Derek Prentis: the harsh reality of the Shipping Market

Markets, News — By on February 28, 2012 at 4:30 PM

Have you ever imagine the owners paying the Charterers…, if not, just read on!

Experience is obviously what counts and everyday by any means and time available, I* contact and ask people’s views, people from the industry which have seen and experienced at least five to seven “cycles”,  with respect the state of the Shipping and in particular the Freight Markets. We begin with Derek Prentis, MBE, “the Father of the Baltic”, who answers briefly, but to the point our questions:

a) Will the market recover  – how and when? In your view, this 26 year low how does it affect the Markets?

It is my opinion that it will take another year before we see any movement, one has to acknowledge that the Chinese have plans to expand their economy, and I hear that their imports of Ore and Coal are expected to increase in 2013/4. The Market is currently at it’s lowest ebb that I have everexperienced in my 66 years in shipping, the most remarkable happening which I thought  I would never experience was: One Panamax was fixed Dly China Redelivery Pacific Coast USA with Owners paying Charterers $2, 000 per day and a Cape was fixed Dly China trip via Australia redly Med/ Cont with Owners paying Charterers $10, 000 daily.

b) How the new built ships in 2012 will affect the market?

This will be counteracted by scrapping Older Vessels.-

c) Will ultra eco-friendly ships, that some expect to come soon, will alter the market for the best?

Taking into the cost of building it will take some years yet.-

d) Will owners sustain charterers market?

The Old established Owners will survive, but we will see many of the newcomers go to the wall.-

e) Are we going to see any sudden insolvencies?

Yes, it is happening daily with the less established Owners.-

Well then, what an account; what a down to earth response. I guess you will also respond and comment to the above replies and see what happens next. I do hope that many of our viewers will unsolicited reply to the above questions and we intent to publish them immy they arrive.  Please email: info@allaboutshipping.co.uk  ref: FM

* The Faraclas questionnaire to Derek Prentis

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