I know there's a capacity (specifically, overcapacity) issue in the ship business, but this is just plain bad. How do you make money on these vessels at that sort of pricing? The decline since September, when people were pointing to a rebound starting, is stunning - and disturbing.
Yes, the solution to too much capacity and low prices is low prices - people go under, then capacity comes off, and price goes up. But remember, the mantra we keep hearing is that the economy worldwide is growing so fast.... well, if it is, why is it that bulk carriers aren't loaded to the gills and able to maintain prices?
As an anecdote I also hear regularly from associates of mine who are involved in the goods trade across national boundaries. There was a set of memos that was circulating around the holidays about expected price increases for non-bulk (e.g. container) shipments; I am now hearing that these have been rescinded.