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  • Taking a Risk - With 20% Yields [View article]
    the world is entering a recession. do you realize that there are way too many bulk carriers out there? bulk carriers ship commodities. the owners forecast 5 to 10 years in advance of their needs and commission the construction of vessels. the owners cannot stop the construction and the new ships are coming. but they do not need the new ships because recessions cause commodity demand to fall. they then have a price war and a profit squeeze because they need to pay for the new ship.

    i think you get the point - stay away from bulk carriers during a recession.
    Sep 27 01:24 am |Rating: 0 0 |Link to Comment
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