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London calling. London calling.
…. more education about shipping is key to attract investor appetite in London.
Marine Money returned to London after a long absence to host a wonderful 1st annual conference on 21st January 2010. This was the first of 14 Marine Money conferences for 2010 and we got off to a cracking start. Over 180 delegates and speakers attended with about one third coming from overseas.
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Dynamic Busan: City Of Tomorrow
For the very first time in Marine Money’s history, the 3rd Annual Korea Ship Finance Forum was held at the city of Busan, the heart of the world’s shipbuilding industry and the region home to seven of the world’s top ten shipbuilders. Prior to the event, delegates had an exclusive opportunity to visit the impressive Hyundai Heavy Industries (“HHI”) – the world’s largest shipbuilder. 240 delegates active in the Korean market gathered together and discussed on the today’s challenges and future opportunities.
The keynote presenter Dr. Keo Don Oh, President from the Korea Maritime University started the day by stressing the importance for China, Japan and Korea to work closely together. Dr. Oh noted that there have been discussions on the possibility of setting up a North East Asia Development Bank recently and he believes this could likewise be extended to the creation of a ship finance body to foster closer ties between shipping and shipbuilding industries in Northeast Asia. Continue Reading
Written by: carisk | Categories: Asia, Forums, Market Commentary | November 5th, 2009 | Add a Comment
Doing Business After the Credit Catharsis
Bank debt has long formed the sturdy foundation of the shipping capital markets. Exotic instruments come and go, but the ship mortgage and the syndicated bank loan remain and thrive. Typically banks fulfill their role quietly, helping clients to grow and modernize their companies without fanfare. At times, perhaps, they help a little too much. Continue Reading
Written by: carisk | Categories: Forums, Latest News, Uncategorized | April 3rd, 2008 | Add a Comment
Mr. John Fredriksen Named Connecticut Maritime Association 2008 Commodore
Stamford, Connecticut – Mr. John Fredriksen, chairman, chief executive, president and director of Frontline Ltd., has been named as the Connecticut Maritime Association (CMA) Commodore for the year 2008.Mr. Fredriksen follows a long succession of influential maritime industry leaders as Commodore. Continue Reading
Written by: carisk | Categories: Forums, Latest Articles, Latest Articles | January 13th, 2008 | Add a Comment
Marine Money’s 4th Annual German Ship Finance Forum
Marine Money’s 4th Annual German Ship
Finance Forum
Marine Money’s 4th Annual German Ship Finance Forum got off to a smooth start on Thursday with a very brief welcome from organizers Mr. Torsten Temp of HypoVereinsbank and Marine Money’s Peder Bogen. Chairman Dr. Henning Winter of Deutsche Schiffsbank’s board gave an overview of the topics to be addressed during the conference.
Dr. Martin Hüfner, also of HypoVereinsbank, then opened his macroeconomic discussion with an anecdote comparing the links between illness, diet and nationality. He concluded: “Eat what you like! It’s the English that kills you.” As for the global economy, Dr. Hüfner projects growth rates of 3% in 2005 and 2006, down from 4% in 2004, but he describes this change as “back to normality,” noting that 3% is, in fact, as healthy, sustainable growth rate. This idea of a fall back to normality would emerge as a theme throughout the conference, not only regarding the global economy, but more relevantly across the shipping markets.
Dr. Hüfner also noted that a soft landing in China is both important and likely, and that the EMU’s relative position in the global economy is improving. He anticipates a flattening of commodity price increases by 2006 and looks for oil prices to stay in the realm of $40-$45. Finally, Dr. Hüfner explained that the equilibrium interest rate dictated by economic models (in the 5.5-6% range for the US) is substantially higher than what currently exists. He thus expects interest rates to rise, advising shipowners “if you want to have long term money, you should take it today.”
Next up was a discussion moderated by Mr. Nigel Gardiner of Drewry Shipping Consultants, with Mr. Gardiner asking the question of how long this “unprecedented time” would last. Mr. Jarle Hammer of Fearnleys began his speech by noting that he remembered 1973, which was “even better for tankers.” He also remembered, somewhat less fondly, what happened in the shipping markets just after 1973. He discussed how 2001 vessels were going for 26% more than newbuildings while 10-year-old vessels were at times costing only 4% less due to “the value of being here and now.” Mr. Hammer did note that timecharter rates, like global economic growth, are expected to decrease, but to stay at healthy levels.
