Shipping magnate Nils Smedegaard Andersen, chief executive officer of A.P. Moeller-Maersk A/S recently stated that the low rate environment is causing weak shipping companies to continue to be propped up by banks, therefore causing market distortions.
Trader’s Remarks: As this new interest rate environment continues, it may continue to hamper the already struggling shipping market, due to weaker global trade volumes, low freight rates and over capacity. It will be interesting to see the new alliances and restructurings that form to push costs lower.
What to watch: Maersk, Hanjon Shippong, Mediteranean Shipping Co, Yellen, Draghi, ECB