Topical Insight and Current Developments in the Maritime Industry

Basil M Karatzas and Karatzas Marine Advisors Quoted in the News

We are delighted that Karatzas Marine Advisors & Co. and its founder Basil M. Karatzas have been the trusted and insightful source of market knowledge and intelligence for all things maritime; with prompt and accurate access to market information, a vast network of resources and paramount access to senior executives worldwide, in the shipping and complimentary industries, the company and its founding partner have had a front row seat to today’s developments in the maritime industry.

We always thought that we have had a strong advantage over the competition and nothing gives us higher pleasure than seeing our expertise appreciated beyond a constant deal-flow and boardroom discussions with our clients, and in the pages and the trust of the international business press.

Recent media quotations for Basil M Karatzas & Karatzas Marine Advisors:

Need help to buy a ship or jet? Credit Suisse looks to lure super-rich            (Reuters, November 6th, 2017)
This Reuters article explores Credit Suisse’s unique approach to shipping whereby only the top and wealthiest names in shipping that are worth of the bank’s prestigious private wealth management service can still obtain loans for commercial ships or a yacht or a jet… Smaller shipping clients of the bank, whether performing or not with their loans, are “encouraged” to take their business elsewhere.

Investment opportunities in shipping could perhaps be the best in over 30 years’ (Splash 24/7, October 17th, 2017)
“The prospects for dry-bulk have not looked so promising in some time now,” Basil Karatzas, a Splash columnist, said. However, Basil Karatzas qualified the statement by adding that “Hopefully the improved prospects for the market will not be another excuse to kill the market in the bud.”

How protectionism sank America’s entire merchant fleet                                            (The Economist, October 5th, 2017)
This year’s hurricane season and Puerto Rico’s predicament brought to the surface the politics and economics of the Jones Act market. Without necessarily taking a position on the matter, Basil Karatzas is quoted in the ever insightful and prestigious The Economist.

Shipping may gain from Mexico grain pain                                                                    (Lloyd’s List, September 22nd, 2017)
Anti-globalization talk is not always bad for shipping; counter-intuitive, but true. Just look at Mexico’s grain imports.

Shipowners Rejoice Over Rising Demand for Commodities                                      (The Wall Street Journal, September 22nd, 2017)
2017 has been good for the dry-bulk shipping industry. Not an exceptional year and actually the threshold was too low given the abysmal market in 2016. However, on the strength of commodities trading and importation, dry-bulk vessels, especially capesize vessels, have seen the market to quintuple.

Global Shipping Trends: China Cosco Buys Orient Overseas                                      (The Diplomat, August 16th, 2017).
An interview with Dr Mercy A Kuo and the esteemed publication The Diplomat, an international affairs magazine for the Asia Pacific.

China underlines shipping ambitions with $6.3bn takeover of HK group                (Financial Times, July 9th, 2017)
Commenting in the Financial Times on state-owned Cosco acquisition of Orient Overseas International (OOIL) in Hong Kong

China’s Cosco to Buy Shipping Rival Orient Overseas for $6.3 Billion                        (The Wall Street Journal, July 9th, 2017)
Commenting in The Wall Street Journal on state-owned Cosco acquisition of Orient Overseas International (OOIL) in Hong Kong

Trying to see through the fog…even from the shore, the sea can look overwhelming… but always a charmer and a generous giver to those who dare… Cape Cod, MA, USA Image credit: Karatzas Images

© 2013 – present Basil M Karatzas & Karatzas Marine Advisors & Co.  All Rights Reserved.

IMPORTANT DISCLAIMER:  Access to this blog signifies the reader’s irrevocable acceptance of this disclaimer. No part of this blog can be reproduced by any means and under any circumstances, whatsoever, in whole or in part, without proper attribution or the consent of the copyright and trademark holders of this website. Whilst every effort has been made to ensure that information here within has been received from sources believed to be reliable and such information is believed to be accurate at the time of publishing, no warranties or assurances whatsoever are made in reference to accuracy or completeness of said information, and no liability whatsoever will be accepted for taking or failing to take any action upon any information contained in any part of this website.  Thank you for the consideration.

