The blog post linked above from Reuters reporter Felix Salmon discusses the large amount of bank debt collateralized by ships. With the current glut of ship inventory, if a company goes under the amount the bank realizes from the sale of assets may not cover the debt.
For shippers, I think this means the less financially secure will have a tougher time obtaining attractive financing for purchases. It may also lead to a more rapid scrapping of older ships.
The shipping industry’s $350 billion debt
Felix Salmon » Blog Archive » The shipping industry’s $350 billion debt | Blogs |.
The blog post linked above from Reuters reporter Felix Salmon discusses the large amount of bank debt collateralized by ships. With the current glut of ship inventory, if a company goes under the amount the bank realizes from the sale of assets may not cover the debt.
For shippers, I think this means the less financially secure will have a tougher time obtaining attractive financing for purchases. It may also lead to a more rapid scrapping of older ships.