The "nightmare" of the shipping industry drastically ferments

The crisis caused by the decline of the shipping industry is accelerating the fermentation.

Crashing Shipping Crisis Zhang Xianbin, manager of the Transportation Management Department of Shandong Shipping Co., Ltd., told the Economic Herald on the 6th that the shipping industry is currently in a second recession after 2008. This is a time for a structural transition for shipping companies. .

"Now most shipyards are struggling, shipping prices are low, and bargaining power is not strong. At present, banks are gradually shrinking their ship financing business, making ship financing lease companies and related industries with qualifications and operational advantages gradually involved in the chain because they have stronger Professionalism can reduce risks.” Zhang Xianbin said that in fact, bank lending is still very cautious because banks do not know much about the development of the shipping industry.

When the shipping industry is muddy, the risks in the industry chain are already magnified. In the case of the aforementioned Zhuangji Group, the nightmare that is now being encountered begins.

It is reported that, as a subsidiary of the Zhuangji Group, the two 82,000-ton cargo ships under construction by Zhuangji Shipbuilding Co., Ltd. are the largest tonnage ship in the history of Wenzhou Shipbuilding Industry. It is a pity that these two giants did not bring glory and profits to Zhuang Ji, but they became a deadly burden. According to the latest news, the two ships were abandoned by a shipowner when one of the two vessels was ready for trial and the other 60% was completed. The reason is that the shipowner suffered serious losses and was desperation to give up.

To make matters worse, the financing bank also claimed a total of 336 million yuan from Zhuangji Shipbuilding with a refund guarantee letter. In the case of tight funding, the two ships may have to be naughty boats. At the same time, Zhuangji Shipbuilding and its parent company will be dragged into the mud. Liu Bin, director of the Institute of World Economics at Dalian Maritime University, told reporters that the operation of some large ship companies in Wenzhou and Ningbo deteriorated and even closed down. This is by no means an exception. The good days a few years ago have caused many boat companies to expand wildly, and the tests now facing them are particularly grim. The reporter noted that at the end of October last year, two large shipyards in Ningbo, Hengfu Shipbuilding and Blue Sky Shipbuilding Co. declared bankruptcy. In Fujian Province, there were also four shipping companies applying for cancellation. According to industry sources, the number of shipping companies that applied for cancellation this year has increased significantly from last year. Large shipping companies such as COSCO and China Shipping have also begun to “build ships to change ships”. “We have chosen a better time to enter the shipping market, with low-cost access to the market, no historical burden, it is undeniable that this is our advantage. And as state-owned enterprises have a good bank credit, financing costs are low, can be said to be light into the city.” Zhang Xianbin admitted frankly, “The current market demand is a low period, and will continue for a long time, and the recovery may be after 2015. During this process, the market's concentration gradually increases. Although most companies operate below the cost line, We can still stay flat, or we can say that it is meager, because we can find our own position and way out, so we have confidence in the prospects.” Shipping Fund faces a large number of defaults “Generally speaking, the amount of loan of shipowners accounts for an average purchase. 60% of the capital of the ship, except for considering the appreciation and realisation of long-term assets, usually repay the loan through daily operations.The shipping industry is a talent-intensive and capital-intensive industry, and now, besides the supply and demand imbalance of the transport capacity, the development of the shipping industry is mainly restricted. Capital, financing costs, ship prices, and cooperation channels will exert great pressure on the capital chain." Bin Bin said. In the case of Germany, the country is a superpower of container shipping, controlling 40% of the world market. As the global shipping industry has been in a doldrums for five consecutive years, the risk exposure of the German financial industry has expanded. In order to help the shipping industry out of the recession, the German banking sector has continued to invest in assistance for the construction of some shipping funds, the purchase of ships and tax protection. However, in the context of the downturn, many shipbuilding enterprises have encountered severe liquidity crises. According to statistics, as of August this year, more than 100 German shipping funds have closed, and more than 500 funds are facing bankruptcy threats. Moreover, the shipping crisis has caused a worldwide wave of closures. Last month, the overseas shipping group in New York was forced to file for bankruptcy protection after negotiations with creditors were deadlocked. The company is mainly responsible for the transportation of crude oil and gasoline products. After the announcement of bankruptcy protection, the company's stock price plummeted 61%. At the same time, weak shipping costs and high fuel costs have forced many shipping companies to recapitalize. Regardless of bankruptcy or restructuring, the credit crisis triggered by this is obviously not to be underestimated. In this regard, Liu Bin analyzed that “the shipping fund is almost 100% loss, and faces a large number of defaults, shipbuilding companies have no way to hedge themselves, the shipyard has no intention of building a ship.” He explained the KG fund as an example . “In the German legal system, KG refers to a partnership formed by a number of partners (shareholders) under a common business name to engage in certain business operations. This organization form first appeared in the shipping industry. KG’s massive closure This has caused the German banking industry to suffer a crisis," said Liu Bin. The large-scale failure of the shipping fund has caused banks to make bad debts, the flow of shipping funds has slowed down, and banks have begun to reluctantly borrow money, creating a terrible transmission. "The reason why investment is not booming now is that the global dry bulk transport volume is 3.5 billion tons, but the capacity has reached 7 billion tons. This is the result of the brutal growth in the capacity of the previous economic cycle. Currently, the world has entered a large-scale shipbreaking. "Liu Bin believes that when the freight rate can rise, it depends on when the speed of transportation capacity and traffic volume rise, and the speed of ship recycling is also an important observational indicator." "For domestic related industries, it may also require state-level regulation. For example, through tax cuts, tax exemptions, and cuts in interest rates, it is possible to stimulate the slow recovery of the shipping industry," said Liu Bin.