View non-flash version
October 2013 www.sname.org/sname/mt ' P G T I [ ' H? E K G P E [ D [ ) . ( W G N % Q U V 4 G F W E V K Q P ( W V W T G 5 J K R U O C T K V K O G E Q P U W N V C P V U C P F G P I K P G G T K P I G Z R G T V U U W R R N [ G P G T I [ U C X K P I U Q N W V K Q P U H Q T G X G T [ U J K R K P [ Q W T ? G G V ( Q T K P U V C P E G V J G C Y C T F Y K P P K P I ' % 1 # U U K U V C P V U Q H V Y C T G H Q T Q R V K O C N U J K R V T K O Y Y Y H W V W T G U J K R F G ? Y Y Y G H? E K G P E [ E N C U U E Q O ? Y Y Y I N I T Q W R E Q OHow we got from shipping 2005 to shipping 2013 is a story that exactly mirrors that of nancial services, banking, and com- modities (see Learn More?). Government bank bailouts and accommodative? interest policy eectively socialize the losses and seem to be setting the stage for another bubble, which will include shipping again. is time it looks like more than inves- tors will assume the risk. e fund managers will not. e shipping industry is full of narrowly-focused risk man- agement. e shipping industry has no real risk leadership. MTDonald B. Frost is the editor of the Connecticut Maritime Associations monthly newsletter. He also runs a boutique consulting group that focuses on markets and cargos. LEARN MORE For more information on making the connection to commodities, check out the front-page story from The New York Times for Sunday July 21, 2013, A Shuffle of Aluminum, but to Banks, Pure Gold.? Also, see CHANGE: The Business of Tramp Shipping in the early 21st Century,? from the July 2008 issue of Marine Technology . In particular, read The ENRONIZATION of commodities and shipping? on page 48.