Safe Haven No More

For weeks, we have been puzzling over the markets’ indiscriminate punishment of all the shipping shares. Surely, one cannot separate this sector from the rest of the market so for that reason they cannot be exempt from the broad downturn. However, viewed as a proxy for the commodity markets, this sector, in particular, has largely been pummeled by the slowdown in China with a resulting decline in demand and prices for commodities. This has translated into falling charter rates and a not so severe decline in asset values as of the moment.
On the other hand, this is a sector that includes a large number of companies, which implemented full and partial payout models and have secured this obligation with long-term charters, for cash flow visibility, and newbuilding programs ensuring

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