Mr. Nick Hubbard of Howe Robinson Ship Brokers opened his discussion of the container market in an interesting way, noting that his colleague who normally would have spoken was instead working on a charitable project in Nepal, demonstrating that “there are more important things than ships and boxes.” As for box ships, Mr. Hubbard lauded double-digit growth across all segments of the market in the past year. However, going forward he drew a firm distinction between the North/South and feeder trades, which he expects to remain under supplied, and the East/West trades, which he expects to creep into over supply. He again asserted that freight rates would and should fall, but that they are still very profitable.
Ms. Eva-Maria Busch of Drewry Shipping Consultants then discussed port congestion in a very different light than shipping analysts tend to see. Instead of the decrease in effective supply, and thus improving fundamentals, she saw the long term problems that could be expected to stem from the constant frustration, delays, and extra costs borne by those hiring ships. She expects that costs will be passed more and more on to shippers, while also causing those in need of transportation to consider alternatives to shipping. Importantly, Ms. Busch wants governments to recognize the need for bigger ports and for ports themselves to invest in better technology and more skilled employees.
After a brief coffee break, Mr. Didier Chaleat of Bureau Veritas discussed technical risk. He argued that Class in many cases has to act on behalf of flag states and went through the gist of new classification rules introduced by Bureau Veritas. Mr. Chaleat also noted the need for more intervention and earlier involvement on behalf of classification societies, and stated that his organization’s primary goals are to reduce risk to a minimum and improve the efficiency and long term quality of assets.
Dr. Albrecht Gundermann of LISCR (Deutschland) GmBH then discussed the burdening cost to shipowners of regulatory compliance – or, more accurately, non-compliance. He noted that in 2004 only 0.5% of standard VLCC operating expenditures go to direct costs associated with a flag state, whatever the state. By contrast, the costs of delays caused if, for example, the flag state cannot provide certain documents immediately can be quite high. He ended with the query to shipowners “what has your flag state done lately for you?”
The morning closed with a briefing by Peder Bogen on the state of the banking markets, drawing the conclusion that spreads are just too low and a lively panel discussion featuring Mr. Ingmar Loges, Mr. Hans Petter Aas, Mr. Jean-Yves Gueritaud, Mr. Tjark Woydt and Mr. Han Verschoor. The panelists discussed the fact that during times of low spreads, they must choose loans to make based on quality in order to protect downside risk.
After a soothing lunch, the crowd was reinvigorated for a review of the equity markets by Craig Fuehrer, now of Deutsche Bank Securities. Mr. Fuehrer said that he felt his prediction from Marine Money Week in June still held true: “Big deals and consolidation will continue!”
Glen Oxton of Heally & Baillie LLP then discussed International Shipping Enterprises and the whole idea of a “blank check” company. While the format used by ISE for their offering is usually reserved for “penny stock” offerings of under $5 million – contrasted to ISE’s $180 million plus – Mr. Oxton was able to explain the protection mechanisms for shareholders in the company in a way that made the deal sound much more reasonable than it first appeared, though he did note that ISE “probably have a business plan, they just haven’t disclosed it yet.” He also attributed their success to the strong demand for shipping issues and the credibility of the company’s management.
Bote de Vries of Navigation Finance Corp. then gave a discussion on Islamic Finance, explaining rules like the prohibition of interest, as well as how these deals can still be worked in a way that can be very attractive to those involved. He noted that Sharia’h compliant deals can be very competitive as they have ROE requirements less than the 15-20% typically required of Anglo-Saxon funds while the fees are marginal compared to a German KG alternative.
The last briefing was by Mr. Stephen Hackett of Global Capital Finance who discussed the incredible array of leasing options available. Two final panels closed out the afternoon. The first, moderated by Dr. Winter and composed of Mr. Tobias König, Dr. Axel Schroeder, Mr. Chiristian Freiherr von Olderhausen, Dr. Torsten Teichert and Mr. Axel Steffen, discussed how to cope with high asset prices and a strong euro. A key theme was that asset prices had to be looked at in the context of the lifelong earning prospects of a vessel. In other words, a lucrative 5-year charter does not necessarily justify an overpriced vessel.
This was followed by a lively discussion among Dr. Klaus Meves, Mr. Günther Casjens, Mr. Bertram Rickmers, Mr. Claus-Peter Offen, and Dr. Bernd Kortüm. The three looked at the current high market, and were in relative agreement about some things, like the idea that “just-in-time” service by liners is no longer really feasible. However, they disagreed heartily about the near term future of the container market. Several of the panelists were optimistic that rates would fall softly to profitable levels, while Mr. Rickmers in particular was adamant that prospects for containerships over the next few years are not very good.