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Basil Karatzas to Speak at Caymans Shipping Conference

We are delighted to confirm just ten days before the event, due to outstanding business obligations, that Basil Karatzas will be presenting that the 5th Cayman Islands Shipping and Yachting Summit hosted by Mare Forum on May 1st, 2017. The conference is held during The Cayman Maritime Week in George Town, Grand Cayman, Cayman Islands. The presentation by Basil Karatzas is expected to cover the expected implications on the shipping and maritime industries by the Trump Administration.

Part of working in the shipping industry! No complaints! Image credit: Karatzas Images

© 2013 – present Basil M Karatzas & Karatzas Marine Advisors & Co.  All Rights Reserved.

IMPORTANT DISCLAIMER:  Access to this blog signifies the reader’s irrevocable acceptance of this disclaimer. No part of this blog can be reproduced by any means and under any circumstances, whatsoever, in whole or in part, without proper attribution or the consent of the copyright and trademark holders of this website. Whilst every effort has been made to ensure that information here within has been received from sources believed to be reliable and such information is believed to be accurate at the time of publishing, no warranties or assurances whatsoever are made in reference to accuracy or completeness of said information, and no liability whatsoever will be accepted for taking or failing to take any action upon any information contained in any part of this website.  Thank you for the consideration.

Basil M Karatzas and Karatzas Marine Advisors Quoted in the News

We are delighted that Karatzas Marine Advisors & Co., and its founder Basil M Karatzas have become the contact to have for shipping market expertise; with prompt access to market information and a vast network and access to senior executives worldwide, in the shipping industry and several complimentary industries, the company has had a front row seat to today’s developments in the maritime industry and has been enjoying an active deal-flow and the trust of many in the shipping industry.

Five shipping and logistics influencers you should follow (Veconinter, March 13th, 2017)                                                                                                                            Basil Karatzas was named one of the shipping industry’s influencers by Veconinter, a Venezuela-based logistics company; tweets on shipping, and everything about it, by Basil Karatzas can be followed at @KaratzasMarine and @BasilKaratzas

Πήρε «φωτιά» η αγορά πλοίων μεσαίου τύπου για ξηρό φορτίο (Ναυτεμπορικἠ, March 14th, 2017)

ZIM Shipping Names New CEO in Face of Possible Sale (The Wall Street Journal, March 10th, 2017)

Gibraltar Shipping Interview: Basil Karatzas Talks Alternative Bunkers, S&P Markets, Vessel Financing, and Trump by Gibraltar Shipping (March 10th, 2016)

Ναυπηγήσεις – διαλύσεις, διπλή πρόκληση για τα bulk carriers (Ναυτεμπορικἠ, March 6th, 2017)

Still at sea Shipping’s blues: The many barriers to scrapping cargo ships (The Economist, March 2nd, 2017)

Σε «bad bank» το 5% του παγκόσμιου στόλου των containerships (Ναυτεμπορικἠ, February 15th, 2017)

Sinking Feeling: Shipping Is Latest European Banking Worry (The Wall Street Journal, February 10th, 2017)

From the crossroads to the world… Image credit: Karatzas Images

© 2013 – present Basil M Karatzas & Karatzas Marine Advisors & Co.  All Rights Reserved.

IMPORTANT DISCLAIMER:  Access to this blog signifies the reader’s irrevocable acceptance of this disclaimer. No part of this blog can be reproduced by any means and under any circumstances, whatsoever, in whole or in part, without proper attribution or the consent of the copyright and trademark holders of this website. Whilst every effort has been made to ensure that information here within has been received from sources believed to be reliable and such information is believed to be accurate at the time of publishing, no warranties or assurances whatsoever are made in reference to accuracy or completeness of said information, and no liability whatsoever will be accepted for taking or failing to take any action upon any information contained in any part of this website.  Thank you for the consideration.

2017 03MAR07 N Ναυπηγησεις-διαλυσεις, διπλη προκληση για τα bulker carriers

Basil M Karatzas and Karatzas Marine Advisors Quoted in the News

The shipping industry has been maintaining a very active profile in the mainstream international business press. Major bankruptcies, reorganizations, merges, vessel arrests and auctions are daily routine these days. Shipping banks, shipping loans actively and non performing loans (NPL) along with provisions are of concern or interest to many.  And, the  freight market that keeps surprising in terms of volatility.

