Business was not looking good for pure car carriers or anyone else in 2009. During the year, approximately one in five vehicle carriers were taken out of service in response to the decrease in demand. Many of the larger, older vessels will likely never be used again and will be set off to the scrap yard.
However, in 2010 it looks like there may be a need for many companies to plan for business to improve. The question will become how companies will look to handle the increase in business with so many vessels currently out of service. Do they bring old vessels back into service or make the commitment to future business by committing finances to new vessels?
Transportation companies will look to be more caution with what they spend while the automotive industry is still in flux. Efficiency and economies of scale will be the order of the day for companies as they look to survive the recent decline in business in anticipation for the inevitable upturn.
Companies that are able to tread water may be in the best position once the decline passes. However it will take cautious spending and sound operational cost management in order to do so. The decline will help those that are able to weather the storm as it makes it easier for companies to phase out older car carriers that are no longer economical to operate. They will be in good position to take full advantage of the economy once it finally improves.
http://www.joc.com/2010/h%C3%B6egh-autoliners-inc
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