Judging from the above‑mentioned analysis, Suzhou Cosc Marine Machinery holds that factors such as the recovery of the world economy and shipping indices have restored major shipowners’ confidence in investment, and improved financial conditions within the shipping industry have played a vital role in enabling major shipowners to take the leading position.
The shipping market will remain depressed this year. As the BDI drops to rock‑bottom levels, shipowners in the shipping sector have been reported to suffer deteriorating financial positions. Among Japan’s three major shipping groups, Mitsui O.S.K. Lines (MOL) and Kawasaki Kisen Kaisha (K‑Line) posted net losses of 170.4 billion Japanese yen and 51.5 billion Japanese yen respectively for FY2015, while only Nippon Yusen (NYK) achieved a profit of 18.2 billion Japanese yen.
Suzhou Cosc Marine Machinery states that losses among large liner companies became commonplace at the beginning of 2016. Following brief profitability in the previous year, ZIM Shipping returned to losses in the first quarter. In April 2016, Hanjin Shipping filed for debt restructuring, marking its fourth consecutive year of net losses since 2011. South Korea’s Hyundai Merchant Marine recorded a loss of USD 525 million in 2015.
In the first half of 2016, global well‑known shipping companies placed almost no new‑ship orders except for Vale‑related projects in China, a situation highly reminiscent of 2009. Based on financial‑position analysis, Suzhou Cosc Marine Machinery argues that operating losses among major shipowners will deter further investment, and major shipowners will not place large‑volume new‑building orders in 2016.
Currently, amid depressed BDI readings and low oil prices, shipping enterprises and energy companies are going through their most difficult period. Cargo‑owning shipowners for oil and ore are suffering losses, and self‑operated shipping fleets face amplified risks. Cooperative models for new‑market entrants will evolve, and investments in certain sectors (mining, shipping and petroleum industries) will adopt innovative cooperation mechanisms.
Suzhou Cosc Marine Machinery suggests that shipping companies may cooperate with financial institutions such as fund houses and leasing firms, or, under the guidance of national strategies, leverage a package of preferential policies to resolve capital‑chain risks.