The US Federal Reserve reduced interest rates by 0.25%, last week, with the possibility of further cuts before year-end. Lower rates support asset values, reduce financing costs, and improve access to capital for owners and operators.

For shipping, this creates a more favourable financing environment across all vessel classes. Putting risks aside, cheaper borrowing strengthens balance sheets, encourages fleet renewal, and underpins long-term investment strategies while also supporting broader trade demand. On the negative side, this may lead to an increase in contracting and thus a larger orderbook over time.