Shipping industry has been a wreck due to oversupply of ships but now the looming financial crisis that is being triggered by the Euro banks may inflict a fatal injury to many shippers, say bankers who finance the shippers.

“The typical shipping banks are deleveraging, are recapitalizing. They have problems in long-term dollar funding and most of shipping is in long-term dollars,” says Joep Gorgels, head of transportation, West Europe, at ABN AMRO

Tough financing, expected to last for 2 more years, may force asset sales and seizures says this banker.