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Greek fleet grows, number of shipowners falls

Greek fleet grows, number of shipowners falls
Despite the low freights, the stagnating sale & purchase market and bank lending restrictions, opportunities do arise and Greek shipowners are not shy in jumping on them.

For large Greek shipping companies finance and opportunities abound, and they have invested heavily in modern eco vessels, and while the going is much tougher for smaller owners as they battle unaided against poor shipping markets and the dearth of finance and capital, they, in the main, are also making headway.

This is reflected in the latest survey by Athens-based Petrofin Research which confirms that for the first time the Greek-owned fleet is on the other side of the 300m dwt threshold. However, as the fleet shows an impressive performance in terms of numbers, age and size, the number of companies running the fleet is decreased.

"Confidence in shipping is still there and strategic movements are at work to render the Greek fleet ready when the market recovers," says Petrofin Research. "The data obtained from our research is indicative of a very active market, a positive outlook for the future and continuous emphasis towards larger and younger vessels," says the Ted Petropoulos-founded Petrofin Research.

As of August, the overall number of Greek vessels stood at 4,707 up from 4,573 year-on-year. Tonnage was 22m dwt up to 303.58m dwt an increase of 7.85%. Fleet age continues to decline, to 13.26 years from 14.05 in 2013 and 14.7 in 2012, but using a 20,000 dwt cut-off, average age of the Greek fleet is 9.14 years from 9.83 in 2013.graph

The bulker fleet of vessels over 20,000dwt has gained 59 ships, its age is down to 9.2 years, its tonnage up 6.4m dwt and it has lost six companies. The tanker fleet of unitss over 20,000 dwt shows an increase of 5.85m dwt but there are nine fewer vessels. The number of companies remains the same but the age profile has gone up for the second year in a row. The container fleet of units over 20,000 dwt is 2.24 years younger at 9.86 years old, has gained 1.48m dwt and is one of the very few sectors to show an increase in the companies that run them, up three.

For the first time Petrofin looks separately at the gas sectors. Regarding LPGs over 20,000dwt, the number remains the same as a year ago and their age is up slightly. LNGs are only over 20,000dwt, and 18 vessels were added in 2014 to make 50 overall, and their age is down to 3.5 years from 4.25, making them the youngest sector of the fleet.

"The Greek fleet continues to expand in a more consolidated manner, as Greek owning companies are reducing," said Petrofin. In fact the companies year-of-year are down by 3.2% to 668.

Petrofin contends it is a paradox to see that Greek shipping continues to grow. "Clearly, Greeks see an opportunity in this market, despite the odds. Even more important, Greek owners assisted by US equity funds and the public markets are committing huge amounts of capital, based solely on expectations of a shipping recovery. This represents a counter-cyclical play at its purest form and “to the winner go the spoils," contended Petrofin.

Petrofin sees US equity funds as shaping Greek shipping. "By co-investing in young vessels and newbuildings, these funds are propelling Greek shipping upwards," declares Petrofin.

An emphasis on young vessels is observed in all size segments, even in those involving small owners. Says the researcher: “Clearly, about a quarter of very small owners [1–2 vessels] and about a third of small owners [3–7 vessels] based on dwt, demonstrate a clear commitment towards younger fleets [0–9 years old] thus “establishing the nursery for future larger owners”.

Petrofin sees a further development in the relatively large number of new companies formed by the offshoots of large family companies “providing younger family members with an opportunity to follow their own way”.

"However, at the end of the day, shipping represents an investment and thus far the operating investment returns have been most disappointing. Whereas optimism abounds and Greek owners have put their faith in the new eco designs, the fundamentals are not supporting them," commented Petrofin.

Still said Petrofin: "Greek shipping is expected to continue to grow in the years to come but we suspect the rate of growth shall slow in the light of largely non-supportive market conditions."

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