It is reported that shipping industry confidence is at its lowest level for three and a half years, as fears about overcapacity and the global economy reach new heights.

According to the latest quarterly shipping confidence survey by accountant Moore Stephens, the rising cost of marine fuels is also a cause for concern.

In August 2011, the average confidence level expressed by respondents in the markets in which they operate was 5.3, on a scale of 1 (low) to 10 (high), compared with 5.6 in the previous survey taken in May 2011.

This is the lowest figure recorded since the survey was launched in May 2008 with a confidence rating of 6.8, the highest rating so far. Confidence over the three month period covered by the latest survey fell most noticeably among shipowners, down from 5.8 to 5.1, the lowest owner rating recorded during the life of the survey. Confidence on the part of managers fell from 5.8 to 5.6, while brokers held on to their already comparatively low rating of 5.1.

One respondent said that "Until recently, things looked quite optimistic, but recent doubts over US loan credibility and EU financial worries have severely dented confidence. Others referred to the most unpredictable period since the beginning of the global financial crisis and suggested that the market was back to levels last seen in 2001."

(Sourced from www.jctrans.net)