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Distressed Asset Investor Wilbur Ross Thinks the Shipping Industry Is Near a Bottom

February 07, 2013 | About:

Canada’s financial news network BNN managed to nail down billionaire distressed asset investor Wilbur Ross for a full half hour interview. In the interview Ross covers a variety of topics.

One such topic is the shipping industry where Ross has been making investments. Ross explains why he is investing in shipping:

- Shipping is an integral part of the world economy; it accounts for 80% of the movement of goods around the globe.

- World trade is growing faster than GDP.

- The shipping industry got into trouble in 2007 when shipping rates hit bubble levels, attracting a massive amount of capital being invested in new ships to take advantage of these rates.

- It takes several years for ships to be built, and those ships are now hitting the sea and the industry finds itself with far too much capacity.

- This will be a self-correcting phenomenon because it is now very hard to obtain financing to build new ships, and what is now overcapacity will disappear over time.

- Ross thinks the industry is near to the bottom now, although he admits forecasting such things is very difficult.

- Ross has invested in two private companies in the shipping industry.

Below are the links to the interview.

http://watch.bnn.ca/headline/january-2013/headline-january-31-2013/#clip855711

http://watch.bnn.ca/headline/january-2013/headline-january-31-2013/#clip855714

http://watch.bnn.ca/headline/january-2013/headline-january-31-2013/#clip855710

About the author:

CanadianValue
http://valueinvestorcanada.blogspot.com/

Rating: 3.3/5 (7 votes)

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