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Chairman's Commentary
 At NYMAR we can look back on a tumultuous year in the shipping markets with a degree of satisfaction.
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more]
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Save the Date:
NYMAR/NYSE Event January 12th
Mark your calendars for NYMAR's seminar and reception hosted by the NYSE Euronext.
[read
more]
| NYMAR Interviews Scott Cutler
 Scott Cutler is the Executive Vice President of NYSE Euronext, responsible for the Americas listing business. He manages the Exchange’s relationship with over 1700 companies in Canada, Latin America, and the United States.
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more]
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Monthly
News
Container fleet growth hits 10-year low
[read more]
Seaspan to subsidize super-slow steaming
[read more]
U.S. ports: import container traffic status and outlook
[read more]
Jobs to be slashed at New York and New Jersey
[read more]
Read more Monthly News stories (continued)
[read more]
What’s Going on in New York
Courtesy of Time Out, a list of 101 things to do over the holiday season
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more] |
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Chairman's
Commentary
At NYMAR we can look back on a tumultuous year in the shipping markets with a degree of satisfaction.
It is clear that New York will play an important part in the industry as we head into 2010. The capital markets continue to attract attention with several high yield deals either in the offing or just about to be priced, a more active IPO market might kick off 2010 with the anticipated launch of the Peter Georgiopoulos led Baltic Shipping, and the private equity community continues to circle around the maritime community with eager anticipation and with plenty of dollars to play with!
Shipping has always been an industry of timing. Today that admonition rings louder than ever. We know of many firms poised to invest in the sector and yet they are also concerned as to when is the proper entry point. NYMAR is here to help.
We will continue to provide networking and educational opportunities as we go forward into 2010. We want to help out members find the “best in class” in all sectors of the industry. It is after all, all right here on our doorsteps.
Have a wonderful holiday season and plan to join us for our first event on January 12th at the New York stock exchange.
Save the Date:
NYMAR/NYSE Event January 12th
Mark your calendars for NYMAR's seminar and reception hosted by the NYSE Euronext. Join your industry peers at 4:00 for "Gazing into the Crystal Ball – what can we expect for 2010" followed by a reception on the trading floor co-sponsored by DLA Piper and another sponsor.
Speakers scheduled to date include:
Peter Georgiopoulos
Chairman- General Maritime, GenCo, and Aegean Maritime Petroleum
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Harvey Pitt
Former SEC Chairman
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- Senior executive from NYSE
- Banker
- Moderated by DLA Piper
The cost to attend is $45 for NYMAR members and $90 for non-members.
We are looking for one more sponsor. Please contact Carleen Lyden-Kluss if you are interested at info@nymar.org. |
NYMAR Interviews Scott Cutler
EXECUTIVE VICE PRESIDENT OF NYSE EURONEXT
Scott Cutler is responsible for the Americas listing business. He manages the Exchange’s relationship with over 1700 companies in Canada, Latin America, and the United States. He is also responsible for the Exchange’s relationship with the Investment Banking, Private Equity, Venture Capital, and Legal Communities to attract new listings. In addition, Mr. Cutler oversees Initial Public Offerings, Structured Products, Closed-End Funds, and the listings business recently acquired from the American Stock Exchange and serves on the Operating Committee of NYSE Euronext.
