Tuesday, November 24, 2009

KG shipowners rethink bailout request

Two of the German KG funds have decided against asking for government monies. For now.

It's estimated that KG Funds in Germany control 1/3 of the world's containerships, and 60-70% of the orders for newbuildings.

I don't think the withdrawal of the request is because they couldn't use the money, but rather, they don't think the timing is right. If they don't get money from somewhere, I don't see how they can arrange deliveries of the newbuildings.

Maybe the shipyards will start financing the sales.

From The Journal of Commerce

Two German container shipowners that had previously requested aid from the German state have withdrawn their applications, the Financial Times reported Tuesday.

Jochen Dohle, president of Peter Dohle Schiffahrt, told the Financial Times it had withdrawn its application last week. Another owner, Claus-Peter Offen, had previously announced it no longer planned to rely on state support.
Dohle told the Financial Times it had withdrawn its application after receiving “numerous questions” from officials scrutinizing the request. Dohle confirmed on Oct. 22 that it was seeking help from the German government’s Deutschlandsfonds, for companies hit by the economic crisis, to finance its orders for new ships.

“We’ve simply said: ‘We leave it and we wait until the overall political situation can clarify whether help for shipping is granted or not,’” Dohle said.

click here for link


Anonymous said...

Dear Lynda,
i came across your blog whilst googling for "APL rights issue".
And i end up reading all the posts' backlog since then.
I believe your blog is real food for thought for the shipping professionals and i wanted to know that.

Lynda Applegate said...

Thank you