Infospectrum Insights

At a recent shipping event a panel of highly experienced executives took to the stage, microphones in hand, to air their views on a number of topics that are considered prescient to the market today.

Resource scarcity, and the huge demand for raw materials generated by developed and developing economies, has given what's under our feet a strategic value attractive to citizens and politicians alike. To some, this is resource nationalism, to others, supply and demand economics and political posturing.

The US government has once again snared a “big name” in its efforts to effect regime change. However, what “real world” impacts will the Rosneft sanctions have?

The booming demand for LNG and large-scale construction projects worldwide can hide a potentially fragile supply chain of contractors, whose finances cannot support unpredictable changes in the development of these projects. The failure of these companies has a direct impact on subcontractors and suppliers in the shipping industry.

After the huge container sector consolidation of 2014-2017, which reduced the number of major operators to a relative handful, the expectation was that this would hand them genuine pricing power, give them a chance to regain profitability, and bring stability to this sector - reducing risk for other stakeholders. Has this actually happened?

As January closes and the abstemious sprint for the nearest bar and many brief flirtations with veganism end in steak frites, we have had at least 31 days to consider the impact of IMO 2020. Before the audible groaning starts, let me just remind you that here in the UK the 31^st January marked an even more auspicious/dreaded date, the commencement of the final chapter of Brexit. So if you think IMO 2020 is a bit stale, spare a thought for us Britons.

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.