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Shipping banks better prepared than before
Team Sea and Coast | 09/07/2020

According to XRTC Business Consultants, shipping banks are better equipped and prepared now than in 2008, to face the challenges that are looming post covid-19 and there’s an increase in non-performing loans which is hard to avoid as a result of the pandemic. Furthermore, with general travel restrictions and crew changes as a major concern shipping financiers are decreasing freight rates and supply chain disruption.

A new survey was conducted among Greek and Cypriot institutions involved in shipping finance, as well as banks from Germany, France, Norway, Netherlands, UK, USA, China and Japan, by Akti Miaouli-based XRTC Business Consultants and according to the survey, the most anticipated threat for international shipping markets is the world economy and global trade which hasn’t seen good numbers in the recent past.

The survey that was conducted focused on shipping finance, trends and prospects after the pandemic, and also saw overcapacity as a major obstacle for a healthy upturn at least in core shipping sectors. Geopolitics and lack of liquidity, environmental issues and Chinese shipping capacity were also raised.

XRTC Business Consultant official commented, “In these unprecedented times, the ability of maritime transport to continue undisrupted the transport of food, energy and medical supplies across the continents will play a critical role in overcoming the pandemic. To this extent governments and central banks have realised they must support maritime transport that has an essential role to play in growth and sustainable development. At the same time both shipping companies and their lenders will need to become agile and adaptable to this changing situation and focus on building effective and responsive strategies and plans”.

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