Infospectrum Insights

We've covered the impact of the recent dry bulk market movements on the operating sector in our recent article, but there are some market participants whose model ensures money is made in any market by walking away from commitments.

Is it business as usual for ocean carriers as they continue to buy large vessel assets? In a rapidly changing market, it is important that shipping lines have sufficient liquidity to pay for assets that some would argue are, in certain cases, not even required.

Over the past ten years, legal and regulatory bodies — particularly in the United Kingdom and the United States — have enhanced their expectations of compliance risk management.

Heads I win, tails you lose. That has been a tacit suggestion at some stage from companies that have sat in the dry bulk operating space for any period of time in the past 30 years.

2019 is likely to bring about major changes to our industry, with almost all of our client base impacted in some form by Brexit and IMO 2020. With demand for our services at an all-time high, we have invested in our team and new office locations. 

Bunkering has always needed finance to cover expansion and bridge cash flow gaps in a notoriously liquidity-demanding sector, and banks have often been keen to provide it. While the impacts on the multiple unfortunate creditors of the recent collapses in Singapore's bunker sector are known, the indirect impact may be more significant — it may undermine confidence in the sector at a time when the bunkering industry seeks liquidity in the run-up to 2020.

This week's Insight has come from one of our new colleagues and industry veteran Neil Dekker, formerly of Drewry and the Informa and Safmarine groups, who has covered the liner sector for over 25 years.

This week's Insight has come from Infospectrum alumnus Ian Staples, now a Global VP at Inchcape Shipping Services, who has been keeping an eye on movements in the VLCC sector.

Infospectrum is seeing an increase in the number of occasions its clients are being asked to pay third parties for goods or services, i.e. to pay a party with whom they have not contracted. Such requests are most commonly made in relation to payment of freight or bunkers. This article explores the underlying motivations as to why a client may be asked to pay a third party and the possible legal ramifications.

The International Energy Agency called the International Maritime Organization’s (IMO) 2020 global sulphur limit ‘easily the most dramatic change in fuel specifications in any oil product market on such a large scale’. How will the regulation impact the marine industry’s risk management landscape?