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Wednesday, 24 April 19
SHIPPING MARKET INSIGHT - IS THIS A BANKERS' MARKET? - INTERMODAL
 Over the last 10 years, many of the traditional and top lending banks have made the decision to either downsize their portfolios or even exit shipping. According to Petrofin, Top 40 shipping banks’ lending has fallen since 2008 by 25%, whilst at the same time the world fleet has grown by 28%. On top of this, out of the banks that have decided to stay in the game, not all of them have the strength, the budget and the competitive terms to do so. As a result, the availability of financing for small-medium size companies has become a scarce, hence a luxury good. In other words, even when there is available financing for these companies, its cost is really prohibitive.
Apart from the banks’ endogenous and structural issues, their shipping departments also need to decide where to allocate their budget. In an era of growing LNG demand, numerous large shipping firms invest in the very capital intensive LNG carriers. Most of the large banks are there to support their very good clients. However, this means that a big percentage of their budget (and resources in general) end up to the LNG carriers’ financing, i.e. not much budget left for the remaining sectors/shipping projects. So, when these banks are left with a limited budget to spend, they become very selective and of course their pricing goes up as the list of the waiting finance projects is significant.
But what about the alternative ways of financing for the small and medium size companies? Asian leasing has indeed filled part of the gap that was created with the traditional banks’ exit, however, again this is available for owners with larger fleets and bigger ticket sizes. Public markets have been quiet regarding shipping in general; bond markets again require significant size. Therefore, the small companies are left with the option of the so called alternative financing. Private equity and hedge funds do have the funds to invest, but this only happens when they get the return of capital that they require; given that this most of the times is a double digit figure, then the capital cost for the small/medium ship owners increases dramatically.
There are quite a few new European banks that have joined ship financing – whose pricing sits in between the one of the traditional banks and that of leasing – however, their current budget is nowhere near to filling the gap that was left after the departure of the big banks.
Therefore, small-medium size shipping companies struggle to find competitive finance terms. Someone may argue that this had always been the case, however, in today’s ship finance market it is evident that the financing of small-medium size shipping companies is not the banks’ first priority, which should not be the case given the performance of such companies during recent years. Indeed, many small-medium size companies have proved their top quality and professionalism by not only surviving the crisis but also by getting back into expansion mode. There are many ship-owning companies falling into this category. Indicatively, only in Greek shipping there are more than 150 companies that own 3-15 bulk carriers, of more than 28,000 dwt and younger than 17 years old. A big percentage of these companies are long standing and solid companies; however, face the above finance issues.
This is the clientele that will provide the bank with projects of good credit quality and at the right pricing and therefore should be the one attracting the attention of ship financiers if they wish to make their business efficient and dynamic again.
By George Laios
Deputy CEO, Intermodal Group
Compiled by:
Intermodal Research & Valuations
Analysts:
Ms Eva Tzima
George Panagopoulos
Disclaimer and legal disclosure: For any further queries please do not hesitate to contact our Research & Valuations Department. The information contained in this report has been obtained from various sources, as reported in the market. Intermodal Shipbrokers Co. believes such information to be factual and reliable without making guarantees regarding its accuracy or completeness. Whilst every care has been taken in the production of the above review, no liability can be accepted for any loss or damage incurred in any way whatsoever by any person who may seek to rely on the information and views contained in this material. This report is being produced for the internal use of the intended recipients only and no reproducing is allowed, without the prior written authorization of Intermodal Shipbrokers Co.
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Thursday, 16 May 19
SUPRAMAX: INDO/CHINA COAL RV TRADING AROUND US$ 9,000 BSS S.CHINA DELIVERY - FEARNLEYS
Capesize
This volatile segment is trying to find a clear direction from the present US$ 12,000/day earnings for standard units says Fearnleys W ...
Wednesday, 15 May 19
SHIPPING MARKET INSIGHT - THEODORE NTALAKOS
Modern warfare - Trade wars & sanctions
As of May 1st, the U.S. has ended waivers to the sanctions that had allowed the top buyers of Irani ...
Monday, 13 May 19
INDONESIAN COAL PRICE REFERENCE CONTINUES TO FALL
COALspot.com: The Ministry of Energy and Mineral Resources of the Republic of Indonesia has revised down the benchmark price of Indonesian thermal ...
Monday, 13 May 19
SUPRAMAX: SOUTHEAST ASIA THE MARKET SAW BETTER DEMAND - BALTIC BRIEFING
Cape
The market continued its rollercoaster ride last week opening with negative sentiment, but turning around in dramatic fashion by the week& ...
