Although ours is a world increasingly connected by technology, the most significant development we can expect in our industry in 2012 will highlight the financial, rather than the technological, connectedness of our global markets, principally the ship finance market.
Each day, we hear of tumult in the global economy, the effects of which continue to be felt by all of us in the shipping industry, and increasingly so. As shipping is inherently global, so too is shipping finance; what happens in banks (and most specifically European banks) and KG houses will reverberate throughout the industry. Overbuilding spurred by easy credit in our sector must now be reckoned with. The resettling of global shipping finance will continue to alter the landscape of the project-heavy-lift sector in 2012.
Shifts in control of vessel assets have already begun with smaller owner-operators and will continue with larger entities. What continues to be important for customers of our industry is the continuity and quality of service that will be offered by companies strained by financial pressures. Redistribution of assets and people in our sector will lead to uneven pricing and performance. The multipurpose-heavy-lift fleet should not, and cannot, find itself governed by asset players placing commodity-like bets on values. The case for larger scale, truly global, carriers governed by best practices has become more evident and obvious to the key players in the industry – the cargo interests.
Last year, our article concluded writing, “I continue to believe the market will reward those who invest in technology, who exercise fiscal discipline, and who focus squarely on delivering quality service to their clients.”
This is still true. Those who confront the global market challenges ahead by focusing on core elements – qualified personnel, technology, quality and fiscal responsibility – will prevail.