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"Where in the world is NYMAR?" Contest Can you guess where NYMAR was last sighted? NYMAR Interviews Publisher Jim Lawrence For the past 25 years, Jim Lawrence has made his mark in the maritime community with his Marine Money- the Journal of Ship Finance, International Ship Registry Review, MTI Network and his guidance of the Connecticut Maritime Association. Dahlman Rose Indices Dahlman
Rose & Co has agreed to provide NYMAR
readers with its Dry Bulk Shipping and
Tanker Shipping Indices. Monthly
News Maritime Industry Foundation unveils new look Shipping tries to stay afloat
'Swine flu' cruise ship blocked from Caribbean ports
Kenya charges 17 Somalis with piracy New York Harbor School Graduation to be Held on Governors Island Marine Money Anticipating Large Turnout in New York Financial
Performance Charts Taste of NYC | Events & Entertainment Upcoming
events & entertainment in the Big Apple. |
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There is a good face and a bad face to our industry and whilst at NYMAR we do much to champion and be a shameless cheerleader for our sector we must face the facts that the industry still has much work to do in the public eye to earn the respect and confidence of the investment public.
We have made great strides over the past ten years and from a personal standpoint I am proud to sit on the boards of three public companies that each in their turn have strived to be the best in class in terms of governance and transparency- as well as performance.
This, alas, is not always the case and much of the negative perception of our industry comes from mainstream newsmedia who are able to identify some of the inherent flaws in our industry.
Last week, Jim Cramer of NBC's, equally heralded and maligned, “Mad Money” promoted his CEO Hall of Shame – yes Shame, not Fame..
Alas, among the not surprising heads of Chrysler and other symbols of the American capitalistic fall from grace, was one maritime CEO- George Economou of Dryships - www.cnbc.com/id/31174332/
At the time of going to press the results of the voting were not complete – although George was running in 4th place (out of 15) with about 6% of the votes cast, it is clear that our industry has much to do in terms of cleaning up it's act in the public markets.
NYMAR will continue to be a leading champion for the industry and continue to be the advocate of transparency and good governance. If we are to attract the necessary capital to this industry – and with the commercial banks being as stingy as Charles Dickens' Mr Bumble and the shipowners crying like Oliver Twist for more, the need for fresh capital is abundantly evident.
We can only hope that proverbial bad apples do not spoil the Big Apple.
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Email your responses to info@nymar.org. Send your photo to Carleen at info@nymar.org and we will feature it in the next issue! |
Check out where NYMAR has been sighted!!!
For the past 25 years, Jim Lawrence has made his mark in the maritime community with his Marine Money- the Journal of Ship Finance, International Ship Registry Review, MTI Network and his guidance of the Connecticut Maritime Association. NYMAR caught up with Jim on the eve of his ever-successful Marine Money Week being held in New York June 23-25th at The Pierre.| NYMAR: | Jim, 25 years ago you had the vision to create a publication about ship finance--Marine Money. What was your original goal of that vision, and has it been realized? |
|---|---|
| Jim: |
Shipping was struggling out from under a decade long slump, the dollars involved in shipping were growing larger each year, a new generation of industry leaders were graduating from university and graduate schools and the vague notion of a global economy with capital flows circling the globe were all coming together in way which seemed to warrant coverage and appreciation of ship finance in a publication.
We always wanted to celebrate the achievements of a community of people, leaders in the business of ship owning and ship finance, and there seemed no better way than to take a serious and smart look at the people and transactions that were changing an industry. They are fascinating people engaged in a global business and New York was the place to do it with its deep pools of risk tolerant capital and thoughtful banks and investment banks. We are still celebrating the industry's achievements and contributions to global trade today. I want to add right away, that I did not do this myself. I have had enormous help from my brothers, my partner Matt, editors like Alan Ginsberg, Urs Dur, today George Weltman, and Rodricks Wong and Nora Huvane. And on the important conference side Mia Jensen and Kevin Oates, Mike McCleery, Lorraine Parsons, and so many others…I am truly fortunate. |
| NYMAR: | How has your readership changed over the years? |
| Jim: | It's gotten younger, which is cool, and what we had always expected.
