| Abstract | The performance of the international shipping markets has remained uninspiring between August 1993 and July 1996. Underpinning the lower freight rates is the large numbers of contracted newbuildings in the dry-bulk and liner sectors, a situation which has been fuelled to a certain extent by keener competition in the ship finance market. The tanker market has also continued to be governed by over-capacity, but a steady rate of demolition, encouraged by a combination of increased operating costs, and safety and environmental factors, should help to improve freight rates. Overall, as the world economy gathers momentum and trade volumes rise, the fundamental prospects for the shipping industry are positive. However, excessive expansion in shipbuilding capacity remains a concern. Detailed explanation and analysis are provided in this article. |
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