Legacies of the recession ?

• Demand down• Rates down

Squeeze on costs !

The challenges remain !• Manning shortages– quantity and quality• Fuel and other operating costs increasing• Expectations of Charterers and Shippers• Environmental pressures• Piracy• Concerns over criminalisation……...

Squeeze on costs = Squeeze on Quality ?

• Challenge to maintain quality and standards, - e.g. maintenance, training

• Challenge to meet the issues of the day – e.g. including environmental challenges

Legacies of the recession ?

• Demand down• Supply up

The LegacyToo Many Ships

Orderbook – All ships (>999GT)

Source: Clarksons, April 2010

The LegacyToo Many Shipyards

Source: Worldyards/INTERTANKO Aug 09

m cgt

2631 33

38

26

26

55

42

15

3 0

914% 26

38%

4876% 62

95%67

99%

0

10

20

30

40

50

60

70

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Available capacityOrderbookHistorical deliveries

Shipyard output potential - surplus

Implications ?

• Distressed sales / lower prices

• Quality and standards maintained or weakened

• Pressure on suppliers and sub-contractors

• Greater customer focus & customisation

• And possible government interventions ?

Sunrise or Sunset ?

• Ship owners• Ship managers• Manufacturers/Suppliers• Shipbuilders• Ship financiers• Shipping organisations• Shipping magazines !

A new dawn ?

• Administrations/flags• Regulators• Classification societies• Port State Control• Others ?

Legacies of the recession

• What does this mean for the Seafarer ?

Is this the future ?

The New EraThe New Era

or

Thank you For more information, please visit:

www.intertanko.com www.poseidonchallenge.com

www.shippingfacts.comwww.maritimefoundation.com

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