Mar­itime Cyprus ends on a high note

Financial Mirror (Cyprus) - - FRONT PAGE -

The “Mar­itime Cyprus 2017” Con­fer­ence con­cluded Li­mas­sol with the third and fi­nal day fo­cus­ing on Li­mas­sol de­vel­op­ing as a mar­itime hub, anal­y­sis of mar­ket fore­cast­ing and the im­pact oil and nat­u­ral gas ex­plo­ration in the re­gion could have on ship­ping.

Li­mas­sol Mayor Ni­cos Ni­co­laides elab­o­rated on “Li­mas­sol as a mar­itime and en­ergy hub” adding that this is a city of new op­por­tu­ni­ties, where be­yond the mar­itime and fi­nan­cial ac­tiv­i­ties, the port town sup­ports all ef­forts to­wards the ex­plo­ration and ex­ploita­tion of hy­dro­car­bons.

A dis­cus­sion on “Mar­ket Fore­cast­ing” was mod­er­ated by Bob Jaques, Ed­i­tor of Seatrade Mar­itime Re­view. The pan­elists for this dis­cus­sion were Al­fred Hart­mann, Pres­i­dent of the As­so­ci­a­tion of Ger­man Shipown­ers (VDR), Fo­tios Kat­soulas, Ship­ping Data Man­ager and Fleet & New­build­ing An­a­lyst of Affin­ity Re­search LLP and Peter Sand, Chief Ship­ping An­a­lyst of BIMCO.

The dis­cus­sion fo­cused on the cur­rent mar­ket trends, with freight prof­itabil­ity a tan­gi­ble tar­get for the very near fu­ture. It was stressed that the mar­ket is cur­rently ex­pe­ri­enc­ing a rel­a­tively bet­ter fun­da­men­tal bal­ance be­tween sup­ply and de­mand.

The im­por­tance of main­tain­ing a sig­nif­i­cant level of de­mo­li­tion ac­tiv­ity was men­tioned as shipown­ers can con­trol the sup­ply of ves­sels since the de­mand side is be­yond their con­trol. It was men­tioned that a sub­stan­tial de­mand in dry bulk was noted in the first half of this year, a clear sign of pos­i­tive de­vel­op­ment in the in­dus­tries af­fect­ing global ship­ping.

With re­gards to oil tankers it was men­tioned that the mar­ket will in­crease by 2020 pro­vided that the bal­ance be­tween sup­ply and de­mand is main­tained. The tanker fleet is still grow­ing while scrap­ping is af­fected by the cur­rent age pro­file of the fleet. Ref­er­ence was made to the or­ders of the largest con­tainer ships in the world in Septem­ber 2017. The decrease of the life ex­pectancy of the con­tainer ves­sels was men­tioned and it was stressed that a nine year old con­tainer ves­sel was scrapped.

Men­tion was also made to the col­lapse of Han­jin Ship­ping and the nec­es­sary mar­ket’s re­cov­ery pe­riod. Con­tainer rates have shown an in­crease dur­ing the last months and hence the mar­ket looks promis­ing.

The fi­nal dis­cus­sion looked at “Drilling For­ward” mod­er­ated by Sony Kapoor, Man­ag­ing Di­rec­tor of “Re De­fine” – In­sti­tute for New Eco­nomic Think­ing.

The panel in­cluded En­ergy Min­is­ter Ge­orge Lakkotrypis, Ge­orge Pa­panas­ta­siou, Man­ag­ing Di­rec­tor of VTT Vasi­liko Ltd and El­fride Co­var­ru­bias, Busi­ness De­vel­op­ment Man­ager for Italy and Mediter­ranean Area of DNV GL.

The pan­elists an­a­lysed the po­ten­tial of the hy­dro­car­bon dis­cov­er­ies in the eastern Mediter­ranean, as well as the geopo­lit­i­cal as­pects. Large dis­cov­er­ies in the re­gion and the prospect of sub­stan­tial hy­dro­car­bon re­sources have sparked ma­jor in­ter­na­tional in­ter­est.

The eastern Mediter­ranean re­mains one

of the world’s most un­der-ex­plored ar­eas. These dis­cov­er­ies of­fer ma­jor op­por­tu­ni­ties in terms of en­ergy se­cu­rity, eco­nomic pros­per­ity and re­gional co­op­er­a­tion. It was stressed that the ex­ploita­tion and ex­port of these re­sources present nu­mer­ous tech­ni­cal, ad­min­is­tra­tive, se­cu­rity, le­gal and po­lit­i­cal chal­lenges.

There­fore, these re­sources should be de­vel­oped for the ben­e­fit of all the coun­tries in the re­gion in or­der to avoid caus­ing any un­nec­es­sary dis­putes to the al­ready volatile eastern Mediter­ranean.

Newspapers in English

Newspapers from Cyprus

© PressReader. All rights reserved.