I will say that it did take a few years longer than I expected at the start for parents of successful shipping companies to turn over responsibilities to their talented children, but it has happened. Today every shipowner in the world acknowledges that their company's capital structure is critical, and there is a world of finance talent out there working daily to finance shipping one way or another. Those are our readers. |
| NYMAR: | From a ship finance perspective, what do you feel are the most profound changes in the past 25 years? |
| Jim: | The dollars involved are larger and the transactions are more complex. It is also truly a global industry. Ships have always traded around the world but today capital is global too. An important foundation though remains. What has always been a hallmark of this business – relationships; those still matter deeply. |
| NYMAR: | What about the past five? |
| Jim: | Shipping's increased participation with the public equity markets obviously stands out the most. But an IPO is just the start, follow ons, secondaries, public debt, leasing, the focus on creating value and sustaining growth, the transparency, analyst coverage, investor relations, size and nature of credit facilities, currency and other hedging products – they are all related and all stem from the increasing sophistication and dollar size of the business. |
| NYMAR: | In today's market condition, what is the most important survival strategy during this period? |
| Jim: | Cash. More seriously, doing everything possible to strengthen one's balance sheet, so everything from managing the cost side of the business to exploring every possible way to strengthen one's finances. |
| NYMAR: | Looking into your crystal ball, where will our industry be in two years? |
| Jim: | Serving global trade in ever more environmentally friendly ships and providing returns to shareholders, both public and private alike and to its financiers. There will be some losers as there are in any recession, but the skills that it takes to operate a ship or determine an asset value and credit quality are very special so I believe that even the recession's victims will return to prosper again. |
| NYMAR: | The capital markets have taken a hard hit in the past year. What sort of a recovery do you see, and to what levels? |
| Jim: | It is a cyclical industry and what we have seen in shipping parallels other cyclicals, whether commodities or airlines. Last year shipping's Total Return to Shareholders fared worse than the S&P 500, but investors are smart. And many made a ton of profits before that. The industry needs to not look backwards but forwards, and they are. Smart investors will again see the value in shipping either because of management or simply as a proxy for a recovering globe, then watch out! |
| NYMAR: | What do you think are the sentiments of the first-time public players in this period? |
| Jim: | It looked easy but turned out to be hard work. I am not smart enough to generalize as they come in so many sizes and shapes, but I think most would agree that there will always be an important part of our business that the public markets will fill and that therefore understanding that element of the capital food chain and working with it is valuable. |
| NYMAR: | The IPO window has been closed for awhile. Under what conditions will it reopen, and who might access it? |
| Jim: | If I knew the answer to that...market sentiment will at a moment in time suddenly say that values are properly aligned, there will be some rays of light on the state of the global economy, and momentum will swing back to where the window is open. The fact that ATMs are working for some owners indicates that at a price public equity is willing. |
| NYMAR: | In the banking realm, what are the medium and long term impacts on shipping? |
| Jim: | Again, I am not smart enough to really grasp the subtleties of bank accounting so I may be naïvely optimistic that banks and their owner clients will work through the asset value realignment without horrendous pain. Historically when banks and borrowers work through their issues with trust, values do recover. But there are some who say it will be a painful end of the year. I hope not, these are after all real friends. |
| NYMAR: | When do you believe credit will loosen for shipping? |
| Jim: | Probably not until the former question's challenges are more fully worked out. If I were a bank I'd be saving some of my cash until I am sure those problem loans are sorted out first. That said there are pockets of cash at banks not so troubled that are being put to work, at rates even the most conservative banker might be satisfied with. And again relationships, strong, long term relationships where trust is abundant, there is money for those. |
| NYMAR: | Next week is your 22nd Marine Money Conference in New York. What do you feel are the most compelling reasons for attending this year? |
| Jim: | Transaction development, networking and personal relationships and of course intelligence. It is deeply satisfying that so much goes on around the event itself and our greatest hope is that it all works for everyone. We will have close to 1000 guests so it is a vibrant marketplace. |
| NYMAR: | What deals do you expect to be done in the hallways at this conference? |
| Jim: | Lots. That is why we all gather. |
| NYMAR: | Over the past 25 years, what has been your most gratifying accomplishment? |
| Jim: |
A very smart private equity principal once told a college friend of mine, not knowing that friend knew me, that ‘Marine Money had in a way invented ship finance.' Having that relayed to me meant a great deal of course, as it was not said directly to me.
