Precious Shipping, Thailand's largest shipping company by market value, expects a third of the global merchant fleet to be scrapped within two years as trade collapses amid a global recession and tighter credit, Bloomberg reported.
"The banking system is destroyed," ceo Khalid Hashim said at a shipping conference in Singapore yesterday. "China's stimulus plan will help revive trade, but it will not be able to immediately."
The number of vessels scrapped this year may triple on a trade slump caused by China cutting imports of iron ore and U.S. and European consumers paring spending on Asian-made goods. At the same time, new ships are entering service as shipyards complete orders placed two or three years ago, when trade was booming.
"The banking system is destroyed," ceo Khalid Hashim said at a shipping conference in Singapore yesterday. "China's stimulus plan will help revive trade, but it will not be able to immediately."
The number of vessels scrapped this year may triple on a trade slump caused by China cutting imports of iron ore and U.S. and European consumers paring spending on Asian-made goods. At the same time, new ships are entering service as shipyards complete orders placed two or three years ago, when trade was booming.