A report just out from state-backed Shanghai International Shipping Institute (SISI) warns of a likely wave of bankruptcies among China’s dry bulk shipowners.
SISI stated that more than 60% of the 50 dry bulk shipping firms it surveyed were struggling with long-term losses, while approximately 40% faced liquidity problems.
“The market is extremely depressed and these conditions are likely to continue in 2016, exacerbating dry bulk firms’ losses, increasing costs and creating obstacles to obtaining financing. This will kick-start a wave of bankruptcies,” SISI said in a report published yesterday, the day the Baltic Dry Index hit another record low, closing at 468 points.
SISI said that more than 60% of the survey respondents did not expect the BDI to climb above 800 points this year.
SISI’s survey follows on from the Future of Shipping Poll being carried on this site since late December. The poll, which closes next month, has already attracted more than 400 votes – 69% of whom believe that 2016 will see a peak in shipping bankruptcies.
The survey closes in just over one month’s time. There is no registration and the nine questions can be answered in under two minutes, although we always appreciate anonymous comments by any topic that particularly piques your interest. Results of the survey will be carried in the next issue of Maritime CEO magazine.
To vote, click here.