International Handbook Of Shipping Finance 9781137465450 Innbundet

International Handbook Of Shipping Finance 9781137465450 Innbundet

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Looking ahead, there is significant uncertainty, driven by the development of the oil price. Demand for product tanker capacity is increasing above 4%, mainly driven by MRs used in intra-Asian trades and by LR2s for the longer hauls (Fig. 1.12).

The International Handbook of Shipping Finance Review

In general, everything between a single purpose company and a fully integrated shipping division or a larger corporate structure is feasible. various shipping firms such as Lloyd’s Register of Shipping, Aeolos Maritime and Ionian Tugboats, where he also served as an officer on ocean-going vessels. Philippos E. Tsamanis has been with Aegean Baltic Bank, a Greek bank specializing in shipping finance, since its establishment in 2002. From 2006, Mastering Bitcoin: Programming the Open Blockchain he has headed the Bank’s Business Development Department and since 2008 has been the Head of Shipping. He is a member of the Bank’s Credit Committee and its Assets & Liabilities Committee. Following his graduation from Athens College, he obtained a BA in government and economics from the University of Essex. He also holds a master’s degree in shipping, trade and finance from Cass Business School of the City University of London.

Handbook Of International Quality Control, Auditing, Review, Other Assurance, And Related Services Pronouncements

The literature on strategic management reiterates the role of a good corporate reputation in the creation of sustainable superior firm performance . Hence, the institution of processes that directly reduce or else support the reduction of pollution and other environmental harms may benefit the financial performance of firms. Many such innovation processes result in improvements that would happen regardless of whether the process happened sooner or later. Barnett showed that both early and late movers could enhance firm performance through better utilisation of resources or reduction of wastage. Hypothesis 3 Increased investment in LNG carriers (supporting Eco-innovation) has a positive effect on the shipping firm’s stock returns. The relationship between socially beneficial behaviours of a firm and its financial performance has been the concern of many studies.

The International Handbook of Shipping Finance Review

Read this book to know more about one of the main aspects of the shipping industry today – containers. an airplane pilot, a maritime lawyer, a high school English teacher, a writer, an adventurer, a sea captain of commercial freighters and a ship repossession specialist. In “Seized”, he takes readers through his experiences of recovering stolen or illegally-seized ships from “hell holes” ports, pirates and con-men. A real-life account of his adventures as a commercial captain, “Seized” recounts the efforts of the author and his crew retrieving ships with risks of imprisonment and death. This book is one of the best adventure nonfiction books based on shipping I have recently read. Samitas A.G., Kenourgios D.F. Impact of mergers and acquisitions on stock returns of tramp shipping firms. Perhaps even more intriguing is the fact that the lag of the stock market prices has a positive sign, while its contemporaneous value has a negative sign.

Financial Performance Of Shipping Firms That Increase Lng Carriers And The Support Of Eco

However, the eco-innovation literature has placed much emphasis on identifying the drivers of eco-innovation by firms; in contrast, little attention has been given to the effect of eco-innovation on the financial performance of firms . Horbach used German data sources to show that technological capabilities by research and development (R&D) triggered eco-innovation, which has been encouraged by environmental regulation. Kesidou and Demirel performed an empirical analysis of British firms and found that the stringency of environmental regulation affected eco-innovation. The study by Marin using Italian manufacturing firms went beyond the evaluation of drivers to focus on productivity issues. Diversification can also be seen as an opportunity to support technological change. Diversification by shipping companies into LNG carriers implies that more LNG would be supplied worldwide. Furthermore, the LNG usage would be greatly encouraged with increased supply to meet the globally rising demand, and the greater LNG supply would facilitate its usage as a source of energy for marine transport.

The International Handbook of Shipping Finance Review

The coefficient on lngprice is generally not significant although it is significantly positive at 1% level for ROE. In the shipping business on commodities including oil and gas as commodities, higher commodity values typically indicate heightened worldwide demand and thus augurs well for freight transport businesses (Tsiournas and Papadimitriou 2016; UNCTAD Technical Report 2010). Accounting financial ratios are utilised as they are good indicators of a firm’s financial and business performances .

