We take a look at what was said in the market in the past week.
As Tor Olav Troim appears to take an apocalyptic view of the VLCC market guess we will be seeing John Fredriksen and Frontline divesting their fleets of large tankers pretty soon. Troim even suggests that tanker owners may want to buy into bankruptcy law firms, lay-up operations or convert VLCCs into floating car parks or hotels.
“My analysis of shipping cycles only goes back to 1741 and I honestly don’t think he [Troim] has considered the crisis we had after the American Independence in the 1780s properly....if it is going to be the worst since the Black Death we should precede the best we can in ignorance.”
Clarksons shipping guru Martin Stopford feels that if one is taking a thousand year view there is the odd colonial rebellion that should not be overlooked.
(Stopford raids mental archive)
“We can see light at the end of the tunnel and it is not a train coming towards us.”
Well if it is not a train lets just hope it is not a tanker at full speed. Otherwise new Teekay chief, Peter Evensen, is in bigger trouble than anyone imagines.
“At Teekay we took a look at what happened if you optimised speeds at 12 knots with the capability to move upwards rather than 14 knots and we saw it would bring huge benefits from the economic and environmental perspective.”
Intertanko chairman, Graham Westgarth also of Teekay, suggests tanker owners have something to learn about slow steaming from the container lines.
“Currently, if you look at the period market for large VLCCs and suezmaxes, the three and five-year rates are considerably higher than the one-year rate. So certainly there are expectations for the market to improve.”
Crude Carriers finance chief, Ioannis Lazaridis, is optimistic although he acknowledges that today’s rates are below the breakeven point for many owners.
(Merged Marinakis entities look to long-term charters)
“These are difficult times for everybody, but this is also a time for opportunities.”
So the end of world as we know it is not something that appears to worry Sturla Henriksen of the Norwegian Shipowners’ Association overmuch
“We love the (shipping) industry.”
But like a careful banker, Dagfinn Lunde of DVB, reveals that when it comes to some sectors it’s not unconditional love.
(DVB boss warns of cash crisis)
Tor Olav Troim again and this time he wants the Norwegian government to come down to earth.
“When you are young you have energy so should be the first in the office and the last to leave.”
But what about dancing and drinking. It might be good advice on getting ahead but sounds as if RS Platou is not so great a place to party with Peter Anker at the helm.
(Experts enlighten next generation)
“I don’t think it makes a difference if you have an MBA or not so long as you attract good talent and you are willing to work a lot.”
Cecilie Fredriksen on the sort of fresh talent the shipping industry needs. But maybe it's helpful to be more than a hard worker.
(Centre stage) and (Hot or not)
“We don’t want to build ships only for Brazil. We want to sell ships to the world.”
Transpetro boss, Sergio Machado, know exactly what the shipping industry needs.
(Transpetro boss sanguine on tanker delivery delays)
“If we tend only to our garden and not to our neighbours, they will steal the roses from my garden.”
Sergio Machado again but this time on how Transpetro plans to grow seafarers and not just ones that will be planted on Brazilian ships.
“Anybody can lose money but taking in 200 vessels on charter without any coverage and to be surprised if they suddenly go bankrupt is ridiculous. I call it mismanaged.”
Golden Ocean chief Herman Billung gives a hard hitting analysis of the Korea Line Corp crisis and pledges he will pursue them for as long as they have a dime in their coffers.
(Golden Ocean ready to fight to get its money back)
“Imagine a situation where you have 760 hostages sitting anywhere in the world on a runway at an airport.”
InterManager’s, Kuba Szymanski, makes a telling comparison on the number of seafarers held by pirates.But he is also worried that an Osama bin Laden plan to hijack a tanker and blow it up remains a credible threat although a guy from Chicago has ensured the Al Qaeda leader is sleeping with the fishes.
(Tanker terror spooks Szymanski)
The chefs at the Marsh broking group feel the energy insurance market has a lot in common with creme brulee.
(BW Pioneer claim adds to offshore nervousness)
"The ministry cannot raise this shipwreck. We do not have the finances to do it as it will cost more than EUR 150m and this is an issue that the shipowner and insurance company have to deal with.”
The Greek financial crisis comes home. Marine affairs minister, Yiannis Diamantidis, on why insurers will have to foot the bill for bunker removal and raising the wreck of the Louis Cruises' ship, Sea Diamond, which sank off Santorini four years ago.
