VESSEL cancellations have dominated the headlines of late for a good reason.
Not only are they indicative of the wider health of the industry, they will ultimately play a significant role in redressing the supply-demand imbalance that is currently at the heart of so many problems.
But cancellations are not just limited to ship orders. As the cash-flows dry up and cut-backs grow to be the order of the day across all maritime sectors, equipment cancellations, repair delays and investment deferrals have become commonplace.
As with ship order cancellations accurate figures remain elusive due to company’s unwillingness to reveal the full extent of their problems, but a growing body of evidence suggests that cut-backs and cancellations are now endemic across all sectors.
Shiprepairers claim that wherever there is a choice there have been cut-backs and one even suggested to Lloyd’s List that owners are now only doing what is absolutely necessary to keep vessels afloat or in class.
In ports, big projects planned with long-lead times are still going ahead, but there is anecdotal evidence to support claims that some port managers are putting off buying new cranes and other equipment, suspending or cancelling other capital investments, and stretching out repairs and maintenance.
Given the extent to which some companies have been stung by the scale and speed of the downturn, such action is understandable but concerning.
If reduced maintenance continues for too long, equipment reliability and safety will suffer and ultimately could cost the industry more than it saves.
