Era of cancellations, lay-ups and debt

Shipping has entered an era characterised by cancellations, lay-ups and debt. As many as 8,000 vessels could be affected in the next few years, Maritime and Energy.com reported. But even if the current situation is bleak, maintaining a long-term perspective will make everyone in the shipping industry better prepared once the present situation has stabilised.
At the moment, 1,000 vessels are idle. Slow-steaming is on the rise for ships in operation and newbuildings have been delayed or cancelled at shipyards. It is also a fact that the world’s largest shipbuilder has not signed a single shipbuilding contract since September 2008.
“We are faced with an overcapacity of tonnage and the prospect of negative growth,” said Tor Svensen, COO of DNV Maritime, speaking at a press presentation today. “The shipping industry is concentrating on the bare necessities and tightening its belt and these are the sensible things to do, but where there is change there is also opportunity.”
DNV is ready with solutions that sharpen operational performance and focus on internal change to achieve maximum gain. Financial and environmental priorities can be harmonised and companies can improve vessel performance by optimising bunker management and equipment performance. Also, as the number of maritime accidents rises, risk management must underpin changes and ensure safety is not compromised.
“It’s impossible to predict the economic future but we must look beyond the immediate crisis and maintain a focus on the environmental challenges we, as a global community, share,” Mr Svensen said.
“In the short term, we must ensure that we operate in an environmentally friendly way, and these days that includes how we handle lay-ups and scrapping just as much as how we handle our voyage management and energy consumption. In the longer term, DNV will continue to take a leading role in the development of better technologies and more environmentally friendly and efficient shipping.”

Source: Transportweekly