Rodgers told the TradeWinds Shipowners Forum in Athens this morning that the system has been misused, allowing rivals to gain an advantage.
Rodgers explained: “Chapter 11 was a valuable thing for the American system to protect major employers in the US and the wellbeing of the US economy. It is now being abused in a business which is light on people.
“People are very important to this business but they don’t make the business, this is a capital intensive business.”
He argued Chapter 11 is being misused to “destroy capital”.
“Our partners in business, OSG, went bankrupt and for two years in the worst market did not even have to pay their operating expenses. How can we compete with that?
“That is a recipe that drives the road to hell.”
Rodgers, now in full flow, added: “We are going to hear people telling us this business needs 'x 'billion of capital to introduce scrubbers, fuel efficiency.
“Well good luck. You have not even paid for the double hull yet."
Rodgers, a former lawyer, questioned when the industry is going to become respectful of capital and make it an industry which produces “at least a single digit return”.
“People are not asking for the world but we are being shafted by the vetting system and how the market works. And then shipowners who are not competitive and do not have the edge get protection from the courts and write off capital hugely at the expense of the banks and at the expense of the shareholders,” he said.
“I just don’t know where people think the money is coming from for new generations of ships. You haven’t paid for what you ordered 10 years ago,” he concluded.
