South Africa: Shipping Companies Face a Stormy Future

Johannesburg — DESPITE signs of stability in world trade, the global shipping industry seems to be headed for the rocks as a result of an oversupply of new ships, low shipping rates and feeble demand for goods around the world.

Lester Peteni, chairman of Marine Bulk Carriers, which ferries iron ore and coal, estimates that about 15%-20% of shipping firms are likely to go under next year. He says most "newbuildings" -- new ship orders -- are likely to come on stream next year at a time when world trade is still weak.

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