Chios, Greece. Chartworld Shipping Company managing director Antonis Faraklas said geopolitical instability is making international shipping harder to predict, prompting companies to rely more on fleet diversification to withstand volatile market cycles.
Geopolitical events and market unpredictability
Speaking at the 1st Mare Forum Chios, Faraklas said developments including the war in Ukraine and tensions in the Middle East are reshaping freight markets at a pace that leaves little room for reliable forecasting.
Chartworld’s fleet strategy across segments
Faraklas, who has 46 years of experience in the shipping industry, said Chartworld has managed a fleet of more than 70 vessels over time, operating across several segments including containerships, reefers and bulk carriers.
He said that spreading exposure across different markets has helped the company absorb shocks, as each segment tends to move in a different direction and at a different time. “Diversification is always positive, because each market moves differently and at a different time,” he said.
Examples of shifting conditions
Faraklas said market conditions can shift unexpectedly, citing tankers as a segment currently performing strongly despite differing periods in the past. “Today, for example, the tanker market is extremely strong, while in other periods the opposite may be the case,” he said.
He added that investment decisions made only a few years ago, including ship orders placed in 2019, are now viewed differently under current market conditions.
Pandemic-era reversal in containership expectations
Referring to the pandemic period, Faraklas said initial expectations that the containership market would deteriorate were quickly overturned. “Before COVID, the containership market was sluggish and everyone expected it to get worse. In the end, the opposite happened,” he said, adding that the industry’s ability to adapt remains crucial.
How is your organisation adjusting its shipping strategy to cope with sudden market shifts?
