Washed-Out Dollar: Dampening Effect or Fueling the Fire

The implications of the US dollar’s collapse on ship finance are subtle but considerable. International shipowners, like the Germans, with dollar-denominated revenue and Deutsche mark-based finance and accounting, have been particularly hard hit. At the same time, the weaker dollar is probably an answer to the prayers of many of the US Maritime Administration (Marad), where the Title XI financing program designed to kick start the US shipbuilding industry is foundering.

The dollar will affect different companies in different ways; and specific sectors are generally impacted only inasmuch as prices of commodities are affected. Owners of German-financed vessels will be looking to maximize earnings; and some fear the summerpool effect will come into play as the close-knit national group starts to feel pressure to maintain firm freight levels.

This is only an excerpt of Washed-Out Dollar: Dampening Effect or Fueling the Fire

Content is restricted to subscribers. To continue reading please Log-In or view our subscription options.