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Ship orders may fall 30%: OSG

Ship orders may fall 30%: OSG

Bloomberg - The global order book for new ships that carry commodities and consumer goods may fall by nearly one-third because of a lack of credit, Overseas Shipholding Group Inc. Chief Executive Morten Arntzen said.
"This bank environment will be as difficult for the shipping industry" as it was in the mid-1980s when there were few lenders willing to give loans to shipping companies, Arntzen, 53, said in a telephone interview. He said financing difficulties may cause orders to fall 30 percent through 2012.
"I don't expect things to loosen up for several quarters," Arntzen said. "The amount of recapitalization needed in the banking sector is tooreat."
Banks will provide as much as US$100 billion to ship owners this year, down from US$150 billion in 2007, Ulf B. Andersson, head of shipping at Nordea Bank Finland Plc, told a Marine Money conference in Athens on Oct. 9. Funding costs have increased to 1 percentage point above the London Interbank Offered Rate, or Libor, he said, without giving a figure for last year.\


Updated : 2021-05-12 16:53 GMT+08:00