Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Display:
In other words, they're very likely bluffing.

I can't see that a move to a flag of convenience in the long term would be cheaper than a one-off payment in the short term.

Some business owners may still throw their toys out of the economic pram to make a politcal point. But I'd guess a majority would be more hard nosed about.

The current narrative counts as lobbying and persuasion, not a genuine statement of intent.

by ThatBritGuy (thatbritguy (at) googlemail.com) on Thu Jun 14th, 2012 at 08:26:04 AM EST
[ Parent ]
Some of these companies are run with the long term in mind, like Diana Shipping run by Simeon Palios, but other companies such as DryShips run by George Economou have shown a proclivity toward hopping on the quick dollar even at the expense of future business and reputation. So it's anyone's guess what these people would do if Greece instituted a new law.

But, don't expect help from Europe, if you're Greece. When a soda tax was prescribed by the troika for Greece, Hellenic Coca-Cola bottling (#2 bottling in the world after Coke Atlanta) threatened to move, and apparently there were suitors in Eastern Europe.

This is just like the transparency in banking accord that was just nixed by Austria and Luxembourg (among others) even as Switzerland AGREED to it!!

by Upstate NY on Thu Jun 14th, 2012 at 09:02:02 AM EST
[ Parent ]
There is no such thing as long-term shipping for Greek ship-owners now. The Chinese are preparing to squeeze them out and they really know it. So they are going for the short-term bonanza to move to some new business.That's part of what is currently happening in Greece behind the screens.

"Eurozone leaders have turned a 50bn Greek solvency problem into a 1,000bn existential crisis for the European Union." David Miliband
by Kostis Papadimitriou on Sat Jun 16th, 2012 at 11:38:01 AM EST
[ Parent ]
Furthermore, shipping rates are very, very weak, at least tanker rates. Many companies have lost 80% or more of their market values in the last year alone. Even the ones who have strong balance sheets and lots of long-term fixed-price contracts are down about a third (to my sorrow, as I have a small (now even smaller :p ) position in one of them).

Peak oil is not an energy crisis. It is a liquid fuel crisis.
by Starvid on Sun Jun 17th, 2012 at 05:21:55 AM EST
[ Parent ]

Display:

Occasional Series