Schifffahrt | Shipping Schifffahrt | Shipping In brief … Kyriacos Panayides Managing Director AAL Shipping © AAL »Way too much old tonnage in the global MPP fleet« What is the current situation for AAL in terms of tonnage deployment and freight rates? Kyriacos Panayides: Despite the COV- ID-19 pandemic having created an extremely challenging set of almost recessionary circumstances and period of uncertainty in the multipurpose shipping sector, AAL has been performing strongly. Our fleet is fully employed – albeit at reduced freight rates. Apart from short-term effects of the pandemic, what do you expect in the midor long-term for the segment on the fleet side? When will we see the much-debated modernization of the MPP fleet? Klausdorfer Weg 163, 24 148 Kiel - Germany Tel.: +49 (0) 431 66 111-0, Fax: +49 (0) 431 66 111-28 E-mail: info@podszuck.eu, Internet: www.podszuck.eu Panayides: It is a fact that that there is way too much old tonnage within the global MPP fleet. Unfortunately, in a perfect storm of low revenues, depleted cash reserves and poor market outlook scrapping is not taking place and there is still an oversupply of tonnage. These factors at the fore, there is little appetite within the sector for new building and no viable model for the input of fresh capital that is needed for recovery. What is your expectation for tonnage demand as a consequence of (potentially) reduced investments in global oil/gasand on/offshore wind industries? Panayides: The reduction in the oil price has exacerbated a slowdown in oil & gas projects moving forward – postponed until further notice or cancelled altogether. Oil & Gas projects have traditionally been one of the most important staples in the MPP sector and the loss of this cargo is being deeply felt across the vertical’s supply chain. In terms of renewable energy, there is still strong appetite from national governments around the world to offset their carbon footprints with investment in both on and offshore wind farms. Furthermore, this is driving health competition amongst the top manufacturers of wind components to develop more efficient and economical technologies – thus improving performance and raising market demand even more. Our young MPP fleet comprises a large number of ›mega-size‹ (30,000+ dwt) vessels, which are perfect for accommodating the expanding size of wind components being built by the industry and offer significant economies of scale as more cargo (up to 40,000 m3 on a number of our ships) can be placed onto a single sailing. Will we see more consolidation on the carrier market due to financial troubles of owners/charterers? Panayides: We may not have seen the full extent of Covid-19 and this uncertainty is making short term forecasting of sector performance extremely difficult. What is clear is that the prolonged existence of the virus without a vaccine in place will have a lasting affect on many shipping companies and some, without fresh capital to support their businesses, will struggle to survive. Klausdorfer Weg 163 | 24148 Kiel | Germany Tel. +49 (0) 431 6 6111-0 | Fax -28 info@podszuck.eu | www.podszuck.eu Are there any plans for a fleet growth at AAL – through new buildings or S&P? Panayides: Fleet strategy and vessel requirement depends upon market conditions and cargo flows. Whereas our door is always open to idea of healthy expansion of our fleet – either through commercial management and / or acquisition of existing tonnage in the marketplace or newbuilding – we would only consider doing so if it serves our service and business models. MM 24 HANSA – International Maritime Journal 09 | 2020
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