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I came accross a good article from the international monetary fund put out by JOC that may have an inpact on ship building, which connects with global trading & pricing in general. Is your freight (cargo) at stake?
IMF frets over German banks’ toxic container ship loans
German banks’ toxic shipping loans are a matter of concern ahead of the European Central Bank’s stress tests, the International Monetary Fund warned.
German banks are “generally well positioned,” but those with extensive shipping loans “could be a source of further impairments,” the IMF said in its latest country report on Germany.
Shipping is ranked alongside foreign commercial real estate loans and exposure to peripheral European economies as “pockets of vulnerabilities.”
HSH Nordbank, the world’s leading ship financier; Commerzbank, which is running down its shipping portfolio; and NordLB put aside nearly 4 billion euros ($5.4 billion) for risky shipping debt, much of its linked to the container sector, over the past three years.
The Bundesbank, Germany’s central bank, last year warned that German lenders’ exposure to the crisis-hit shipping sector was a “significant and sectoral” risk to the entire banking system.
The concerns comes amid a collapse of the traditional German KG ship financing regime that just a few years ago was responsible for financing roughly a third of container ship tonnage globally. In its place has emerged financing from private equity, Greek shipowners and
new Middle Eastern and Asian sources.
As Ron Widdows, the former CEO of APL and Rickmers, a major German owner of container ships, told JOC Group’s TPM Conference in March, “The banks have changed how they view things. They look at the credit profile of the carrier much more critically than they have in the
past. And the non-operating owners, at least within the German ship-owning community, are just simply out of that game.”
Reflecting this trend, Alphaliner reported this week that for the first time since the 1970s, a non-German company — Seaspan — is now the world’s largest non-operating container ship
owner. German owners’ share of the global container ship charter market is currently 51 percent, down from 61 percent in 2008, and German owners’ share of ships on order for the container ship charter market is only 8 percent, Alphaliner said.
The KG collapse was precipitated by a collapse of the container ship charter market following the 2008 financial crisis. “The ensuing collapse of the German KG model for financing new vessels led to a quasi-suspension of German (non-operating owner) ordering activity
until some owners found alternatives, such as financing ships through U.S. funds,” Alphaliner said.
Air & ocean freight (shipping rates) have often been under a threat or another. But, it is helped with a global economy that appears cash rich, exemplified by the US stock market.
To depart from what can be called a stern subject, I invite you to answer the following
Who said: “FREEDOM IN ITS INCEPTION IS IN YOUR MIND. IT RESIDES IN THE LAPSE OF
TIME FROM THAT ELECTRICAL IMPULSE TRAVELING FROM ONE SYNAPSE TO ANOTHER WITH INFINITE CAPABILITIES & AT THE IMAGE OF THE UNIVERSE. ONCE LANDING, A THOUGHT IS REVEALED ENABLING A CHOICE. FREEDOM IS THE EXPRESSION OF THAT CHOICE.
Completing the above theory, who said: “THE WILL IS NOT FREE “.
let us hope that your choice for working with a forwarder is a lot simpler. We want to genuinely help.
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