Cause

Result

Cause

Result

Cause

Result

The need for bank finance

To look for long-term employment with bankable names

Suez Canal closure (1956)

Technology allowed for larger ships, needing…larger capital!

Expansion of shipbuilding, 1964-1974;

1966-1967 slump

With State aid

Due to over-ordering of ships

A guardian Angel fed the optimism of the shipowners à

àThe 1967 Arab-Israeli war closed the Suez Canal; great boost of shipping businesses due to longer distances

Oil embargo by Arabs due to 1973 Arab-Israeli warà

Increase in oil prices = a global recession

Banks had financed shipping with more than $25 b! à

But most shipowners became bankrupt