Dr. Winter and Mr. Bogen then closed a fascinating day for ship finance. Afterwards, attendees moved into the next room with great windows overlooking the port in Hamburg to enjoy some well-deserved cocktails and some good German beer.
Marine Money’s 4th Annual German Ship Finance Forum got off to a smooth start on Thursday with a very brief welcome from organizers Mr. Torsten Temp of HypoVereinsbank and Marine Money’s Peder Bogen. Chairman Dr. Henning Winter of Deutsche Schiffsbank’s board gave an overview of the topics to be addressed during the conference.
Dr. Martin Hüfner, also of HypoVereinsbank, then opened his macroeconomic discussion with an anecdote comparing the links between illness, diet and nationality. He concluded: “Eat what you like! It’s the English that kills you.” As for the global economy, Dr. Hüfner projects growth rates of 3% in 2005 and 2006, down from 4% in 2004, but he describes this change as “back to normality,” noting that 3% is, in fact, as healthy, sustainable growth rate. This idea of a fall back to normality would emerge as a theme throughout the conference, not only regarding the global economy, but more relevantly across the shipping markets.
Dr. Hüfner also noted that a soft landing in China is both important and likely, and that the EMU’s relative position in the global economy is improving. He anticipates a flattening of commodity price increases by 2006 and looks for oil prices to stay in the realm of $40-$45. Finally, Dr. Hüfner explained that the equilibrium interest rate dictated by economic models (in the 5.5-6% range for the US) is substantially higher than what currently exists. He thus expects interest rates to rise, advising shipowners “if you want to have long term money, you should take it today.”
Next up was a discussion moderated by Mr. Nigel Gardiner of Drewry Shipping Consultants, with Mr. Gardiner asking the question of how long this “unprecedented time” would last. Mr. Jarle Hammer of Fearnleys began his speech by noting that he remembered 1973, which was “even better for tankers.” He also remembered, somewhat less fondly, what happened in the shipping markets just after 1973. He discussed how 2001 vessels were going for 26% more than newbuildings while 10-year-old vessels were at times costing only 4% less due to “the value of being here and now.” Mr. Hammer did note that timecharter rates, like global economic growth, are expected to decrease, but to stay at healthy levels.
Mr. Nick Hubbard of Howe Robinson Ship Brokers opened his discussion of the container market in an interesting way, noting that his colleague who normally would have spoken was instead working on a charitable project in Nepal, demonstrating that “there are more important things than ships and boxes.” As for box ships, Mr. Hubbard lauded double-digit growth across all segments of the market in the past year. However, going forward he drew a firm distinction between the North/South and feeder trades, which he expects to remain under supplied, and the East/West trades, which he expects to creep into over supply. He again asserted that freight rates would and should fall, but that they are still very profitable.
Ms. Eva-Maria Busch of Drewry Shipping Consultants then discussed port congestion in a very different light than shipping analysts tend to see. Instead of the decrease in effective supply, and thus improving fundamentals, she saw the long term problems that could be expected to stem from the constant frustration, delays, and extra costs borne by those hiring ships. She expects that costs will be passed more and more on to shippers, while also causing those in need of transportation to consider alternatives to shipping. Importantly, Ms. Busch wants governments to recognize the need for bigger ports and for ports themselves to invest in better technology and more skilled employees.
After a brief coffee break, Mr. Didier Chaleat of Bureau Veritas discussed technical risk. He argued that Class in many cases has to act on behalf of flag states and went through the gist of new classification rules introduced by Bureau Veritas. Mr. Chaleat also noted the need for more intervention and earlier involvement on behalf of classification societies, and stated that his organization’s primary goals are to reduce risk to a minimum and improve the efficiency and long term quality of assets.
Dr. Albrecht Gundermann of LISCR (Deutschland) GmBH then discussed the burdening cost to shipowners of regulatory compliance – or, more accurately, non-compliance. He noted that in 2004 only 0.5% of standard VLCC operating expenditures go to direct costs associated with a flag state, whatever the state. By contrast, the costs of delays caused if, for example, the flag state cannot provide certain documents immediately can be quite high. He ended with the query to shipowners “what has your flag state done lately for you?”
The morning closed with a briefing by Peder Bogen on the state of the banking markets, drawing the conclusion that spreads are just too low and a lively panel discussion featuring Mr. Ingmar Loges, Mr. Hans Petter Aas, Mr. Jean-Yves Gueritaud, Mr. Tjark Woydt and Mr. Han Verschoor. The panelists discussed the fact that during times of low spreads, they must choose loans to make based on quality in order to protect downside risk.
