While Korean shipping companies have been going through liquidity crisis due to long protracted recession of shipping economy, global shipping business is suggested to develop next year.  

Korea Maritime Institute (KMI) held a briefing session at Government Complex Sejong on December 23 and prospected that shipping economy would take a favorable turn next year, driven by improving global economy and continuous trading recovery.

As for containership market, its maritime transport is anticipated to increase in Asia-Europe route and Asia-North America route, which is attributable to economic recovery of Europe and the US. Also, negotiation power of P3 network, planned be launched cooperated by world’s top three containership operators, will grow that overall operating rates are expected to rise.

This also applies to bulker market. KMI expected that long distance transports would increase with rates continuing to rise. Moreover, the average rate of bulker was prospected to grow by 20-30% next year, compared to this year.

KMI suggested that it is time to invest in vessels because ship values hit the lowest point early this year with coming out of a recession, thus shipowners and financial sector must consider investment together.

Considering a characteristic of shipping industry where a business cycle is notable, it recommended that shipping companies would better prepare for boom periods with proper maintenance rather than carrying out large restructurings so that they could expand profits.