Monday, April 21, 2014

Genco Shipping Files for Bankruptcy

Bloomberg News reports Genco Shipping has filed Chapter 11 Bankruptcy, which is reorganization, not liquidation.

The dry-bulk shipping market is recovering from the biggest glut in history, according to Clarkson Plc, the world’s largest shipbroker. The fleet has swelled 84 percent since 2008 while trade advanced 31 percent, according to Clarkson’s data. 

The "professionals" are saying the problem is due to the glut of ships.  While this is true, the reason for the glut of ships is because after the 2008 crash everyone thought "oh wow, ships are really cheap...let's order a bunch and soon the market will turn around".  But these people don't really know shipping, and there will be more shipping companies filing bankruptcy soon.  Especially as China had been one of the big drivers for bulk cargoes, and they are facing an economic downturn.

click here for link to article

1 comment:

Bryan George said...

Thanks for the sharing the post

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