Originally Posted By: AKSAR
Not sure why you are so worried? The weakest shipping companies will go bankrupt, and their assets will be sold. The oldest and least efficient ships will be sold for scrap. The newer and most desirable ships will be sold at a loss. The creditors will take a loss.

Meanwhile, the shipping companies with the strongest balance sheets will ride it out and survive. The strongest of them will pick up some of those discounted ships at a very good price, and use them to replace their older less efficient ships. When enough of the weaker companies go under, and enough of the older ships are scraped, the system will rebalance and rates will go up again. The surviving companies will be profitable again.

I see some of that happening some time in the future (I explained why we may not be seeing ships scrapped). What are we going to do in the meantime?

What it will mean for us when banks take a loss is only speculation at this time.

Jeanette Isabelle
_________________________
I'm not sure whose twisted idea it was to put hundreds of adolescents in underfunded schools run by people whose dreams were crushed years ago, but I admire the sadism. -- Wednesday Adams, Wednesday