Maritime sector showing signs of recovery

[SINGAPORE] The maritime industry is showing signs of improvement, with Asia continuing to play an important role in this resurgence, sector players said ahead of a major industry conference.

The Asia Pacific Maritime 2014 (APM) conference, which will be held in Singapore from March 19 to 21, will address key issues such as dry bulk demand, maritime finance, green shipping and the use of maritime technology to cut cost and improve efficiency.

Roberto Cazzulo, chairman of RINA Services, said Asia has played an increasingly important role in global shipping during the last decade and will continue to do so over the next five years.

"The robust demand in bulk shipping, the availability of top-notch port operators, overall improvement in competencies, technology innovation and strong support from the public and private sector, including classification societies, are among the drivers that continue to sustain Asia ... in the maritime industry," said Mr Cazzulo, who is also chairman of the International Association of Classification Societies (IACS) Council in Italy.

The maritime sector has experienced turbulence over the past few years as a slowing global economy and overcapacity kept freight rates low, threatening the profitability of the traditional shipping business.

But some industry observers reckon that the worst may be over. Bimco chief shipping analyst Peter Sand, for one, believes that prospects are brightening.

"We are definitely seeing some light at the end of the tunnel. The recent glimpse of sun in capesize and VLCC (very large crude carrier) segments, the slowing demolition activity and new building ordering gaining traction are all bullish signs," said Mr Sand. "With the global economy recovering, the optimistic outlook of the shipping market has never been clearer than now."

Speakers at next month's APM include Mr Cazzulo, Mr Sand, Chris Faulkner, CEO of Breitling Oil and Gas, Thomas Kriwat, CEO of Mercantile Shipping Company, Jeremy Nixon, CEO of NYK Line, Yang Chang Kun, managing director of shipping at ICBI Bank in China, among others.

The theme of the event is "Repositioning for Growth in the Asia Pacific Region". The conference will bring together about 1,500 international maritime companies from 53 countries and 15,000 visitors to attend an exhibition, conference sessions, and a host of networking events which connect Asia-Pacific buyers with international maritime suppliers.