“It Hasn’t Been This Bad Since The Viking Age”: Dry Bulk CEO Warns Of Bankruptcy Tsunami, Counterparty Risk

- “It Hasn’t Been This Bad Since The Viking Age”: Dry Bulk CEO Warns Of Bankruptcy Tsunami, Counterparty Risk
by Tyler Durden, www.zerohedge.com
In the past three months we have repeatedly shown that, despite the recent modest rebound off the all time lows, the bottom is about to fall out of the dry bulk shipping market in articles such as these:
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* It Is Now Cheaper To Rent A Dry Bulk Tanker Than A Ferrari
* A “Perfect Storm Is Coming” Deutsche Warns As Baltic Dry Falls To New Record Low
* “Nothing Is Moving,” Baltic Dry Crashes As Insiders Warn “Commerce Has Come To A Halt”
* World’s Biggest Containership “Hard Aground” As Baltic Dry Crashes Below 300 For First Time Ever
* The Next Big Leg Lower In The Baltic Dry Is On Deck: 360 New Vessels Are About To Be Delivered
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Overnight, the CEO of Dry bulk shipper Golden Ocean Group, Herman Billung spoke before an industry conference in Oslo, and made it clear that our worst-case expectations may prove to be optimistic.
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He warned that “in the coming months there will be a lot of bankruptcies, counterparty risk will be on everybody’s lips.”
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Useful tip: any time a CEO is warning about counterparty risk, it’s probably a good idea to listen.
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Just to emphasize his point to the local audience he said that “The market has never been this bad before in modern history. We haven’t seen a market this bad since the Viking age. This is not sustainable for anybody and will lead to dramatic changes.”
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