Comments on: The shipping industry’s $350 billion debt http://blogs.reuters.com/felix-salmon/2009/11/12/the-shipping-industrys-350-billion-debt/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: dsquared http://blogs.reuters.com/felix-salmon/2009/11/12/the-shipping-industrys-350-billion-debt/comment-page-1/#comment-8711 Fri, 13 Nov 2009 07:56:51 +0000 http://blogs.reuters.com/felix-salmon/2009/11/12/the-shipping-industrys-350-billion-debt/#comment-8711 [So far, the shippers have been making their interest payments, which has helped the banks to avoid writing down the loans]

errr yes, it does help you avoid writing down a loan if it is *current* and *performing*.

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By: Ken Houghton http://blogs.reuters.com/felix-salmon/2009/11/12/the-shipping-industrys-350-billion-debt/comment-page-1/#comment-8695 Thu, 12 Nov 2009 23:26:42 +0000 http://blogs.reuters.com/felix-salmon/2009/11/12/the-shipping-industrys-350-billion-debt/#comment-8695 12 ships not worth $77MM == $6.4MM per ship

Data point from 17 months ago: 5-yr-old ship worth $88MM

Lead time for building a ship is on a scale similar to lead time for turning a ship–in short, everything made in the interim was well-known and anticipated in June 2008.

Clear conclusion 1: Shipbuilders should be shorted; the product they are producing will be difficult to sell for a profit, or even at its marginal cost.

Clear conclusion 2: The Eastwind ships are much more than five years old, and probably weren’t worth much more than the cost of the loan then.

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By: Uncle Billy Cunctator http://blogs.reuters.com/felix-salmon/2009/11/12/the-shipping-industrys-350-billion-debt/comment-page-1/#comment-8667 Thu, 12 Nov 2009 19:18:57 +0000 http://blogs.reuters.com/felix-salmon/2009/11/12/the-shipping-industrys-350-billion-debt/#comment-8667 ” It’s not a pretty picture for anybody concerned.”

Except for the folks that made some commish on the loans.

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By: Robert http://blogs.reuters.com/felix-salmon/2009/11/12/the-shipping-industrys-350-billion-debt/comment-page-1/#comment-8664 Thu, 12 Nov 2009 19:00:22 +0000 http://blogs.reuters.com/felix-salmon/2009/11/12/the-shipping-industrys-350-billion-debt/#comment-8664 Any idea how long these ships have been in service? $88 million still seems high for a ship!

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By: Jim Caserta http://blogs.reuters.com/felix-salmon/2009/11/12/the-shipping-industrys-350-billion-debt/comment-page-1/#comment-8661 Thu, 12 Nov 2009 18:11:01 +0000 http://blogs.reuters.com/felix-salmon/2009/11/12/the-shipping-industrys-350-billion-debt/#comment-8661 “worthless given the glut of new ships” and dramatic decrease in trade due to the global recession. Long term higher oil prices will also make long-range shipping less attractive.

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