Too many ships chasing too few cargoes

OPTIMISM is a necessary characteristic for survival in the highly competitive and cyclical shipping industry. International accountant and shipping adviser Moore Stephens always manages to maintain an air of optimism. In a recent statement it expects the shipping industry to remain "volatile and indispensable in 2016".

However, its ever upbeat shipping partner Richard Greiner insists the portents for 2016 are not all bad. According to him, "Shipping will remain volatile and uncertain throughout 2016. Operating costs will go up, as will the cost of regulation - for example, implementation of the Ballast Water Management Convention. The threat from cyber security will rise. Interest in refinancing, as a means of getting cash out of the business, is likely to increase, as are calls for accelerated ship recycling and a cap on newbuildings. The effect of geopolitical developments should not be under-estimated, while speculation about the UK's planned Brexit referendum in 2017 will add spice to the pot."

Despite this gloomy prognosis, Mr Greiner concludes: "Now is nevertheless a good time to invest if you have access to finance and a credible business plan, preferably one with the badge of green approval. It is no coincidence that the International Maritime Organization (IMO) recently endorsed a proposal to adopt 'Shipping: Indispensable to the World' as the theme for World Maritime Day 2016."