After a soothing lunch, the crowd was reinvigorated for a review of the equity markets by Craig Fuehrer, now of Deutsche Bank Securities. Mr. Fuehrer said that he felt his prediction from Marine Money Week in June still held true: “Big deals and consolidation will continue!”
Glen Oxton of Heally & Baillie LLP then discussed International Shipping Enterprises and the whole idea of a “blank check” company. While the format used by ISE for their offering is usually reserved for “penny stock” offerings of under $5 million – contrasted to ISE’s $180 million plus – Mr. Oxton was able to explain the protection mechanisms for shareholders in the company in a way that made the deal sound much more reasonable than it first appeared, though he did note that ISE “probably have a business plan, they just haven’t disclosed it yet.” He also attributed their success to the strong demand for shipping issues and the credibility of the company’s management.
Bote de Vries of Navigation Finance Corp. then gave a discussion on Islamic Finance, explaining rules like the prohibition of interest, as well as how these deals can still be worked in a way that can be very attractive to those involved. He noted that Sharia’h compliant deals can be very competitive as they have ROE requirements less than the 15-20% typically required of Anglo-Saxon funds while the fees are marginal compared to a German KG alternative.
The last briefing was by Mr. Stephen Hackett of Global Capital Finance who discussed the incredible array of leasing options available. Two final panels closed out the afternoon. The first, moderated by Dr. Winter and composed of Mr. Tobias König, Dr. Axel Schroeder, Mr. Christian Freiherr von Olderhausen, Dr. Torsten Teichert and Mr. Axel Steffen, discussed how to cope with high asset prices and a strong euro. A key theme was that asset prices had to be looked at in the context of the lifelong earning prospects of a vessel. In other words, a lucrative 5-year charter does not necessarily justify an overpriced vessel.
This was followed by a lively discussion among Dr. Klaus Meves, Mr. Günther Casjens, Mr. Bertram Rickmers, Mr. Claus-Peter Offen, and Dr. Bernd Kortüm. The three looked at the current high market, and were in relative agreement about some things, like the idea that “just-in-time” service by liners is no longer really feasible. However, they disagreed heartily about the near term future of the container market. Several of the panelists were optimistic that rates would fall softly to profitable levels, while Mr. Rickmers in particular was adamant that prospects for containerships over the next few years are not very good.
Dr. Winter and Mr. Bogen then closed a fascinating day for ship finance. Afterwards, attendees moved into the next room with great windows overlooking the port in Hamburg to enjoy some well-deserved cocktails and some good German beer.
Written by: carisk | Categories: Forums, Freshly Minted, German Focus | February 24th, 2005 | Add a Comment
Shipowners Present at Deutsche Small Cap Equity Conference
Shipowners Present at Deutsche Small Cap Equity Conference
It’s no coincidence that investor conferences are being held in closer to the equator during these chilly months. This week, Deutsche Bank, which recently hired investment banker Craig Fuehrer from JP Morgan and veteran transportation analyst Jordan Alliger from Lazard (formerly with Goldman Sachs), held an event at the Ritz Carlton on the beach in Naples, Florida. Shipping companies that presented include: Kirby Corporation (NYSE: KEX), OMI (NYSE: OMM), General Maritime (NYSE: GMR), TEN (NYSE: TNP), Stolt Nielsen, S.A. (NASDAQ: SNSA) and Maritrans (NYSE: TUG). As you can see from the share price graphs for the last five days, with fundamentals as good as the shipping industry, it’s always a good idea for companies to get out on the road and tell their story to investors.
It’s no coincidence that investor conferences are being held in closer to the equator during these chilly months. This week, Deutsche Bank, which recently hired investment banker Craig Fuehrer from JP Morgan and veteran transportation analyst Jordan Alliger from Lazard (formerly with Goldman Sachs), held an event at the Ritz Carlton on the beach in Naples, Florida. Shipping companies that presented include: Kirby Corporation (NYSE: KEX), OMI (NYSE: OMM), General Maritime (NYSE: GMR), TEN (NYSE: TNP), Stolt Nielsen, S.A. (NASDAQ: SNSA) and Maritrans (NYSE: TUG). As you can see from the share price graphs for the last five days, with fundamentals as good as the shipping industry, it’s always a good idea for companies to get out on the road and tell their story to investors.
