“The recent run up in VLCC rates seemed like the beginning of an upturn. However, a similar surge in new building orders for tankers is something that we should keep an eye on because of its potential impact on the cyclical nature of our business,” Borromeo said in his New Year message.
“As we have seen, even when we think we see the light of day, there remains a spectre of uncertainty.”
Borromeo also noted that the shipping industry had shown great resilience managing its way through the most difficult parts of the economic crisis.“In general though, we have managed through the most difficult parts of the economic crisis dating back to 2008, creating new ‘normals’ for all sectors and trades – from slow steaming to ‘battened down’ operating budgets, while continuing to keep an eye out for future trends in global economic cycles.”
Looking back 2013 he said that the coming into force of the Maritime Labour Convention (MLC) had been an important development for the industry.
“Interestingly enough, within the first weeks of implementation at least eight detentions were recorded. Will this ultimately assure all of the so-called level playing field, and will this convention usher in a new era in seafarer’s overall productivity, as well as attracting future quality prospects into this important profession?”
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