We take a look at what was said in the market in the past week.
Sounds like it’s time to run a mile from FIS and freight futures if prospects are comparable to a Lancashire football club that was relegated and lost its manager last year.
(FIS profits felled by low paper volumes)
“When you have highly leveraged assets that experience volatility in price and value, it puts severe strains on both owners and lenders. It’s an important issue. It spills over into the banking industry.”
Prof Benjamin Esty of Harvard Business School appears concerned that toxic shipping assets could be bad news for bankers.
(Brokers help out Harvard brains)
“I fail to understand how, when I can contract a VLCC newbuilding for $100m for delivery in two years, I am then expected to pay $115m for a resale, especially when the overall market does not look that promising.”
Per Wistoft of Dubai’s Gulf Navigation struggles with the peculiarities of the shipping business.
(GulfNav waiting on VLCC values)
“Our gut feeling is that policy years are like a good wine. They tend to improve with maturity rather than deteriorate. If this is so, then maybe the conceptual basis for a release call is capable of being undermined.”
Seems that P&I connoisseur Arthur J Gallagher has sampled a few too many release calls to be impressed by the current vintage.
(Release calls in broker sights)
“It must be possible at all times to man the bridge with a sufficient number of crew members when exposed to heightened risk, such as reduced visibility, heavy traffic, harbour mode or darkness.”
Germany’s Federal Bureau of Maritime Casualty Investigation thinks it is a good idea if the watchkeeper on a one man bridge is awake.
(Watch duty lapses back in spotlight)
“The rates for product tankers continue to be weak, and the signs of recovery we experienced during the summer months of 2010 have not materialised into better rates. However, this does not change our long-term view of the product tanker market, and we remain positive on the future prospects of this segment.”
Jacob Meldgaard of Torm prefers to look on the bright side as he warns the Danish tanker owner is facing a $75m to $85m loss.
“Even $1bn might not be inappropriate if something drastic happens.”
Bjorn Eidem of Den Norske Krigsforsikring for Skib believes in keeping his financial powder dry for whatever eventuality comes along.
(Fighting fit and ready for action)
“From our point of view, market volatility is here to stay, and it will continue to command our full attention.”
Wolfgang Driese of DVB Bank expects the future will be variable and maybe even different!
Chris Newey of DFDS wants to see new controls on attempts to swim the English Channel.
(DFDS wades into swimming row)
“Before they left the ship, the frustrated pirates caused a significant amount of damage to the bridge and crew’s living quarters.”
NATO comments on the mess left by pirates who briefly boarded the Greek bulker Go Trader but left empty handed.
“We believe that dry bulk rates will decline modestly year-over-year in 2011, which coupled with the continued expiration of heritage pre-crisis contracts, should result in year-over-year earnings declines for most of the companies under our coverage, in a way verifying investor skepticism on the stocks.”
Jonathan Chappell of JP Morgan on why he sees dry cargo shares as a “dead money” investment
“It makes no sense flooding the market with newbuilding tonnage just because newbuilding prices are low, when all signs point to a continuation of the slump for the aframax market.”
DVB Bank has a word of advice for shipowners but is it taking the same line on lending?
“I have hoped this would be the solution for quite some time. When Peter asked me to continue in a reduced position, I was glad to say yes, but at my age it is no longer realistic to be on the alert 24 hours a day and be travelling all the time.”
A rare welcome of a demotion from Erik Andersen head of RS Platou’s research operation.
“People have money but they have been reluctant to spend it. Now everyone will think it is a good time to invest.”
Capt Wei Jiafu of Cosco is optimistic about prospects for 2011.
“China is the US of the 1960s and Japan of the 1970s as its thirst for oil grows.”
Charlie Fowle of Galbraiths has an appetite for the Chinese tanker trade.
(Thirst for oil gets carriers smacking lips)
“Smaller offerings are outdated. Based on the business we have learned, I think you need to see not just big companies but a significant part of the company being floated.”
Stamatis Molaris of Alma Maritime explains why he is holding fire but thinking big about IPOs.
“It would not be sensible for us to raise our hand and rush with the first permit application.”
Robert Dudley on why BP will not be first in the queue for Gulf of Mexico drilling permits.
