Why are Billions of Dollars Worth of Ships Being Intentionally Destroyed?

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This is the Carnival Imagination, a luxury cruise liner worth hundreds of millions of dollars, which just 10 short months ago was touring passengers in extreme comfort to exotic destinations all over the world.
This ship is sailing dead ahead to its final port of call, where it has been sold for scrap alongside dozens of other ships that have become the latest victims of the global pandemic.
The Chittagong ship breaking yard in Bangladesh is the largest of its kind in the world, and in the past few months even its abundant shores have become inundated with pleasure cruises and industrial cargo ships alike that all could have otherwise sailed the oceans for many more decades.
These are all very troubling signs for the unsung heroes of our modern global economy, the merchant marine fleet. Every year trillions of dollars worth of cargo is transported on ships like these and losing this fleet could turn into a huge barrier to global trade.
But what is really going on here?
Why would profit-motivated companies destroy billions of dollars worth of productive assets? Sure times are tough, tourism and trade have declined massively but this hardly looks like a reasonable response right?
I don’t burn down my house if a video gets less than 10,000 likes, so why would companies in such a competitive industry do something equally as self-destructive?
Well as always it has to do with economics (go figure) and to understand this bizarre behavior we need to understand a few key areas.
What are the economics behind the merchant marine fleet?
How do these factors make it financially viable to destroy ships?
what does this mean for the future of international trade?
And what does this all have to do with Chinese bridge building?

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  • I still don't know what is worse. The covid19 pandemic or people who watch/follow Kardashians.

    Emil CioranEmil Cioran2 ժամ առաջ
  • The real reason for scrapping older ships is Fuel efficiency and carbon emissions. Newer ships with the ME Engines are upto 30% more fuel efficient. The older ships end up loosing charters to the newer tonnage and at lower charter rates hence their running costs are much higher also being older submits them to more scrutiny and inspections.

  • The Economics of Panama video please!!!

    itamar smoismanitamar smoisman11 ժամ առաջ
  • I'm sure I'm not the first one to say that that ship in the intro is the 'carnival fantasy' and not the 'carnival imagination'. such fail so early. ffs.

    GrahamGraham11 ժամ առաջ
  • Switzerland actually has A LOT of manufacturing and exports.

    Spyro P.Spyro P.17 ժամ առաջ
  • I'd love to watch one sink...

    Sean TerranceSean Terrance21 ժամ առաջ
  • The other important part about the economy of using ships is their operation also benefits from globalization. They have flags of convenience, pay minimal taxes, have cheap labour, and can be scrapped where there are few labour or environmental regulations.

    Bartonovich52Bartonovich5221 ժամ առաջ
  • As if two or three extra staff on a large container ship will cause a lose, even 10 more would not represent the expected income for this venture that just doesn't hold water!!

    J PJ P23 ժամ առաջ
  • My stuffs late because they are slow on purpose fk u too buddy.

    Donnie DeadDonnie Dead23 ժամ առաջ
  • Great job

  • So basically it’s China’s fault, got it

    Eric WaldronEric WaldronՕր առաջ
  • They all need to go all of them planet destroyers the Walmart of the sea extreeeeeme pollution for each round trip .

    Lance UppercutLance UppercutՕր առաջ
  • I consider this a win for the environment.

    MirshinMirshinՕր առաջ
    • Yea until you realize that the near slave labor used to scrap these ships take NO environmental precautions and all sorts of toxic materials goes right into the ocean and soil.

      Theokolese The Shadow Of DeathTheokolese The Shadow Of DeathՕր առաջ
  • Instead of scrapping these ships they should load them up with the homeless (that are out of control in most port cities anyhow) then send them off with enough to make it out international waters. After that, they are on their own from there. Problem solved.

    L ZL ZՕր առաջ
  • Maybe let some german submarines loose, they need a niche too to survive.

    AGWittmannAGWittmannՕր առաջ
  • Well you can buy stocks of marine logistic firms very cheap. yeah i know its rude that taking advantage of a crisis but that's why youtube recommended this video to me because it's my job and google knows it.

    Joe Dollar BidenJoe Dollar BidenՕր առաջ
  • These cruise ships were going to get scrapped anyway, but the pandemic hastened the process. When it’s no longer economical for the owners to keep their ships afloat, they’ll sell them off to the highest bidder. And if that highest bidder is a scrap merchant, that’s where those ships are going...

    wkruitwkruitՕր առաջ
  • We ship regularly from China to UK and in Dec/Jan 2020/21 we are seeing 40ft containers costing $8000-$12,000 to ship because of Covid.

