in 1992 supply increased due to heavy deliveries demand curve moved back to its ‘normal’ position as the temporary storage market disappeared. This was enough to drive freight rates down to $15,000 per day volatile demand + significant time-lag before supply adjusts to demand => creates the framework for shipping market cycles average cycle : about 8 years long 2-3 years for new orders to be delivered 2-3 years for scrapping to catch up 2-3 years for the market to build up a head of steam for the next round of orderin