The demolitions will happen faster if developed economies shrink because any contraction would curb processing of raw materials by China and other countries the export manufactured goods, Erik Nicolai Estavest, an analyst of Arctic in Oslo, said,
At present 4.4% of the fleet is being demolished and a total of 10% needs to be removed for owners to halt a slide in charter rates, he said, adding that: ‘The oversupply will be more apparent if we do have another recession…..
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Transport Logistics. 11 August 2011 China