But the best parts are the friendships and successes of so many around the world and the respect and admiration I have for the Marine Money team. |
http://www.dahlmanrose.com/indices
SMA Elects New President, with updates on arbitration in New York
Last month, the Society of Maritime Arbitrators elected a new President—Austin Dooley. One of Austin's first tasks was to respond to last month's article on arbitration 10 years ago, and provide an update to NYMAR readers on what it looks like today
(see the update here). A fuller interview with President Dooley will be in next month's issue. Stay tuned!!!
Maritime Industry Foundation unveils new look
Maritime Industry Foundation has provided NYMAR with a screen shot if its Knowledge Centre website (click here to see the screenshot). Check out the full site at : http://www.maritimeindustryfoundation.com.
The Hebei Two – Captain Jasprit Chawla and chief officer Syam Chetan – have finally been freed by a South Korean court after being found not guilty of causing destruction of property for their involvement in the country's worst oil spill. The two seafarers will return to India in the next few days after being detained in South Korea for more than 18 months since their tanker Hebei Spirit was hit by a drifting crane barge on December 7, 2007. (Lloyd's List)
By Anthony Hilton, Evening Standard
Published: June 10, 2009, 00:04
When the world economy tanked last year and global trade juddered to a halt, nothing fell further or faster than freight rates in the world shipping industry.
And within that mix of container lines, tankers and dry bulk cargoes such as iron ore, it was, not surprisingly perhaps, this last one that fared worse. In little more than six months, it fell by more than 90 per cent.
Now, however, it is well off the bottom. Iron ore is moving again, as are other bulk commodities, as global industry picks itself up off the floor and begins a tentative restocking.
But don't get too excited. Most of these cargoes are heading for Asia as China, in particular, benefits from a massive and unprecedented domestic economic stimulus.
It is an encouraging sign, but after a long cold winter any sign of spring is encouraging and we know from long experience in this country that warm spring is no guarantee of a decent summer. That said, you would expect the shipowners and charterers at least to take comfort from what is going on.
But if that is what you expected you would be wrong. At the Baltic and International Maritime Council (Bimco) shipping conference in Athens this week, where owners, users and builders meet, the mood was one of continued gloom. It turns out that of all the industries in the world facing problems of overcapacity in the face of declining demand, none is in worse shape than shipping.
The motor industry may be on its knees, the airlines flying half-empty and the leisure industry wondering where the next customer is coming from, but shipping has an overcapacity problem worse than anything in the past 50 years. Even in bulk freight they are gloomy.
Rates have indeed hardened, they say, but in a few months' time there will be so much new capacity launched that they will fall back down again.
This may not happen, of course, but it is easy to see why they might think it would. In that brief period of ultra-low interest rates and rocketing world trade which seems from another age but was only two years ago, freight rates went through the roof. This sparked off a collective loss of reason in the industry, which led to a rush of new ordering the likes of which the world has never seen.
Whereas before the decision to order a ship was a laboriously thought-through process, with owners all too aware of their vulnerability, the cyclicality of the industry and the scarcity of finance, this time the new entrants thought it would be different.
Shipping to them was just another asset class, a bet on the world economy and an income stream the financial models said could only go one way. The result was an over-ordering of all kinds of ships, all to be paid for some time in the future with credit from the limitless pockets of the banks.
Even in containers, where the freight-rate boom was far more muted, the collective insanity took hold.
Container ships currently on order will add 50 per cent to global capacity, at a time when half the existing fleet is under five years old and therefore too young to consider scrapping and when, for the first time in living memory, freight rates have turned negative.
In tankers, where new rules will demand an end to single-hulled vessels in the belief that double-hulled ships will be less vulnerable to oil spillages in an accident, the picture is similarly bleak.
All the single hulls in the world could be scrapped this year and there would still be overcapacity. And don't set your hopes too high on the recent fillip in the oil price indicating rising demand. Oil stocks currently are so high it will take two years of Opec cuts, if it can make them stick, just to work through the surplus.
And now, slowly but relentlessly, by the millions of tons, ships are being built in the yards of China, Korea and Japan, often financed by government bailouts. There is no market for them, no cargo for them, no money to pay for them and nobody wants them, but the build goes on and will continue for the next three years unless someone loses their nerve, faces up to reality, and cancels.
Yet it does not happen. Collectively the industry is waiting for someone else to make the first move or for world trade to bounce back and the banks to start lending again.
Instead we have a limbo, a phony reality, with ships sailing at half speed round the world to spin out journey times, with oil tankers acting as mobile storage vessels, and with 500 container ships already laid up with nowhere to go. The industry will surely soon have to face restructuring, bankruptcy and pain.
If no one moves to take the hit and cancel the orders already placed in the world's shipyards, new deliveries will shortly add between 30 per cent and 40 per cent to capacity in bulk carriers, in tankers and in container ships.
What on earth will they do with them?
Ships are slowly being built but there is no market for them, no cargo for them, no money to pay for them and nobody wants them. (Gulf News)
'Swine flu' cruise ship blocked from Caribbean ports
Fears that another cruise ship has been struck by swine flu are mounting after it was blocked from entering two ports this week. Royal Caribbean's Adventure of the Seas is making a seven-night tour of the Southern Caribbean and was this week denied entry at St Lucia and Antigua. Two members of the crew and one passenger have reportedly displayed flu-like symptoms. Chief executive officer for the Antigua and Barbuda Tourism Authority Colin James told cruise website CruiseCritic.co.uk that despite three people being isolated and treated in Barbados, the ship was stopped from visiting St Lucia.
(The Daily Mail)
Kenya charges 17 Somalis with piracy
Kenyan prosecutors charged 17 Somali men with piracy on Thursday, a day after the U.S. Navy handed them over to authorities there. There are now 111 suspected pirates being held in Kenya, and police say the influx is clogging jails and courts. Local Muslim leaders say Kenya should not be used as a "dumping ground" and foreign navies should take charge of the people they arrest. Prosecutors told a court in the port city of Mombasa that the 17 men were arrested as they attacked the Egyptian-flagged merchant ship MV Amira. (Washington Post)
New York Harbor School Graduation to be Held on Governors Island
The Urban Assembly New York Harbor School is getting ready to graduate another class of seniors on June 26th. This year's graduation ceremonies will be held on Governors Island, and will be the first big activity for the School at what will soon be their home.
Marine Money Anticipating Large Turnout in New York
The gathering of ship finance, including current market intelligence, the latest from the sources of funds, asset acquisition opportunities, connecting with deals and new ideas, will be happening all in one location in one week at The Pierre Hotel in New York where the principals of the international ship owning and finance communities gather for Marine Money Week, June 23-25.
Visit: http://www.marinemoney.com/forums/MMWeek09/mmweek2009.html to learn more about the event and to register.
