While there are signs that the shipping industry is growing over the past few years, fortunes for ship owners have changed drastically. Shipyards are getting more customers than before and more, and more investors are turning to the shipping industry to make their millions. However, is it as easy as it looks?
Private equity sources have taken over the old-time marine loans for buying the ships. Shipyards are seeing an influx of new investors ready to pay top dollar for the services, but at the end of the day, it becomes clear that not all of these investors get their money’s worth.
One of the primary drivers for the surge in demand is the improvement in the fuel efficiency of newer models of the ships. Studies show that many owners are going for them knowing that they can get more out of their investment as compared to decades ago. The older models are slowly fading away, with only a few reliable ones remaining to run on the high seas.
As you look for the next best ship to ply trade on the high seas, you might find that the demands for shipping services across the seas are evolving, demand is less than ever before, and you might be forced to go the extra mile to get a few customers in a month. Additionally, competition is high, and you must be at the top of the pecking order to see results flying in.
The market is already crowded with many ships chasing the few existing orders. The cargo is less, and it is tough taking up one.
You will have to condone with high tonnages but with fewer returns to make it on the market. Additionally, the tight credit you receive from the marine bankers makes it hard for you to break even and make money from this task. Finally, the new and tough regulations make it tough to survive in this market.
The good thing is that many ship owners have made it big in this market. All you need is a little nerve and the right approach to succeed in such a cut-throat industry.
To survive, you must reduce the cost of operating the ship to make money over the coming years, experts think. Visit the homepage to see what more you need to do to stay relevant in this industry.
Make sure you understand what is going on in the shipping industry before you decide to invest.