Shipping companies have lost profit maker
The highly pressured shipping companies have lost the opportunity to make large amounts of money from the purchase and sale of ships, which has for many years been the source of billion kroner incomes.
It is a more transparent market in the shipping industry, which is reducing opportunities in this area, writes Danish business paper Finans.
According to Peter Sand, Chief Analyst of Bimco, the largest form of income in international shipping derived from the purchase and sale of ships, and not from shipping goods.
Ships and stocks in ships are usually sold for cheap during bad times and are re-sold for large prices when the market turns for the better. Danish shipping company D/S Norden is one of the companies who have made large profits on this scheme. According to Finans, between 2005 and 2009 the company earned 4.5 billion Danish kroner, calculated in today's dollar exchange rate.
"This was during better times, when China was really booming and there could be earned a lot of money from it. I agree that this will not be happening again. I do not believe that we will see such a strong market again. Therefore, it is necessary to focus on something other than buying and selling ships, "says Jan Rindbo, CEO of D/S.