Booming Chinese demand and cancelled orders for new vessels should ensure continued strong returns for owners of tankers and dry bulk ships, one of the most successful shipping entrepreneurs of recent years has predicted.
Peter Georgiopoulos' comments follow the listing of his latest shipping venture, a dry bulk operator known as Baltic Trading on the New York Stock Exchange in March. A number of less high-profile shipping figures have subsequently called off planned initial public offerings because of investor scepticism. Both the dry bulk sector – ships that transport bulk commodities such as iron ore, coal and wheat – and tanker shipping have suffered losses since the start of the economic crisis because of falling demand for commodities and excess ship supply.
However, Mr Georgiopoulos said he was heartened by the return of growth to the world economy, in spite of warnings by some sceptics that China, the motor of the growth, might be growing unsustainably fast.