German ship owners have called for a state bailout as the sector continues to struggle with overcapacity, rising fuel costs and hard-pressed banks pulling back from lending to the industry.
The global shipping crisis has hit Germany particularly hard because the eurozone’s biggest economy is also home to the biggest fleet of container ships, accounting for 1,800 of the 5,000 vessels worldwide. Between 500 and 700 German-owned vessels are facing liquidity problems, an industry source said, and about 100 have already gone bust.
German ship owners have called for a state bailout as the sector continues to struggle with overcapacity, rising fuel costs and hard-pressed banks pulling back from lending to the industry.
The global shipping crisis has hit Germany particularly hard because the eurozone’s biggest economy is also home to the biggest fleet of container ships, accounting for 1,800 of the 5,000 vessels worldwide. Between 500 and 700 German-owned vessels are facing liquidity problems, an industry source said, and about 100 have already gone bust.
Ralf Nagel, of the Association of German Shipowners, on Friday said that state bank KfW must help German ship owners with limited, temporary loans, adding that a policy decision is need by the end of 2012. “We are in an emergency situation and cannot wait another year,” he said.
Sources said about Euro1.5 billion is needed to stabilise the sector.
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