The global shipping market has been violently shaken by the Chinese economic slowdown after a rapid debt-fuelled expansion in the early years of this decade.
The world’s shipping fleet doubled from 2010 to 2013 even as demand for shipped commodities dwindled. Loss-making vessels have nonetheless stubbornly remained in the market, accepting tenders well below their cost base, in order to pay down the minimum interest on crippling bank loans.
Demand for shipped commodities didn’t dwindle. It just didn’t double…..