticipated but that green demands will be foisted on the shipping industry with older and less efficient vessels finding it hard to secure charters.

Shipowners, managers and charterers average confidence level on a scale from one to 10 climbed up from 5.7 in November 2009 to March's 5.9 with confidence peaking across the four main regions covered by the survey of Asia, Europe, North America and Latin America.

Despite shippers investments highlighting increasing bullish attitude the survey noted 45 per cent of respondents expect an increase in box rates, an increase of 19 per cent.

One respondent said the overhang in tonnage is making for uncertainty with too little finance on offer, with one comment outlining industry unease: "There's only enough cash to fund half the orderbook, so something has to give."

(Source: www.schednet.com)