A common reply by many ship owners was that they recognized the declining demand and ordered only half the ships they had wanted to build. The bad guys then had to be those terrible bankers, who made credit available so readily at attractive rates. While shipyards, especially Korean yards, have offered very enticing prices for new ships, lenders have been more disciplined than in the past. The fundamental question asked in the 1980's is again with us. The price goes up.
Farmers raise more hogs and they all come to market at the same time.
The price falls and hogs are not raised. And the cycle starts again. To asset player owners, who are primarily seeking a market in which to employ their ships until a resale opportunity developed, the Time Charter Market, even short duration charters, has been just the ticket. It does not actually represent new tons or ton-miles. These discrete markets consist of several cargo specific functions that have separated the global over supply situation from very specific local supplies of suitable ships.