We are delighted that Karatzas Marine Advisors & Co., and its founder Basil M Karatzas have become the contact to have for shipping market expertise; with prompt access to market information and a vast network and access to senior executives worldwide, in the shipping industry and several complimentary industries, the company has had a front row seat to today’s developments in the maritime industry and has been enjoying an active deal-flow and the trust of many in the shipping industry.

Dry-Bulk Shipping Owners Get Reprieve as Rates Rebound
(Wall Street Journal, November 24, 2016)

What Will Save the Shipping Industry? Eight Industry Thoughts Leaders Weigh In   (LLoyd’s List, November 17, 2016)

Taiwan Approves $1.9 Billion Aid Package to Troubled Shipping Companies
(Wall Street Journal, November 16, 2016)

Varsler shippinghavari (translated as ‘Warning Signs for Shipping’)
Dagens Næringsliv, (November 11, 2016 – In Norwegian)

Τα απόνερα από την εκλογή Τραμπ
(Η Ναυτεμπορικἠ, November 10, 2016 – In Greek)

Israel’s Zim Looking to Sell Most Global Shipping Operations
(Wall Street Journal, November 4, 2016)

Japan’s Largest Shipping Firms to Merge Container Operations
(Wall Street Journal, October 31, 2016)

Offen Group Selling Two MR Tankers
(Lloyd’s List, October 25, 2016)

Pressure on German shipping lenders unlikely to ease
(The Financial Times, September 21, 2016)

Guest Voices: Shipping Banks Face Sinking Prospects as They Postpone Reckoning
(Wall Street Journal, September 19, 2016)

It’s not over – Shipping industry adapting to difficult times
(Wärtsilä, September 12, 2016)

Shipping industry not buoyed by low fuel costs
(The Cayman Islands Journal, June 1, 2016)

mv-king-basil-10-bmk_2987

Aptly named containership vessel MV ‘King Basil’ departing the port of Piraeus. Image credit: Karatzas Images

© 2013 – present Basil M Karatzas & Karatzas Marine Advisors & Co.  All Rights Reserved.

IMPORTANT DISCLAIMER:  Access to this blog signifies the reader’s irrevocable acceptance of this disclaimer. No part of this blog can be reproduced by any means and under any circumstances, whatsoever, in whole or in part, without proper attribution or the consent of the copyright and trademark holders of this website. Whilst every effort has been made to ensure that information here within has been received from sources believed to be reliable and such information is believed to be accurate at the time of publishing, no warranties or assurances whatsoever are made in reference to accuracy or completeness of said information, and no liability whatsoever will be accepted for taking or failing to take any action upon any information contained in any part of this website.  Thank you for the consideration.

2016-11nov10-naftemporiki-%cf%84%ce%b1-%ce%b1%cf%80%ce%bf%ce%bd%ce%b5%cf%81%ce%b1-%ce%b1%cf%80%ce%bf-%cf%84%ce%b7%ce%bd-%ce%b5%ce%ba%ce%bb%ce%bf%ce%b3%ce%b7-%cf%84%cf%81%ce%b1%ce%bc

Lexis Nexis – Hanjin Receivership Free Webinar

Hanjin Shipping‘s filings in early September 2016, for receivership in South Korean court and subsequent filing for Chapter 15 protection in US federal bankruptcy court, have been making front-pages news even in general interest newspapers and media. The case revolves around logistical, legal and financial considerations interweaved perilously together and can potentially affect everyday life with peak shopping season soon upon us.

LexisNexis Legal & Professional is hosting a Free Webinar on the matter of Hanjin’s receivership addressing both legal and commercial issues of the case. The Webinar is held on Wednesday October 5th, 2016 at 15:00 hrs EDT.

Registration is fee and open to the general public. Entities interested in the case and its repercussions, whether they have immediate outstanding claims in the case or looking for general information on the case and the overall shipping markets are encouraged to register to attend.

