Infospectrum Insights

While the rise and rise of Chinese leasing companies has stolen the headlines, the Japanese Operating Lease with Call Option (JOLCO) has been gaining popularity as a means of financing  and refinancing vessels in recent years. In this article we explore the basic structure of a JOLCO, the reasons for the rise of JOLCO structures in the maritime sector, as well as the risks associated with this form of alternative financing.

The most troublesome challenges facing risk management professionals can relate to market trends or changes that count against a counterparty, regardless of how well-established, or how professional, the counterparty is in its chosen activities.

A key part of our due diligence process, particularly in the presence of dated financials (or the complete absence of financials as is often the case), are the dynamics of the markets to which the counterparty is exposed. Due to its many challenges, the dry bulk sector one of our key markets. Our analysts have put together a festive prediction for 2020 below.

Hong Kong’s weary citizens went to the polls this weekend after enduring months of civil unrest and tension. And voting patterns, which indicate support for further political reforms and concessions, tend to suggest that head-on confrontations with Chinese authorities will continue. The island state’s troubled experience this year has made it the main focus of attention for trading and shipping companies anxious about rising sovereign risks. But, it is by no means alone.

This month we were in conversation with Crystal Chan, Senior Analyst at Infospectrum’s Singapore office. She shared what it’s like working in shipping along with how the industry has evolved since her career began. Read on to learn more.

We've spent a long time talking about liquidity demands in the bunker sector. The challenges faced by ship operators, which we've discussed in earlier blogs are not dissimilar. The failure of a number of small and large-scale ship operators in 2019 has shone a light on how reliant ship operators are on access to funding. 

Last month’s drone strike on Saudi Arabian oil production facilities demonstrated once again how global oil supply can be vulnerable to political risks.

This month we were in conversation with Efthymios Yfantis, Senior Analyst at Infospectrum’s London office, who shared what it’s like to work in shipping along with his industry predictions for the year ahead.

Having sharpened its game against a number of small targets dealing with Syria, North Korea and Venezuela, the United States Government pulled out the big guns last week, with the implementation of sanctions against a member of one of the world's largest shipping companies.

IMO 2020 seems to be providing oil majors and refiners with huge opportunity to return to being a force in retail bunkering. Let's hope they are up for it.