Anatomy of Ship Finance

– Borrowing in uncertain times –

The World-wide pandemic threw shipping markets into turmoil but as the COVID-19 incidences have waned, many shipping markets performed strongly. Investment in ships, however, is a long-term commitment to the business. So where will owners find the money to finance those future vessel acquisitions? And what will the future hold: IMO 2030 and 2050 Emissions targets will alter the power trains of the future. How will the competing solutions be judged by owners and bankers?

While it may be obvious that the time to buy a vessel is when the values are low, it is also the time when the banks have a reduced appetite for lending. As commercial bank debt remains the main vehicle by which shipowners finance their fleets, how will owners bridge the gap between need and availability? What impact will ESG (Environmental, Social and Governance) and the Poseidon Principles initiatives have on the willingness of banks to lend to specific owners?

Bank lending, however, is only one of a number of alternative means to raise capital, most of which are investigated during the residential "Anatomy of Ship Finance" course. All of the major issues of ship finance will be covered by the lecturers, each of whom has considerable experience in the business. Designed to be thoroughly practical, the course is an ideal way to make new contacts whilst at the same time developing a deeper understanding of financing methods and industry practices. Issues to be discussed include:

  • What financial structure is best suited for different risk exposures?
  • What forms of security are required?
  • How will ESG policies change bankers willingness to lend to shipping?
  • Will the Poseidon Principles change the behaviours of shipowners and lead to an improved public image?
  • What protection do lenders have to avoid losses?
  • What happens when it all goes wrong?
  • What are the early signs of default?
  • What action should be taken and by whom?
  • How is the value of a loan recovered?
  • Where are there opportunities for investment?

The course has been further refined with the addition of a business game based on the relationship between a shipowner and a bank. The game deals with negotiation, credit risk, loan offers, client relationships and fleet expansion.  It consists of a series of dynamic responses to market driven events which include options to finance using different strategies and to choose how to deploy the fleet using a variety of chartering and S&P alternatives. Team competitiveness and a realistic set of parameters ensures that participants receive practical benefit from their given task.

Course information

30 June — 5 July 2024
Madingley Hall, Cambridge

Madingley Hall

Course fees

The current fee for this residential programme is £4,800 (£4,000 plus £800 Value Added Tax) which covers tuition, documentation, private en-suite accommodation at Madingley Hall, all meals and a social programme.

The course has given me an excellent insight into the process of ship financing as well as the mentality that a banker/financier and shipowner operate with.

Programme and Booking Form

To download a Programme and Timetable, Click Here

For a Booking Form,  click here.