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)

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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

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Hanjin Shipping in Receivership

On August 31st, 2016, Hanjin Shipping filed a receivership petition with Seoul’s Central District Court, and on September 6th, for Chapter 15 protection at US Federal Bankruptcy Court in Newark, NJ. Filings in approximately 45 jurisdictions worldwide, where Hanjin vessels trade, are expected to be filed in the very near term.

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Containership MV ‘Hanjin Monaco’ against the downtown Manhattan skyline in better days. Image credit: Karatzas Images.

With approximately 140 vessels under management, only 40 of which are self-owned and 100 chartered-in or leased, there have been serious implications for the market, at least in the short term. With only US$ 700 mil in equity, US$ 1.7 billion value of its fleet and $5.4 billion in outstanding obligations, the capital structure resembles a house of cards. The value of the cargo on-board of Hanjin’s vessels at the time of filing for receivership was estimated at $14.5 billion. The ensuing result has been a logistical nightmare, given all such cargo had contractual obligations to be delivered on time, but Hanjin’s vendors would not render any services unless they were getting paid in advance. Receivership and Chapter 15 can stop creditors from knocking on the door, but vendors would now perform only on cash basis payments. Hanjin’s financial nightmare has been compounded by the legal complexity of the business which is further compounded by the logistical complexity of the containership liner business. Only the fact that the containership market has appr. 25% capacity (which has caused Hanjin’s financial troubles in the first place) can alleviate concerns that Hanjin’s potential demise will no be a threat to the supply chain and international trade.

Hanjin’s filing has been front page news for the whole last week. Here’s a list of articles in the print, TV and radio coverage where Basil M Karatzas and Karatzas Marine Advisors & Co were quoted:

Moral Hazard Case Study: Hanjin Shipping                                                          Maritime Executive, September 6th 2016

Containers Stranded at Sea After South Korean Company Goes Bankrupt         NPR, All Things Considered, September 8th, 2016                                                    To Listen to the Audio Clip, Please Click here!  

Retailers Seek U.S Help With Shipping Crisis                                                            The Wall Street Journal, September 1st, 2016

Hanjin Shipping Bankruptcy Unlikely to Ease Gluts of Vessels                                    The Wall Street Journal, September 2nd, 2016

Shipping Chaos                                                                                                              The Exchange CBC News Canadian Broadcasting Corporation                                TV Interview, September 2nd, 2016

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Basil Karatzas on CBC News – The Exchange about Hanjin Shipping’s Receivership. Image credit: CBC

© 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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Media Mentions for Basil M. Karatzas (II)

The shipping industry has been making big waves of late. Unfortunately, this is mostly due to the weakest state that the industry has been in the last several decades: too many ships chasing too few cargoes (for dry bulk and containerships) while CapEx for offshore and drilling getting slashed worldwide, and tankers benefiting for now from OPEC’s (weakening) will to go after market share.

Since our last update a few months ago, Basil M Karatzas and Karatzas Marine Advisors & Co. have been quoted extensively in the business press about developments in the shipping industry. A short list of pertinent articles have been displayed herebelow. We thought that our readership and clients could get a summary report of the 10,000-ft issues that are driving our beloved industry:

Private Equity on Collision Course with Shipping Banks                                            IHS Fairplay, March 16, 2016

Chinese Shipping Majors Splash $2.5 Billion for 30 Giant Valemax Vessels              Wall Street Journal, March 10th, 2016

The article was re-published in the respected investment advisory Morningstar website under the title: Beijing Moves to Tighten Grip on Trade Route

Container Ship Capacity Growth Dips to Historic Low                                               EBN: The Premier Online Community for Global Supply Chain Professionals, March 8th, 2016

Algoma Pares Bulk-Commodity Freighter Fleet amid Shipping Slump                       The Globe and Mail, March 4th 2016

Commodity Slump Puts Dry-Bulk Shipping on Hold                                                    Wall Street Journal, February 21, 2016

Shipowners in Financial Distress as Dry Bulk Crisis Deepens                                    The Financial Times, February 7th, 2016

Indebted Chinese Companies Increase Pressures on Government                         The New York Times, January 17th, 2016

Cash Burning up for Shipowners as Finance Runs Dry                                               The Financial Times, January 3rd, 2016

Bloodbath_WSJ_Karatzas_IMG_6877

Quote from The Wall Street Journal; February 2016.


Copyrighted material. Copyright of articles belongs to the perspective publishers / publishing houses.


© 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.

‘Maritime CEO’ interviews Basil Karatzas, again

We have had the pleasure recently to have an exchange of ideas on market developments with the editors of Singapore-based ‘Maritime CEO’, an esteemed publication on international maritime matters with strong focus on the market developments in Asia, and specifically in China. Here are excerpts of our interview:

Karatzas Marine Advisors: ‘Many more ships are begging to be built’

New York: Shipping’s fragile recovery risks being rocked by a wave of new orders, while traditional shipowners are facing a severe funding gap, warns a leading New York-based ship wheeler dealer.

