Global shipping industry faces shake-up as private equity unwinds bets

Singapore

AS global shipping grapples with its worst downturn in 30 years, private equity firms are unwinding massive bets made on the sector in a move set to accelerate a restructuring of the shipping industry.

Private equity invested tens of billions in global shipping after the 2008 financial crisis, but weaker Chinese demand and an oversupply of ships have driven down freight rates and caused firms to idle vessels and in some cases file for bankruptcy.