New York Conference Features Shipping Star Power
New York Conference Features Shipping Star Power
Last week’s Hellenic-/Norwegian-American Chambers of Commerce Joint Shipping Conference offered a plethora of luminaries from shipping’s universe. Between OSG’s Morten Arntzen, Teekay’s Sean Day, GenMar’s Peter Georgiopoulos, Tidewater’s Dean Taylor, NCL’s Colin Veitch, BP’s Bob Malone, Heidmar’s Per Heidenreich, Wilh. Wilhelmsen, Leif Hoegh, Navios’ Robert Shaw, Intrepid Shipping’s Richard du Moulin, Free Bulkers George Gourdomichalis, CR Weber’s Basil Mavroleon, Healy & Baillie’s Glen Oxton, and DNV’s Tor Svensen the bulk of the world’s tonnage was well represented.
The theme of the conference was “Shipping without Borders” which transcended from national identity to the impact of new technologies and landed squarely on the challenges of doing business in America. Or should we say the many challenges of doing business in the (50) States?
Per Heidenreich welcomed the assembled with the observation that “2004 was the most incredible shipping market in history, with Wall Street showing an alarming interest in shipping”. He reflected that the Norwegians are “awfully quiet” and urged them to learn what “makes the Greeks tick.”
The Greek contingent was happy to comply, with George Gourdomichalis offering the strengths of the Greek approach: Piraeus as a maritime cluster, a favorable tax climate, and the transition of Greek family-owned operations to corporations. As a counterpoint, Leif Hoegh underscored the decline in Norwegian shipping, both in the bulk and tanker trades as well as in the yard order book. He further advocated the Greek regard for shipping: “When you go to Piraeus, even the taxi drivers know about tankers. Piraeus is an exhilarating place!” When pressed as to whether the Leif Hoegh company would return to Norway, Mr. Hoegh’s one-word answer was a resounding “No”.
While acknowledging the decline of Norway’s shipping sector, Marianne Lie, Director General of the Norwegian Shipowners’ Association, presented the proposed tax and legislative changes within Norway designed to reinvigorate its maritime industry. The key word is “proposed”. Tor Svensen of DNV attempted to breach the gap by offering the concept of geographic co-location, while Anthony Argyropoulos, newly at Cantor Fitzgerald, adroitly attributed the Greek interest in the capital markets to their entrepreneurial spirit, without discouraging Norwegian interest.
After an overview of the freight futures market by Robert Shaw of Navios, technological advances in this field were covered by Basil Mavroleon of CR Weber, who helped transition the conference by eliminating borders entirely. In his call to action on FFA’s (Forward Freight Agreements), Basil reflected “If, as I believe it will, this market continues to strengthen, who, with underlying physical positions can continue to ignore participation in it – surely we must all find a way to engage with it, learn to utilize it to our benefit and play some part in the growth curve”. Implementation was discussed by Barry Bednar of J. Aron & Company and Tom Even Mortensen of IMAREX.
Wilhelm Wilhelmsen offered a global perspective as the conference’s luncheon keynote speaker. His answer to whether national identity has become irrelevant was a conditional “Yes”. Despite being Norway’s oldest and largest shipping enterprise, only 5% of the company’s employees have Norwegian as their mother tongue, and only a handful of ship calls handled by the company last year were in Norway. He feels that the shipping industry is “almost unwanted by the Norwegian authorities…many (companies) feel strongly that they are literally being kicked out.” Norway is the only major shipping nation that is in decline, with the government “destroying an industry which actually has everything required to ensure good and stable revenues for my country in the future.”
Turning the focus to doing business in the Americas, Sean Day of Teekay pointed to the industry’s image in the financial markets resulting in investor differentiation, and a greater scrutiny on quality of both fleets and management. Mr. Day declared Sarbanes-Oxley a “time sink” and expensive, while acknowledging that Teekay is a foreign filer that complies with US requirements.
Bob Malone of BP Shipping stated that his company’s strategy is to own ships in order to manage risk (against incidents). He felt the need to regain the public trust by managing the company, and pointed to the benefits gained through compliance with Sarbanes-Oxley.
Peter Georgiopoulos of GenMar struck a profoundly wistful note, reflecting that he used to think shipping connoted yachts, former US President’s wives and opera singers, but quickly learned that the world of shipping revolves around OPA, ISM and SARBOX. Regulation is making shipping increasingly expensive, and much less desirable.
OSG’s Morten Arntzen lifted everyone’s mood with his list of “Top Ten Challenges Facing Executives of American Shipping Companies Competing Internationally” (including finding an affordable Starbucks coffee in Europe, explaining why a suezmax built in the United States costs $240 million, and repeating “Foreign Corrupt Practices Act” 10 times). Mr. Arntzen demonstrated to the market doomsayers why the tanker industry of today is dramatically different from that of the early 70’s. He further went on to tout the merits of Sarbanes-Oxley as a significant management tool, and highlighted the benefits accruing to OSG from the recent Job Creation Act of 2004, with its attendant tonnage tax scheme for US-flag shipping.
