Wallem Group sees shipping sector turnaround by FY''14-end
Kolkata, Feb 3 (PTI) Hong Kong-based Wallem Group, one of the top five global ship management companies, said recession in the maritime sector would continue for an another year.
"I think recessionary pressure in the shipping industry will continue till Q4 of 2013-14 fiscal," Wallem Ship management managing director Navin Passey told PTI.
Former Shipping Corporation of India chairman and managing director S Hajara also recently said shipping industry would continue stay sluggish till Q3 of FY 2014.
Passey said current freight rates for oil carriers and dry bulk vessels, which consists of almost two-third of the global fleet, were able to generate operational costs but loss was being made in case of containers due to capacity glut.
According to a Moody''s report, Germany''s 10 largest banks have an exposure of USD 128 billion in outstanding credit or other risks related to the global shipping industry.
However, the recession has proved beneficial for Wallem in gaining business, he said.
"During boom anybody can run a business. Hence, as experts in shipping management we had gained business growth of 25 per cent in terms of ships under our management," Passey said.
Wallem manages around 423 ships at present.