German shipping with its traditional focus on the ‘KG Model’ (short for “Kommanditgesellschaft“) whereby wealthy retail investors were contributing the equity while German banks were providing generous lending conditions – at the peak of the cycle, has been very much in the news in the last few years. An article in the current issue of the well-regarded Shipping Watch Magazine discusses the practices that allowed for market overcapacity and the present ‘hangover’ in the system. Former President of shipping bank DVB Mr. Dagfinn Lunde and Mr. Basil Karatzas with Karatzas Marine Advisors in New York contemplate on the causes and consequences in the article.
Full article can be read herebelow, while more news and information on current maritime events and developments can be found at the home page of Shipping Watch.
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