Depressed shipbuilding and shipping industry would unlikely get through the crisis this year.
In a report 'Recent market and credit forecast on shipbuilding and shipping industries' released on February 29, NICE Investors Ratings of South Korea projected that shipping market would still be weak due to larger supply than demand in almost every ship type/size.
Team manager Seo Chan-Yong analyzed, "Financial capacity of shipping companies have been weaken by stagnant market in 2011, moreover, over-investment on vessels makes them hard to recover financial problems."
He prospected, "There has been a competition between major shipping companies for lower freight charges from last year and bulker market, in particular, would continue to be under depression, since inter-company cooperation would be hardly expected."
In case of shipbuilding industry, shipbuilders are projected to keep having decreasing profits and increasing working capital pressure by low orders in commercial ship sector.