Introduction:
World Economy crisis – effects on shippingworld: a serie of linked financial and economydownturns that are badly affecting theshipping market:-Lack of financing for new projects andnewbuilding. Results: contracts cancellations,g,delayed deliveries, higher costs – Low chartering rates – low market values:longer return on investment for new and oldships.- Lowered assets values: vessel being deliveredhtk t l th t’h lhave a current market value that’s much lessthan building contract value.Ettt d f- Excess tonnage: recent years trend of a veryspeculative ships resale and newbuildingmarket Peak of conventional ships deliveriesmarket. Peak of conventional ships deliverieswas expected in 2012. Excess of tonnage offer.
The impact of the shipping industry has been severe. Check out symbols EGLE or DRYS, large shipping companies. The declines in these stocks over the late September early October has been severe.
Shipping industry will ride the storm of financial crisis
Dubai: As the turbulence of recent weeks has rocked the previous complacency that had become embedded in the fabric of a western society that the righteous have already dubbed as irresponsible, the marine industry has begun to batten down in preparation for rough weather ahead.
While the consumer world fattened itself on the produce of its spending, shipping, too, enjoyed a smooth voyage while it supplied the needs of the spenders, automatically reaping the benefits bestowed by the boom. Such is the nature of this business.
Related posts:
