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Singapore's Shipping Glut Bad News for the S&P

I try not to fudge articles from the New York Times too often, but kudos on their piece about the glut of ships stranded in Singapore, the casualties of the near shut down of international trade. The greatest assemblage of ships since the D-Day invasion, some 735 bottoms totaling 42 million tons are begging for charters. With China-Europe 40 foot container rates down from $1,400 to $150, and bulk carriers falling from $300,000 to $10,000 a day, it could be a long wait. Singapore became the parking place of choice because of cheap labor, fuel, shipyards, mild weather, and minimal environmental regulations. A 300,000 ton crude carrier can make a pretty messy neighbor. Easy finance sparked a shipbuilding boom and oversupply that is now leading to major losses by European banks. Isn’t this a story we’ve heard before? There is something wrong with this picture. Does a 35% move up in the Dow jive with 4% of the world’s commercial fleet rusting in a forlorn Asian port? I don’t think so. When I read stories like this, I go home and stroke my short positions until they purr, telling them their day in the sun is coming.