Shipping Review & Outlook : Dry bulk
This article is based on the earlier research works of Mr. Daejin Lee to explain the recent trend of the shipping market with a special focus on dry bulk. Shipping is 'Pigs or Chickens'? 'Shipping is just like the country market. By the time the farmer arrives at market with his pig and finds that all the other farmers have bred pigs, it is too late. Price will fall, and the farmer, who has feed bills to pay must accept the price on offer. But this situation was created a year earlier when prices were high and everyone started breeding pigs. The smart farmers saw what other farmers were doing and switched to chickens. This has nothing to do with what the demand for pigs or chickens. It is a supply-side management. We conclude that, like the farmer, the successful shipping company must know when to steer clear of pigs!' * The story of 'Chicken and Pigs' is one of the best parts I have read in 'Maritime economics'. Bad investments often flow from...