IN BRIEF

Uncertainty reigns

Uncertainty still reigns in the global shipbuilding sector with many factors influencing either a return to ordering activity or a continuation of the reduction in interest in newbuildings, according to Braemar Seascope. The company said the best case scenario for shipbuilders is for ship finance liquidity to return and for a cut in Chinese overcapacity. The worst case scenario is for a continuation in the global credit crunch; weak freight markets continuing to suppress newbuilding demand; input costs and forex turning against the builders; the low point in the contracting cycle extending and also more cash flow problems and failures.