Why are Billions of Dollars Worth of Ships Being Intentionally Destroyed? | Economics Explained

The video explores the economic reasons behind the scrapping of ships during the global pandemic, focusing on the merchant marine fleet's challenges. It discusses the economics of shipping, including the costs of maintaining older ships and the efficiency of larger vessels. The impact of COVID-19 on shipping demand and oil prices is examined, along with China's infrastructure stimulus and its effect on iron prices. The video concludes by considering the future of global trade and the potential shift towards self-sufficiency.

How do shipping costs influence the competitiveness of landlocked countries?

What role does the square cube law play in the design of modern ships?

In what ways can government stimulus impact the shipping industry during economic downturns?

What are the potential long-term effects of reduced global trade on national economies?