We are delighted that Basil M Karatzas, CEO of Karatzas Marine Advisors & Co., has been invited to participate at the Webinar and address questions of commercial nature on the case and the overall shipping markets.

Mr Daniel Saval, partner with Brown Rudnick LLP, and holding substantial experience with Chapter 15 law, will be addressing legal questions during the session.

The Webinar will expertly be moderated by Ms. Danielle Bennett, Esq., Subject Matter Advisor on Banking, Finance and Restructuring with Lexis Nexis.

LexisNexis Legal & Professional is a leading global provider of content and technology solutions that enable professionals in legal, corporate, tax, government, academic and non-profit organizations to make informed decisions and achieve better business outcomes. As a digital pioneer, the company was the first to bring legal and business information online with its Lexis® and Nexis® services. Today, LexisNexis Legal & Professional harnesses leading-edge technology and world-class content to help professionals work in faster, easier and more effective ways. Through close collaboration with its customers, the company ensures organizations can leverage its solutions to reduce risk, improve productivity, increase profitability and grow their business. LexisNexis Legal & Professional, which serves customers in more than 175 countries with 10,000 employees worldwide, is part of RELX Group, a world-leading provider of information and analytics for professional and business customers across industries.

To Register for the Free Webinar, please click on the brochure herebelow and follow the instructions! We are looking forward to receiving the benefit of your participation at the event, on Wed October 5th, 2016, at 15:00 hrs EDT!

2016-hanjin-webinar-invite_lexisnexis


© 2013 – present Basil M Karatzas & Karatzas Marine Advisors & Co.  All Rights Reserved.

IMPORTANT DISCLAIMER:  Access to this blog signifies the reader’s irrevocable acceptance of this disclaimer. No part of this blog can be reproduced by any means and under any circumstances, whatsoever, in whole or in part, without proper attribution or the consent of the copyright and trademark holders of this website. Whilst every effort has been made to ensure that information here within has been received from sources believed to be reliable and such information is believed to be accurate at the time of publishing, no warranties or assurances whatsoever are made in reference to accuracy or completeness of said information, and no liability whatsoever will be accepted for taking or failing to take any action upon any information contained in any part of this website.  Thank you for the consideration.

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Karatzas Marine Presentation at 1st MareForum Shipping Conference, Panama City

Conference host and Market Research MareForum has hosted their 1st MareForum Shipping Conference in Panama City on June 24th, 2016, just two days before the official inauguration of the expanded Panama Canal. Basil M Karatzas has been honored to participate and present at the MareForum conference on shipping finance and the investment opportunities present in the industry, titled ‘An Anemic State of Shipping, A Plethora of Opportunities’. The presentation can  be accessed by clicking on the image of the Bridge of the Americas herebelow. Images from strolling Panama City and from the celebrations of the Panama Canal opening celebrations.

Panama Puente de las Americas BMK_0479 @

Bridge of the Americas (Puente de las Americas) straddling the Panama Canal by Balboa and the entrance to the Pacific Ocean. Image credit: Karatzas Images.

Varela_Panama_The Great Connection JUN2016

His Excellency, The President of the Republic of Panama Mr Juan Carlos Varela Rodríguez at the Presentation Oficial del Canal Ampliado (ATLAPA). Image credit: Karatzas Images

Karatzas & Varela Rodriguez IMG_4537

His Excellency, The President of the Republic of Panama Mr Juan Carlos Varela Rodríguez with Karatzas Marine Advisors & Co CEO, Mr Basil M Karatzas. Image credit: Karatzas Images.

© 2013 – present Basil M Karatzas & Karatzas Marine Advisors & Co.  All Rights Reserved.

IMPORTANT DISCLAIMER:  Access to this blog signifies the reader’s irrevocable acceptance of this disclaimer. No part of this blog can be reproduced by any means and under any circumstances, whatsoever, in whole or in part, without proper attribution or the consent of the copyright and trademark holders of this website. Whilst every effort has been made to ensure that information here within has been received from sources believed to be reliable and such information is believed to be accurate at the time of publishing, no warranties or assurances whatsoever are made in reference to accuracy or completeness of said information, and no liability whatsoever will be accepted for taking or failing to take any action upon any information contained in any part of this website.  Thank you for the consideration.

