The world’s largest shipping line says negative interest rates are hurting the industry by slowing down needed consolidation.
Nils Smedegaard Andersen, CEO of A.P. Moeller-Maersk A/S, says the monetary policy environment makes it easy for banks to keep weak shipping companies above the water. In other circumstances these companies would be more open to consolidation, but a reliance on cheap financing stems the tide, Bloomberg reports.
That’s at the same time Drewry Maritime Equity Research said in a report last month the shipping industry stands to lose $6B in 2016.
This is only the latest example of how negative interest rates are distorting markets and perhaps even slowing growth—the opposite of the intended outcome. [Bloomberg]
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