RE: After Norshipping Exhibition and Mareforum in Oslo
As you may know, as OKT Shipping, we have attended Norshipping Exhibition and Mareforum in Oslo last week and would like to share our review on the both events with you.
Mareforum organised last Monday in Oslo on IMO 2020, Ship Finance and Future issues and our short evaluations during the forum are;
- We found the Norwegian/Worldwide Shipowners on the other segments rather than fishing, ferry and cruise etc. a bit pessimistic or reluctant.
- The reasons for this can be summarized as the lack of return of the markets to the old good levels, the developments in the financial markets and the regulations about the new BWTS and IMO 2020 and the fear of future that may bring more challenge.
- Shipping is an investment area in which large capitals for both shipyards and maritime companies. In this context, according to most of the shipowners, current market creates questions such as whether it would be better to invest in other industries that show grow faster today or not.
- However, most of the companies would like to stay in shipping industry as in the past but review their strategies more carefully.
- European banks are already trying to stay away from the shipping which they already supported before the crisis and follow “wait-and-see” strategy.
- Many banks have increased their required equity ratios from the shipowners to almost 50% in their loans, which in turn pushes investors to wait.
- A proposed system for the shipowners is to combine 4 shipowners by looking for finance with 25% equity, i.e. to buy a single ship when necessary without having to deal with finance and its costs, and thus to reduce operational costs and to obtain a more profitable investment. Obviously, both systems have their own problems.
- It is known that financial costs have increased even though the required equity has been increased compared to the pre-crisis period. In addition, according to a study made by Zuyderzee Capital, USD 2,000 per day additional capital cost occurs on a USD 25 Million compared to good times before crisis due to higher swap rates.
- In any case, Norwegian maritime companies have already been involved in maritime business since the 1800s or even before. They work with really strong teams, modesty, discipline and honesty are in the forefront and they listen carefully and take notes by giving importance to everyone.
- In short, rotten fruits appearing both in Norway and in the world will be removed from the sector within a few years or they will have to be renamed or changed the ownership.
- Another big concern was the BWTS and IMO 2020, everyone had very different opinions. Generally, most of the companies aware that these issues have not a direct return to the owner such as profit or another way, and will not be taken into account too much by the charterer either. During the speeches, a flag state manager addressed IMO for the owners’ objects and difficulties on these issues/concerns.
- As a result, all of us are in the same boat, and it seems that we have to put aside special issues and act together. When we look at the issues in particular, we need to strengthen our teams further and to develop strategies on existing or possible challenges and enjoy the success together.
If we also talk about a bit on Norshipping Exhibition;
- Our represented Chinese shipyards mostly participated with their newbuilding teams rather than repair. The most important reason for this, due to scrubber retrofits, most of repair yards are almost full until April 2020. Some of our other Chinese shipyards have also stated that they do not want to involve too much in the scrubber business and concentrate on normal docking and repairs mostly.
- Our other world and European shipyards also took their places at their booths. Our shipyards inc. Turkish ones have made preparations already especially for both BWTS and Scrubber retrofit, and some of our shipyards succeeded to make their works in a short time to complete/deliver the ships and established their references in this regard. As OKT Shipping, will be pleased to serve our Global and Turkish Shipowners for repair, docking, retrofit and new building areas in our shipyards in Turkey and around the world.
- This exhibition was also a significant and active participation of our represented Turkish shipyards. Our past projects with Norway are our biggest reference. We believe that all of our shipyards, which have maintained their modesty until now, will undertake even more successful projects, especially in newbuildings.
- And of course there was one critic from the owners or other parties that would like to cooperate with our Turkish or Worldwide yards that some people are trying to act as brokers even without knowing yard business but tells them they know everybody closely. As we are yard or snp brokers, we know that they will not stay in our industry so much but kindly urge our clients to become careful when they select their brokers for newbuildings, docking and repairs.
A good broker can create a value to the both owner and yard side at the same time but the others may create only trouble.
As a result, we wish all the participants and all of you a success after the exhibition. You can write to us or call for any questions.
We would like to express our great pleasure to assist you with our high-level shipyards in Turkey or Worldwide and wishing you success at all times.
Please also donot hesitate to contact us for your questions on our below activities.
Osman Kaya TURAN
Naval Architect and Marine Engineer (MBA, MSc)
OKT SHIPPING & TRADING LTD.
Şemsettin Günaltay Cad. Köseoğlu İş Merkezi Kat:4 No: 152/20 Kazasker - Kadıköy ISTANBUL TURKEY
T +90 216 356 22 82 F +90 216 356 22 84 M +90 530 415 14 12 E email@example.com
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