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 |