Monday, September 7, 2009

KG funds have idle tonnage

Lloyd's List reports

- Monday 7 September 2009

AROUND one in every six of the 614 boxships idled or in lay-up is operated by a German KG fund, writes Michelle Wiese Bockmann.
The German-financed vessels comprise 132 of the world’s inactive boxships according to Lloyd’s Marine Intelligence Unit data.

Considering the so called "peak season" is not yet over, this is particularly worrisome.

Container carriers will get rid of their charter tonnage before they lay-up their owned ships. The percentage of owned to chartered tonnage varies from carrier to carrier, but it wouldn't surprise me if the KG funds don't end up with 50% of their tonnage idled.

That's my guess.

We will have to see what the reports say in January.

This does not bode well for the international shipping business.

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