Showing posts with the label Shipping

Is the Shipping Industry on the collapse?

Container shipping companies are on the brink of collapse due to COVID-19 restrictions. Cargoes are stranded on ships for extended periods and fewer outbound charges. Ship carriers are cutting costs by taking the Cape of Good Hope rather than the Suez Canal. The economic decline in 2008 is considered by many economists to have been the worst financial crisis since the Great Depression to hit not just the real estate market but also the shipping industry. The maritime industry found itself at the center of a global financial crisis, while the supply of ships exceeded its demand. Ship owners and charterers immediately imposed a buying freeze to control the capacity in order to resuscitate plunging freight rates and survive from the shrinking cargo volumes. The COVID-19 pandemic is wreaking havoc on global shipping, which could probably initiate another crisis. To prevent the spread of the virus, a number of ports and shipping companies have implemented measures, which is