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by Denvercoder9 1826 days ago
If shipping operated at negative profit margin, how did it continue to run (until the pandemic)? I don't think it was a sexy sector that could just burn through venture capital money.
2 comments

Even better than VC -- tons of cheap debt. Hanjin had something like $250M in real assets and $10 Billion in debt when it collapsed.
See also from Matt Levine: " For some reason this sort of “death-spiral financing” — issuing more and more shares at lower and lower prices — seems popular in the shipping industry; DryShips Inc. is a famous example."