Dean Taylor of Tidewater reiterated the challenges of doing business in the US amidst extensive and expensive regulation. Mr. Taylor’s remarks were surprisingly dour, considering the profitable condition of Tidewater and their enviable earnings multiple.
Norwegian Cruise Line’s Colin Veitch delivered an overview of how, and why, they decided to pursue a US-flag strategy despite the costs and challenges. Interestingly, it was Mr. Veitch who called upon industry to be proactive, rather than reactive, about regulation (such as environmental policies). With his extensive experience in the public sector, perhaps his suggestion to influence perception could inspire action leading to a positive image for shipping??
Last week’s Hellenic-/Norwegian-American Chambers of Commerce Joint Shipping Conference offered a plethora of luminaries from shipping’s universe. Between OSG’s Morten Arntzen, Teekay’s Sean Day, GenMar’s Peter Georgiopoulos, Tidewater’s Dean Taylor, NCL’s Colin Veitch, BP’s Bob Malone, Heidmar’s Per Heidenreich, Wilh. Wilhelmsen, Leif Hoegh, Navios’ Robert Shaw, Intrepid Shipping’s Richard du Moulin, Free Bulkers George Gourdomichalis, CR Weber’s Basil Mavroleon, Healy & Baillie’s Glen Oxton, and DNV’s Tor Svensen the bulk of the world’s tonnage was well represented.
The theme of the conference was “Shipping without Borders” which transcended from national identity to the impact of new technologies and landed squarely on the challenges of doing business in America. Or should we say the many challenges of doing business in the (50) States?
Per Heidenreich welcomed the assembled with the observation that “2004 was the most incredible shipping market in history, with Wall Street showing an alarming interest in shipping”. He reflected that the Norwegians are “awfully quiet” and urged them to learn what “makes the Greeks tick.”
The Greek contingent was happy to comply, with George Gourdomichalis offering the strengths of the Greek approach: Piraeus as a maritime cluster, a favorable tax climate, and the transition of Greek family-owned operations to corporations. As a counterpoint, Leif Hoegh underscored the decline in Norwegian shipping, both in the bulk and tanker trades as well as in the yard order book. He further advocated the Greek regard for shipping: “When you go to Piraeus, even the taxi drivers know about tankers. Piraeus is an exhilarating place!” When pressed as to whether the Leif Hoegh company would return to Norway, Mr. Hoegh’s one-word answer was a resounding “No”.
While acknowledging the decline of Norway’s shipping sector, Marianne Lie, Director General of the Norwegian Shipowners’ Association, presented the proposed tax and legislative changes within Norway designed to reinvigorate its maritime industry. The key word is “proposed”. Tor Svensen of DNV attempted to breach the gap by offering the concept of geographic co-location, while Anthony Argyropoulos, newly at Cantor Fitzgerald, adroitly attributed the Greek interest in the capital markets to their entrepreneurial spirit, without discouraging Norwegian interest.
After an overview of the freight futures market by Robert Shaw of Navios, technological advances in this field were covered by Basil Mavroleon of CR Weber, who helped transition the conference by eliminating borders entirely. In his call to action on FFA’s (Forward Freight Agreements), Basil reflected “If, as I believe it will, this market continues to strengthen, who, with underlying physical positions can continue to ignore participation in it – surely we must all find a way to engage with it, learn to utilize it to our benefit and play some part in the growth curve”. Implementation was discussed by Barry Bednar of J. Aron & Company and Tom Even Mortensen of IMAREX.
Wilhelm Wilhelmsen offered a global perspective as the conference’s luncheon keynote speaker. His answer to whether national identity has become irrelevant was a conditional “Yes”. Despite being Norway’s oldest and largest shipping enterprise, only 5% of the company’s employees have Norwegian as their mother tongue, and only a handful of ship calls handled by the company last year were in Norway. He feels that the shipping industry is “almost unwanted by the Norwegian authorities…many (companies) feel strongly that they are literally being kicked out.” Norway is the only major shipping nation that is in decline, with the government “destroying an industry which actually has everything required to ensure good and stable revenues for my country in the future.”
Turning the focus to doing business in the Americas, Sean Day of Teekay pointed to the industry’s image in the financial markets resulting in investor differentiation, and a greater scrutiny on quality of both fleets and management. Mr. Day declared Sarbanes-Oxley a “time sink” and expensive, while acknowledging that Teekay is a foreign filer that complies with US requirements.
