Yes the shipping market is ugly these days and its thus a bad time to take delivery of new ships.
But could Europe’s debt crisis be causing European companies to rethink their business expansion plans?
This could be an early sign of a global ripple effect caused by Greece’s (and other PIGS) sinking economy:
German shipowners want to delay taking delivery of vessels they have ordered from South Korean shipyards, a German government official said in Seoul on Wednesday. The owners are also seeking an extension for payment rates already due for the ships, said Hans-Joachim Otto, parliamentary secretary of state in the economics ministry.
Otto told the German Press Agency dpa that the German overtures were linked to the recession in the global shipping market. Some 195 ships ordered by German firms from South Korean yards are due for delivery in the coming months, most of them container vessels.
These deliveries come at a time when the industry is reeling from the economic downturn and ‘ruinously low charter rates,’ Otto said.