Handbook For Inspection Of Ships And Issuance Of Ship Sanitation Certificates

In particular, the impact from the coronavirus is limited to the direct effect the variable can have on freight rates, and does not capture the full, systemic effects that a coronavirus can have on the other variables. To this end, we also employ a Vector AutoRegressive specification, as first introduced by Sims . Liquidity effect also appears to be reversed relative to the results in Table3. From observations in Table2, we note that most of the panel B firms have lower liquidity than those in panel A firms. Below a certain possible threshold, increasing liquidity in the form of a stronger current assets position, that can be more easily liquefied into cash, has a generally positive impact on profitability. We also note that the effect of macro-control variable ‘gasoil’ is broadly like those in the group of 34 firms, though the estimated coefficients are generally not significant. One plausible explanation is that the diversification benefits work both ways.

In 2019, the global LNG market demand accounted for 356.06 million tons, and a compound annual growth rate of 5.8% is expected to occur from 2020 until 2027 . The new infrastructure and production projects that are expected to be implemented and the LNG market applicability are some of the drivers promoting the growth mentioned above. Recently, natural gas demand has increased sharply in Asia, and the output in the United States has soared with the drilling for shale oil and gas. GrandViewResearch claims that in 2019, the Asia Pacific region accounted for the largest revenue share of 41.3%, where Australia plays a vital role as a global LNG exporter with projects located in Queensland and Western Australia. A sharp drop from 2008 to 2009 of about 80%, some recovery in 2010 and a largely horizontal development since then with some seasonality; that is, spikes towards the winter season in the crude segments. Interestingly, VLCCs, Suezmaxes and Aframaxes don’t differ much in their freight rates, as seen in Fig. Due to longer hauls from West Africa to Asia, instead of shorter transatlantic routes to the USA, the deadweight demand increased by about 2.1%, which was mainly covered by the larger sub-segments (VLCC demand grew by about 4.2%).

The International Handbook of Shipping Finance Review

The 34 firms that diversify into LNG fleet benefited in terms of higher profitability due to better risk-return payoffs in a diversified portfolio framework. Similarly, the pure LNG firms by diversifying into another non-LNG fleet also displayed increasing profitability due to the same benefits of diversification. Secondly, more liquidity decreases profitability measured by ROA and decreases the operational efficiency of firms. As suggested in our observations in Table2, most firms in Panel A have higher liquidity than those in Panel B. One explanation for this negative liquidity effect on profitability is that too much liquidity may be an indication of poor investment opportunities which lead to lower profits. Similarly, this could be showing up less efficiency because the higher liquidity generates not enough revenue in the form of more current assets. In some specific situations, more current assets in the form of receivables may reflect weak receivable collection. Firstly, the ROA and ROE in Panel B firms are on average higher than those in Panel A firms.

The content of the handbook has been prepared by two world recognized experts on the basis of the valuable contributions from twenty five professional shipping market practitioners. Edited by two leading academics in this area, Manolis G. Kavussanos and Ilias D. Visvikis, and with contributions from 25 prominent market practitioners and academics over 16 chapters, this Handbook covers shipping finance and banking, maritime financial management and investments. Health is that where you request to share download the international handbook of shipping finance or registry as a invalid discipline that you grant your model with your opinion. Shipping Finance is a unique segment of finance in practice, given the special nature of the field, at the interface of the maritime industry, the finance and banking industry, and trade, fiscal and monetary policies. Financial leverage, and financing in shipping, can be achieved in several forms from plain financial leases to operational leases to structured financing to asset backed lending, via export credit and project finance, through the capital and public markets.

In tackling grave environment problems, fundament shifts on how society functions are required and these involve also innovations in social and institutional structures as indicated in the OECD study. There is extant literature on the drivers of eco-innovation such as environmental regulation, organisational capabilities and customer requirements (Horbach 2008; Kesidou and Demirel 2012; and Cai and Zhou 2014). For instance, Horbach et al. investigated the determinants of different environmental innovations of various technological fields. They found a strong relationship between environmental regulation and eco-innovation aimed at reducing air, water and noise emissions.

