Ship values to fall further

Everyone keeps saying it looks as if the recession has hit bottom.

But, that is merely that the free fall appears to be over.

We have not yet seen the fall out. Without a strong recovery expected for probably a few years, there will continue to be excess capacity which will keep international shipping companies from earning money.

This from Lloyd's List blog

The potential for ... a bleak scenario was implicit in remarks made last week by Peter Georgiopoulos, a leading shipowner, who predicted that markets have further to fall.

He noted the low rate at which banks were repossessing vessels compared to previous shipping crises. “The question is, what happens when that starts? What happens to values in the industry?”

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