Shipping
Company Performance Chart (NYSE)
(source: NYSE)
| Symbol | Company Name | Price 5/12 USD | Price 6/11 USD | % Chg | Current Mkt Cap ($mm) | Exchange |
| BOL-FR | Bollore (Financiere de L'Odet) | $98.30 | $97.00 | -1% | $3,372 | EN Paris |
| VPK-NL | Koninklijke Vopak NV | $34.22 | $36.00 | 5% | $3,164 | EN Amsterdam |
| TDW-US | Tidewater Inc | $46.26 | $51.30 | 11% | $2,593 | NYSE |
| FRO-US | Frontline Ltd. | $22.50 | $28.45 | 26% | $2,210 | NYSE |
| KEX-US | Kirby Corporation | $32.59 | $34.69 | 6% | $1,898 | NYSE |
| DSX-US | Diana Shipping, Inc. | $15.20 | $16.18 | 6% | $1,318 | NYSE |
| TK-US | Teekay Corporation | $15.68 | $23.48 | 50% | $1,532 | NYSE |
| NAT-US | Nordic American Tanker | $36.08 | $33.66 | -7% | $1,437 | NYSE |
| SMIT-NL | Smit Internationale NV | $40.05 | $44.90 | 12% | $1,125 | EN Amsterdam |
| GLF-US | Gulfmark Offshore Inc. | $28.58 | $31.61 | 11% | $808 | NYSE |
| ALEX | Alexander & Baldwin, Inc.* | $23.02 | $26.48 | 15% | $1,066 | NYSE |
| ANW-US | Aegean Marine Petroleum Network, Inc. | $15.75 | $17.11 | 9% | $683 | NYSE |
| CMB-BE | Compagnie Maritime Belge | $20.66 | $24.69 | 20% | $1,216 | EN Brussels |
| OSG-US | Overseas Shipholding Group Inc. | $34.02 | $43.29 | 27% | $1,111 | NYSE |
| EURN-BE | Euronav NV | $12.05 | $14.61 | 21% | $1,064 | EN Brussels |
| SSW-US | Seaspan Corporation | $5.99 | $7.33 | 22% | $478 | NYSE |
| TGP-US | Teekay Lng Partners L.P. | $17.74 | $19.18 | 8% | $706 | NYSE |
| SAGA-FR | Saga S.A. | $45.90 | $53.99 | 18% | $449 | EN Paris |
| TNP-US | Tsakos Energy Navigation Ltd. | $20.00 | $21.29 | 6% | $767 | NYSE |
| GNK-US | Genco Shipping & Trading Limited | $19.00 | $26.08 | 37% | $783 | NYSE |
| GMR-US | General Maritime Corp. | $10.24 | $10.81 | 6% | $585 | NYSE |
| SFL-US | Ship Finance International Limited | $11.27 | $13.03 | 16% | $949 | NYSE |
| EXM-BE | Exmar NV | $10.00 | $10.27 | 3% | $516 | EN Brussels |
| NNA-US | Navios Maritime Acquisition Corporation* | $9.17 | $9.32 | 2% | $294 | NYSE |
| NM-US | Navios Maritime Holdings Inc.(Marshall Islands) | $4.15 | $4.91 | 18% | $482 | NYSE |
| TOO-US | Teekay Offshore Partners L.P. | $13.57 | $13.86 | 2% | $272 | NYSE |
| DAC-US | Danaos Corporation | $4.15 | $3.95 | -5% | $210 | NYSE |
| KSP-US | K-Sea Transportation Partners L.P. | $17.99 | $20.88 | 16% | $326 | NYSE |
| EXM-US | Excel Maritime Carriers | $8.74 | $9.96 | 14% | $715 | NYSE |
| SB-US | Safe Bulkers, Inc.* | $5.58 | $7.05 | 26% | $389 | NYSE |
| DHT-US | Double Hull Tankers, Inc. | $4.59 | $5.30 | 15% | $262 | NYSE |
| ISH-US | Intl Shipholding Corp. | $22.52 | $23.74 | 5% | $166 | NYSE |
| TNK-US | Teekay Tankers Ltd | $12.79 | $12.25 | -4% | $155 | NYSE |
| NMM-US | Navios Maritime Partners L.P. | $9.63 | $9.95 | 3% | $171 | NYSE |
| HRZ-US | Horizon Lines, Inc. | $5.45 | $5.01 | -8% | $147 | NYSE |
| OSP-US | OSG America L.P. | $7.00 | $6.96 | -1% | $104 | NYSE |
| GSL-US | Global Ship Lease, Inc | $1.84 | $2.14 | 16% | $100 | NYSE |
| CAP-US | CAI International Inc. | $4.45 | $5.56 | 25% | $99 | NYSE |
| ORE-PT | Sociedade Comercial Orey Antunes Sa | $2.85 | $2.50 | -12% | $48 | EN Lisbon |
| BHO-US | B&H Ocean Carriers Ltd | $3.95 | $4.20 | 6% | $25 | NYSE |
| HZV1-BE | Hanzevast CS 1 | $990.00 | $975.74 | -1% | $9 | EN Belgium |
Taste
of NYC | Upcoming Events and Entertainment
- newyork.timeout.com/
- www.nycvisit.com
- www.zagats.com
- http://www.ny.com/nightlife/
- http://www.ny.com/museums/
