The current world economic situation offers opportunities for the shipping markets

04-03-2021

The last shipping boom (2004-2008) was preceded by 7 years of fear, with the Asian Financial Crisis (1997-1998), the Dotcom Crisis (2000), the US recession and 9/11. 

This was followed by less ordering and more scrapping which led to the shipping boom starting around 2004. Shipyards took advantage of the new built vessels flooding the market between 2004 and 2008. This came to an end in 2008 (collapse Lehman Brothers) resulting in a long period of overcapacity in all shipping markets. 

Currently the orderbook for tankers, bulkers and container vessels is at a historical low level, so the supply side picture for a stronger market looks good. On the demand side worldwide financial government support in long term infrastructure and sustainable energy projects will benefit the shipping industry as a whole. Uncertainty remains regarding the future developments around the pandemic, but most of the signals are coloured green for a positive shipping future for the next few years to come.

See the full report of Hartland Shipping Services.