Thursday, 09 May 19
DEEP OFFSHORE SOUTHEAST ASIA CONGRESS 2019
Deep Offshore Southeast Asia Congress 2019
Event Date:2-3th July. 2019t
Location: Jakarta, Indonesia
Sarawak Shell Berhad (S ...
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- Grasim Industreis Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Power Finance Corporation Ltd., India
- Globalindo Alam Lestari - Indonesia
- IEA Clean Coal Centre - UK
- SMC Global Power, Philippines
- Mercuria Energy - Indonesia
- Sical Logistics Limited - India
- Semirara Mining and Power Corporation, Philippines
- South Luzon Thermal Energy Corporation
- Thiess Contractors Indonesia
- Karbindo Abesyapradhi - Indoneisa
- ICICI Bank Limited - India
- Posco Energy - South Korea
- Electricity Generating Authority of Thailand
- Indian Oil Corporation Limited
- Kideco Jaya Agung - Indonesia
- GAC Shipping (India) Pvt Ltd
- India Bulls Power Limited - India
- Parry Sugars Refinery, India
- Savvy Resources Ltd - HongKong
- Port Waratah Coal Services - Australia
- Maharashtra Electricity Regulatory Commission - India
- Renaissance Capital - South Africa
- Eastern Energy - Thailand
- Agrawal Coal Company - India
- Tata Chemicals Ltd - India
- Chamber of Mines of South Africa
- Deloitte Consulting - India
- Interocean Group of Companies - India
- Australian Commodity Traders Exchange
- Bulk Trading Sa - Switzerland
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Kaltim Prima Coal - Indonesia
- Orica Australia Pty. Ltd.
- Jorong Barutama Greston.PT - Indonesia
- Therma Luzon, Inc, Philippines
- Wood Mackenzie - Singapore
- White Energy Company Limited
- Tamil Nadu electricity Board
- Aditya Birla Group - India
- Leighton Contractors Pty Ltd - Australia
- Orica Mining Services - Indonesia
- Electricity Authority, New Zealand
- Chettinad Cement Corporation Ltd - India
- Pendopo Energi Batubara - Indonesia
- Bangladesh Power Developement Board
- Binh Thuan Hamico - Vietnam
- Indogreen Group - Indonesia
- Central Java Power - Indonesia
- Anglo American - United Kingdom
- Asmin Koalindo Tuhup - Indonesia
- Thai Mozambique Logistica
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Banpu Public Company Limited - Thailand
- Sarangani Energy Corporation, Philippines
- Gujarat Sidhee Cement - India
- Gujarat Electricity Regulatory Commission - India
- Meenaskhi Energy Private Limited - India
- Commonwealth Bank - Australia
- Planning Commission, India
- Lanco Infratech Ltd - India
- Uttam Galva Steels Limited - India
- Semirara Mining Corp, Philippines
- Mjunction Services Limited - India
- TeaM Sual Corporation - Philippines
- Straits Asia Resources Limited - Singapore
- Sinarmas Energy and Mining - Indonesia
- Siam City Cement PLC, Thailand
- Kepco SPC Power Corporation, Philippines
- Global Coal Blending Company Limited - Australia
- Latin American Coal - Colombia
- Alfred C Toepfer International GmbH - Germany
- Neyveli Lignite Corporation Ltd, - India
- Malabar Cements Ltd - India
- Oldendorff Carriers - Singapore
- Coal and Oil Company - UAE
- Formosa Plastics Group - Taiwan
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- San Jose City I Power Corp, Philippines
- Star Paper Mills Limited - India
- Holcim Trading Pte Ltd - Singapore
- Sindya Power Generating Company Private Ltd
- Toyota Tsusho Corporation, Japan
- Altura Mining Limited, Indonesia
- Rio Tinto Coal - Australia
- Bukit Makmur.PT - Indonesia
- The University of Queensland
- Australian Coal Association
- Bukit Baiduri Energy - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Iligan Light & Power Inc, Philippines
- Jindal Steel & Power Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Metalloyd Limited - United Kingdom
- Central Electricity Authority - India
- Bhushan Steel Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Barasentosa Lestari - Indonesia
- Coalindo Energy - Indonesia
- Goldman Sachs - Singapore
- Standard Chartered Bank - UAE
- European Bulk Services B.V. - Netherlands
- Aboitiz Power Corporation - Philippines
