It is said that if global liquidity expansion and risk asset preference are to be reinforced, shipping finance is expected to be expanded and the expansion will materialize in the second half of 2013.
Analyst Yoo Jae-Hoon of Woori Investment & Securities of Korea, has said that “Although orders for offshore plants are in good condition, the competition for obtaining orders continues due to a lack of orderbook that the improvement in profitability of new contracts is unlikely to be realized” and “An increase of order price for commercial ship is indispensable for the improvement in profitability.”  .
Yoo explained, “Offshore plant contracts are in a stable condition when it comes to major three corporations, thus small cycle (small-sized market improvement) is enough for profitability improvement in new orders.” “If liquidity expansion and risk asset preference occur at the same time, a capital movement is expected to proceed to shipping finance which is rated as risk asset,” he added.
Also, he expected that “Recent global liquidity expansion will lead to an increase in the quantity of goods transported and risk asset preference will cause shipping finance expansion.”
Yoo said that “The improvement in condition of shipping finance is prospected to be realized in the second half of this year. This is because the performance of eco-ships to be delivered in the latter half in 2013 can be verifiable and the roles of new government’s pledge to establish Ship Financing Corporation and the World’s Bank’s affiliated organization, IFC, which recently declared its involvement in shipping finance, are highly expected.”