The shipping industry of Germany is facing a wave of bankruptcies over coming months as the funding is slowly drying up as well as the day by day deepening economic woes all across the world cause a sharp contraction in container trade.
Almost over 100 ship funds of German y have already shut down their business as the long-simmering crisis in global container shipping finally comes to a head for them. And also a further 800 funds are threatened with insolvency. This is what the consultants TPW in Hamburg have to say.
And most of all they are not alone in this problem. The oldest shipowner of Britain, Stephenson Clark, who dates back to 1730 also got into the problem of liquidation in the last week only, thereby, closing the final chapter of the coal trading in the country of Britain as well as the industrial revolution that was seen by the country.
It cited the reason as “incredibly depressing” vessel rates. The firm over-invested in the boom which had some four years ago, betting too much on the China syndrome.
Germany is known the superpower in the industry of container shipping, who controls almost 40 per cent of the market of the world. The Germans also misread the cycle as well as have been struggling from past quite sometime now to cope ever since with a legacy of debt and also a glut of ships. Now everything is going wrong at once and that too in a row.
Container volumes arriving at ports of Europe had plunged down in the month of June, dashing the expectations of a summer rebound. Imports also fell down by 7.5 per cent from North America and also 9 per cent from Asia. Flows into the Mediterranean region had also come down by 16 per cent, reflecting the violence of the recession in some of the biggest economies of the world such as Greece, Italy, Spain, and Portugal as well. Apply with short term loan lenders @ Get cash now
The buckling trade is the coup de grace for a whole lot of number of shippers who are still clinging on by their finger tips to their trade. Martin Smith from ship operators Norddeutsche Vermogen situated in Hamburghad to say that the market is barely paying above the costs of operating . In case you are very much loaded with debt, then it simply means that you are in trouble. Things are looking to be sad.