Loading up on forex risk
So high is the demand for new cargo vessels that ship buyers in Asia are willing to take greater foreign exchange risk on their orders to secure new tonnage - exposure that historically has been shouldered by shipbuilders. Joe Marsh reports
Times are hard for ship buyers in Asia. Given the massive demand for new tonnage, shipowners in Asia say they are having trouble securing more berths and tonnage at a reasonable price, as shipyards are at full capacity, says an official at Korea's Hanjin Shipping. "With global shipyard capacity booked well into 2010, shipbuilding is a seller's market," says research from Nomura on Korean shipbuilding dated June 8. As a result, shipbuilders can now pretty much pick their own terms for delivery
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