- http://www.allny.com/antiques/auctioneers.htm
- http://www.nytix.com
- http://www.majorleagueevents.com
- http://goingcoastal.wordpress.com
- "Frank Lloyd Wright: From Within Outward"
The Guggenheim Museum
The Buzz — The Guggenheim is world-famous – as much for its design as for its contents, and that is thanks to Frank Lloyd Wright. One of the greatest architects in history, Wright designed the building 50 years ago, and in celebration, the museum is presenting this exhibition of his works, including more than 200 original drawings, many of which have never been seen before. Also on view will be newly commissioned models and digital animations of Wright's ideas and designs. Click here for more info.
- River to River Festival
18 Battery Place - All Summer
The Buzz — A summer-long free arts festival, River to River was founded after 9/11 to rejuvenate lower Manhattan. The name refers to the geographical location of the festival, which runs from Chambers Street all the way down to the southern tip of Manhattan and across. In short, from river to river. Everything from concerts (Ian Hunter and Chuck Brown, to name a few) to dance troupes and theater productions can be seen, and over 500 different performances are expected. Click here for more info.
- Celebrate Brooklyn! Festival
Prospect Park, Prospect Park Bandshell - June 8-August 15
The Buzz —People who live in Brooklyn celebrate it daily, but for those who don't, this festival is a great reason to show your love. Every summer since 1979, Prospect Park has hosted a wide array of free performances of music, dance, and film. For instance, this summer you get to enjoy the music of Femi Kuti, Blonde Redhead, Robert Cray, Burning Spear, and many more. The Prospect Park Bandshell seats 2,000, but why not pack a picnic and stake a claim on the lawn? Click here for more info.
- JVC Jazz Festival New York
Carnegie Hall - June 16-27
The Buzz —Summer in the city gets a shot of cool jazz with a festival that celebrates every element of a truly American genre. Showcasing an impressive lineup of musicians, including folks like The Preservation Hall Jazz Band, Branford Marsalis, Bela Fleck & The Flecktones, The Del McCoury Band and Lee Konitz, you can catch intimate shows at clubs like Iridium, Smoke and The Blue Note, and others at larger venues like Carnegie Hall. Click here for more info.
- Solstice in Times Square
Duffy Square - June 21
The Buzz —C'mon get happy. It is the longest day of the year at the Crossroads of the World. Celebrate! Strike a yoga pose with hundreds of others on mats paving the streets of Times Square, see any or all of 30 dance companies perform and sway to the sounds of jazz, swing, classical and Latin as the sun hangs high in the sky. Best of all, it's absolutely free. Click here for more info.
New York State Travel & Tourism To speak with a travel counselor, call during regular business hours (Eastern Standard Time) at 800/CALL-NYS (U.S., territories, possessions and Canada) or 518/474-4116 (all other areas). http://www.iloveny.com/home.aspx
New
York City Travel & Tourism (NY City & Company)
212-484-1222
NYC 311 - City of New York directory assistance covering events, attractions and other citywide information
- Dial 311 in Manhattan (NYC), Staten Island, Bronx, Queens and Long Island.
- Dial 212-639-9675 outside of Manhattan (NYC), Staten Island, Bronx, Queens and Long Island. This is a toll call.
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