A law partner with the firm O’Melveneyand Meyers, Suzzanne Uhland's work focuses largely upon issues with corporate bankruptcy. In recent years, she has worked with more shipping clients. Suzzanne Uhland also has a great deal of experience working in Chapter 11 matters, including bankruptcies within the shipping industry.

A recent study conducted by AlixPartnersindicates a growing risk of bankruptcy within the shipping industry. While those who watch the industry closely may not see cause for alarm, as they have seen fluctuations in the past, AlixPartnersManaging Director Lisa Donahue cautions this downward trend is cause for concern. She explains the industry has been slow to adapt to the increasingly fickle nature of economic cycles, and mistakes have been made with regard to overbuilding.

Another potential danger is the common

practice of taking ships out of service in

order to increase demand and raise

prices. However, with the size of modern

vessels growing, withdrawing ships from

service is too costly. The study concluded

that the industry is in a state of financial

turmoil more severe than during the

onset of the financial crisis.