Ship Finance Forum at SMM

In spite of low newbuilding prices, the total number of ship orders is declining around the world. Financing difficulties are part of the problem, and new concepts are in demand to revitalise the market.

“In ship finance we have to address two separate issues, says Dr Max Johns, managing director of the German Shipowners Association (Verband Deutscher Reeder, VDR) and member of the Advisory Board of SMM. “On the one hand, we need to put the fleet in service on a more solid financial basis. After a five year double crisis, one affecting the financial, the other the shipping markets, that may be a tall order. On the other hand we need to finance new tonnage to be commissioned over the next few years. In the wake of the crisis, this often calls for new partners and new conditions.”

The motto of the event, ‘A New Beginning’, highlights the sense of anticipation growing in the industry. “SMM is a major technology trend-setter for the shipping industry. Johns adds. “We are dealing with enormous challenges, such as the emission control areas and the ballast water convention. After all, both of these challenges are associated with substantial capital investments.”

The SMM Ship Finance Forum will focus on three overarching topics. The first part will look at current developments in the German market. US investors are entering the German market in increasing numbers, primarily seeking to invest in newbuilding projects. Yet, conventional bank financing schemes continue to be in demand, as well. A Norwegian-German group of investors has established a new ship financing bank recently.

The second topical segment, titled ‘Shipyards: Financing Shipbuilding, Financing Exports’, will examine the efforts of many shipyards to finance exports. Part 3, ‘Global Financing Trends – Bonds, Leasing, IPOS’, will highlight alternative financing models in the market which compete with traditional schemes.