Who said what at Sea Asia 2015

IMO secretary-general Koji Sekimizu questioned whether the offshore marine industry should have a similar global body: “Currently, members of the IMO Committee do not represent the interests of the offshore industry. Industry players can cooperation among yourselves and explore the potential of cooperating with an international organisation.”

Singapore Transport Minister Lui Tuck Yew underscored the future of Asia in the world of maritime: “It is therefore timely and fitting that the theme for Sea Asia 2015 is ‘Charting Asia’s Future Growth’. The maritime community needs to respond to the growth of shipping in Asia, and prepare itself to ride on the many opportunities that will bring.”

As container shipping markets continue to face overcapacity Pacific International Lines boss SS Teo blamed companies that ordered when the should not have: “The challenge now is still the huge amount of newbuildings that are coming out. In the last few years, some lines who should not be ordering ships are still ordering due to some ‘imaginative financing’.”

BW Group chairman Andreas Sohmen-Pao questioned the singule sector focus of private equity investors: “This is very hard to do from the shipping companies’ point of view because you need diversity to survive.”

Li Xiang, deputy director, transport finance department, China Exim Bank explains their commitment to financing ships built in China: “We have maintained growth over the last decade but I think it will now be challenging because we are not seeing an increase in shipbuilding activities in China this year. But we aim to maintain our growth and the total commitment (for this year) will be a bit higher than last year.”

Braemar ACM Shipbroking group research director Peter Malpas, sees some light at the end of the tunnel for dry bulk shipping: “So while there is still a significant amount of overcapacity there is some light at the end of the tunnel and towards the second half of 2017 we will start to see some support for the market.”

Neil Glenn, managing director of Swire Pacific Offshore Operations explains the impact of the lower oil price on offshore vessel operators: “There are requests to reduce rates on existing contracts. Reduced capex by oil companies has also reduced demand for OSVs. The collective impact is weaker utilisation and softer day rates.”

Banchero Costa head of research Ralph Leszczynski explains why LNG shipping will have to wait two years for an upturn: “Unfortunately the market will have to wait till 2018 or 2019 before new supply comes onstream from Australia, US and Canada as well projects in Africa such as in Mozambique and Tanzania, although these will come into play later than 2020.”