Financial Times FT.com

Shipping finance: Owners get that sinking feeling as crisis takes toll

By Robert McDonald

Published: June 4 2009 13:29 | Last updated: June 4 2009 13:29

Greek shipowners have borrowed heavily to finance fleet expansion and renewal, but hundreds of vessels still under construction are rapidly losing value as trading conditions have worsened in the global slowdown.

Some owners who can afford to lose deposits amounting to 10-20 per cent of the price are reneging on new building contracts rather than take delivery of a devalued asset.

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