Shipping Industry Report

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Insights into the performance of the global shipping industry Global Shipping Benchmarking Survey 2010
Transportation & Logistics

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Insights into the performance of the global shipping industry

Table of contents
Foreword 1. 1.1 1.2 1.3 2. 2.1 Market developments General Outlook Supply and demand characteristics Concluding remarks Financial performance benchmark Background 4 6 6 8 9 10 10 10 11 15 24 26 27 28 32

2.2 Benchmark model 2.3 Results summary by sub-sector 2.4 Performance indicators 3. Analysis of companies participating in the survey

Appendices Ratio definitions List of participating shipping companies Contacts

Insights into the performance of the global shipping industry 3

Foreword
Following the dramatic decline in world trade in the second half of 2008, a large number of shipping companies were facing significant challenges to secure their future. Vessel values had crumbled, freight rates declined to all time lows and sources of finance were hard to find. It should be no surprise, therefore, that the year 2009 was a difficult one characterised by volatility and uncertainty. Management was put hard at work to seek to find solutions to the various issues. This required tough negotiations between vessel owners, charterers, the shipyards and of course the banks. It was with great interest therefore, that we embarked on preparing this second global shipping benchmarking survey, analysing some of the key performance indicators (KPIs) of more than 110 shipping companies from around the world from their 2009 annual reports and financial statements. Our survey covers the evolution of these KPIs over the last 5 years and provides the means to compare performance both across and within the major shipping sub-sectors. We also discuss some of the qualitative disclosures in those financial statements that can provide an insight into the developments in the shipping industry during 2009 and the actions companies have taken. A more detailed analysis that can assist individual companies to benchmark their performance against their peers can be prepared and tailored to individual needs upon request. Our dedicated Shipping Industry professionals will be pleased to assist you. A list of local contacts is presented at the end of this publication. We trust you will find this study interesting and that it provides an insight into the recent developments impacting the shipping industry. Socrates Leptos-Bourgi Global Shipping & Ports Leader

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Insights into the performance of the global shipping industry

Insights into the performance of the global shipping industry 5

1. Market developments
1.1 General Outlook The year 2009 was undoubtedly a challenging one for companies in all sectors around the world, as the world economy entered into recession for the first time since 1945. The impact of the recession was already evident in the shipping sector from the second half of 2008 as world trade dramatically declined causing freight rates and vessel values to tumble. This trend continued in 2009 and, as shown from our analysis in Section 2 of this survey, the impact on the performance of companies in the shipping sector during 2009...
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