SHIPPING FINANCE FROM 1950 TO THE TURN OF THE CENTURY
The birth of containerization...
...and the subsequent rise in international trade. Ship finance started to take on a different flavor. There was rapid globalization in the second part of the twentieth century. The global village phenomenon was partly due to standardization through containerization.
But it brought about the need for all parties involved to adapt...QUICKLY! Only those who were able to adjust to new environments quickly would be able to survive.
New risks and an exacerbation of existing risks
These forced many firms to become more agile and flexible. Demand for more flexible forms of ship finance started to increase. This eventually resulted in a wide-spread acceptance of the German KG model.
Constant change was prevalent
Dr. Martin Stopford, Managing Director of Clarkson Research, divided the period up into 5 distinct periods. In an October 2002 forum, he explained that the period from 1950 to 2002 can best be understood by the following phases:
Cash (1950 – 1956)
Charterback (1956 – 1970)
Bubble (1970 – 1979)
Distress (1979 – 1988)
Convalescence (1988 – 2002)
SOURCES
Swart, Petrus Johannes Cillié. A Volatility and Sustainability Comparison between Bulk Cargo Vessels and Container Vessels as Investments, 2007
nice post
you remember me @farhannaqvi7
Of course I do!!! HAVE A SPECTACULAR DAY MY FELLOW STEEMIAN!!!
I am I correct in saying there are only 2 size containers today?
Great question. Yes and no, gonna do a post on it right now.
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