Articles

You might not know it in light of news coverage of the world’s logistical challenges, but the movement of goods is not limited to the East/West trades. There is also a very important North/South trade which does not receive much recognition.

It is blatantly unfair to refer to Costamare Inc. as a mouse, but with its preference for maintaining an extremely low profile, like its principal, one often loses sight of the company amongst its more publicly focused peers.

In its recent earnings presentation, BW LPG highlighted the upsizing of its existing $221 million facility with a $40 million sustainability-linked loan to finance the retrofitting of four dual-fuel LPG propulsion engines.

Last week, Fred. Olsen Windcarrier ASA (“FOWIC”) announced that it was postponing its initial public offering (“IPO”) on the Oslo Stock Exchange. It became apparent during the book building process that market conditions for IPOs were severely impacted, not at least by geopolitical tensions.

On Monday, Hafnia Limited announced that it had entered into a $414 million Sale and Leaseback Facility (“Facility”) with ICBC Financial Leasing Co., Ltd. to finance its acquisition of 12 LR1 product tankers from Scorpio Tankers Inc.

Buoyed by a booming container market and an asset light model, ZIM Integrated Shipping Services Ltd. (“ZIM”) posted remarkable results for Q4 2021 and the fiscal year.

Data-sharing could unlock billions of dollars in commercial benefits for shipping as well as accelerate decarbonisation. But legacy systems and a restrictive mindset are hindering the industry’s digital transformation and stalling the vital transition to an API economy seen in other industries.

Last week, Seanergy Maritime Holdings Corp. reported that it had entered into a definitive agreement with a reputable Japanese lender to refinance the loan facilities secured by the 2012-built Capesize M/V Partnership through a sale-and-leaseback structure with the vessel chartered back on a bareboat basis.

On Tuesday, KfW IPEX-Bank announced that it is providing a EUR 29 million loan for the financing of three 4,250 dwt ECO cement carrier newbuildings for Eureka Shipping Limited.

Shipping companies generally issue preferred shares for three basic reasons: (1) they need the cash; (2) their balance sheet can’t support more cheap debt; and (3) their share price is so low that issuing common equity would be unduly dilutive to shareholders.

While keeping a low profile, Japan has historically been a key source of lease financing beginning with the Shikoku owners and lately extending to JOLCO financings.

With today’s roiled markets comes opportunity especially for those who have cash and are not too worried about what’s ahead. For Dampskibsselskabet NORDEN A/S this was a moment to buy back its bonds cheaply.

While the pandemic is still exacting a toll, although an end appears in sight, it seemed that inflation was the next major battle to be fought. Little did we know that Russia would decide the time was ripe to expand its borders and invade Ukraine. As one would expect, it was risk on.

We have reached the end of the earnings reporting season with most, if not all, the public shipping companies reporting their results for the 4th quarter and year-end 2021. In reviewing these reports, we gleaned a common theme. Instead of reporting new financings, the emphasis was on debt repayment, refinancings to increase liquidity, and a newfound preference to incorporate revolving credit facilities, a new “best practice” given the flexibility they offer.

The dramatic reversal of fortune in the long-beleaguered container shipping industry has been nothing short of remarkable — and there is no example more stunning than the performance of Zim’s 2021 IPO and subsequent secondary offering.

Saying these are challenging times is an understatement. The demand side of the equation in the best of times is uncertain and unknowable today. Owners are taking comfort in the orderbook which today is filled with containerships and LNG carriers. Not exciting for those sectors but comforting to tanker and dry bulk owners.

The strong containership market continues, and Global Ship Lease (“GSL”) has made the most of it, as highlighted in its recent earnings call. In addition to generating strong results, returning capital to shareholders, adding substantial contract coverage, and acquiring new tonnage during the year, the company continues to sculpt its balance sheet.

KISS, an acronym for “keep it simple, stupid,” is a design principle noted by the U.S. Navy in 1960.

And it is a happy one. Last week, portfoliomanagement (“pm”), the winding-up agency of the City of Hamburg and the State of Schleswig-Holstein (“Shareholders”), announced that it has sold the last large shipping loan portfolio secured by 56 ships to a bidding consortium comprising Bank of America and Davidson Kempner Capital Management LP.

On November 24th, 2021, Höegh Autoliners, one of the leading global operators in the car carrier shipping segment, completed a landmark private placement of NOK 1,365m (USD 135m).