The shipping industry is the most pessimistic in six years about its prospects as a fleet surplus persists, according to a survey by law firm Norton Rose Fulbright, says a report in Reuters.
The growing vessel glut is battering sentiment in the shipping industry at a time when players face risks to growth in Asia and turmoil in countries such as Greece.
The annual survey by Norton Rose Fulbright reveals that the confidence among respondents had deteriorated over the past year with only 33 percent viewing current market conditions as positive, compared with 69 percent in 2014.
Two thirds of respondents working in the industry said they were pessimistic about its prospects, the most negative outlook since 2009, the London-based company said in a statement. The biggest contributor to their negative view was excess fleet capacity.
"Overcapacity in the shipping sector is now beginning to bite," Norton Rose Fulbright's global head of transport Harry Theochari said.
While the oil tanker sector has enjoyed a rebound in rates and higher activity this year, dry bulk shipping - which transports commodities including iron ore, coal and grains - is suffering one of its worst ever downturns due massive fleet growth and weaker activity from top industrial importers such as China.
"Shipping is a notoriously speculative business," Harry said.