{"id":16917,"date":"2016-01-26T14:08:21","date_gmt":"2016-01-26T19:08:21","guid":{"rendered":"http:\/\/olduvai.ca\/?p=16917"},"modified":"2016-01-26T14:08:21","modified_gmt":"2016-01-26T19:08:21","slug":"zombie-ships-why-global-shipping-is-even-worse-than-the-baltic-dry-suggests","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=16917","title":{"rendered":"“Zombie Ships” – Why Global Shipping Is Even Worse Than The Baltic Dry Suggests"},"content":{"rendered":"

“Zombie Ships” – Why Global Shipping Is Even Worse Than The Baltic Dry Suggests<\/a><\/h3>\n
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One glance at The Baltic Dry Index’s collapse is all that most need to see the painful state of the global shipping industry. However,\u00a0as gCaptain reports,<\/a>\u00a0reality is even worse as\u00a0the boom in so-called “zombie ships” suggests there is no recovery in sight for the beleaguered containership charter market<\/strong>, which is facing its biggest crisis since the 2008 financial crash.<\/div>\n
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It looks bad…<\/strong><\/p>\n

\"\"<\/a><\/p>\n

And it’s not just over-supply…<\/strong>\u00a0(trade is slowing rapidly)…World trade volume rose by only 0.5% YoY in October and was up 2.4% YoY in the first 10 months of 2015, while\u00a0world trade value in USdollar terms declined by 12.2% YoY in October<\/strong>\u00a0and was down 11.8% YoY in the first 10 months of 2015.<\/p>\n

\"\"<\/a><\/p>\n

But,\u00a0as gCaptain details<\/a>,\u00a0reality is even worse for the world’s shipping industry:<\/strong><\/p>\n

Analysts agree\u00a0there is no recovery in sight for the beleaguered containership charter market, which is facing its biggest crisis since the 2008 financial crash.<\/strong><\/p>\n

However, unlike that bleak period for shipping, which ultimately resulted in a strong recovery for charter rates,\u00a0this time the fundamentals are quite different.<\/strong><\/u><\/p>\n

Overcapacity, stemming from the ordering strategy of carriers has been exacerbated by a growth slowdown in China and ultra-low oil prices. And according to the latest report from Alphaliner, with the possible exception of very small feeders,\u00a0all containership sectors are struggling badly, with owners obliged to accept sub-economic charter rates and pay for positioning costs just to keep their ships busy.<\/strong><\/em><\/p>\n

The revenue earned in charter hire is seen by owners as a \u201ccontribution\u201d to vessel overheads, but is often insufficient to cover mortgage payments on the ship.<\/strong><\/em><\/p>\n

Thus \u201czombie ships\u201d, as they have become known in shipbroking circles, are masking the perilous state of container shipping.<\/strong><\/u><\/p><\/blockquote>\n

…click on the above link to read the rest of the article…<\/p>\n

 <\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

“Zombie Ships” – Why Global Shipping Is Even Worse Than The Baltic Dry Suggests One glance at The Baltic Dry Index’s collapse is all that most need to see the painful state of the global shipping industry. However,\u00a0as gCaptain reports,\u00a0reality is even worse as\u00a0the boom in so-called “zombie ships” suggests there is no recovery in […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[10469,124,130,11961,3761,3500,669,670,7485,4318,11962],"class_list":["post-16917","post","type-post","status-publish","format-standard","hentry","category-economics","tag-baltic-dry","tag-central-banks","tag-china","tag-gcaptain","tag-global-trade","tag-overcapacity","tag-reality","tag-recovery","tag-world-trade","tag-zerohedge","tag-zombie-ships"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16917","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16917"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16917\/revisions"}],"predecessor-version":[{"id":16918,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16917\/revisions\/16918"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16917"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16917"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16917"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}