That Sinking Feeling: Global Crisis Hits Shipping Industry Hard

A global recession has hit the shipping industry hard, reducing rates and jobs. Products, from the most sophisticated electronics and cars to raw materials like iron ore, are piling up on docks, as consumers close their wallets. Financing has just about vanished for new ships, and analysts question whether the current crisis is part of a typical boom-and-bust cycle, explains Thomas Schulz in Spiegel Online. The slowdown hits Germany particularly hard, as about 40 percent of all container ships are German. In the article, Claus-Peter Offen, owner of one of the world's largest private fleets of container ships, predicts that domestic factories cannot possibly spring up and suddenly satisfy local consumer needs for electronics, shoes, and other products that come from afar. Offen points out that the shipping industry handles more than 90 percent of intercontinental goods traffic, and concludes that globalization of trade will not go into reverse. – YaleGlobal