Bob Malone of BP Shipping stated that his company’s strategy is to own ships in order to manage risk (against incidents). He felt the need to regain the public trust by managing the company, and pointed to the benefits gained through compliance with Sarbanes-Oxley.
Peter Georgiopoulos of GenMar struck a profoundly wistful note, reflecting that he used to think shipping connoted yachts, former US President’s wives and opera singers, but quickly learned that the world of shipping revolves around OPA, ISM and SARBOX. Regulation is making shipping increasingly expensive, and much less desirable.
OSG’s Morten Arntzen lifted everyone’s mood with his list of “Top Ten Challenges Facing Executives of American Shipping Companies Competing Internationally” (including finding an affordable Starbucks coffee in Europe, explaining why a suezmax built in the United States costs $240 million, and repeating “Foreign Corrupt Practices Act” 10 times). Mr. Arntzen demonstrated to the market doomsayers why the tanker industry of today is dramatically different from that of the early 70’s. He further went on to tout the merits of Sarbanes-Oxley as a significant management tool, and highlighted the benefits accruing to OSG from the recent Job Creation Act of 2004, with its attendant tonnage tax scheme for US-flag shipping.
Dean Taylor of Tidewater reiterated the challenges of doing business in the US amidst extensive and expensive regulation. Mr. Taylor’s remarks were surprisingly dour, considering the profitable condition of Tidewater and their enviable earnings multiple.
Norwegian Cruise Line’s Colin Veitch delivered an overview of how, and why, they decided to pursue a US-flag strategy despite the costs and challenges. Interestingly, it was Mr. Veitch who called upon industry to be proactive, rather than reactive, about regulation (such as environmental policies). With his extensive experience in the public sector, perhaps his suggestion to influence perception could inspire action leading to a positive image for shipping??
Ship Finance Forum Germany Swelling in Size – Still Time to Sign Up
Ship Finance Forum Germany Swelling in Size – Still Time to Sign Up
We are absolutely delighted by the response we have received for our 4th Annual German Ship Finance Forum next Thursday in Hamburg. With record high asset prices, strong charter rates, a full orderbook, low margins on financing and capital markets that are wide open, the forum will discuss how this trend will continue and if it can continue. Distinguished speakers include the Heads of Shipping from the leading European and US banks and as well as the leading German ship-owners. We currently have 250 delegates signed up, making the event the largest ship finance forum in Europe. We would b pleased to share the delegate list with you, so just send an email to conferences@marinemoney.com. If you’d like to register, simply visit our web site at http://www.marinemoney.com/forums/
GER05/index.htm for the program and registration.
We are absolutely delighted by the response we have received for our 4th Annual German Ship Finance Forum next Thursday in Hamburg. With record high asset prices, strong charter rates, a full orderbook, low margins on financing and capital markets that are wide open, the forum will discuss how this trend will continue and if it can continue. Distinguished speakers include the Heads of Shipping from the leading European and US banks and as well as the leading German ship-owners. We currently have 250 delegates signed up, making the event the largest ship finance forum in Europe. We would b pleased to share the delegate list with you, so just send an email to conferences@marinemoney.com. If you’d like to register, simply visit our web site at http://www.marinemoney.com/forums/
GER05/index.htm for the program and registration.
Arabian Nights. Desert Sands. Phenomenal Opportunities.
Arabian Nights. Desert Sands.
Phenomenal Opportunities.
What a great time we had in Dubai. And the conference went well too!!!
Seriously, our First Annual Marine Money Ship Finance Conference held in the magnificent Grand Hyatt hotel in Dubai on 2nd February was a great success. Over 167 shipowners, shipping bankers and shipping service executives spent the day with us. All the major players from Dubai and the region were represented, as well as local and international financiers. In terms of figures, over 60 representatives of shipping groups were there, 12 local and regional banks or financial institutions and over 15 foreign lenders.
We were honoured with keynote addresses by Mr. Sultan Ahmed bin Sulayem, Executive Chairman of Ports Customs and Free Zone Corporation, and Mr. Yusr Sultan, Board Member of GEM and CEO of Terminals, Shipping and LPG, Emirates National Oil Company. The words that come to mind from both addresses are optimism, opportunity, pride, potential and quality. Dubai is going places, and the government and major private players in shipping have plans for greater things to come. An internationally recognized state flag for the UAE is on the agenda. The amount of local investment into shipping such a move could bring is astounding.
