International institutions in the eyes of the 2017 international logistics and shipping market

Ray Greiner, a partner at Moore Stephen, predicts that oil prices will continue to rise in 2017, more ships will be removed, and the additional costs will be required to meet the new regulatory requirements for shipbuilding.

Looking ahead 2017, Greiner pointed out that the shipping industry's forecast is always changing, for example, who can predict the acquisition by the Stock Exchange will be acquired?

"With the OPEC cut, oil prices will continue to rise, and in order to balance the market supply and demand, we call for more ships to be dismantled." In addition, with the entry into force of the Ballast Water Convention and the use of low sulfur fuels, Regulations, to transform the ship, the increased cost of the cost will become more and more clear.

In addition, he also mentioned that there will be more new ship delivery this year, some shipyards may be bankrupt; freight will be difficult to achieve the desired level; integration will be the key to the container transport industry; network security will be more and more concerned about high.
In mentioning what is unlikely to happen in 2017, Greiner said it was "a sharp increase in oil prices and hull insurance premiums."

In addition, the world's three major rating companies, one of the recent Fitch news that the shipping industry in 2017 will have more mergers and acquisitions, Fitch ratings show that weak demand growth will exacerbate the 2017 shipping industry overcapacity, the tariff caused Pressure, and further promote integration and bankruptcy.

Fitch expects the performance of all sectors of the shipping industry to face pressure, thus maintaining a negative outlook for the container transport sector. With the continuous collapse of the container shipping business, large liner companies have lost billions of dollars. Although some shipping companies (including Hanjin Shipping) have been liquidated, more companies are looking for the possibility of integration. Integration will further strengthen the shipping company's capabilities and allow them to remain viable in business. However, in the reorganization process, is bound to occur layoffs.

At the same time, according to Fitch's view, the tanker transport sector will be slightly smaller than the pressure on dry bulk and container transport. Many container companies and oil companies in recent reports show that there is enough cash to pay for short-term liabilities, but they still rely on uninterrupted access to bank financing to cover negative cash flows. These financing are more critical to companies that can not pay their due liabilities.

Therefore, according to Fitch's data, in the world's seventh largest container liner company Hanjin shipping declared bankruptcy, the market may have a profound impact. In particular, the withdrawal of creditors may indicate that the financing situation will be reassessed. Of course, even if the market conditions deteriorate, the new bank's guaranteed bank funds are still relatively convenient.

Fitch is expected in the short and medium term, there will be more mergers and acquisitions and bankruptcy. However, if the market can reduce the capacity supply, will promote the supply and demand balance and increase tariffs. In the container transport, Fitch expected integration will affect all companies, small operators will increase the scale to focus on survival, and Maersk Line and other market leaders will be through mergers and acquisitions to protect its market position.?