Page 30: of Maritime Reporter Magazine (June 2015)

The 2015 The 2015

YearbookYearbook

Photo: Jan Berghuis dustries. It is human nature to be greedy; There are numerous statistical indica- should be aware of such as new envi- knowing the business.

the more we have, the more we want. I I strongly believe that this is the most tors that one can monitor. Many trade ronmental regulations and their likely am sure every shipowner believes that essential ingredient to succeed in this journals and research organizations pro- impact on markets, and also the state of s/he is the smartest one and everyone business. Are we really all that differ- vide copious data today if one is inter- industry expectations measured through else is dumb. They invest in new ton- ent? No! Just like other success stories, ested in keeping up with the markets. So, “shipping con? dence” estimates. In my nage, in most cases, a better ship but by to succeed in shipping, one must know to study shipping markets, one should opinion, shipping markets are fairly easy the time she is delivered, the others have what works here, why it works, how it religiously follow what is happening to analyze and today we have suf? cient joined the bandwagon too. The thought works, and when changes must be made. in individual trades and markets. Then, readily available data. Before I forget, that they will alone succeed and every- It is very easy to go around advocating there are the random political events that you need one more vital ingredient— one else will go broke is far from reality changes without knowing the fundamen- seem to be happening with unusual regu- the passion to follow these markets re- and totally irrational. The role of some tals; to me, that is a recipe for disaster. larity these days; being generally aware ligiously on a day-to-day basis, which equity investors who have pumped in a Undoubtedly, a company must be pro? t- of the global political economy is vital again leads to my earlier comment on lot of new funds in a market that they able to remain viable but its passion must in our business. Eventually, it all comes self-discipline.

don’t quite understand hasn’t helped the not be limited to making a quick buck. down to simple economics—nothing is

The Tanker Market: situation either. The shipping milieu and They need to understand the business as crucial as basic supply and demand

An Overview market sense which were very much a they are in and its core values, and have information. By the way, one has to dig hallmark of traditional ship owners is some of the traits that good traditional deep into the sub-markets. For example, The big ships, the VLCCs, are doing no longer the case in the industry but for shipowners have demonstrated over the studying the tanker market entails ana- very well and are in a very good position. some rare exceptions. The shipping in- years--their passion for ships and the in- lyzing the VLCC market, the Suezmax Remarkably, even the Suezmaxes are dustry is not about making a quick buck, dustry, their trust and respect for their em- market, the Aframax market as well as ? nding good opportunities, and so are the and it seems many are destined to learn ployees and yes, their love for the oceans the markets for product tankers. And of product tankers with several new re? ner- this the hard way! and everything maritime … I think these course, today, it would also include the ies opening up around the world, in the are largely missing today. market for LNG tankers, VLGCs, chem- Gulf region as well as in South Asia. This

So it sounds like, with ical tankers, and so on. The same applies is a good time to be in the tanker market, all of the various busi- GDP, Supply & Demand, to the other two fundamental shipping but obviously there are some ominous ness and political fac- Ship’s Speed … are there markets. Once you are armed with all signs looming on the horizon.

tors that affect ship- any other factors that the supply statistics, plug in your data ping, long-term success you consider crucial to What has been the driver on current and projected trade volumes. really still lies in studying this market? for the tanker market?

There are qualitative variables that one 30 Maritime Reporter & Engineering News • JUNE 2015

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