Global Shipping Industry Sees Long Duration Economic Recession [View article]
This is an interesting article and suggests that the Baltic Dry Index could lose some of its value as a guage of international trade activity if there is a surplus of ships. If true, this would keep rents rates for dry vessels depressed even if there is an uptick in the movement of grains, ores and other materials.
I have pasted below something I am having a hard time getting my arms around. If China is deiberately producing too many ships to depress freight/rental rates, why are do others need finanacing to build additional capacity? ______________________...
$350 billion of financing for new ship construction is necessary within the next two years. Even in normal times, the tradition sources of financing would only have been able to provide $250 billion.
Global Shipping Industry Sees Long Duration Economic Recession [View article]
I have pasted below something I am having a hard time getting my arms around. If China is deiberately producing too many ships to depress freight/rental rates, why are do others need finanacing to build additional capacity?
______________________...
$350 billion of financing for new ship construction is necessary within the next two years. Even in normal times, the tradition sources of financing would only have been able to provide $250 billion.