Bleak prospects: Asset values headed for new dive

Ships' average earnings have now reached 2002 levels. Yet second-hand prices are still an average 30-40 percent higher than 12 years ago, says Danish Ship Finance in a bleak shipping prognosis.

Photo: Rederiforeningen

Even though ship asset values plummeted during the crisis, forcing many carriers to perform massive impairments on their fleets, the coming years could prove to be equally horrifying in several segments, including dry bulk and product tanker.

Danish Ship Finance's latest Shipping Market Review draws a decidedly bleak picture of developments in the global shipping industry over the next 2-3 years, where the combination of far too many newbuildings and continuing low freight rates result in an almost unprecedented poisonous cocktail.

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