    The Man OutdoorsThe Man OutdoorsՕր առաջ
  • IOW. Merchant Marine shipping companies expect to make more money by scrapping older ships and replacing them with new, more efficient ships which cost less in fuel and wages to operate.

    Allen LoserAllen LoserՕր առաջ
  • So now shipment delay everywhere...

    Tay Wai ShenTay Wai ShenՕր առաջ
  • As someone poise to graduate in the coming year and a half from a maritime school, this is highly concerning. A lot of the students think that the industry will be ok by the time we leave but it’s looking bleaker with each passing week. It’s one thing If it’s cruise ships sent to scrap (they don’t pay well) it’s another when it’s tankers and cargo ships

    Dominic RuoccoDominic RuoccoՕր առաջ
  • After 43 years of going to sea on US Merchant ships I retired. The highest operating costs of a US merchant vessel is 1. Insurance 2. fuel and 3. crew, in that order. Why is it never mentioned the US contribution to world shipping? Such as Malcolm MaClain's (Sea Land) invention of containerized cargo or American President Line's innovation of piggy back rail cars?

    Mark PattersonMark PattersonՕր առաջ
  • It's a pretty easy question to answer, just like vehicles of any kind when they get old and too expensive to repair you scrap them!!!New ships are being built every day to replace the ones that are going out of commission!

    Clifford GillClifford Gill2 օր առաջ
  • Here in Asia, cost of a container to Europe has gone up 500% in the past month. Uh oh.

    eschelareschelar2 օր առաջ
  • I would scrap all cruise ships.

    Hello FriendsHello Friends2 օր առաջ
  • Hoping this can be the start of a new era for the merchant marine. Old, outdated rust buckets getting scrapped will hopefully lead to exciting new ones (like the sail-powered Wallenius ro-ro being rolled out). And the American merchant marine will be fine since the Jones Act and defense interests keep demand pretty steady

    Joshua WineJoshua Wine2 օր առաջ
  • HA 😀HA 🤓HA 😂HA😀HA😈HA👹HA👺 by affordeability of ship kill steel bangladesh shall never be able to establish certificate of origin under WTO rules to whatever tin pan export capital goods it ever could dream of making to export

    consulting insultantconsulting insultant2 օր առաջ
  • All this for a disease that affects most people like an influenza and has a mortality rate of less than 1%

    SohaveSohave3 օր առաջ
  • Favored Nation and Developing nation status and its rules destroyed the Merchant Marine fleets of every 1st world nations Merchant Mariners since the formation of the WTO

    Charles YoungCharles Young3 օր առաջ
  • The sassy wave immunohistologically refuse because priest causally disagree along a inexpensive snowboarding. ritzy, wacky touch

    Joysinglion89 Richard4532Joysinglion89 Richard45324 օր առաջ
  • Id feel safe to go on a crews now that we know china was attacking the world with the virus and it wasn't as deadly as we were told

    Joe KillipJoe Killip4 օր առաջ
  • um ill take one.

    AIsingularityAIAIsingularityAI4 օր առաջ
  • 2X Thiccc 🤣🤣🤣🤣

    Bryan HockingBryan Hocking6 օր առաջ
  • this sounds more like ccp propoganda after 75% of video 😆

    Murderous KittenMurderous Kitten6 օր առաջ
  • You are missing the point that the World Maritime Organization Banned the use of fueloil for environmental reasons. A LOT. Of shops ran on Fueloil which by the way is the most polluting oil there is. So scrapping them to buy a newer flete that complied with this rules is a must.

    N SN S7 օր առաջ
  • Landlocked countries like Austria and Switzerland long ago left the phase of cheap manufacturing behind them. While sealocked countries like Australia and Iceland rely on exporting fish, meat and coal, these countries rely on innovation and superior quaility products, mid tech and high tech. Plus, it doesnt matter that they dont lie directly at the sea, the next port is often closer than in many regions of australia,the us, brazil,russia, china, india etc...Sure they have no port and container ship buildings industries, but who needs those.

    CogniariusCogniarius7 օր առաջ
  • How many of the ships being destroyed are Chinese? Just askin' ... And BTW; has Gang Green been ordering people to go back to Sail yet?

