THE writing may be on the wall as far as the global economy is concerned but that has not stopped a number of the industry’s more optimistic elements from believing that there is still time for a judicious spot of editing when it comes to the shipping industry.
A co-ordinated approach to dealing with the crisis, rather than allowing market forces slowly to take their course, seems to be the order of the day. Demand may be beyond our control, but there is nothing to stop us controlling the supply.
In theory at least, it is an attractive proposition. It will not have escaped too many people’s attention that the global economic recession is now hitting the industry at a time when ship deliveries are reaching an all-time high.
Talk of “enlightened self-interest” between shipyards, shipping companies and financiers limiting the supply of ships is radical stuff, but ultimately we have to question whether it is realistic. Given the historically short memory of this industry and the apparent reluctance to step outside of the boom-bust ordering patterns, can a serious effort to manage supply ever be considered more than just a pipe-dream?
The fact that 400 of the global shipping industry’s heavyweights felt it necessary to meet in London to discuss the market collapse last week speaks volumes about the fear that is currently stalking the market. But it also suggests that there is a willingness to look at the possibility of an ‘industry defense’ to the storm heading our way.
If ever there was a time for the industry to start seriously looking at a long-term solution to its ills, that time is now.
