Sector confident about recovery
Further confidence in the ?remarkable? container sector recovery emerged during an investor conference call yesterday for Singapore-listed First Ship Lease Trust.
The company"s president and chief executive Philip Clausius said the tanker and boxship sectors had entered recovery, although he was concerned about the dry bulk sector because too many new ships were being delivered.
?As it relates to containerships, the consensus view is that we are probably beyond the point where we can only talk about inventory restocking,? he said.
?It now looks clearly to be the case that we see some sustainable demand recovery in the containership sector and that is very encouraging.
?If you had told me in the middle of last year we would be where we are now in the container shipping industry I would have not thought that was possible. It"s quite a remarkable recovery and that is obviously is a very encouraging sign.?
While bulk commodities demand was strong, the number of bulk carriers on order at shipyards ? about 60% of the existing global fleet ? could be ?overwhelming?, he said.
First Ship Lease Trust, established in March 2007, and with a market capitalisation of $248m, has a diversified fleet of 23 vessels, including seven containerships, nine product tankers, two chemical tankers and two bulk carriers.
The company is one of three shipping trusts in Singapore. Trusts are structured to allow the sponsor ? a consortium including Schoeller Holdings, HSH Nordbank and HypoVereinsbank for First Ship Lease ? employ a trustee manager to oversee the trust on behalf of unit holders.