Shipping and freight
Shipping is a global industry and its prospects are closely tied to economic activity in the world. About 90% of world trade is carried by the international shipping industry – shipping is clearly the vein of the global economy.
Having enjoyed a long sustained period of buoyant markets, the shipping industry is now looking at a harsh new economic reality with economies worldwide downsizing in terms of both demand and production. Record low dry and wet bulk rates are causing covenant breaches. The sharp decline in vessel values are triggering impairment tests. Companies with ships bought a peak prices against high lending are facing cash drains and need to consider restructuring. Going-concern considerations are seen more often.
In the current market conditions, new corporate strategies and processes need to be established quickly to ease the inevitable onset of consolidation in the marketplace.
Issues and trends within the industry
- The shipping industry is experiencing a new trend of consolidation. Smaller companies that are asset-heavy are merging with larger organisations in order to survive these difficult times.
- Most shipping companies are struggling to manage positive cash flow. The major challenges facing the shipping industry not only stem from the economic standpoint, but also arise from strict enforcement of emission regulations and increasing safety and security issues.
- Carbon emission is a matter that will ultimately determine the future of the shipping industry. Emission control measures require the fitting of detectors and making expensive changes in the machinery deployed on board.
Our clients
In Switzerland, our clients in the shipping industry are those who consider shipping as part of their entire value chain operation and who own ship fleets for their own purpose or charter them to third parties.