    John Wolf2John Wolf27 օր առաջ
  • I'm shocked - SHOCKED!!! Normally, you do a great job with your data, but you got the Swiss economy totally wrong and just repeated some false beliefs: - the financial sector represents only about 4% of the Swiss GDP - almost 30% of the Swiss GDP is based on manufacturing; it's only 15% for the "manufacturing superpower" Germany and 10% for France - Switzerland manufactures trains, dual-jet business jets, helicopters, tunneling equipment and some of the largest hydro- and gas turbines - in addition to being the most innovative country on the planet... - we are the only country that sells more industrial goods to China than we buy from them

    Captain ObviousCaptain Obvious8 օր առաջ
  • 7:38 I would bet that this is Gibraltar. I have been kite boarding amongst those moored ships. When the wind conditions weren't ideal in Tarifa. Great times!

    NomisCasioNomisCasio9 օր առաջ
  • For those who understant what this means.... global shortage of food imminent

    Asdr KygjjAsdr Kygjj11 օր առաջ
  • The UK is not famous for their low-cost industrial production.. neither industrial products with good quality

    Ravan PeeRavan Pee12 օր առաջ
  • Merchant Marine heing destroyed? Money. Huge percentage of trade is from China to Europe and Africa overland. Further, factories that belong to Chinese investors are INSIDE US boundaries. Regards

    Raymond FryeRaymond Frye12 օր առաջ
  • Shot at my boy wendover! 4:16

    Tooxie11Tooxie1113 օր առաջ
  • Scrap to build better ship's.

    James HinesJames Hines13 օր առաջ
  • Most ships are made of mild steel, which as you will know if you own a car has poor corrosion resistance, especially when floating on salty water. This effectively sets a ship's life expectancy. An oil tanker typically loses 2% of its hull weight each year, for example.

    Bert MeindersBert Meinders14 օր առաջ
  • Good video and analysis. How big is the EE team that puts this together?

    Tez WTez W15 օր առաջ
  • If we are looking at more self-sufficiency instead of comparative advantage via globalization, that sounds like one more reason for prices/inflation to increase. Seems like a good time to have a healthy amount of hedges.

    Jonathan de RuiterJonathan de Ruiter15 օր առաջ
  • Bravo! Great content.

    Dip ImageDip Image15 օր առաջ
  • Doesn’t this mean that after the virus is done we won’t have the proper infrastructure to begin trading again?

    JL HistoryJL History15 օր առաջ
  • Dude! Wendover just got roasted!

    JL HistoryJL History15 օր առաջ
  • Says over 300% graphics show 175% huh?

    Splinter5570Splinter557015 օր առաջ
  • On a planet with limited and finite natural mineral reserves; which country is buying up all the scrap metal?

    penny gillianpenny gillian15 օր առաջ
  • China relises bio weapon covid19 on world to screw global economy and win economy war so yea... in few short years they will be nr1 world navy and economy force and probly even more agressive push dat silk road mega project if nothing big happens like war they going to dominate world in years to come and dat is so scary !

    Shadownoob NoobslayerShadownoob Noobslayer16 օր առաջ
    • That is scarier because in the good ol' days of Middle Ages. Power was distributed more equally. A powerful China is scarier now as Europe is fractured. Africa is fractured. South-East Asia is fractured. Middle-East is in bits and pieces. Very few countries are really of big size like USA China and Russia. So power distribution is very unequal.

      규혁규혁14 օր առաջ
  • imagine being a cargo ship and carrying scraps of your bro to be smelted. these are dark times indeed.

    I Click LikeI Click Like16 օր առաջ
  • I just want this covid nightmare to end. The economy will come back with a storm . I cannot wait. Everyone survive

    Ace of HeartsAce of Hearts16 օր առաջ
  • His accent scratches my ears

    ExoticBirdsMerchantExoticBirdsMerchant16 օր առաջ
  • Ah, yes, the casedemic. Part of a plan to keep everyone at home in their homes buying from Amazon.

    Crewe LucCrewe Luc17 օր առաջ
  • Congratulations you got a new follower

    PratzePratze17 օր առաջ

    gliderpilot247gliderpilot24717 օր առաջ
  • Why don't they convert those ships into housing communities for homeless people just dry dock them and convert them ...

    Robin GentryRobin Gentry18 օր առաջ
  • As a general economic rule, countries don't produce products because they are making better products, they produce products because they have cheaper inputs and those cheaper products are an acceptable substitute for the better, higher priced products. There, I fixed it for you.

    pennisepennise18 օր առաջ
  • Nope. Bad analysis. while you talk about the ship size, you negate the Quality of Item shipped. Therefore, you just entirely discredited your whole video. Meaning, you end up proving how stupid you are. Such common sense, yet you've failed. Try better next time.

    佐藤海翔佐藤海翔18 օր առաջ
  • Fantastic.

