- And even if demand comes back in 2009, there is still a strong chance of overcapacity due to the shipbuilding order boom that took place when rates were at their peak. According to the Wall Street Journal, in the last two years 50 million tons of capacity have been added to the global fleet of 420 million tons. “But in 2009 and 2010, over 175 million tons is due to come into service. Some of these orders will need to be cancelled if shipping rates are to rise.”
- "The market is almost non-existent," said Herman Billung, CEO of Golden Ocean in a Reuters report. "The situation is pretty serious and illustrating what is going on in the whole dry bulk industry,"
The Baltic Dry Index is now at 672.
How optimistic can one be about the turnaround in global economy when the market is almost non-existent in the shipping industry?
When ships don't move, what's it implying about global trade?
Doesn't this means global trade is almost non-existent too?
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