The marine industry is gearing up for a gradual recovery after suffering one of its worst earnings year in 2016, which represents positive news for marine insurers who have weathered major losses and depressed rates in recent times.
While there are still significant pressures in the offshore segment due to the collapse in oil prices, the container and dry bulk segments are showing signs of recovery, said Mr Stephen Gordon, Managing Director of Clarkson Research Services yesterday at the Singapore Marine Insurance Conference 2017.
Mr Gordon also pointed out the continuing growth in trade, particularly in Asia, as one the main growth drivers for the marine industry.
While geo-political issues and rising protectionist trends raise alarm bells, stable growth in China and the country’s ‘One Belt, One Road’ policy will have a positive and huge impact on the shipping industry over the next decade, he added.
China’s ‘One Belt, One Road’ policy is expected to boost exports of machinery and high-tech manufactured goods which would support the heavy lift vessel sectors, while infrastructure investments will boost demand for raw materials.
The conference also noted that as technology and the smart shipping agenda ranks highly for shippers, insurers will have to pay even more attention to cyber exposures in the marine sector.
The Singapore Marine Insurance Conference 2017, organised by the General Insurance Association of Singapore (GIA), was held in conjunction with the Singapore Maritime Week.