Bimco: Equity funds limit shipping companies’ room for manoeuvre

The economic crisis has dried up the traditional sources of capital in the shipping industry, the banks, and given room for seed capital.

The long-running economic crisis and the big need for cash flow in the shipping industry have forced shipping companies away from the traditional bank loans into the arms of funds offering seed capital.

“When investment companies enter the shipping industry, the shipping companies get a very active investor which is clearly different from taking in a traditional bank loan. The company is no longer in a position to manoeuvre freely when going from having a “capital supplier” – the bank – to at capital investor who is the new owner and is certain to have a plan with his or her investment”, chief analyst in Bimco, Peter Sand, says.

Already a subscriber? Log in.

Read the whole article

Get access for 14 days for free.
No credit card is needed, and you will not be automatically signed up for a paid subscription after the free trial.

  • Access all locked articles
  • Receive our daily newsletters
  • Access our app
An error has occured. Please try again later.

Get full access for you and your coworkers.

Start a free company trial today

More from ShippingWatch

IKEA stops chartering container vessels

IKEA will no longer lease space on board container ships to have its products brought to shelves across the world, the global furniture group confirms. But the company is trying to avoid congested ports.

Latest news

See all jobs