• BIST 88.125
  • Altın 337,580
  • Dolar 6,4499
  • Euro 7,1137
  • İstanbul 10 °C
  • Ankara 11 °C

Bankruptcy threat on shipping

Bankruptcy threat on shipping
The global economic slowdown will push some shipping lines into bankruptcy as demand for commodities cools and trade slows, investor Marc Faber said.

Companies worldwide are struggling to secure credit

The global economic slowdown will push some shipping lines into bankruptcy as demand for commodities cools and trade slows, investor Marc Faber said.

?This is an industry that could be hit harder than what has been expected,? Faber, who predicted the 1987 stock-market crash, said in an interview Monday in Singapore.

?We are really at the very beginning of an economic slump, and it could last for quite sometime. The Baltic Dry index, a measure of commodities-shipping costs, has plunged 82 percent in the past year as Chinese steelmakers have cut iron-ore imports on slower demand. Container rates have also fallen because US and European consumers are buying less Asian-made furniture, toys and clothes''.

?There has been an acute and significant decrease in near-term demand for shipping capacity,? Jon Windham, Winnie Guo and Yumi Park, analysts at Macquarie Group Ltd., wrote in an October 9 report.

?The primary cause is a significant fall off in general demand driven largely by companies" fears to extend cash.?

Svithoid Tankers AB, a Swedish shipping line, said Monday that it intends to file for insolvency liquidation after failing to secure new financing.

Companies worldwide are struggling to secure credit as the collapse of Lehman Brothers Holdings Inc. and the wider economic slowdown have caused banks to cut lending because of increased concerns about getting their money back.

Shipowners will also likely find it more expensive to get funding, according to Faber, managing director of Marc Faber Ltd. and publisher of the ?Gloom, Boom & Doom? report. The maritime sector needs about $300 billion over the next three to four years to fund the construction of vessels already on order, according to Nordea Bank Finland Plc., the largest lender to the sector last year.

The credit crunch may also impact shipping by making it harder for traders to secure letters of credit, the financing notes that are to key to many transactions.

?The banks don"t trust each other,? Faber said. ?Some shipments may be delayed because of fears the letter of credit won"t be accepted by another bank.?


This news is a total 1156 time has been read
  • Comments 0
    UYARI: Küfür, hakaret, rencide edici cümleler veya imalar, inançlara saldırı içeren, imla kuralları ile yazılmamış,
    Türkçe karakter kullanılmayan ve büyük harflerle yazılmış yorumlar onaylanmamaktadır.
    Bu habere henüz yorum eklenmemiştir.
Other News
  • Castor Maritime Raises Money to Expand Fleet28 January 2020 Tuesday 13:37
  • Exmar Finances FLNG, VLGC Pair27 January 2020 Monday 14:31
  • BNP Paribas, Credit Suisse Join Poseidon Principles23 January 2020 Thursday 12:30
  • Frontline Secures USD 544 Mn for Ten Trafigura Tankers27 November 2019 Wednesday 16:50
  • COSCO SHIPPING Ports announces 3rd quarter results31 October 2019 Thursday 10:46
  • Teekay Shuttle Tankers Issues USD 125 Mn Green Bonds Due 202410 October 2019 Thursday 11:14
  • MSC announces fresh rates from Europe03 October 2019 Thursday 15:01
  • Maersk increases rates from Northern Europe03 October 2019 Thursday 11:48
  • Maersk will increase rates02 October 2019 Wednesday 09:17
  • Ex-Shanghai spot rates decrease on major routes27 September 2019 Friday 17:32
  • All Rights Reserved © 2006 TURKISH MARITIME | İzinsiz ve kaynak gösterilmeden yayınlanamaz.
    Phone : 0090 212 293 75 48 | Fax : 0090 212 293 75 49 |