Basil Karatzas is the ceo of eponymous New York ship finance advisory Karatzas Marine Advisors, a regular voice in social media and across a broad range of shipping titles.

It’s not only tonnage demand concerns, but also tonnage supply issues that can limit upside potential for shipowners, Karatzas notes.

“With the forward orderbook getting thin for many yards,” he says, “a shipbuilding industry with effectively unlimited capacity to expand – at least for commoditised vessels like small dry bulk, with commodity prices falling like a rock – and thus lower steel plate and material cost, and newbuilding contract prices, combined with the appreciating value of the US dollar, many more ships are begging to be built; in a low interest rate environment and with many investors desperate for projects to invest, it will not take much to have another major wave of newbuildings.”

Karatzas feels the tanker market at present has gotten ahead of itself – the current rally unlikely to last more than a few months more.

Containerships, meanwhile, do not seem to have much to expect in terms of what Karatzas terms as “pure alpha” from a weak macro environment. “However,” he quickly adds, “absence of alpha does not necessarily mean lack activity in the market, whether consolidation, fleet expansion with bigger ships, etc, as the players in this market are preparing for the next battle.”

For dry bulk Karatzas reckons it is hard to see how the sector could get any worse. “By elimination, the market has to improve, but again, improvement is not always associated with strength,” he says.

Avoid newbuilds and buy secondhand, especially in dry bulk is Karatzas’s advice.

“Given our concerns on both tonnage supply and demand, ordering more vessels likely will not make for a profitable strategy,” he says. “Not only because shipping can ill afford more vessels to be ordered, but also newbuildings still cost too much and do not offer the best value proposition. However, we do think that there are business opportunities to start, grow and expand fleets with vessels in the secondary market.”

Such investment opportunities are all very well for those with ready access to capital, but this is something that is not so easy for the industry’s traditional owners these days.

“Banks implicitly discriminate against the smaller, traditional shipowners,” Karatzas says, “and they tip their hand towards the bigger owners with economies of scale and consolidated financials, critical mass and modern fleets, and encourage the prospect to be meaningful players in the industry for the decade to come, hopefully with prospects to grow and get bigger, and hopefully to access the capital markets and become public companies, if they are not already so.”

The traditional example of the shipowner borrowing from a bank with which they have done business in the past and have established a strong record or debt financing based relationship banking is getting to be a thing of the past, Karatzas reckons.

It’s not that banks have moved to the other extreme of the spectrum only and suddenly became too conservative, but that the new world of banking has changed; shipowners will be forced to change with it, there is little way around it, Karatzas thinks.

Nations such as Greece with some 1,000 owners will likely see a contraction in numbers.

Options for smaller owners are to put their own equity on the table, scale up, get financially sophisticated and look for new sources of capital through corporate finance, institutional investors, private equity and the capital markets. “This is not a turn of events that many smaller shipowners can afford, are willing or prepared to deal with,” Karatzas concludes.

Original text of the interview of the Maritime CEO can be found by clicking on following link: Karatzas Marine Advisors: ‘Many more ships are begging to be built’ 

The Maritime CEO had made us the honor to interview us in the past, in January 2014: Karatzas Marine Advisors: Owners must become more transparent and corporate 

Karatzas, Basil - Maritime CEO 2015

Basil M Karatzas, CEO of Karatzas Marine Advisors & Co.


© 2013-2015 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.

Media Mentions for Basil Karatzas

We are taking pride to always be up-to-date in our field of business , and, if possible, a little ahead, as once a successful executive at a well-respected company presciently said. At the shipping finance advisory and ship-broking firm Karatzas Marine Advisors & Co., we measure our success not only by the number and size of the transactions we work on and successfully conclude, the ships we finance and sell, the caliber of the shipowners and clients we work with, but also by the times we were honored to provide current market information, insight, opinion and counsel to maritime, finance and trade topics to highly respected publications.

A few articles of recent where Basil M. Karatzas and Karatzas Marine Advisors & Co. were in the press:

Quoting Basil M. Karatzas in the Logistics Report of The Wall Street Journal in ‘Today’s Top Supply Chain and Logistics News from WSJ’, for August 26th, 2015.

Quoting Basil M. Karatzas in The Wall Street Journal in ‘Europe-to-Asia Freight Rates Fall as Volume Forecasts Cut’, on August 25th, 2015. pdf version of article accessible by clicking on this link!

Quoting Basil M. Karatzas in Die Zeit Online (in German) in ‘Griechenland: Wenigstens den Reedern geht es gut’ on August 18th, 2015. In short, while Greece is doing badly recently, Greek shipowners seem to keep being world competitive in their field. Article title liberally translates ‘Greece: At least the Shipowners are doing well’.

