H/t reader squodgy:
“Worldwide shipping is in dire straits.
We have seen the BDI (the index of future shipping capacity bookings) trundling along at the lowest level for over three years now.
and Nautilus (http://www.marinelink.com/news/bankruptcy-container371718)
have filed for bankruptcy as global trade grinds to a halt.
A.P. Moller, the biggest Container Ship Company in the world with all those blue MAERSK LINE ships we see everywhere, have been investing in 18000TEU giant ships of late.
One would really think they more than anyone would see the slump coming.
But quite obviously they are lacking in responsible management. But no.
So it shouldn’t come as a shock to read this….
“Worse than the one following the Global Financial Crisis.”
New orders received by Chinese shipyards – now infamous for undercutting competitors and sinking into bankruptcy – have plunged 58.5% so far this year through October, compared to last year, according to shipping industry data provider BIMCO, cited by the Nikkei. At South Korean shipyards, which include the three largest in the world, orders have plunged 84.2%; at Japanese shipyards, 90%.
They all focused on large dry-bulk vessels, tankers, and containerships. But this year, orders for tankers globally plunged 80% and for container ships 84%.