Shipping industry runs into troubled waters

The financial crisis of the last few months and the ensuing economic downturn are putting enormous strains on the once booming ocean shipping industry.

Benefiting from the past several years of expanding shipping volumes and building ever-larger ships to meet increasing demand to move containers, the shipping industry is now starting to seize up as the demand substantially weakens.

As a result, major container shippers, bulk operators and port authorities in China are suddenly suffering badly as the slumping export sector passes on the impact of slumping worldwide demand.