The last two years have seen sentiment declining in the shipping industry with 69% seeing market conditions as positive in 2014, declining to 33% in 2015, and dropping yet further this year to 15%.
The main reason for the negative sentiment was overcapacity in shipping which was cited by 66% of respondents who said they were not positive. A further 27% highlighted economic uncertainty in key markets.
“The few respondents who regard current market conditions as generally positive attribute their confidence to the emergence of new market opportunities, the impact of infrastructure improvements and improved economic conditions in key markets,” Norton Rose Fullbright said.
Looking ahead over the next five years there was a more positive outlook with 67% of respondents expecting freight rates and passenger fares to increase over the next five years.
Meanwhile the greatest threat to shipping over the next five years was seen as global recession, which was cited by 68% of respondents.
Looking ahead to the next 12 months in terms of business strategy consolidation is expected to play a strong part with 22% expecting mergers and acquisitions to be at the centre of shipping business strategies over the next 12 months, and 19% said the formation of alliances, pools and joint ventures. Disposal of non-core assets was also high on the agenda and chose by 22% of respondents.
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