Long-term Asset Strategy for Shipping Conglomerate
A major shipping conglomerate aimed to expand its capacity in 3-5 years. Our insights into the Newbuilding market guided their asset allocation strategy, aligning with market conditions.
Asset Strategy
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CASE STUDY
Long-term Asset Strategy for shipping conglomerate
Situation
A major shipping conglomerate, with significant operations in all key shipping segments, was considering expanding its transport capacity over a 3 to 5-year period. The choice of investing in new buildings, acquiring second-hand assets, or resorting to time charter largely hinged on market opportunities, strategic goals, and opportunities for optimization in buying and chartering decisions.
Approach
We assisted in developing a comprehensive understanding of the Newbuilding market, demand sources, capacity access, and typical Newbuilding price drivers. These drivers encompass global trade data, regional demand, global fleet levels, yard capacity, utilization levels, currency exchange rates, commodity prices, and global freight levels (including futures). This consolidated understanding allowed for anticipation of potential Newbuilding price trends.
Result
Our recommendations aligned with the existing market conditions, enabling the executive team to identify which drivers to focus on for their asset allocation decisions over the next 3-5 years.
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The Shipping Collective ApS
c/o Valcon
Meldahlsgade 5
1613 Copenhagen
CVR no. 42799556
The Shipping Collective operates in compliance with industry standards and regulatory guidelines. For inquiries or more information, please contact us via our contact form or schedule a call.