Bill of lading

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

30 Oct 2010

Despite these difficult times, when world shipping is passing through doldrums, numerous research reports and studies keep coming up from time to time. Till recently, the shipping world seemed to be smaller place and only a few, handpicked companies published the research studies. Now every company worth its name seems to be at it.
There is no problem with that. But the problem arises when one report contradicts another, leaving the reader directionless and wondering what is happening. Given the precarious condition of many world economies, shipping becomes another investment area which needs to be dealt with a barge pole.
Though examples are too many to recount here, the saving grace is 'the so called public memory' which gets refurbished sooner than these reports. A few years ago when a prediction about oil price touching record levels came true, made the person an instant celebrity. But when his follow up prediction went phut, nobody really took note of it.
One of the reasons for the mushrooming of reports could be that lot of money, real and paper, is chasing quality stocks and investment opportunities. Local and foreign investors and foreign institutional investors are scurrying for avenues to park their money and multiply it. Every other man you come across the street is an investment banker - foreign if not an Indian.
In addition to the concerns arising out of bubble economies, the interplay between supply and demand gives enough scope for researchers to undertake permutations and computations and come up with reports. The scenarios get changed with every bit of news that keeps appearing about delayed deliveries. All in all, there seems enough masala to churn out divergent reports on short and long term implications of the current ongoings.
Man seems to have mastered expertise in select areas but does that mean that it is difficult to have a comprehensive understanding of the entire spectrum of shipping? Given the plethora of research reports, it would be salutary to go for what is the best that one finds amongst them and value add by putting it through the common sense.
Or else one could also end up being accused of having the herd mentality - like many shipowners who ordered mega ships till recently, like many of the real estate muguls who are still hell-bent on building 'castles', even as there is much supply in the market where is not many takers.

Source: The Economic Times