Among the most common truths regarding the shipping industry is the precarious trade of investing in ships. It'a market which is in constant shift and is subject to so many different types of risk, most of which are highly difficult to quantify and predict. As a result, ship owners have to be highly adaptable and flexible, in order to swiftly follow or even lead the new trends in the market. According to the latest weekly report from shipbroker Intermodal, "we have already seen many old sea dogs going back to their ''old ways'' and while operating your vessel cost efficiently and competitively is very important, it doesn't mean that you will have also taken a path which ensures your future survival in the industry" it said.
Intermodal's analyst, Mr. George Lazaridis noted that "in terms of trade, things have almost turned on their head. In the oil trade we have seen several fundamental changes, with most prominent of these being that of the U.S's gradual shift from net importer to net exporter of crude oil. The change in location of oil refineries has also started to make its mark on the product and chemical tanker trade. In the Gas sector natural gas and petroleum gases have started to make a name for themselves as ''Green Solutions'',creating an ever more complex and flexible trade matrix" he stated.
Lazaridis added that "similarly strong shifts are taking place in the dry bulk sector, as although iron ore and coal still take up a major part in defining dry bulk seaborne trade, we have already started to see signs of a stronger boom in the minor bulk commodities. Commodities such as bauxite, nickel, zinc, tin and lead (to name a few) had also been riding on the back of China's growth than ever before".
Meanwhile, Intermodal's analyst noted that "this changing nature of things is not just limited to the demand side but is also taking place in the supply side. The new Chinese President has already proven his willingness to put strong priority in supporting his country's maritime interests. A good example of this has been the newly brought about merger of four maritime law-enforcement agencies into the State Oceanic Administration (SOA) so as to better facilitate the goverment's coordination on maritime matters. This particular change may well turn out to be of little consequence to the global maritime industry; however it does show a general commitment by the newly appointed leadership to build the country up as a leading maritime power. This will also likely take effect within the ship finane sector as well, and although Chinese banks are still, in many ways, trailing behind their Western counterparts, the ample lquidity at their disposal could be channeled through to support the local maritime community and provide local ship owners with a possible competitive edge" he said.
The analyst's report also mentioned that "in the West, it is still slim pickings out there in terms of finance. This point is something that has been thoroughly conversed in most forums and conferences lately. Traditional bankers have been subtle in revealing this harsh reality, but almost all will admit to not be willing to increase their exposure to shipping while also leaving hints that some may even exit the industry altogether, as the latest Basel requirements makes any further commitments unbearable. Shipping funds and other private equity sources, have been popping up left, right and center picking-up the slack while also taking advantage of the currently high price of financing. As such, in the new shape of things where financing has taken more complex forms and annual return on capital takes center stage, owners will have to also take up the role of financial engineers as well".
He concluded his argument by saying that "all this aforementioned uncertainty and change makes room for a plethora of opportunities for ship owners to take advantage of. I would like to end as such with a famous quote I recently came across from American Author William Arthur Ward which seems very fitting and maritime in nature- ''The pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails.''