Tighter Trade Finance Hits Shipping Lines

Demand for shipping is weakening because banks don't want to finance trade during a recession??? Seaborne transportation of goods such as washing machines and other household appliances fell the most in at least 51/2 years in November 2008...?!

In general, takes Nov 2008 for example, the movements have dropped approximately 12%, as compared to the corresponding period of last year.

Some, having issues with letters of credit.

The issue is exacerbating a lack of demand in individual countries' as the global recession takes hold.

World trade in commodities, from oil and coal to timber and grains, has already been hurt by a reduction in the sums banks are willing to advance to customers to ensure payments.

The key driver behind lower demand for container shipping is the sharp reduction in consumer confidence and consumer spending globally.

The cost of shipping containers has declined 'very dramatically' and at 'unprecedented' speed, Mr Deleuran said.

Source: Hellenic Shipping News