Home MarketsChartering Derek Prentis’ views on the industry in black and white!

Derek Prentis’ views on the industry in black and white!

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Derek Prentis, MBE, The Father of the Baltic

Derek Prentis, MBE, The Father of the Baltic

Both the world economy and world politics are in a bad state and things should change, otherwise we fear of unprecedented social repercussions with detrimental effects; the following questions address our fears and also one has to prioritise the wants and needs of today’s masses! John Faraclas met yesterday for a light lunch, at the Baltic’s Bar, Derek Prentis MBE, the Father of the Baltic, who on many occasions in the past has responded to our questionnaires, giving his straightforward, laconic and honest view.

1) So, how the continuation of the downward trend of the markets (dry and wet) and the current world economic crisis affects the industry? In your view, how long will this last? (Please mention both Chartering and S and P Markets including second hand and newbuilding tonnage)

It is my opinion that with some countries at present recovering we shall see the markets pick up considerable by Jan 2015.

S and P* has already improved this year the largest number on new buildings have taken place since over 10 years ago  whilst sales of second hand tonnage

2)The overcapacity issue continues, demolition is not yet up to levels to balance the situation, so what’s up then?

As the age of vessels continues I consider with the scrap prices still around 430 Dollars per ton
we will see more vessels scrapped this year.

...here's to a better market

…here’s to a better market

3) The price of oil is still up; will a 25 centum drop help the industry?

I can see Oil prices dropping with the development of other types of energy.
How will fracking affect then oil industry, conversely shipping?
As said above it will greatly effect the oil price and transportation of LNG will improve

4) How regulatory changes affect the industry, irrespective of good or bad markets? (in dry, wet, containers and specialist ships). The code of practice for shipbrokers is it a satisfying one? How accountable shipbrokers are for the fate of their clients?

Regulations imposed by certain countries has little effect on the market as we have seen.
Over the row between the Chinese and Ore producers Vale over their 400, 000 t ore carriers, the Chinese have now had to give in.

It is important with the shaping business that clients only use Brokers who are members of the Baltic as each member has to follow the code of conduct.

5)Sanctions are in force and sanctions bite; sanctions should be imposed but what can be the counter effect? What about the sanctions on Iran? What should be the penalty for those breaking the sanctions?

Some owners will overcome sanctions, it is my opinion that sanctions have an adverse effect and those imposed on certain countries can partly be overcome.

6)How do you view he continuous development of piracy and terrorism? The shifting from East to West Africa and the simultaneous existence, greatly affects the trade; How this affects the markets?

If the countries where the Pirates live fail to take action it will continue both on a large scale and minor robberies .As regards West Africa, the UN should take immediate action with an International task force.

7)Women are becoming a driving force in all aspects of our industry; how best we can use their up and coming advantages?

Women are a great advantage in shipping and should be employed more

Thinking positive, but pragmatically is the best remedy

Thinking positive, but pragmatically is the best remedy

8)Who should create the curriculum for shipbroking education and training?

This is a stupid question, we all are aware that The Institute of Chartered Shipbrokers have World-wide education and examination facilities.

9)The tax issue and shipping: what should be the best system to apply worldwide, given shipping’s global character? Any exemptions?

Countries have discovered by giving Shipowners Tax breaks the national shipping has increased.
If any country wishes to build up it’s shipping industry, then tax advantages should be given.

10)The London International Shipping week is less than a month away; what do you expect to be the result following all these programmed events?

Much talk and no do !!!


N.B. We leave the comments for you, so please do have your written say!

* S and P= Ship Sales and Purchase

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