Ship Finance: Where is the Money?

By Greg Trauthwein

While capital for the maritime industry remains tight, lenders insist that funding is available for well- managed public companies. At the 17th Annual Joint Shipping Conference held at the Waldorf Astoria Hotel February 8, 2011 - a conference co-sponsored by the Hellenic-American/Norwegian-American Chambers of Commerce - finance leaders addressed the question of capital availability.

"There is a flight to quality," said Martin Lunder, SVP, Nordea Bank. "The window is open, but the mesh is really tight."

Proof is the value of industry deals through Nordea Bank over the past three years, from $30b in 2008 to $8b in 2009 to $15b in 2010.

"Existing companies with a track record have the best access today," said Ted Jadick, president & CEO, DnB Nor Markets. "Availability is limited, but it's there for proven entities."

Regarding market specific outlooks, Wiley Griffiths, executive director, Morgan Stanley, summarizes: "The tanker market is a very tough market right now; containerships still have some upside; and drybulk is a bit of a wildcard, strong on the demand side but everyone is worried about the orderbook."