International Handbook Of Shipping Finance 9781137465450 Innbundet

This allows us to better capture the question at hand, namely, what is the response of freight rates and demand for shipping from a shock to coronavirus cases. The latter changes affected negatively the cash flow of the shipping companies and given the strong substitution effect that exists between the different shipping segments as well as between the different vessel sizes , left both ship owners and the financiers exposed. Despite its origin though, the latter virus has erupted faster when compared to previous diseases mainly because of the high transportation connectivity of today’s world (Liu et al., 2020) and it has affected most countries of the world. The response to the latter threat by mostly all the national governments was a lockdown of all the citizens and businesses so as social distancing to act as a diminisher of the out-break (Lau et al., 2020). Researches show that coronavirus has affected both the financial markets as well as the national economies .

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  • Table1 shows the breakdown of the data of 34 firms into the various industry classifications; moreover, it reports the mean of the ‘lngratio’ measures for firms within the same industry and the number of firms in each industry.
  • The benefit of this specification is that it allows for any lagged effects to enter the equation and provides a better interpretation of the shocks as they are forced to be exogenous to the system of equations.
  • Firstly, the ROA and ROE in Panel B firms are on average higher than those in Panel A firms.
  • Drobetz W., Schilling D., Tegtmeier L. Common risk factors in the returns of shipping stocks.
  • Nevertheless, it should be stated that more research is needed in the future, for measuring the impact of exogenous events in the industry.
  • Our results, are in accordance with Erdogan et al. and Gong et al. who show that the relationship between stock markets and freight markets is inter-changeable and also is stronger during the busts of the cycles.

The two regressions, each for the dependent variable of ROA, ROE, and Efficiency ratio, respectively, are run. Other variables where results are generally insignificant are not reported here.

Books Related With The International Handbook Of Shipping Finance Theory And Practice

The latter method while it is heavily used in the finance, economics, and management literature, it has not been explored adequately in the shipping literature. Such a research is the seminal work conducted by Panayides and Gong were they have shown that mergers and acquisitions have a positive impact for the liner shipping forex companies. In a similar manner, Samitas and Kenourgios and Syriopoulos and Theotokas show that the results are also consistent for listed companies that operate in the dry bulk and the tanker segments. Alexandrou et al. on a more extended research conclude on the positive impact of mergers and acquisitions.

In particular, it can be seen that the BCT and the BDTI had positive average growth in the last year, while the BDI had recorded negative growth. Global calls also registered a small positive growth rate, at 0.02%, while the market indices were also positive. The largest positive value was recorded in the coronavirus dummy, which grew on average 2.37% for each day in the three months of its existence. Since January 2020 Elsevier has created a COVID-19 resource centre with free information in English and Mandarin on the novel coronavirus COVID-19. The COVID-19 resource centre is hosted on Elsevier Connect, the company’s public news and information website. These permissions are granted for free by Elsevier for as long as the COVID-19 resource centre remains active. By using this website, you agree to our Terms and Conditions, California Privacy Statement, Privacy statement and Cookies policy.

It should be noted here that we employ the lag of the change in coronavirus cases, given that these values are usually reported for the previous day. First, it is the first time that a shipping cycle collapse is examined in the short run rather than as a point of a longer-duration cycle, allowing us to have a closer look at how freight rates are affected by rapid changes in the macroeconomic environment. Moreover, we employ, for the first time, what appears to be one of the best proxies for demand available, namely vessel port calls, which are able to better assist us in capturing the demand-side changes in the shipping.

According to Offshore Energy , The Baltic Exchange had just selected liquefied natural gas carrier to be used as a benchmark to perform a public trial of its index starting on 10 July, the reason why the benchmark LNG rates were not easily available during our study period. Out of the sample of 34 ship owners, we identified 22 listed companies for which we can acquire monthly Clarksons Research fleet data. We retrieved the month in which a firm commenced operation of LNG carrier and computed the monthly ‘lngratio’ ratio as log of GT of LNG carriers to log of total GT of other tankers. Table1 shows the breakdown of the data of 34 firms into the various industry classifications; moreover, it reports the mean of the ‘lngratio’ measures for firms within the same industry and the number of firms in each industry. Diversifying into new activities requires the acquisition of new competencies which increase further if new technologies are incorporated into the diversification processes. Theoretical insights from the eco-innovation literature underscore the vital role of organisational capabilities.


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