Jacob Meldgaard believes Danish shipping companies can survive the coronavirus crisis, despite the pessimistic outlook revealed by a new survey of bosses.
The Torm chief executive, speaking in his capacity as chairman of shipowners' organisation Danish Shipping, pointed to the low newbuilding orderbook as the major positive for the sector.
Danish Shipping asked chief executives to sum up their prospects for 2020 and 62% said their revenue would fall.
This compares to just 8% in 2019, which was a record year for Danish shipping, with total exports of just over DKK 207bn ($31bn).
A total of 55% expect a negative development in freight rates.
All owners foresee negative financial consequences and 78% believe the US-China trade war will have a negative or very negative impact, Danish Shipping said.
"Shipping is badly affected by the corona crisis, and it is foggy waters we are sailing into," Meldgaard said.
"The answers are an indication that the world market has slowed down and that freight rates in a wide range of areas are expected to be lower."
Better placed to cope now
Although the crisis will affect shipping significantly, he emphasised that the industry is better equipped to cope now than it was before the last financial crash.
"A crucial point is that the overall size of the world fleet fits the demand today more than it did in 2009," he said.
"Back then, there were simply too many ships and at the same time there were orders from the shipyards on what corresponded to half the world fleet. Capacity fits much better today, which is why there is reason to believe that it will turn faster."
All owners surveyed had experienced operational challenges during the pandemic, including particular problems with crew changes and access to ports.
Access to medical care and technical assistance were also mentioned.
"The coming year will be challenging, but we will not lose out," Meldgaard said. "There are parts of shipping that are currently making good money during the crisis.
"Danish shipping has been through countless crises and [there are] not too many new ships on the way, so I am full of confidence that this time we will be good on the other side as well."
Denmark is the world's fifth-largest maritime nation in terms of tonnage operated.
