The shipping market slump in 2016 appeared to take the industry back to 2009. According to Suzhou Cosc Marine Machinery, judging from the financial standing of global shipowners, operating losses incurred by major international shipowners will hold back their further investments.

Although Britain’s Brexit referendum has made shipowners more cautious about investment, the author holds that the bear market for bulk commodities is drawing to a close, which suggests that the gloomiest phase of the international shipping market is nearly over. More strategic moves by shipowners are expected in 2017. Current market characteristics are reflected in the following aspects:

First, the number of order‑related disputes over order cancellations, contract amendments and resales keeps rising. Difficulties in financing and delayed vessel deliveries have become commonplace. Suzhou Cosc Marine Machinery notes that for shipowners in the offshore sector in particular, delaying deliveries while waiting for market recovery seems to be a preferable option.

Second, alliance mergers and joint‑effort consolidation have become vital means to weather the downturn. Mergers serve as an effective way to capture market share, sustain capital chains and cut costs. Only when some players exit the market completely due to broken capital chains can surviving companies secure greater room for survival.

Third, shipowners’ financing approaches have undergone changes.

Fourth, shipowners are divesting non‑core businesses and rolling out a new round of intensive self‑rescue measures. In April this year, Hanjin Shipping planned to secure liquidity of 411.2 billion South Korean won by selling its passenger‑terminal operation business and overseas real‑estate assets. To ease its capital shortage, Hyundai Merchant Marine divested its Hyundai Securities shares for USD 1.1 billion. Apart from its brokerage business, Hyundai Merchant Marine has recently sold its liquefied natural gas (LNG) carrier business, together with its dry‑bulk carrier fleet, container terminals and tanker‑shipping business, according to Suzhou Cosc Marine Machinery.