Saturday, October 18, 2014

Post Hoc Fallacy: Zim Shipping Restructures

In their frantic effort to achieve some sort of tangible victory,  BDS'ers often resort to wild abandonment of logic, cause and effect, and truth.

We're about to see it again.

The economic downturn of the last few years has left many of the container carriers floundering. New ships ordered before the financial crisis have flooded the market, and this overcapacity is directly influencing the profitability of many shipping lines.

That Sinking Feeling: Global Crisis Hits Shipping Industry Hard

Maersk Line sees shipping overcapacity for five years
The Impact of the Economic Crisis on the Shipping Industry and Trade Consequences

Zim Shipping  has also been struggling for some time.   Its 2nd quarter 2014 results were less than stellar.
In January, restructuring plans had been announced with Israel Corp handing control of two-thirds of Zim  to creditors . The final details of the restructuring were announced this week:

From Reuters 

Israel Corp, one of Israel's largest conglomerates, has planned to split into two companies for more than a year in an attempt to boost the value of its core businesses and attract a broader range of investors.

Under its plan, Israel Corp will continue to hold two of its most lucrative and stable companies -- potash and speciality chemicals maker Israel Chemicals (ICL) and Oil Refineries, Israel's biggest refinery.

On Monday, it detailed plans for the spin-off company, Singapore-incorporated Kenon Holdings. It will transfer to Kenon its holdings in five units: chipmaker TowerJazz, shipping line Zim, Qoros Automotive -- a joint venture between Israel Corp and China's Chery Automobile -- IC Power and IC Green Energy.

Among the expected changes for Zim Shipping is a consolidation of ports of call.
Although this is the culmination of events beginning in 2008, already the anti-Israel cru is declaring this a victory for BDS. In the Copernican world of  Palestinian activism, the entire universe orbits around BDS. There are no routine business decisions as far as the BDS'ers are concerned. Its all about them-  their "power", their "momentum".

Since the summer, attempts have been made in Vancouver, Tampa, Tampa and Long Beach and Oakland to block Zim ships. Outside of Oakland,  there has been resounding failure.

In spite of this, expect to see BDS'ers crowing victory as  further details of the restructuring become public.

To them, all I can say is  Post hoc, ergo propter hoc

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