Banks in Europe are breathing easy after it was confirmed much of the continent has emerged from recession.
But an increasingly questionable category of loans could put lenders on edge once again.
European banks hold over £200 billion of shipping related loans.
Given the turmoil global shipping is in, it's the weaker banks such as RBS, Commerzbank and Lloyds that are likely to run into rough weather.
"Now its said that even if the economy begins to turn, the shipping loans actually don't reach their peak default level until about 12 months afterward so it's still not a factor that is fully on the radar screen. Only now we're appreciating how severe it is," says Stephen Pope, chief global market strategist, Cantor Fitzgerald.
Hundreds of ships have been idled in ports across the world after global trade plunged 25 percent this year.
Analysts say there's clear signs ship owners could be the next group of borrowers unable to manage debts.
Global trade is recovering slowly but there's more to worry about - a surplus of previously ordered ships due in the coming years - something which the airline industry too has been struggling to handle.
But the value of their ships has dropped - leading to a negative equity situation that could threaten the banks on a wider scale.
"There will be, we anticipate a global slow down of trade next year. We anticipate a surge of new buildings coming on thus providing an over supply of tonnage. So the shipping market is likely to continue or go into recession probably for another year or two at least. And obviously this will have a huge effect on the banking scene as well," says Nigel Hollyer, director, ICAP shipping.
Global trade may be recovering slowly, but the cargo sector is still in troubled territory.
With billions of pounds at stake, these increasingly dubious shipping debts are a reality banks in Europe will have to take on board.
AP