Dec. 3 (Bloomberg) — Stephen Pan, president of Hong Kong-based World-Wide Shipping Agency Ltd., comments on potential order cancellations by overseas shipping companies.
Pan was interviewed today at the Latin American International Conference on Naval and Maritime Defense in Valparaiso, Chile.
On the cancellation of overseas shipping contracts:
“For the total order book you would be looking at somewhere around 30 percent cancellations and delays. And cancellations may not be the correct word, I expect there will be some defaults simply because the liquidity is not there.”
On demand for marine transport cargo space:
“If you look at the economic situation, you cannot escape from the fact that demand is coming down, the world is going into recession and the order books are very large. These are basically the fundamentals. Supply and demand will always govern.”
On the outlook for overseas shipping companies in 2009:
“Shipping markets are very volatile. Expect a very slow market in 2009.”