By. Bruce Krasting
A friend calls from Athens this morning moaning and groaning about the sorry state of the shipping industry. I ask, “What’s new that makes you so grumpy?” He points me to this story concerning the bankruptcy of a Korean shipping company called Korean Lines (“KL”) .
A friend calls from Athens this morning moaning and groaning about the sorry state of the shipping industry. I ask, “What’s new that makes you so grumpy?” He points me to this story concerning the bankruptcy of a Korean shipping company called Korean Lines (“KL”) .
My friend made the following points on this development:
- KL owns about 30 ships and manages another 120. As a result of the chapter filing almost all of these ships are coming back onto the spot market. The KL financial status was known by many insiders (bankers/brokers/shippers). This was a contributing factor in the big run off of the Baltic Dry index recently.
- Spot shipping rates have nowhere to go but down as a result.
- The Chinese ship construction schedule will bring many new ships into service this year. This will depress rates further. Cargo ship asset values are falling.
- Some banks will take big losses. Other shipping companies like KL are now on the edge.
- The dry bulk cargo industry has crossed (once again) from boom to bust.
This is just one man’s opinion. He happens to own a dozen vessels.
The crisis has not ended, that is for sure. I would like to point out that solutions offered in Zeitgeist movie are not solutions at all. It is utopic view of the world, and every utopia fails and results in genocide. I would also like to point out document discussing the economics of the renewable energy, a study performed by german RW institute: http://www.instituteforenergyresearch.org/germany/Germany_Study_-_FINAL.pdf
ReplyDeleteThey came to realize that renewable energy cannot offer solutions, and only increases the costs of energy, thus destroys the industry. It is logical to every thinking man that one cannot run high-speed train with solar cells.
I agree with anonymous above.
ReplyDeleteIf you researched much of the "Utopian" ideas that have been presented these past 90 years have been a result of the Technocracy movement from the 20's. However, Technocracy is not a utopian idea.
Technocracy as presented in the Technocracy Study Course is a real alternative solution. I urge anybody to at least consider and read into this concept. M. King Hubbert helped write much of course, especially the parts about ecology, energy,and growth in human history.
It is based on Biophysical economics as Energy Accounting. It is not an "energy theory of value". It is only a statistical system used for measurement and distribution. It is not a Price System.
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