Greek ship owners are still very keen to invest in dry bulk carriers, as 39% of them opt for this type of vessel, while an additional 28% is looking to invest in the tanker market. The three main shipping markets (dry bulk, tankers, containers) are accounting for 80% of the total preferences, while LNG/LPGs account for an additional 20% of the shipowners’ preferences.

At the same time, banks are more inclined to finance the acquisition of tankers, a clear reflection of their view of the market’s prospects, as opposed to just 12% of banks which would finance dry bulk carriers. These are some of the findings of a financing research conducted among Greek shipping companies (both listed and private), as well as among banks (both Greek and international) from XRTC Business Consultants.

At the same time, ship owners are looking to finance both newbuildings, as well as second hand vessels by 59%, with only 26% of them showing a clear preference towards secondhand ships. As far as banks are concerned, they are looking to finance both ship markets by 65%, while a further 23% of them are focused solely on newbuildings. However, two-thirds of Greek banks are looking to invest in secondhand vessels.

When it comes to determining the biggest peril for the global shipping industry, 73% of ship owners believe that tonnage oversupply is the No1 threat, acting as a major obstacle towards a healthy improvement of most major markets. Another 20% of ship owners are concerned about the prospects of the global economy. Banks on the other hand, are also primarily concerned about the tonnage oversupply (63%), while an additional 30% is worried about the world economy having a negative impact on shipping.

When it comes to financing, there’s still a small gap of expectations between ship owners and banks, according to XRTC’s research. A healthy 85% of ship owners are looking to get financing of between 50 ? 70% of a ship’s total value (51% falling into the 60-70% bracket). On the other hand, the majority of banks, i.e. 82% are willing to lend no more than 60% towards a ship’s value, with only 18% looking to finance up to 70%. According to XRTC’s analysis this difference reflects the fact that banks want less exposure to new shipping financing.

However, the Greek debt crisis doesn’t seem to have a significant impact in the shipping companies’ access to financing. Banks still believe that shipping companies can be granted new loans, but foreign banks, most notably from Germany, China and France appear to be more wary when it comes to the general economic situation of Greece.

At the same time, financing costs are expected to remain unchanged during 2015. More specifically, 47% of ship owners believe that costs will remain the same as 2014, while an additional 38% expects a fall, as opposed to 15% of owners who believe that financing costs will increase.

More or less, banks are aligned to that view, with 59% of the respondents stating that costs won’t be altered during this year, while only 12% of the banks think that they will be higher. More importantly, 29% of the banks thinks that 2015 will see a reduction of their margins in the shipping loan market.

When it comes to shipping loans’ desired duration, the two sides show their different approaches. Owners are looking for longer loans, while banks for shorter. According to the research, 61% of owners are looking for loans with a total duration of more than 12 years, while only 17% of them are ok with loans less than 10 years. By contrast, half of the banks prefer loans with a duration of less than 10 years, with only a third of them willing to shell out loans with a duration of more than 12 years.
(Source : Hellenic Shipping News Worldwide)