...There are high credit risk premiums for the shipping industry.
Vultures are waiting for the asset value of ships for fall to scrap value. The banking industry has made its highest profits when the shipping industry is under duress.
It is the opinion of the banking industry that most of the ships under construction will be completed – even if the fabrication contract is canceled. The governments where the ships are being fabricated will use this construction as economic stimulus. By 2011, there will be twice as many ships as needed across almost all shipping sectors. The industry needs the ship construction to be canceled.
Overall shipping industry asset values look to be in trouble. Future shipping rates seem to be under pressure due to overabundance of new build ships.