The massive USD one billion impairment carried out by Japanese shipping group NYK on its container ships alone has cast doubts on whether other container players are making the necessary adjustments to their fleet values.
"It is difficult to imagine that NYK deviates significantly from the majority of other container carriers. This therefore begs the question of how many impairments we really should be seeing across the remainder of the industry," Lars Jensen, CEO of Seaintelligence Consulting, tells ShippingWatch:
"The impairments at NYK can be seen as a big wake-up call to all creditors in the container sector to look very carefully before they start pouring more money into the industry. This effect could cause pain in several instances, a lot of pain for those who have loan agreements tied to the value of their vessels. If these values must suddenly be impaired, they risk breaking contract clauses and could be forced to settle or renegotiate their loans," adds Jensen.