I think this Workboat article outlined succinctly the challenges faced by debt-laden shipowners in the current market downturn. With adverse market conditions expected to continue for the long term in almost all shipping sectors, shipowners should be taking the following measures to keep their heads above water:
  • evaluate debt service obligations and ability to pay;
  • assess potential for financial covenant default;
  • reach out to lenders to obtain waivers/amendments to credit facilities; and 
  • identify assets that can be sold.