Presentation_1st Panama MAREFORUM_Karatzas F JUN2016

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Posidonia 2016 at BDI 600

The biennal shipping exhibition of Posidonia in Greece just ended with another stellar performance for the venue, with 22,000 attendees and 1,800 exhibitors from ninety (90) countries. In terms of attendance, it was up by 14% from another stellar year, in 2014. It’s nice seeing that even at challenging times, executives in shipping have a traveling budget, and seeing that Greece still manages to be stage the biggest exhibition of the industry.

Besides the big crowds and numbers, however, one could see signs of an industry that may be coming apart at the seams. Taking Yogi Bera’s quote at heart that ‘one can observe a lot by just watching’, the overall mood was mostly defined by the words not said, the parties not held, and the shipowners who didn’t show up at conferences before.

Just to provide some background, the Baltic Dry Index (BDI), assuming that’s the whole industry’s benchmark, can be encapsulated by the following table:

  BDI (MONTHLY AVERAGE)
JUNE 2008 10,500
JUNE 2010 3,100
JUNE 2012 950
JUNE 2014 910
JUNE 2016 610
KARATZAS MARINE ADVISORS & Co.

Apparently, the index has been at its worst at present, at Stygian depths, and one would expect that pain is widespread in the industry.

Posidonia and celebrating in Greece are defined by late night parties at fancy seaside clubs and locales, and day cruises on shipowners’ yachts. Overall, the party scene this year has been fairly subdued, and the abundance of previous years did not make it to this year. Some parties were missed due to consolidation (mostly of shipbrokers and advisors), while quality of food and keeping the bar open for the whole night were hard to come about this year.

Again, when the freight market has been so low, every dollar saved at sea and ashore can be crucial. Thus, many parties seem to have been hosted in the spirit of being ‘present and still in business’, vs trying to convey the message that times are great.

IMG_2566The formal conferences and debates during the day had been dominated by discussions about the historic strength of the shipowning market and the industry, and the promise that there will be better days. Private equity funds and shipping banks took some beating for being the main cause of tonnage oversupply in the past, at least in the opinion of a few shipowners and advisors, which seems to be the theme of recent, at other shipping conferences too; that financiers have been the main culprits of the crisis, trusting with too much money the shipowners – at least, that’s how we understood it.

IMG_2591Several major shipowners claimed loudly that the market is a screaming buying opportunity, especially for dry bulk, and vessels are now historically cheap. China’s performance notwithstanding, it has been claimed there have been plenty opportunities for growth worldwide, from India to Africa, plus several potential causes for military actions (wars and volatility are traditionally good to shipowners); this is what it has been said, honestly. But again, for a couple of these shipowners, they have been noticeable in the shipping market by their absence, as they have not bought any ships in the last couple of years. And, there have been swirling rumors that a couple of these very same shipowners live at the mercy of their lenders, so it may make someone wonder whether they were dispensing wise advise or talking their books. For full disclosure, we are of the opinion that certain market segments are strong buying opportunities (for details, please inquire within), thus a bullish opinion is not necessarily un-qualified just because these owners have not acted on their own market assessment.

Bankers and financiers seemed to have been in season this year, as again, they got blamed for not financing vessels now that prices are historically low. Definitely there is some truth to it, as banks and financiers used to be much looser with financing vessels at much higher asset prices (but also freight rates), but now, with the exception of a handful of shipowners and corporate credits, it seems that shipping is an un-bankable industry. We have written about this topic in the past in this post, as this is to be a ‘complaint’ of many smaller and still well-capitalized owners, who happen not to check all the boxes in today’s world for shipping finance.

There is no doubt that shipping assets are cheap, as freight rates are low and there is a tremendous still outstanding orderbook (10-30%, depending on the asset class) of a relatively brand-new existing world fleet. Cheap assets may proffer a great investment opportunity given the motto ‘buy low, sell high’, but the ‘runway’ required for a cheap asset to appreciate may be detrimental to the survival of many shipowners and investors. And, quite frankly, there is a lot of junk that has been floating around that is passing around as legitimate tonnage (mostly bulkers built at ‘greenfield yards’ in the boom years of the cycle), and these vessels most likely will prove to be the graveyard of many an un-sophisticated shipowner and institutional investor.

