21–30 of 224 posts
This bankruptcy means that companies shipping goods are no longer going to be able to treat shipping as a fungible commodity and instead are going to have to price in a risk component as well. That suggests that the largest and best financed players are likely to be able to command a premium which will accelerate losses at smaller players. This would increase the spreads further and create a viscous loop. Does anybod…
Third quarter reporting should be very interesting for the markets.
Amazing that this happens on top of such low prices for crude oil. What's going on? EDIT: Yes I read the article. Seriously, oil is so cheap and this still happened? It's just mind boggling to me.
Huh. For some reason I thought cargoes had bonds that would allow them to make port and unload. OTOH, some enterprising sailors could make some money relieving stranded ships of their contents.
These ships would be incredibly expensive and slow to unload at sea. Container shipping is very dependent on dock-side infrastructure. One of the reasons why shipping switched to containers (and away from break-bulk) is precisely because it is difficult to steal from containers.
This bankruptcy means that companies shipping goods are no longer going to be able to treat shipping as a fungible commodity and instead are going to have to price in a risk component as well. That suggests that the largest and best financed players are likely to be able to command a premium which will accelerate losses at smaller players. This would increase the spreads further and create a viscous loop. Does anybod…
They will just buy insurance, and the insurance companies will figure it out.
This seems like a really good sign. We can only hope global shipping continues to shrink until we can get down to a level of consumer purchasing that is sustainable for the ecology of the planet.
The less money people have the less they care about the environment. That's why as quality of life went up in Western countries the environment became more and more important to people, to the point that it's almost an obsession for some people now.
It's not just retail goods on those ships. There is also a great deal of parts that are needed by US manufacturing lines. That creates a ripple effect down the line as missed parts causes snags in the lines. Businesses have gotten pretty good with Just In Time building, so the loss of a few containers will put a snag into it. Some places may have predicted this and gotten alternative parts flows, but that puts a stra…
It'll be interesting to see this play out. If the bankrupt company is unwilling or unable to unload their cargo, could another company start repossessing the ships? I'd imagine it would have to on the behalf of several companies; likely, the most heavily invested insurance companies act as a group.
yes but that is the major fear the docks have. No debt holder is going to repossess a ship at sea they are going to wait for them to dock then file a court order to prevent them from undocking until the repossession proceedings finish. This means they are stuck at the dock taking up space the dock owners want to use to unload other ships so they just ban these ships from their docks letting another dock deal with it…
Wouldn't it be the creditor's obligation to pay the fees or move it somewhere else to be moored?