London: Nobu Su, chief executive officer of Taiwan Maritime Transportation Co., told Bloomberg yesterday owners need to demolish more aging commodity carriers to halt a collapse in charter rates. Su, who predicted the plunge in February, said he generated $100 million in the past year by selling obsolete oil tankers, liquefied-natural-gas carriers, car transporters and dry-bulk commodity ships.
"Big players should scrap more ships," Su said in an interview in London. Rates won't rebound until that happens or owners mothball vessels for several months or years, he said.
"Something has happened to world trade," Su said. The "shipping market is affected by finance turmoil because we have less money available for trading."
TMT, as Su's company is also known, on October 29 said there had been "malicious" speculation about its financial strength. The company has a $1-billion credit line, Su said. He declined to identify the lender or say how much has been drawn. [31/10/08]
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