News
Negative Rates Weigh Heavy On The Shipping Market
The world’s largest shipping line says negative interest rates are hurting the industry by slowing down needed consolidation.
Nils Smedegaard Andersen, CEO of A.P. Moeller-Maersk A/S, says the monetary policy environment makes it easy for banks to keep weak shipping companies above the water. In other circumstances these companies would be more open to consolidation, but a reliance on cheap financing stems the tide, Bloomberg reports.
That’s at the same time Drewry Maritime Equity Research said in a report last month the shipping industry stands to lose $6B in 2016.
This is only the latest example of how negative interest rates are distorting markets and perhaps even slowing growth—the opposite of the intended outcome. [Bloomberg]
