A Call for General Average

Last week, as a consequence of its public disclosure obligations, Danaos Corporation announced that Zim had asked its customers for a 35% across the board reduction in charter hire. In situations like this, one wonders whether public disclosure is a service or disservice. But it does not matter, as it is necessary and essential to the workings of the capital markets.

Zim’s action has unimaginable repercussions for the entire industry. Charter parties, lest any one forgets, are contracts that cannot be unilaterally amended. Ships are built and financed on the expectation of performance of the obligations contained therein. While

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