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If anyone doesn’t understand why shipowners and shipping lines continue to place orders for new ships – while at the same time suffering mind-boggling losses due to overcapacity on virtually every trade lane – they will find the answer in this article. Overcapacity in almost every ship type has led to new order levels plummeting at shipyards, which, facing serious losses themselves, are also dropping new vessel values in a series of desperate attempt to drum up new business. It’s a zero-sum game that will surely end in tears – for someone at least.

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