We heard from local and regional shipping companies who had taken a chance, used great initiative and then reaped the rewards – these included Emarat Maritime LLC and Emirates Ship Investment Co. We were privileged to hear an enlightening presentation by IRISL (IR Iran Shipping Lines), a company with 87 vessels, more being built and expansion plans for another 40 vessels by 2007. IRISL cannot always get foreign finance because of the lack of a national credit rating by the international agencies. To get around this, IRISL has set up a company in Germany that will own vessels, fly acceptable flags and be able to attract the type of investment and banking interest the company requires -forward thinking indeed.
Dubai Maritime City gave us an update on their plans to create a unique shipping service environment on land currently being reclaimed from the sea. The area will house a shipyard and repair yard, commercial space for all shipping activities, a maritime academy, a marina and state of the art office space for shipping companies to operate. It is planned to be ready by 2007!
Banks are interested in the shipping potential in the region. National Bank of Fujairah and DVB Bank AG held an intriguing discussion about their different approaches to lending in the region. Both have a great deal to offer, and the point was emphasized that there is every opportunity for local and international banks to link up and complement each other’s strengths, thereby giving optimal service to the region’s shipowners.
And our final session, entitled alternative finance, included a discussion by our anchor sponsor, Tufton Oceanic, about Islamic Finance, a new and huge potential source of finance to our industry, and a talk by CAT Finance baiting the audience with talk about building ships in the region and getting suitable finance.
The entire event was truly a great success emphasizing the opportunities that exist in the amazing locale of Dubai. You have to visit it to realise the enormous development and potential here. And shipping and shipping finance is part of that development. Marine Money will be back next year for the Second Marine Money Gulf Ship Finance Conference. Try to come. It is a great place to do business….and more!!
What a great time we had in Dubai. And the conference went well too!!!
Seriously, our First Annual Marine Money Ship Finance Conference held in the magnificent Grand Hyatt hotel in Dubai on 2nd February was a great success. Over 167 shipowners, shipping bankers and shipping service executives spent the day with us. All the major players from Dubai and the region were represented, as well as local and international financiers. In terms of figures, over 60 representatives of shipping groups were there, 12 local and regional banks or financial institutions and over 15 foreign lenders.
We were honoured with keynote addresses by Mr. Sultan Ahmed bin Sulayem, Executive Chairman of Ports Customs and Free Zone Corporation, and Mr. Yusr Sultan, Board Member of GEM and CEO of Terminals, Shipping and LPG, Emirates National Oil Company. The words that come to mind from both addresses are optimism, opportunity, pride, potential and quality. Dubai is going places, and the government and major private players in shipping have plans for greater things to come. An internationally recognized state flag for the UAE is on the agenda. The amount of local investment into shipping such a move could bring is astounding.
We heard from local and regional shipping companies who had taken a chance, used great initiative and then reaped the rewards – these included Emarat Maritime LLC and Emirates Ship Investment Co. We were privileged to hear an enlightening presentation by IRISL (IR Iran Shipping Lines), a company with 87 vessels, more being built and expansion plans for another 40 vessels by 2007. IRISL cannot always get foreign finance because of the lack of a national credit rating by the international agencies. To get around this, IRISL has set up a company in Germany that will own vessels, fly acceptable flags and be able to attract the type of investment and banking interest the company requires -forward thinking indeed.
Dubai Maritime City gave us an update on their plans to create a unique shipping service environment on land currently being reclaimed from the sea. The area will house a shipyard and repair yard, commercial space for all shipping activities, a maritime academy, a marina and state of the art office space for shipping companies to operate. It is planned to be ready by 2007!
Banks are interested in the shipping potential in the region. National Bank of Fujairah and DVB Bank AG held an intriguing discussion about their different approaches to lending in the region. Both have a great deal to offer, and the point was emphasized that there is every opportunity for local and international banks to link up and complement each other’s strengths, thereby giving optimal service to the region’s shipowners.
And our final session, entitled alternative finance, included a discussion by our anchor sponsor, Tufton Oceanic, about Islamic Finance, a new and huge potential source of finance to our industry, and a talk by CAT Finance baiting the audience with talk about building ships in the region and getting suitable finance.
The entire event was truly a great success emphasizing the opportunities that exist in the amazing locale of Dubai. You have to visit it to realise the enormous development and potential here. And shipping and shipping finance is part of that development. Marine Money will be back next year for the Second Marine Money Gulf Ship Finance Conference. Try to come. It is a great place to do business….and more!!
Written by: carisk | Categories: Forums, Freshly Minted, People & Places | February 3rd, 2005 | Add a Comment
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