Shipping as gambling:

Abstract

This article analyses the reasons behind the bankruptcy of Seienlnvesi in 1984, the largest Swedish shipping firm at that time. From a profitable and prominent position in the international shipping industry, the firm over ten years time reached a point where its financial strength was totally ruined. Since Seteninvest was one of many shipping firms that suffered from the OPEC I and OPEC II crises, external reasons have to be considered. However, since many other financially-distressed shipping firms were able to solve their problems, there were also certain internal causes behind the business failure of Saléninvest. The analytical scheme presented distinguishes between formal institutions and strategies (policy conditions), the factors that influenced the state of the playing-field and the resources and skills of the players (spatial and economic conditions). A further distinction is made between structural and organisational conditions.