Trade credit crunch eases
THE ISSUE of trade credit is being worked out, even though bank funding for shipping remains tight, according to Seaspan's CEO Gerry Wang.
Wang explained at the Reuters Manufacturing Summit that the ‘letter of credit’ shortfall that stymied trade flow last fall has alleviated.
“Some normalisation of credit in international trade has come into play," he told Reuters. "I think that situation is under control now.”
But hurdles remain high for shipping company bank funding. “Two weeks ago I went to meet all the ship finance banks to find out what their positions would be,” explained Wang.
He came out of these meetings with the perception that “we would have considerably less credit available than last year”.
According to Reuters, Wang believes that ship financing availability will be harmed by bank nationalisations.
Asked about potential acquisitions, Wang reportedly said Seaspan remains “very cautious”. He does not believe asset values had bottomed yet, Wang told Reuters, adding: “Capital is very precious today, so it’s much better to hunker down and stay healthy.”