Thursday, 11 July 2013

Asia Shipping Industry Has Promising Investing Opportunities

According to U.S. private equity and investment funds, Asia's shipping industry was one of the finest spot to experience revival. In addition, the said units desperately needed recovery from the industry's worst slump in approximately 30 years. A strong commodity demand progress and slower latest ship distribution would aid in balancing the demand for fleet and cargo and the last time this balance happened was in 2004. Analysts reported that this would result in an increase in freight rates for the next two years, and therefore offering many new opportunities for ambitious investors.

South Korea's STX Pan Ocean Co Ltd and Indonesia's Berlian Laju Tanker Tbk PT offered chances for private equities who were in need for improvement. The corporations involved were Asian shipping businesses currently going through restructuring and it has been noted that more than US$3.5 billion was invested in ships and its shipping containers. This trend is likely to continue as many investors are seeking to repair some of these Asian shipping businesses who just need a capital-boost to reconstruct their business. Wilbur Ross, a billionaire private equity investor, predicts that unless the public markets open quickly there will be at least twice as much private equity commitment to the shipping industry by the end of 2014.

With many Asian shipping companies seeking financial assistance, the industry is likely to experience a boom of investment capital that will not only boost the sector, but the entire Asian economy as well. It will be interesting to see if billionaire investor Wilbur Ross's predictions about the shipping industry are correct, considering an influx of private investment is exactly what the recovering sector needs.

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