For shipping industry, it is suggested that fuel cost needs to be lowered through an improvement in fuel-efficiency of fleet to enhance competitiveness.
Analyst Park Moo-Hyun at E*Trade Securities of Korea has said that 69% of shipping companies urge to take notice of the improvement of fuel efficiency. “What is significant is not an increase in earnings but to lower the proportion of fuel costs compared to a total turnover."
According to 4-year research in shipping, railroad, flight segments from Norton Rose, a law firm in the US, particularly the shipping segment needs to focus on several measures to boost fuel-efficiency.
The analyst said that even though earnings increase, profitability is unlikely to be enhanced accordingly unless fuel efficiency, fuel cost against turnover, is not improved.
Maersk Line, which has been eyeing on fuel-efficiency from 10 years ago, showed a contrasting performance from Korean shipping companies, having a EBITDA margin to be above 12% as of the latter half of last year.
Park stressed, “Eventually, a fast move into Eco-ship will be the best way to boost the fuel-efficiency to the largest.”