Risky Business
Underwriting your newbuild program is only one half of the sea passage. That’s because the construction phase is fraught with danger. Congratulations! You’ve run the due-diligence/underwriting gauntlet successfully and now you have your lender’s credit approval in hand. You are satisfied with the terms and conditions of the loan or lease and the lender or lessor is happy with you. Don’t celebrate quite yet, though. You are only about half of the way home. Everyone knows that new and used tugs and barges, OSVs, crew boats or ferries don’t come cheap. It’s a double edged sword.
Industry Leaders to Meet in Dubai
With a weakening dollar, predictions oil could hit $100 a barrel, and a boom in multi-billion dollar refinery construction, finance and shipping leaders will be meeting in Dubai this November to assess the impact on the regional and global maritime industries. The Middle East shipping industry is dominated by the tanker trade. Bookings for supertankers sailing from the Middle East to Asia account for 47% of global demand for the carriers, compared with shipments to the US and Caribbean, the second-biggest market, which accounts for 14% of demand. The balance of supply and demand, in the tanker sector in the Middle East, will be part of a special Charterers Forum that will take place during the Middle East Money & Ships 2007 conference, from 4-5 November, at Mina a'Salam, Madinat Jumeirah.