General Situation in Shipping

1. General Situation in Shipping

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PDB-01-000 12/18 General Situation in Shipping
General Situation in Shipping
The fnancial situation in the shipping industry remains extraordinary. Generally, shipping is a
cyclical business with fuctuating market conditions. The collapse of ‘Lehman Bank’ in 2008
triggered the longest and deepest decline in income so far recorded in the Industry.
Despite a brighter economic outlook, the shipping industry is still weighed down by excess capacity and
poor proftability.
The cost of operating cargo ships rose marginally in 2018, however certain sectors are still earning just
operational costs (OPEX) or even below.
Loans are hard to obtain and banks are partly withdrawing from ship fnance, therefore owners have been
forced to decrease costly repair and maintenance spending to a minimum.
Marlow’s main vessel’s groups are as follows:
• Container tonnage
• Multipurpose and heavy lift carrier
• Bulk carrier (all sizes)
• Coasters
These sectors are still sufering from low rates and an oversupply of tonnage.
However, there are small signs that the charter situation in some of these sectors is improving.
Owners and managers therefore remain cautiously optimistic that a positive trend in the industry will
prevail. These improvements still remain very fragile but may assist in helping the shipping market to its
recovery at a moderate pace.