Asia Gains Ground in European Shipping Sector’s Eyes

According to the survey, it is primarily Asian providers of capital that are increasing their exposure to ship finance. The survey polled shipping clients primarily from Europe, East and Southeast Asia. A total of 150 executives took part in the survey.

One-third of respondents are already collaborating with Asian banks in financingnewbuildsor purchasing second-hand ships.. In addition, 80 percent of those surveyed expect Asian providers of capital to penetrate ship finance – which has traditionally been dominated by European banks – to an even greater extent in future.

For shipping companies that already have a presence in Asia, almost 80 percent named access to the growth market and thus to cargo as the main reasons for their move to Asia.

All market participants considered geographical proximity and personal contacts to be extremely important for business in Asia. Consequently, 60 percent already have their own offices in Asia, most of them are already represented through their own subsidiary.

With regard to future revenues and profits, Asian companies are substantially more muted than their European and thus also German counterparts. Only around one-third of Asian respondents projects rising revenues for 2015, with a similar percentage forecasting a drop in revenues.

For 2015 most European ship owners expect a better business performance than in the previous year. Around 57 percent project rising revenues and only nine percent expect revenuesto fall. “The Asian shipping industry is in a substantially better position than many other market participants, thanks to a strong intra-Asia cargo traffic, and views the current situation as the normal state of affairs. By contrast, German shipowners remain in difficult waters, and this is also reflected in their expectations”, said Christian Nieswandt.