A recent story (read here) from Keith Wallis (Reuters), talked about a $32 billion investment over the past 2 years that has multiplied the risk of over-capacity, just as the seemingly ‘recovery’ is on the way.
Thousands of new ships have been ordered on the back of ‘bottoming newbuilding costs’, mostly without regard basic fundamentals such as employment of the ‘yet-to-be-built’ ships. To some degree this has been borne out by some intended shipping IPOs that have been put off on weak sentiment.
Much of this could be related to a failure of senior management in general to consider external factors in the overall corporate strategy – such as geopolitical risks, change in trade flows, rapidly developing landscape for new and developing sources of energy, development of low sulphur diesel, LNG, shale gas and resultant economic consequences and more.
In this year’s ShippingHK Forum : The Business of Energy in relation to Global Shipping, we take a close look at the options, the availabilities and the existing resources of energy requirements – starting with a review of the current and trends for trade flows, worldwide and regional (The Economist); the sources and resources of Energy, globally (Bloomberg) and specifically, the fuel options for powering ships (DNV GL).
One Oslo listed dry cargo ship owner commented that some of the orders placed by PE were perhaps purely with the intention of speculative gain in asset price appreciation rather than working assets for long-term positive cashflow.
Another point that PE, as well as many traditional shipowners have not taken into account, is the geopolitical factors; actual global v. regional trade flows; impending legislation re environmental issues; developing fuel options for powering ships. In the run-up to 2016, as the many newbuildings are being delivered – which ships will be out of date on day 1? Will there be options for LNG as a fuel source built into all new buildings? Will low suphur diesel become the norm close to Ports – is the industry ready with its infrastructure, the bunkering LNG in ports?
Senior management needs to consider the “big picture” and all its ramifications for all stakeholders in the industry, especially the ship owners/operators. At ShippingHK Forum, we are doing just that with our forthcoming forum on: “The Business of Energy in relation to Global Shipping”.
A Forum that will look at Global and regional trade flows (The Economist); the sources and resources of different types of energy, from where the sellers and buyers will come from (Bloomberg); then specifically relate them to the shipping industry by looking at the fuel options for powering ships (DNV GL).
Finally, our panel of people in the industry will look at how to take advantage of all this “big picture” knowledge and put it to practical use. Please review our Agenda (here).
By registering today, you can take advantage of the knowledge and facts dispensed by our speakers, for the price of a delegate fee of $3,120, ($2,500 for members of the HKSOA). With limited places, don’t delay, please call or register today.
At ShippingHK Forum, we are different to the many other shipping conferences/forums, with:
- Half day Forum (so there’s exodus from half the delegates after lunch);
- selected delegates by invitation;
- Speakers who are expert in a field that is related or can affect the industry, with panelists from within shipping who will discuss the full implications of each presentation;
- No media/press attendance; Chatham House rules;
- A sit-down lunch at the end, where all delegates will be able to interact with all the speakers, from The Economist, Bloomberg, DNV GL and industry leaders
Click here to register today!
ShippingHK Forum has the contacts and language abilities to help both Chinese and international shipowners. Join our website, blog and/or the many social platforms we are on and feel free to ask our advice – if we don’t have the immediate answer, we know someone who does – from Hong Kong, Shanghai or Singapore, to London, Hamburg and New York.
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