This episode is brought to you by Wirana Shipping
Until the opening decade of this century, shipowners were among the chief beneficiaries of what was known at the time as ‘relationship banking’.
The market was dominated by a handful of British and German banks, who usually just allowed their ship finance teams to get on with it and didn’t ask too many questions.
It seemed that there were few problems that couldn’t be sorted out over a three-bottle lunch at a rather expensive restaurant.
If the top brass were ever sufficiently impertinent as to ask why leniency had yet again been extended, they were told they simply didn’t understand the cyclical nature of the shipping industry.
Then a bunch of derivatives traders came along and spoiled the party. In the wake of the global financial crisis of 2008 onwards, shipping loans could be bought for just cents on the dollar and bad shipping loans even forced a number of long-established banks to close their doors altogether.
Private equity rushed in and, by and large, lost its shirt. To repurpose the earlier euphemism, it simply didn’t understand the cyclical nature of the shipping industry and was never going to wait around long enough to get its money back.
While European banks still lend to blue chip shipowners, many smaller and medium-sized owners have turned to Asian, and especially Chinese, leasing companies to source their S&P needs.
For a while that worked, especially because the Asian lenders were politically mandated to keep domestic shipyard orderbooks as full as possible.
But even that arrangement has been under strain in the last 12 months, thanks to tariff and port fee tensions between Washington and Beijing.
So what happens now? If you need to borrow money next year, who is going to lend it to you and how much will you be expected to pay?
Joining David on the podcast this week are:
Stephen Fewster, global head of shipping finance, ING Bank
Pankaj Khanna, chief executive, Heidmar Maritime Holdings
Dimitris Karamacheras, partner, Hill Dickinson
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This episode is brought to you by Wirana Shipping
Until the opening decade of this century, shipowners were among the chief beneficiaries of what was known at the time as ‘relationship banking’.
The market was dominated by a handful of British and German banks, who usually just allowed their ship finance teams to get on with it and didn’t ask too many questions.
It seemed that there were few problems that couldn’t be sorted out over a three-bottle lunch at a rather expensive restaurant.
If the top brass were ever sufficiently impertinent as to ask why leniency had yet again been extended, they were told they simply didn’t understand the cyclical nature of the shipping industry.
Then a bunch of derivatives traders came along and spoiled the party. In the wake of the global financial crisis of 2008 onwards, shipping loans could be bought for just cents on the dollar and bad shipping loans even forced a number of long-established banks to close their doors altogether.
Private equity rushed in and, by and large, lost its shirt. To repurpose the earlier euphemism, it simply didn’t understand the cyclical nature of the shipping industry and was never going to wait around long enough to get its money back.
While European banks still lend to blue chip shipowners, many smaller and medium-sized owners have turned to Asian, and especially Chinese, leasing companies to source their S&P needs.
For a while that worked, especially because the Asian lenders were politically mandated to keep domestic shipyard orderbooks as full as possible.
But even that arrangement has been under strain in the last 12 months, thanks to tariff and port fee tensions between Washington and Beijing.
So what happens now? If you need to borrow money next year, who is going to lend it to you and how much will you be expected to pay?
Joining David on the podcast this week are:
Stephen Fewster, global head of shipping finance, ING Bank
Pankaj Khanna, chief executive, Heidmar Maritime Holdings
Dimitris Karamacheras, partner, Hill Dickinson
Shipping displays ‘immaturity’ in its response to cyber security threats
Lloyd's List: The Shipping Podcast
18 minutes 29 seconds
1 month ago
Shipping displays ‘immaturity’ in its response to cyber security threats
In this candid podcast, Bureau Veritas Marine and Offshore’s cyber security technical leader Panagiotis Anastasiou outlines his concerns about what he views as shipping’s limited approach to cyber security and a need for increased awareness of its importance.
His career-long knowledge and experience of cyber security arrangements in the aerospace sector — particularly with satellite technology — gives him an authoritative overview of cyber security and, for an industry that has autonomous vessels in development, he had expected to find shipping to be very advanced in its cyber security implementation and attitudes. Instead, he found that was not the case.
His remarks include an example of a recent incident in which a service provider’s systems were compromised, affecting at least 120 ships. The breach was subsequently repaired but the full story prompts Anastasiou to observe that “we fall in the same hole again and again”.
He says this is because of limited efforts to prepare for cyber security difficulties. In contrast to shipping’s approach, cyber security is the starting point when satellite systems are designed, he says. Controls, procedures and governance are built on that foundation, with ground infrastructure and component design following on. This approach should be common to all industries, including marine, he says.
He acknowledges that maritime regulations now apply to cyber security which make it mandatory to take precautions, but he believes that shipowners and their system suppliers should go further.
Attitudes must change
So, he explains in the podcast that attitudes must change and he outlines some ideas about how cyber security awareness could be strengthened by better – and repeated – education and cyber drills that are backed up by companies’ tested policies on how to respond to cyber security incidents.
He goes on to describe how a cyber attack on a vessel might be triggered by an attack on shoreside systems, given the growing connectivity between ship and shore and vice versa. Not only that, but the implications of a maritime cyber attack can extend far beyond the company itself, since any resulting operational delay could have an impact on an entire supply chain.
Class societies have addressed cyber security concerns by developing two Unified Requirements — UR 26 and UR 27 — and Anastasiou was a member of the International Association of Classification Societies (IACS) Cyber Systems Panel that developed them.
But he suggests in the podcast that these should be viewed as starting points for class societies to evolve requirements to match the pace of change in technology. As a response to his remarks, he encourages listeners to conduct internal assessments of their own cyber security and to reach out to their class societies for guidance to improve their resilience.
Lloyd's List: The Shipping Podcast
This episode is brought to you by Wirana Shipping
Until the opening decade of this century, shipowners were among the chief beneficiaries of what was known at the time as ‘relationship banking’.
The market was dominated by a handful of British and German banks, who usually just allowed their ship finance teams to get on with it and didn’t ask too many questions.
It seemed that there were few problems that couldn’t be sorted out over a three-bottle lunch at a rather expensive restaurant.
If the top brass were ever sufficiently impertinent as to ask why leniency had yet again been extended, they were told they simply didn’t understand the cyclical nature of the shipping industry.
Then a bunch of derivatives traders came along and spoiled the party. In the wake of the global financial crisis of 2008 onwards, shipping loans could be bought for just cents on the dollar and bad shipping loans even forced a number of long-established banks to close their doors altogether.
Private equity rushed in and, by and large, lost its shirt. To repurpose the earlier euphemism, it simply didn’t understand the cyclical nature of the shipping industry and was never going to wait around long enough to get its money back.
While European banks still lend to blue chip shipowners, many smaller and medium-sized owners have turned to Asian, and especially Chinese, leasing companies to source their S&P needs.
For a while that worked, especially because the Asian lenders were politically mandated to keep domestic shipyard orderbooks as full as possible.
But even that arrangement has been under strain in the last 12 months, thanks to tariff and port fee tensions between Washington and Beijing.
So what happens now? If you need to borrow money next year, who is going to lend it to you and how much will you be expected to pay?
Joining David on the podcast this week are:
Stephen Fewster, global head of shipping finance, ING Bank
Pankaj Khanna, chief executive, Heidmar Maritime Holdings
Dimitris Karamacheras, partner, Hill Dickinson