- PowerSource Philippines DevCo
- Karaikal Port Pvt Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Medco Energi Mining Internasional
- Bharathi Cement Corporation - India
- Mercator Lines Limited - India
- AsiaOL BioFuels Corp., Philippines
- SMG Consultants - Indonesia
- Bayan Resources Tbk. - Indonesia
- Eastern Coal Council - USA
- Simpson Spence & Young - Indonesia
- Kobexindo Tractors - Indoneisa
- Indian Energy Exchange, India
- VISA Power Limited - India
- PNOC Exploration Corporation - Philippines
- Siam City Cement - Thailand
- Africa Commodities Group - South Africa
- Carbofer General Trading SA - India
- Vijayanagar Sugar Pvt Ltd - India
- Petron Corporation, Philippines
- Indonesian Coal Mining Association
- PTC India Limited - India
- Attock Cement Pakistan Limited
- Intertek Mineral Services - Indonesia
- Ministry of Mines - Canada
- Directorate Of Revenue Intelligence - India
- International Coal Ventures Pvt Ltd - India
- Merrill Lynch Commodities Europe
- Marubeni Corporation - India
- OPG Power Generation Pvt Ltd - India
- Borneo Indobara - Indonesia
- CNBM International Corporation - China
- The Treasury - Australian Government
- Videocon Industries ltd - India
- Heidelberg Cement - Germany
- Gujarat Mineral Development Corp Ltd - India
- LBH Netherlands Bv - Netherlands
- Kalimantan Lumbung Energi - Indonesia
- Vizag Seaport Private Limited - India
- Minerals Council of Australia
- Larsen & Toubro Limited - India
- CIMB Investment Bank - Malaysia
- Salva Resources Pvt Ltd - India
- Riau Bara Harum - Indonesia
- Energy Link Ltd, New Zealand
- Kartika Selabumi Mining - Indonesia
- Indika Energy - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Essar Steel Hazira Ltd - India
- Global Business Power Corporation, Philippines
- SN Aboitiz Power Inc, Philippines
- Price Waterhouse Coopers - Russia
- Directorate General of MIneral and Coal - Indonesia
- Manunggal Multi Energi - Indonesia
- The State Trading Corporation of India Ltd
- Economic Council, Georgia
- Global Green Power PLC Corporation, Philippines
- Samtan Co., Ltd - South Korea
- Kapuas Tunggal Persada - Indonesia
- Indo Tambangraya Megah - Indonesia
- Maheswari Brothers Coal Limited - India
- Timah Investasi Mineral - Indoneisa
- Sakthi Sugars Limited - India
- Bhoruka Overseas - Indonesia
- Coastal Gujarat Power Limited - India
- Dalmia Cement Bharat India
- GN Power Mariveles Coal Plant, Philippines
- Independent Power Producers Association of India
- Ambuja Cements Ltd - India
- ASAPP Information Group - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Georgia Ports Authority, United States
- Antam Resourcindo - Indonesia
- Bhatia International Limited - India
- Cigading International Bulk Terminal - Indonesia
- Meralco Power Generation, Philippines
- Edison Trading Spa - Italy
- Wilmar Investment Holdings
- GVK Power & Infra Limited - India
- Ceylon Electricity Board - Sri Lanka
- Kumho Petrochemical, South Korea
- GMR Energy Limited - India
- Energy Development Corp, Philippines
- Jaiprakash Power Ventures ltd
- Vedanta Resources Plc - India
- PetroVietnam Power Coal Import and Supply Company
- IHS Mccloskey Coal Group - USA
- Ministry of Transport, Egypt
- McConnell Dowell - Australia
- New Zealand Coal & Carbon
- TNB Fuel Sdn Bhd - Malaysia
- Bahari Cakrawala Sebuku - Indonesia
- Parliament of New Zealand
- Bukit Asam (Persero) Tbk - Indonesia
- Mintek Dendrill Indonesia
- Makarim & Taira - Indonesia
- Miang Besar Coal Terminal - Indonesia
- MS Steel International - UAE
- Romanian Commodities Exchange
- Ind-Barath Power Infra Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Cement Manufacturers Association - India
- Sree Jayajothi Cements Limited - India
- Trasteel International SA, Italy
- Xindia Steels Limited - India
- Singapore Mercantile Exchange
- Baramulti Group, Indonesia
- Madhucon Powers Ltd - India
- London Commodity Brokers - England
- Ministry of Finance - Indonesia
- Sojitz Corporation - Japan
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