It is well known that since the global financial crisis of 2008-09 and the ensuing recession, the shipping industry has suffered heavily from overcapacity of ships and insufficient demand for cargoes, leading to downward pressure on vessel values and earnings. The offshore sector continues to be hurt by the drop in oil prices, to the extent that many rig owners will struggle to find funds for re-commissioning or face the scrap yard, alongside hundreds of their support vessels. The KG system of financing ships in Germany has been annihilated, forcing their banks to reduce their lending budgets and take over defaulted ships. Some have had no choice but to sell off their loan portfolios or close down. European owners have gradually lowered their market share from 47%-45% of the global fleet.
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