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RE: THE MARITIME CHRONICLES: THE LAST 15 YEARS [7 MINUTE READ]
hey, did you make a typo where you said
"About ten years ago already, orders for new vessels had increased dramatically in a short space of time."?
did you mean decreased?
cause you then said
"Many experts feared a repeat of the shipping recession in the 1980's. The only way out was to find fresh equity on a regular and sustainable basis."
just thought you might want to fix that
Well spotted. :)
Thank you @spaingaroo. Can't tell you how much I appreciate your constructive feedback. What I appreciate even more is the fact that I can tell you read my post with interest. When I read your comment, I thought, he is right! What was I talking about! But then I read the whole thing in context again and realized it is correct as is, but I could have been clearer.
What I meant was that the expansion in new buildings and the subsequent optimism in the market would result in even more confidence and an explosion in shipbuilding projects. Too many ships and shipbuilding activity, without commensurate equity to fund it, could have resulted in another bubble and subsequent crash, as we saw in the second half of the 20th century.
A potential antidote to that, this time around, would be the mitigating/regulating effect of the shipping derivative market. But that would not be enough. Fresh equity was also needed, otherwise banks would get nervous real quick and make the loan covenant breaching thresholds almost impossible to bear.
When you have a glut of ships, freight rates drop rapidly. So it becomes harder to pay back the bank and your shareholders (in the case of the KG or similar models). That's were a large derivative market may help though and provide the mitigating effect. What a fascinating erratic volatile industry, I love it!!
Let me know if there are specific details you are interested in.
Following you and I hope you have a wonderful day!!
You know your shipping business Cillie. :)
Thanks for those kind words. I shall remember you when I become the next Aristotle Onassis.
thanks for the thorough reply. I see what you were trying to say and thought maybe you had wanted to say something like that, but decided it must be as I said.
But you prove now that you can explain things better, so you'll have to start doing it inside your posts.
:)
you don't have to dumb it down, I think the more you go into things, the more interesting it's going to be
don't worry, we'll still have questions
one of my biggest surprises recently was the realisation that every field of human endeavour is fractal. The more you know, the more you know you don't know, yet.
and the concrete thing that made that thought click was an article half about shipping.
It was really about sand.
But there was a lot about shipping in the article, sand is heavy and hard to ship, and in short supply all over the planet.
fascinating topic if you haven't been exposed to it before
Can you send me the url? Sounds interesting.
I can look, and I will find I think. Probably haven't cleaned my history since, or maybe I have.
I think I started with an article on Mother Jones, so I will look there too.
I can't find in either but maybe a quick google...
This reuters article is not interesting in the same way but gives you an idea, it talks about one little fraction of the thing, sand for fraking wells.
as does this one about the same.
I will look again in another moment, it mentioned the sochi olympics so that might be a way to find it.
this is not it either but it touches on one of the really interesting parts of the thing, sand isn't sand.
especially beach volleyball sand
Thanks so much for your reply @spaingaroo. What is Mother Jones? Sounds cool. And thanks so much for the links you sent me about fracking and frac sand in particular. Keep an eye on my blog, I will be posting a blog about it shortly. Volleyball article also very insightful. The type of sand matters.... I hope you have a WONDERFUL day!