ShippingWatch

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.

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