No future for shipping?

We take a look at what was said in the market over the past week.

GloomyIns.jpg“I believe in general that there will always be oversupply in all segments. I believe in more bust than boom in the shipping industry.”

Not an industry worth making a career in then.  Guess Dagfinn Lunde is looking for a quick exit...perhaps a move into high street banking?

(Award winner Lunde pulls no punches with gloomy market view)

“When the market is on its knees, owners start ordering like there’s no tomorrow And in a depressing number of cases they are right — thanks to the orders there is no tomorrow.”

Is Clarkson Research president, Martin Stopford, suggesting the most useful service brokers could provide to the industry is axing their newbuilding departments.

(Stopford’s ABCDE guide to overordering)

“There has been an enormous amount of focus and interest by investors in the crude space, particularly for VLCC-focused companies.”

Banker, Mark Friedman, may be more optimistic... but not sure that peering into the tanks is a good way to spot a trend.

(Blitz of crude deals verifies investor desire to get dirty)

“To be honest, if an offshore shipowner cannot make a profit in this market today, then I think I would have to question their business model.”

Swedbank analyst, Stig Erik Kyrkjeeide, appears to be suggesting a favourable supply demand balance is turning a stake in the offshore support business into a licence to print money.

(Offshore sees demand running ahead of supply)

“We are quite sure the market will be pretty good during the summer but we are uncertain whether it will be really good or not.”

But a nuanced view from Havila Shipping’s finance chief Arne Johan Dale.

(Havila thinks new ships may put pressure on North Sea spot)

GoldPlatedIns.jpg“Fit-for-purpose is something we need to do more of in this industry. We are gold plating everything and that is not far from the truth.”

A call for a focus on costs from Jean Cahuzac of Subsea 7. Lets hope that fits in with the declared corporate strategy of striving for excellence to achieve superior business results.

(Subsea 7 chief calls for an end to ‘gold plated’ options)

“Governments control alliances. Alliances do not control governments.”

A lesson for the P3 liner partnership on who really calls the shots from Federal Maritime Commission’s Richard Lidinsky.

(Why Commissioner Lidinsky voted ‘no’ to the P3 Network...)

“While the three largest carriers will be collaborating operationally, these carriers will continue to compete with each other on pricing and cost."

But fellow Federal Maritime Commissioner William Doyle explains why he was prepared to give the green light to the P3 alliance.

(...And why Commissioner William Doyle voted ‘yes’)

“Not enough thought had been given to reaching all parts of the vessel — and there were parts of the vessel out of reach on a ship [that is] much smaller than the Triple E [18,000-teu containerships].”

A timely warning from Svitzer Salvage chief, Peter Pietka. And good to hear that he has informed the top brass in the Esplanaden that big has its penalties.

(Svitzer boss Pietka appeals forreview of global salvage strategy)

“It was our turn to not have a big casualty.”

Swedish Club managing director Lars Rhodin breathes a sigh of relieve as he counts the $17m profit rung up last year.

(Swedish surplus hits $17m as diversification pays off)

“The John Fredriksen Mini-me Wannabe Award.”

What Scorpio Tankers’ Robert Bugbee really wanted rather than a shabby $12.99 commodore’s hat according to Teekay chief Peter Evensen.

(Bugbee wears the hat at CMA dinner)

BrawlIns.jpg“We are confident the New York court will see OSG’s baseless claims for what they are — a desperate attempt by a bankrupt entity to shift blame for self-inflicted wounds that resulted from more than a decade of imprudent decisions.”

Proskauer Rose comes out fighting in a $450m legal battle with Overseas Shipholding Group.

“This is a legal malpractice and breach of fiduciary duty case against Proskauer. This is also the story of how one of Wall Street’s most pre-eminent law firms betrayed the trust of one of its oldest clients.”

But the OSG side also appears to be preparing for a no holds barred courtroom bout.

(Battle lines drawn as OSG tallies up Proskauer damages to $450m)

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