Greek Crisis & Owners: "See Separately"

Regarding Greek owners' impact on shipbuilding and shipping market, Greece's sovereign debt crisis should not be directly tied up to Greek owners.

Due to concerns over Greece's Eurozone exit and Greece default, shipbuilders' shares have been weak on May 14. On the same day, South Korea's Hyundai Heavy Industries, Samsung HI, STX Offshore & Shipbuilding, etc., have seen its shares dropped, comparing with last weekend.

A failure of Greek coalition government deal seems to have bad influence over shipbuidlers shares. Also, Eurozone ministers mention Greek exit in public, while Greece stood against austerity policy.

Regarding this, Analyst Lee Sok-Je, a shipbuilding market specialist, pointed out that Greek owners are actively buying out secondhand vessels, regardless of Greek debt crisis.

Greek owners are mostly based in London, UK. Also, most of their properties is ships (dollar quoted) and Greece-based properties only include small office, island for vacation, etc.

Lee said that Greek owners are financed by international banks for the most part, only 20% of Greek owners' total ship financing are supplied by local banks.

He emphasized that Greek debt crisis is not necessarily closely linked with shipbuilding and shipping market.


Published : May 15, 2012