Moore Stephens Recommends Exploring Leasing Solutions

MarineLink.com
Friday, April 26, 2013

International accountant and shipping adviser Moore Stephens said shipping companies should explore leasing opportunities as a way of adjusting their self-owned and chartered-in tonnage balance in response to the radical changes that have taken place in ship financing in recent years.



Phil Cowan, the firm’s Head of Corporate Finance, said, “The traditional thinking of a company needing to own all the resources it uses to operate has been successfully challenged for many years in the shipping industry by the use of extensive outsourcing. This has proved to be an effective way of improving efficiency and making better use of resources. But it could be argued that shipping still has something to learn from the aviation industry in this respect.



“Shipping and aviation are both capital-intensive, cyclical industries employing assets which have a long economic life. But whereas a well-established airline would probably own roughly a third of the planes it operates, and lease the rest, with about half of chartered-in aircraft typically under operating leases, shipping has not embraced the leasing concept to anything like the same extent. Of course ships and planes are very different, not least because ships are mostly tailor-made for the cargoes they carry. But leasing does offer some interesting opportunities for ship operators and Chinese lessors in shipping have developed rapidly over the past few years.”
 


In the latest issue of the Moore Stephens shipping newsletter, Bottom Line, Paul Chang, Managing Director and Global Head of Shipping at ICBC Financial Leasing Co Ltd, Beijing, said, “Professional operating lessors can offer a range of solutions to enable shipping companies to manage their balance sheets and capacity more effectively. The amounts currently being lent by banks for shipping deals are low, and loan profile and maturity have shortened. But with the correct leasing and finance structure, it is possible to put together a bespoke ship leasing and finance package. There are now 20 financial leasing companies backed by banks and large corporates in China, with more expected to be formed.”



Phil Cowan concluded, “Those considering leasing solutions for acquiring tonnage or restructuring existing tonnage ownership should seek professional advice in finding an appropriate financial leasing company with a successful track record.”

 

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter May 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

NASSCO Lays Keel for Jones Act Tanker Liberty

U.S. shipbuilder General Dynamics NASSCO hosted a keel laying ceremony on Thursday, May 26 for the Liberty, one of three new ECO Class Jones Act tankers under a

DSC Dredge Receives President’s E-Star Award

DSC Dredge, LLC, based in Reserve, La., has received the 2016 President’s “E-Star” Award for exports.   In a ceremony held on May 16, 2016, at the U.S. Department

TT Club Reports Robust Financial Results for 2015

TT Club has announced its financial results for the year ended December 31, 2015, and AM Best affirms its A- (Excellent) rating for the 10th consecutive year.   Knud Pontoppidan,

Finance

Defense Appropriations Bill Includes $1 Bln for US Icebreaker

The U.S. Senate Appropriations Committee’s FY2017 Defense Appropriations Bill has included $1 billion in funding to accelerate construction of a new polar icebreaker for the U.

Higher Capesize Demand Pushes up Baltic Index

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, rose on Friday buoyed by higher demand for capesize vessels.

TT Club Reports Robust Financial Results for 2015

TT Club has announced its financial results for the year ended December 31, 2015, and AM Best affirms its A- (Excellent) rating for the 10th consecutive year.   Knud Pontoppidan,

News

US Hospital Ship Aids South Korean Sailor

A U.S. hospital ship conducted a medical evacuation, or “medevac”, May 27 to assist an ailing Republic of Korea sailor aboard a Republic of Korea Navy (ROK-N) submarine.

Details El Faro's Sinking Emerge from US Probe

U.S. investigators on Friday concluded two weeks of hearings into the sinking of cargo ship El Faro in a hurricane last fall that included reports the vessel had

NASSCO Lays Keel for Jones Act Tanker Liberty

U.S. shipbuilder General Dynamics NASSCO hosted a keel laying ceremony on Thursday, May 26 for the Liberty, one of three new ECO Class Jones Act tankers under a

 
 
Maritime Contracts Maritime Standards Offshore Oil Pipelines Salvage Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1395 sec (7 req/sec)