Ship prices are close to bottoming out, according to a senior executive at Norwegian bank DnB NOR.
Ship prices are close to bottoming out, according to a senior executive at Norwegian bank DnB NOR. Joachim Jaeger Skorge, head of corporate finance Asia for DnB NOR Markets, told this week that ship prices are "close to the bottom". He continued: "There is little downside in the values at the moment, which is interesting from the buyers" perspective."
However, Skorge felt that many owners were looking for prices to drop a little further and warned "they might miss the opportunity." Skorge said that while many had been anticipating plenty of distressed sales this year, few have materialized, and this is in spite of the many firms with capital looking for assets. "If the crisis worsens," Skorge said, "then we could see more next year."
Skorge remained acutely concerned for the future health of the container and car carrier segments which he described as "very bad" adding that their plight "would normally drive consolidation".
More than 300 people attended DnB NOR"s Singapore launch of its equities sale and research division two weeks ago, an event that brought together customers and investors and was deemed such a success that it will become a regular annual November gathering.