And, as great and exciting shipping is, we all have to keep in mind that it’s a derivative industry, it derives its business and strength when charterers more cargoes, whether raw material, finished products, and crude oil and energy. As romantic as ships may be, they only make a good return when underlying industries and countries are doing well. And, taking a broader view of the world, one has to be careful: just this week, the OECD lowered its forecast for economic growth to 1.8% and 2.2% for 2016 and 2017, respectively (from 2% and 2.2%, updated just in February, 2016). For what it’s worth, a bellwether institutional investor, George Soros, has been in the news just this week, as he sees clouds on world’s macro-environment, and has started placing bearish investments by going long on gold. Just because Mr. Soros sees trouble ahead it does not mean that shipping investors should be running for the exits, but again, it’s tough to be getting too excited. And, further, it has been reported that central banks now are sitting on US$ 10 trillion of asset that are bearing negative interest rates (NIRP); negative interest rates have not been implemented on such massive scale before, and while it’s hard to predict how this will end up, it’s abundantly clear that central banks are running of options to stimulate growth, once again, a bearish notion to shipping.

Switching view outside economics, one can see that there has been a wave of protectionism and nationalism circling our planet, from the referendum about Brexit in the UK to building ‘yuge’ walls in the US, to imposing tariffs on China for ‘dumping’ steel in the international markets. As said, shipping is a derivative industry that needs cargo to move in order to prosper, and as skeptical we are that protectionism will take roots, one has to be concerned that that the overall frame is for more barriers than fewer barriers to trade.

IMG_2159Traditionally we have found Posidonia to be one of the most optimistic shipping conferences worldwide, with lots of high energy, excitement, vivacity and execution. In our opinion, this year the mood was bordering to pessimistic as people were very concerned with current developments: weak freight rates and low future expectations, complete lack of financing (with a few exceptions – once again, please inquire within), possibly a China that will be experiencing a harder landing than expected, plentiful of new-buildings on default and bleeding shipowners. And, for execution, just one major transaction was announced during the Posidonia out of Greece, worth just a billion of dollars.

And, taking a broader look at the Greek economy and society, the pain has been even deeper than in shipping. The honeymoon is over with the Tsipras / Syriza government and strikes are getting to be a daily fact of life, endless traffic jams reminding of capitals of ‘emerging economies’, and fruitless efforts of the Greek government to tax their way out of the crisis instead of attempting to increase the tax base by cutting down on the red-tape and stimulating entrepreneurship.

As always, there has been little sense of order or effort to change things.

Possibly, the best line of Posidonia 2016 came at the British Ambassador’s Residence hosting a reception for the shipping community; when time came to re-fill glasses with wine, people were queuing neatly to the bar, which made a Brit in attendance to comment: “You know you are on British soil when people queue to the bar!” It was an astute observation we had missed. And, there was another line to the sushi buffet the next night at the Japan Ship Export Association Reception hosted by the Japanese Ambassador to Greece. Quite frankly, these were the only two lines we experienced in Greece during our ten-day Posidonia attendance; everywhere else was less of an order…

But again, as once said by a shipping executive, ‘shipping is not a team sport.’


An edited version of this article has previously been appeared on the Maritime Executive website.


© 2013 – present Basil M Karatzas & Karatzas Marine Advisors & Co.  All Rights Reserved.

IMPORTANT DISCLAIMER:  Access to this blog signifies the reader’s irrevocable acceptance of this disclaimer. No part of this blog can be reproduced by any means and under any circumstances, whatsoever, in whole or in part, without proper attribution or the consent of the copyright and trademark holders of this website. Whilst every effort has been made to ensure that information here within has been received from sources believed to be reliable and such information is believed to be accurate at the time of publishing, no warranties or assurances whatsoever are made in reference to accuracy or completeness of said information, and no liability whatsoever will be accepted for taking or failing to take any action upon any information contained in any part of this website.  Thank you for the consideration.

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