Articles

We keep our methodology as consistent as possible from year to year so that it is possible to create a time series of data, or to just compare one year’s winner to another. Even with this in mind, though, it is important to update the methodologies and improve them over time.

There are numerous ways to gain exposure to shipping risk and each of them has “pros and cons.” You can invest in public shipping stocks, betting on the direction of the company’s sector and fleet employment. Companies: Hunter Group ASA, DNB Markets, Fearnley Securities

Pelagic Partners (“Pelagic”) has been moving from strength-to-strength. The ambitious Cyprus-based asset manager already has a strong record and history in shipping investment funds, launching Pelagic Fund I in Q3 2020 (closed Q4 2021) which raised $60 million in assets under management (“AUM”). Excellent timing! Companies: Pelagic Partners, Fleetscape Capital, Oaktree, Lloyd’s List , EnTrust Global, Hudson Structured Capital Management, Northern Shipping Fund

The maritime industry has experienced a whirlwind of venture capital (VC) activity over the past five years. A sector dominated by large, capital-intensive players has found itself disrupted by the COVID-19 pandemic and upcoming decarbonization regulations, and in need of innovation which in turn triggered a surge in maritime startups. Companies: Maersk (Maersk Growth), Stolt-Nielsen (Stolt Ventures), Eastern Pacific Shipping (EPS Ventures), Lomar Shipping (LomarLabs), MOL (MOL Plus), Signol, TMV, Ultranav, OceanScore, Oceanis, Lloyd’s Register, Ocean Technologies Group, Oakley Capital, Flagship Founders, Studio 30 50

Over the past year, shipyard transactions have picked up pace. Between healthy commercial shipping markets and geopolitical tensions, shipbuilding capacity has become a significant focus across sectors. Companies: Jones Act, Harland & Wolff, Center for International Strategic Studies, Hanwha, Philly Shipyard, China State Shipbuilding Corporation (CSSC), China Shipbuilding Industry Company (CSIC), China Shipbuilding Group Corporation

Over the course of 30+ years, there have certainly been entire years of financial performance that the industry would prefer to forget, and there have been years when individual sectors might wish to do the same.

Banks and financial institutions located in the UAE and broader Middle Eastern region boast all the qualities of a good shipping bank, and maybe even more in some areas. Massive balance sheets, competitive terms, what more is there? Companies: Trafigura, Abu Dhabi Exports Office , First Abu Dhabi Bank, Natixis CIB , ADNOC L&S, Navig8, Arab Maritime Petroleum, Gulf International Bank , Foresight Drilling, Foresight Group, Abu Dhabi Commercial Bank, Alantra, Allianz Middle East Ship Management LLC, SHUAA Capital PSC, Euroseas, National Bank of Fujairah, Poseidon Principles

Plano, Texas-based Stonebriar Commercial Finance, an Eldridge Industries business, originating and servicing a portfolio of lease and loan products secured by essential income-producing assets across the credit spectrum, announced this week the closing of a $465 million loan facility for Nautical Solutions, L.L.C. Companies: Stonebriar Commercial Finance, Nautical Solutions, L.L.C., ABS, Tusk Capital Advisors LLC, Phelps Dunbar LLP, Baker Donelson

M&A activity throughout the year has been volatile, but overall, extremely active, as can be seen in the chart below compiling data of M&A deals that we have recorded throughout the year. Companies: MSC, Gram Car Carriers, Adani Ports, Astro Offshore, DOF, Maersk Supply Services, Oaktree, Regulus Offshore, Icon Offshore, Yinson Camellia , Yinson Power Marine, Yinson Production, Yinson Renewables, Yinson GreenTech, Farosson

Ship mortgage loan margins have been dropping; no one knows how far they will fall. As the table indicates, loan pricing has dropped from around 300+ basis points to below 200 basis points over the past 24 months. For English majors (like me) the math works like this: 100 basis points = $1 million less margin income on every $100 million debt. That’s a lot. Companies: Moody, S&P, Mercer, TPG Twin Brook Capital Partners, Goldman Sachs Asset Management, Ares Management, T. Rowe, Invesco, Franklin Templeton, Preqin, Bain, Blackstone, KKR, Carlyle, Ares

In April of 2024 the Fifth Circuit decision in Curtin2 shed light on what type of vessel modifications involving foreign made equipment can be done to a coastwise qualified vessel without causing the vessel to be deemed rebuilt foreign and thereby lose its coastwise endorsement.

There is no free ride for shipowners because different markets present different challenges. When the markets are lousy, the challenge is to have the courage to expand by making attractively priced acquisitions. Companies: International Seaways, Diamond S, Star Bulk, Eagle Bulk, Torm, Avance/BW, Pangaea/MTM, Pangaea Logistic, M.T. Maritime Management, DNB Markets, Seward & Kissel

Golar LNG (“Golar”) shareholders are in for a long and enjoyable ride. The company announced this week that it has entered into an agreement with CIMC Raffles to build an FLNG carrier for a total cost of $2.2 billion (plus financing costs). Companies: Golar LNG, CIMC Raffles , Pan American Energy, BP, CNOOC

As the weather begins cooling down, the opposite seems to be true of the bond market, in particular the Nordic bond market. Companies: Ocean Yield, Golar LNG, SFL, Arctic Securities, DNB Markets, SEB , Fearnley Securities, Pareto Securities, Clarksons Securities

The multi-year takeover battle between Fredriksen, Euronav, and Saverys culminated late last year in an elegant solution. It was agreed that Fredriksen would sell his stake in Euronav to the Saverys family for just over $1.1 billion. Companies: Fredriksen, Euronav, Saverys, Frontline, Hemen Holdings, CMB Leasing

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Between the intermittent news of a bank like Beal Bank/CSG Investments, you don’t see much in the way of a commercial lending deal for offshore assets nowadays. Companies: Beal Bank/CSG Investments, Foresight Group, Foresight Drilling, the Abu Dabhi Commercial Bank , Cosco, Oil & Gas Corporation of India , Stephenson Harwood , Norton Rose Fulbright , Alantra, Allianz Middle East Ship Management LLC, SHUAA Capital PSC

Boston University celebrated the launch of the Ravi K. Mehrotra Institute for Business, Markets & Society at the Questrom School of Business on Thursday, September 19, 2024.

Last week, we highlighted several hedge funds focused on shipping or related industries. What stood out to us wasn’t necessarily their performance—though most have enviable track records—but their uncorrelated returns relative to the broader market (as measured against the S&P 500). Companies: S&P 500, The Albemarle Shipping Fund, Albemarle, Medallion Fund

Just minutes after an earnings call, Ocean Yield ASA (“Ocean Yield”) announced their contemplated, and now successful, senior unsecured bond issuance of NOK 1,251 million (approximately $118 million) due September 2029. Companies: Ocean Yield ASA, Arctic Securities, Danske Bank, DNB Markets, Nordea, SEB, BAHR, Navigator Gas, CVC DIF, Geogas LNG, France LNG Shipping ASA, NYK, Totale Energie, EDF, KKR