    Ta ThoTa Tho18 օր առաջ
  • Thank - you .

    ronald whiteronald white18 օր առաջ
  • To pair up the question with the title...WHY are the Globalist 'elite' orchestrating a complete take over and ''reset' of society as a whole? Consolidating wealth, power and control..

    stangeriamstangeriam18 օր առաջ
  • none of us will be able to afford cruises and the NWO won't want the plebs travelling and enjoying themselves after all they are the only ones who have that right RIGHT............

    Christine DavisChristine Davis19 օր առաջ
  • So sad. Those could become permanent homes, apartment condos, hospitals and even transportation for folks who'd prefer not to fly and to destinations to which trains don't travel. Such lack of creativity tells how much we take for granted.

    GaslitWorld f. Melissa BGaslitWorld f. Melissa B19 օր առաջ
  • China is maintaining its shipping fleet while other countries scrap theirs to provide China with Steel.

    Pete FordPete Ford19 օր առաջ
  • We might need to reincarnate the Phoenicians.

    ted martinted martin19 օր առաջ
  • I’m not buying China’s stuff anymore or at least try my very best not to!

    hendrik geyserhendrik geyser19 օր առաջ
  • Please don't give examples of China, its single largest country in Carbon emission in the whole world. Their carbon emissions are only going to grow exponentially , therefore such infrastructure examples are only one side of the story in regards to hazardous pollution levels, destruction of trees and animal life both on land and in water

    mChannelmChannel20 օր առաջ
  • This happens every year just this year maybe slightly more than average year than the last 100 years

    Sam SonnSam Sonn20 օր առաջ
  • These could have been used all over the world to help facilitate the homeless.

    Russell ColemanRussell Coleman21 օր առաջ
  • Couldn't they be used to house refugees and even a small economy on them? Inc growing food. What a waste. A set of ships could become legally small portable self governing nations.

    Platypus PawsPlatypus Paws21 օր առաջ
  • "Train line." If only there was a single word that describes this phrase? Something that doesn't sound so boganistic. Hmmm, I know! How about railway!

    dat581dat58121 օր առաջ
  • The cube law is why American all you can eat buffet goers get bigger by the day.

    V SohnV Sohn22 օր առաջ
  • 4:18 eyyyy shoutout to WendoverProductions

    MassDynamicMassDynamic23 օր առաջ
  • The goal is to destroy the economy.

    MrDadio DudeMrDadio Dude23 օր առաջ
  • post human era. An anyone referring to it as a pandemic and not a cold war with china is part of the problem

    Blame USABlame USA23 օր առաջ
  • “...clogging up since September, the main artery for trade between China and the U.S. is still choked. Anchored off the coast of California over the weekend [Dec.2020] were almost 20 container ships waiting to offload at Los Angeles and Long Beach, up from about a dozen at the end of November. The Port of L.A. expects to handle 152,000 inbound containers this week - a 94% increase from the same week a year ago.”

    yankeexpressyankeexpress23 օր առաջ
  • Good move on scraping those ships, because the world as we know it's not coming back.

    Christopher RamosChristopher Ramos23 օր առաջ
  • Whadda you know. They are responsible for this mess in the first place and benefiting from it.

    石尸丹丁丹廾彐丁囗 中仈丹仁片囗石尸丹丁丹廾彐丁囗 中仈丹仁片囗24 օր առաջ
  • Is government spending not just a fancy way of consumer spending? It was our money in the first place if a surplus was used, or it is our future money that they are printing and devaluing. I agree governments can spend money on projects and whatnot but it is a slippery slope. Here in Canada I have watched our economy bubble several times...and I am only 35yrs old lol

    Cory ErneweinCory Ernewein24 օր առաջ
  • basically, if you wanted yo buy a massive ship, this is the moment.

    ab abab ab24 օր առաջ
  • scrap metal for tanks and weapons #WWIII2021

    Island_KermodeIsland_Kermode24 օր առաջ
  • *China's infrastructure spending is NOT "a big brain move" @**10:00** , it's a structural necessity* Japan had a massive economic boom from the 50s to '89, and the govt diverted billions in tax revenue into excessive/unnecessary public works, i.e. "make work" projects for medium-large construction firms - and ancillary industries. China has been encouraging building and construction for years - leading to "ghost cities" & "ghost buildings" - to "make jobs" for swathes of unskilled laborers. *This isn't grand strategy, it's a requirement of a state-run economy.*

    censorship bitescensorship bites24 օր առաջ
    • "Big brain" infrastructure spending here in China might 1) fix the sewer system to eliminate low-water-supply squat toilets and to avoid inevitable floods during heavy rains, 2) speed up subway construction in existing areas or roll-out in future ones, 3) fix the water supply so that tap water is actually potable, 3) work to reduce air pollution (to be fair, they are trying), 4) improve the electrical grid. But these aren't the projects the govt is lavishing public funds on.

      censorship bitescensorship bites24 օր առաջ
  • Step 1: Be a Chinese communist. Step 2: Fund environmental lobbyists to mandate ultra low emissions on cargo ships. Wait for gullible western companies to scrap their ships while pretending to abide by these emissions regulations. Step 4: Take over all global shipping.

