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'No state aid for sick carriers'
  Date:12/27/09  |  From:ifw-net  |  Click:

A shipper group has hit out at governments considering state subsidies for ailing container shipping lines, saying bad investment decisions shouldn't be given support without also demanding sector change.

Andrew Traill, MD of The Shippers' Voice, asked: "Is it wise for governments to support an industry which has displayed such poor business judgment that has lead to the difficulties many now find themselves in?

"Should we not at least be demanding some fundamental changes in the way this sector works as a precondition?

"If governments decide to prop-up the sector, what kind of message does that send out? 'Don't worry about making any bad or untimely investment decisions, because the state is here to help you out so that you can make more bad decisions in the future?'

"I suppose the same message has already been given to the banks; but at least there is an attempt to insist on some fundamental changes to the sector."

According to the organisation's partner, consultant MDS Transmodal, global trade volumes are unlikely to return to pre-recession levels until 2012, and then with some fundamental changes in trading patterns.

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