World Grain - December 2008 - 31

FEATURE: FREIGHT RATES PLUMMET

cashflows or financials. This will mean
orders will be canceled at shipyards,
some of whom are already struggling to
source Refund Guarantees, which is an

than 330 vessels over 20 years old, while
almost 800 ships in the 2,890-strong
handysize fleet were built before 1980,
and some of them dated back to the

"Without doubt, the global lack of liquidity combined with the
recent downturn in the dry bulk and container markets will affect banks' appetite for certain ship finance transactions."
- Nigel Anton, Standard Chartered Bank

absolute essential requirement of ship
owners when sourcing finance."
Further capacity will also be taken out
of the equation as vessels are laid up and
older vessels, which should have been
scrapped years ago, will now be sent to
the breakers.
Stonehouse said there were 50 bulk
carriers in the panamax fleet of about
1,500 vessels built before 1980 and more

1960s. "These vessels will be scrapped
because of the cost to maintain them,"
he said. "They will be heavier on fuel
and the charterers will prefer to charter
newer ships, which are more reliable."
The supply side of the shipping equation will soon look very different than it
does now, or than it has looked for the
last year or more, a fact that is only now
starting to seep in.

And let it not be forgotten that the
bulk shipping business is about the
core raw materials demanded by industry and society. Steel and cement trade
flows cannot cease, power stations still
need coal, people must eat and, surely,
the credit markets will have to ease at
some point.
Whether the global economy enters a
recession or not, cargo demand will eventually pick up once more. When it does,
charterers in the grain business should
expect the negative sentiment, which has
propelled freight rates downward, to ultiWG
mately help push them back up.
Michael King, a freelance journalist and editor,
has been writing about shipping, transport and
commodities for more than a decade. Currently
based in Indonesia, he can be reached at
Michael@borderline.eu.com.
We want to hear from you - Send comments and
inquiries to worldgrain@sosland.com. For reprints of
WG articles, e-mail reprints@sosland.com.

PETKUS Technologie GmbH · Röberstraße 8 · D-99848 Wutha-Farnroda
Tel.: +49(0)36921-98-0 · Fax: +49(0)36921-98 333 · E-mail: petkus@petkus.de

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Consulting Services Machines Plants

i

Drying

Storage

Cleaning

Treating

For more information, see Page 82.

32

December 2008 / World Grain / www.World-Grain.com



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World Grain - December 2008

Table of Contents for the Digital Edition of World Grain - December 2008

Contents
World Grain - December 2008 - 1
World Grain - December 2008 - 2
World Grain - December 2008 - 3
World Grain - December 2008 - Contents
World Grain - December 2008 - 5
World Grain - December 2008 - 6
World Grain - December 2008 - 7
World Grain - December 2008 - 8
World Grain - December 2008 - 9
World Grain - December 2008 - 10
World Grain - December 2008 - 11
World Grain - December 2008 - 12
World Grain - December 2008 - 13
World Grain - December 2008 - 14
World Grain - December 2008 - 15
World Grain - December 2008 - 16
World Grain - December 2008 - 17
World Grain - December 2008 - 18
World Grain - December 2008 - 19
World Grain - December 2008 - 20
World Grain - December 2008 - 21
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World Grain - December 2008 - 36
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World Grain - December 2008 - 38
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World Grain - December 2008 - 83
https://digital.world-grain.com/sosland/wg/world-grain-november-2024
https://digital.world-grain.com/sosland/wg/world-grain-october-2024
https://digital.world-grain.com/sosland/wg/world-grain-september-2024
https://digital.world-grain.com/sosland/wg/world-grain-august-2024
https://digital.world-grain.com/sosland/wg/world-grain-july-2024
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https://digital.world-grain.com/sosland/wg/world-grain-december-2023
https://digital.world-grain.com/sosland/wg/world-grain-november-2023
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https://digital.world-grain.com/sosland/wg/world-grain-august-2023
https://digital.world-grain.com/sosland/wg/world-grain-july-2023
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https://digital.world-grain.com/sosland/wg/world-grain-april-2023
https://digital.world-grain.com/sosland/wg/world-grain-march-2023
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https://digital.world-grain.com/sosland/wg/world-grain-january-2023
https://digital.world-grain.com/sosland/wg/world-grain-december-2022
https://digital.world-grain.com/sosland/wg/world-grain-november-2022
https://digital.world-grain.com/sosland/wg/world-grain-october-2022
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https://digital.world-grain.com/sosland/wg/world-grain-july-2022
https://digital.world-grain.com/sosland/wg/world-grain-june-2022
https://digital.world-grain.com/sosland/wg/world-grain-may-2022
https://digital.world-grain.com/sosland/wg/world-grain-april-2022
https://digital.world-grain.com/sosland/wg/world-grain-march-2022
https://digital.world-grain.com/sosland/wg/world-grain-february-2022
https://digital.world-grain.com/sosland/wg/world-grain-january-2022
https://digital.world-grain.com/sosland/wg/world-grain-december-2021
https://digital.world-grain.com/sosland/wg/-world-grain-november-2021
https://digital.world-grain.com/sosland/wg/world-grain-october-2021
https://digital.world-grain.com/sosland/wg/world-grain-september-2021
https://digital.world-grain.com/sosland/wg/world-grain-august-2021
https://digital.world-grain.com/sosland/wg/world-grain-july-2021
https://digital.world-grain.com/sosland/wg/world-grain-june-2021
https://digital.world-grain.com/sosland/wg/world-grain-may-2021
https://digital.world-grain.com/sosland/wg/world-grain-april-2021
https://digital.world-grain.com/sosland/wg/world-grain-march-2021
https://digital.world-grain.com/sosland/wg/world-grain-february-2021
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https://digital.world-grain.com/sosland/wg/2020_02_01
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