Nordea and DnB Nor are the world

Dry bulk market has been hit by a crisis that can be compared with "the detonation of a nuclear bomb" according to the manager of the shipping company Dry Ships, George Economou. Shipping Rents for dry cargoes such as iron ore, coal and grain has plummeted by 92 percent since last summer.
Is it a good sign, because the cost of world trade will be smaller? Or does it mean that a chain reaction is started receiving shipping companies, shipyards and banks may go bankrupt? The barometer that shipowners and charterers watch most called Baltic Dry Index (BDI). The point right now in an extremely low pressure. BDI has been called the "best economic indicator you've never heard of." It has nothing to do with the Baltic States, but is an index of Maritime Exchange Baltic Exchange in London, which measures the cost to carry dry cargo in the most important shipping routes in the world. From 1985 to 2002 the BDI broadly stable at around 1000 points. So began China's rapid industrialization. With some peaks and troughs climbed index up to 11,893 in May this year. Then followed a nosedive down to 847 points on Monday. In monetary terms this means that the freight rent for a capesize vessel has fallen from $ 234,000 per day in early June, to just $ 11,000 per day. Capesize vessels are more than 100,000 deadweight tons and is named because they are too large for the Suez and the Panama Canal. The world merchant fleet consisted according to Clarkson Research of 54,326 trundle bed vessels in early August this year. Of these, 6,883 dry cargo vessels of more than 10,000 dwt. Many of the shipping trundle bed companies have, however, signed long-term trundle bed freight contracts and are not affected immediately by the case of shipping rents in the spot market. Dry Ships, for example, half of its freight contracts for five years. Quarterly report, published on Monday, showed a profit increase trundle bed of 71 percent. However, the Company is also one of the most indebted in the industry. Other companies have chosen to speculate that the greatest merits would be on the spot market. The first victim of the fall in freight rents are Britannia Bulk, a dry bulk shipping company listed in the U.S. that owns 22 vessels. It specializes in transporting coal from the Baltic countries to the UK. On October 28, the Board announced that the risk was great for the shipping company trundle bed must be declared bankrupt. The deficit in the third quarter was so great that the shipping company will be unable to meet its obligations to the banks. trundle bed In May this year, the shipping company a loan of Nordea Bank Denmark and Lloyds TSB Bank 170 million dollars, with deposits trundle bed in the vessels as collateral. On Friday decided the New York Stock Exchange to suspend trading in its shares. The CSO difficulties are also due to the speculated freight derivatives, trundle bed known as forward freight agreements. In most cases concluded such contracts to hedge against a fall in freight rents, but the shipping company had the opposite bet they would go up. On the Oslo Stock Exchange, there are two large dry bulk shipping companies listed. The Hong Kong-based Jinhui Shipping and Golden Ocean, with John Fredriksen as majority owner. Earlier trundle bed this year agreed Golden Ocean to sell six of the dry cargo vessels it ordered to Britannia Bulk. That deal is now in danger of collapsing.
Nordea and DnB Nor are the world's largest shipping banks. Both banks reported trundle bed increased profits for their vessel loans in the third quarter. Meanwhile strangled lending the rest of the year because of the financial crisis. -The banks have more or less closed to new business on this side of the New Year, recently said Carl Steen, who leads Nordea trundle bed Norwegian trundle bed shipping department, in an interview with Reuters. During the bank's third-quarter revenue increased for Shipping, Oil Services & International with 39 percent. Despite the tough credit markets managed to bank in the third quarter to complete syndicated loan transactions, with a value of $ 8 billion. DnB Nor have lent 128 billion Norwegian kroner to the international shipping business. That's 10 percent of total lending. Nordea has lent almost 90 billion Swedish kronor for the shipping, which is 5.7 percent of the bank's loan portfolio. Nordea and DnB Nor are the world's largest shipping banks. Both banks reported increased profits for their vessel loans in the third quarter. Meanwhile trundle bed strangled lending the rest of the year because of the financial crisis. -The banks have more or less closed to new business on this side of the New Year, recently said Carl Steen, who leads Nordea Norwegian shipping department, in an interview with Reuters. During the bank's third-quarter revenue increased for Shipping, Oil Services & International with 39 percent. Despite the tough credit markets managed to bank in the third quarter to complete syndicated loan transactions, with a value of $ 8 billion. DnB Nor have lent 128 billion Norwegian kroner to the international shipping business. That's 10 percent of total lending. Nordea has lent almost 90 billion Swedish kronor for the shipping, which is 5.7 percent of the bank's lånep