World Shipping Slowly Grinding To A Halt

Another ominous sign comes to light as world shipping starts to grind to a halt.

The situation now is that for those shipping companies that can actually get letters of credit are now slowing down their ships to reduce fuel consumption, slashing crew numbers and leaving some of their tonnage in dock with the lights out.The problem with letters of credit, which are needed before a vessel leaves harbour, is that demands between banks are being denied as banks are not trusting each other. The Libor rate and the interbank lending figures are just another reinforcement of this catastrophic process.

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