    Bill TBill T24 օր առաջ
  • It's all apart of the reset.

    Selina WoodSelina Wood25 օր առաջ
  • cruiseships are kind of soulless consumption barges, where everything has a thin veneer of entertainment and luxury to strip people of their holidaymoney as efficiently as possible. I won't miss them.

    Jaap KesJaap Kes25 օր առաջ
    • No me, never could afford to be on one. 😳

      mark thomasmark thomas23 օր առաջ
  • You have to ask, "why are countries locking down their workers, stopping companies to perform, slowing economies, lowering stock trades... ALL a boon to China?" China is cranking up their economy, crating jobs... Even if it is infrastructure projects. Meanwhile, people in America are losing jobs, small companies going out of business, and this will have ripple effects in the stock market, housing, the auto industry and more. How long are politicians going to keep people locked in their homes, over fears of a pandemic, while they lose their livelihood, and have to depend on handouts from their government, who puts limits on the handouts? China seems to be the only country, making good on a global pandemic, that began in China...

    James LanningJames Lanning26 օր առաջ
  • I used to fly to Chittagong quite frequently. Seeing all those huge ships in various states of disassembly lined up on the beach from the air is quite an astonishing sight.

    thepointyendthepointyend26 օր առաջ
  • We are being forced into a dark age

    Jeannine RosJeannine Ros26 օր առաջ
  • Brilliant! Thanks!

    Charles van der HoogCharles van der Hoog26 օր առաջ
  • Republicans have brainwashed Americans into thinking infrastructure is for the birds and that it is better to give tax breaks to the rich. Infrastructure in the USA is almost at a level with third world countries. America s economy is weak but its strong points earn immense sums as these strong pointscarectge very weak spots of Europe, i.e. venture capital.

    Charles van der HoogCharles van der Hoog26 օր առաջ
  • Would it be a wise strategic move for the U.S.A. to purchase ships and scrap them in order to accelerate the shrinking of their availability worldwide?

    Chris FarrellChris Farrell26 օր առաջ
  • Brilliant analysis.

    Chris FarrellChris Farrell26 օր առաջ

    studio developers2studio developers227 օր առաջ
  • Its Not a pandemic. They are reducing...the AMOUNT OF PEOPLE...ON THE WORLD.... TO HOLD CONTROL.... OVER THE MASSES

    studio developers2studio developers227 օր առաջ
  • Sad about the ships, but meanwhile, on a slightly parallel note, the SEC breaks out the 2008 song sheet again, while bombing the Banksters' FAV Crypto XRP-Ripple ... ? The thing about XRP is that most of the holders are small foreign Banksters/exchanges outside of the Excited States of America. XRP/ripple. Hmmmmm what if CHINA makes a play for it at bargain-basement prices? Why should CHINA or RUSSIA, make their own coin when they can basically steal XRP/ripple now, thanks to the SEC.[kinda like the IRON for scraping ships deal?] Also, the Ripple highway/system can handle any coin, not just XRP. XRP the best/fastest but????? Also, speaking of stealing. What is preventing CHINA from marching in the PLA, and taking all the BTC, in China and Hong Kong? They know where all the BTC Miners are. Power bills alone are a dead give away. Give us all your keys and BTC, or your Kidney Comrades. They could within 48 hours or less, crash BTC while buying up all the XRP, cash in a pile of US dollars for Silver/Gold, then short the US$. THEN, say hello to CHINA-XRP. CHRP? BONUS, China gets to kill Japan's invention-- BITCOIN? As BTC crashes, the BTC holders will cash out, to pay off their mortgages, car loans, and buy food... CRAZY thought?! ... think about it ...

    Hybrid AlienHybrid Alien27 օր առաջ
  • Ridiculous. Dock em or drag em on land and turn them into homeless shelters. Such a waste of resources. Suffering could be alleviated if not for greed.

    AntithesisDCLXVIAntithesisDCLXVI27 օր առաջ