Quoting Basil M. Karatzas in The Wall Street Journal in ‘Greek Shipping Industry Extends its Dominance’ on August 7th, 2015. pdf version of article accessible by clicking on this link!

Quoting Basil M. Karatzas in the Wall Street Journal in ‘Tide Turns for Greece’s Shipping Industry’ on July 22nd, 2015. pdf version of article (including chart on shipping tax regimes produced by Karatzas Marine Advisors & Co.) accessible by clicking on this link!


© 2013-2015 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.

2015 08AUG25 WSJ Europe-to-Asia Freight Rates Fall as Volume Forecasts Cut_HL

2015 08AUG07 WSJ Greek Shipping Industry Extends Its Dominance – WSJ_HL

2015 07JUL22 WSJ Tide Turns for Greece’s Shipping Industry_HL

Current Media Mentions for Basil M. Karatzas

Blue & Red ship reflection with pale yellow cranes_LR 2We are taking pride to always be up-to-date with our business , and, if possible, a little ahead, as once a highly successful executive of a top notch company presciently said. At the shipping finance advisory and ship broking firm Karatzas Marine Advisors & Co., we measure our success not only by the number and size of the transactions we work on and successfully conclude, and the caliber of the shipowners and clients we work with, but also by the times we were honored to provide current market information, insight, opinion and counsel to maritime, finance and trade topics to highly respected publications.

A few articles of recent where Basil M. Karatzas and Karatzas Marine Advisors & Co. were in the press:

Weathering the ‘sentiment storm’ in IHS Maritime Fairplay, March 2015.                         While in 2013 capital markets and institutional investors had shown strong for shipping, since late 2014, the ‘sentiment’ has turn diametrically, as Greg Miller of Fairplay explains.

Shipowners anchor themselves in debt markets, in The Financial Times, April 1st, 2015. With traditional shipping banks sailing away from the shipping industry, this capital intensive industry is looking for new sources of capital, including the public debt markets.

Ελκυστικα για τραπεζικα κεφαλαια τα πλοια μεταφορας υγραεριου, in ΝΑΥΤΕΜΠΟΡΙΚΙ (in Greek), March 31st.                                                                                                        The well-respected daily Greek business newspaper Ναυτεμπορικἠ, reports that shipping banks and capital markets show preference for gas tankers (LNG, LPG, ethane, etc) in a changing seascape for the industry. Information and data were partially based on reporting by Lloyds List and the Ethane & LPG Trading and Shipping Conference held in early March in London where Basil Karatzas was a presenter.

U.S. Crude Exports and the Tanker Market, in Tanker Operator, March 2015.                  The article, co-authored with Winston & Strawn partner Mr. Charlie Papavizas, briefly examines the requirements, viability and impact on the tanker market from potentially lifting the crude oil export ban in the US.

We are thankful for the trust placed in our firm’s expertise, knowledge and judgement in so many aspects of the shipping industry and by such well-respected publications and journalists. We are grateful indeed.

Rudder, Propeller, Red Hull_reflection LR


 

© 2013-2015 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.

2015 03MAR TO US Crude exports and the tanker market

2015 03MAR12 FAIRPLAY Weathering the ‘sentiment storm’_HL

2015 03MAR31 ΝΑΥΤΕΜΠΟΡΙΚΙ Ελκυστικα για τραπεζικα κεφαλαια τα πλοια μεταφορας υγραεριου

2015 04APR01 FT Shipowners anchor themselves in debt markets_HL

Sourcing Capital in Shipping

It’s a well known fact that the shipping industry can be affected from many, many variables to the extent that creating business models and projections has been equated to ‘modeling the wind’. Since 2008, when the market went into a tailspin, many factors have varied and changed within wide bands. China and Chinese economic growth, shipbuilding and shipbuilding capacity, banking and shipping banks, etc to name a few.

Access to capital for a capital intense industry like shipping is tantamount to oxygen in the water to sustain marine life. Many banks – the traditional source of funding for the industry – have been leaving the sector and the few remaining would only lend on new fundamentally-changed terms; new sources of capital have been entering the industry, but it is to be seen for how long and whether such ‘new found love’ is strategic or just opportunistic.

Singapore-based with strong Asia and China focus reputable shipping publications SinoShip and Maritime CEO have recently posed the question of sourcing capital in shipping in two recent issues. We are delighted and honored to have been quoted in their articles and their search for shipping capital!

Please see these ‘investment grade’ articles herebelow:

2014, March: Where the taps flow, republished from SinoShip

SinoShip_logo_MAR2014

2014, March: Maritime CEO – Penny for your thoughts, republished from the Maritime CEO

Maritime CEO logo_JAN2014

© 2013-2014 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.