Confidence in shipping sector picking up steam

BY a happy coincidence, this year's Singapore Maritime Week (SMW) is being held just as overall confidence levels in the shipping industry rose to their highest level in almost six years in the three months to February 2014. Anecdotal evidence suggests that this trend has continued. According to the latest Shipping Confidence Survey from international accountant and shipping adviser Moore Stephens, freight rates are likely to improve or be maintained at existing levels over the next 12 months, while an increase in private equity funding is expected to have a major impact on the industry.

The firm says that the average confidence level expressed by respondents in the markets in which they operate was 6.5 on a scale of 1 (low) to 10 (high), compared to the 6.1 recorded in the previous survey in November 2013. This was the highest figure since the 6.8 registered when the survey was launched in May 2008.

Surveys such as these should be taken with a pinch of salt but optimism was very evident at the recent Asia Pacific Maritime event, though you could find some contrasting views there. For example, offshore support vessel owners were significantly more upbeat than those struggling to make a profit in the container trades.