A watery lok at the briney depths of the recession.
A report on the ghost fleet of the economic down turn.
Boats of mine go boating. Oh where will all come home.
C
Just 12 months ago these financiers and brokersNo green shoots here...just barnacles and sea weed.
were enjoying fat bonuses as they traded cargo
space. But nobody wants the space any more, and
those that still need to ship goods across the
world are demanding vast reductions in price.
Do not tell these men and women about green shoots
of recovery. As Briton Tim Huxley, one of Asia's
leading ship brokers, says, if the world is really
pulling itself out of recession, then all these
idle ships should be back on the move. South China
Sea map
'This is the time of year when everyone is doing
all the Christmas stuff,' he points out.
'A couple of years ago those ships would have been
steaming back and forth, going at full speed. But
now you've got something like 12 per cent of the
world's container ships doing nothing.'
Aframaxes are oil bearers. But the slump is
industry-wide. The cost of sending a 40ft steel
container of merchandise from China to the UK has
fallen from £850 plus fuel charges last year to
£180 this year. The cost of chartering an entire
bulk freighter suitable for carrying raw materials
has plunged even further, from close to £185,000
($300,000) last summer to an incredible £6,100
($10,000) earlier this year.
Business for bulk carriers has picked up slightly
in recent months, largely because of China's
rediscovered appetite for raw materials such as
iron ore, says Huxley. But this is a small part of
international trade, and the prospects for the
container ships remain bleak.
Some experts believe the ratio of container ships
sitting idle could rise to 25 per cent within two
years in an extraordinary downturn that shipping
giant Maersk has called a 'crisis of historic
dimensions'. Last month the company reported its
first half-year loss in its 105-year history.
Boats of mine go boating. Oh where will all come home.
C