| NYMAR: |
To quote Queen Elizabeth II, we are at the presumed end of the 2008-2009 “annus horribilis” in the financial world. What light are you seeing at the end of this tunnel, and what can we look forward to in 2010? |
| Cutler: |
The worst is certainly behind us, and recovery in the equities markets has many people thinking that real economic recovery can not be far behind. But if you travel around the world, it is hard to find meaningful economic recovery in many countries. And in the U.S., there is still a lot of work to do. If the recovery is going to be consumer-led in the US in 2010, it’s rather early to be predicting consumer sentiment and confidence. In the U.S., we have gone from a nation that spent too much to one that arguably is saving a little too much and, until that behavior changes, it is hard to see where the consumer-led recovery comes from. Also, a lot of the stimulus money in the U.S. has not been put to work yet. If it starts to show up in a meaningful way in 2010, that should help the situation. So the worst is definitely over, but there is a longer road to recovery than a lot of people think. |
| NYMAR: |
What do you believe are the most significant lessons gleaned from the financial industry downturn? |
| Cutler: |
The breadth and depth of the crisis caught us all by surprise, so now it is time to evaluate what’s being done about it. As far as the financial system, the U.S. administration and other governments around the world have been properly focused on stabilizing it, because without a stable financial system, it is hard to have an economic recovery. The stimulus plans and other steps taken were directionally correct. But we just have to be patient as the impacts work their way through the system. It is also important to realize that in times like this, the U.S. tends to overreact, and that could have an impact on the regulatory side. Overregulation can have a significant negative impact on innovation and entrepreneurship, which are key to economic recovery, and so I hope a proper balance can be found between the need to protect investors and to have vibrant, growing capital markets. |
| NYMAR: |
What message do you have for CEOs to deliver to their boards and shareholders about stability and growth? |
| Cutler: |
Achieving meaningful, sustainable growth remains a continuous challenge for many companies, and needs to be a top priority. At NYSE Euronext, for example, we are continuously investing in innovation and technology to create new products and services that our customers require. That is why NYSE Euronext is looking a lot more like a technology company these days. We are making sizeable investments in state-of-the art data centers and creating partnerships with leading technology companies. Many people are not aware of that. For us, like so many other companies, our rich history in many ways is a blessing, as it lends a sense of stability to our brand. But a lot of people do not know how much we are transforming the business. Many companies continually adjust to rapidly changing circumstances, successfully, but they remain known only for their traditional products. Sometimes they can do a better job of balancing their message. |
| NYMAR: |
Many of the publicly traded shipping companies are relatively new entrants to the public markets. Do you believe these companies have been well served by the public markets? |
| Cutler: |
NYSE Euronext has a long-standing history of listing shipping and shipping-related companies. We are catering to issuers of any size in any geography. Our issuers have enjoyed deep and liquid markets which have provided the opportunity to flexibly raise capital, including in secondary offerings. We are continuously enhancing our trading platforms in the US and Europe, combining our various markets into one liquidity pool, which is unique among exchanges. We are also expanding into other classes of securities such as bonds so that issuers can fully benefit from their NYSE Euronext listing beyond the trading of their equity. |
| NYMAR: |
What would you say to companies considering using the NYSE? |
| Cutler: |
With nearly 40 shipping companies are listed on NYSE Euronext markets, representing all segments of the market with a combined market capitalization of $29.5 billion., we are privileged to have one of the largest and most liquid franchises in the world. Companies listed on NYSE Euronext enjoy unparalleled investor access and visibility. To any shipping firm considering listing on our markets, I would say that the company and its shareholders will benefit from their association with NYSE Euronext's superior market model and technology, services and network of leading shipping and transportation companies. |
| NYMAR: |
NYMAR’s tagline is “New York: The Capital for Shipping.” In today’s tumultuous market, what assertions can be made to support that claim? |
| Cutler: |
The aggregate market capitalization of listed issuers on NYSE Euronext exceeds $20 trillion, more than the next four exchanges combined. Leading shipping companies choose NYSE Euronext, as do most leading companies from those sectors that shipping relies on – from car manufacturers, to energy suppliers, to producers of steel or any of the commodities used in manufacturing. As a global hub for capital markets activity, investing and trading, the NYSE remains very much the heart of the system; in a sense, the capital. |
| NYMAR: |
Do you see a rise in competition from other markets? What role does China play in the mix? |
| Cutler: |
China clearly plays a very important role in the global economy, not only as far as manufacturing or trade and shipping, but in every aspect of business and finance. China came out of the crisis much better and much faster than most other countries. Part of this pace was made possible by the government having a more centralized decision-making process, a structure that has some benefits in a time of crisis where you are trying to move quickly. The Chinese saw this crisis as a wake-up call. They had been too reliant on exports, so they took the opportunity to create infrastructure in the rest of the country outside of the urban areas, and they moved quickly because they anticipated that the growth rate was going to drop off. Even so, they still targeted 7.5 to 8 percent growth for 2009, which everybody thought was misguided at the time. But they achieved 8 percent in 2009, and it will be probably higher in 2010. So it was a big advantage for China to have that more centralized decision-making process. They also realized that if they moved quickly, they would come out of the crisis sooner than the rest of the world, and that accelerates their rebalancing of the global economy. |
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Monthly News
Container fleet growth hits 10-year low
The world container ship fleet grew at the slowest rate in ten years in 2009 as nearly one out of eight vessels is laid-up. The cellular container ship fleet is expected to grow by only 6.1 percent in 2009, according to Alphaliner – the slowest growth rate recorded by the Paris-based research group since 2000. - Journal of Commerce |
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Seaspan to subsidize super-slow steaming
Seaspan chief executive Gerry Wang has announced a Christmas present for all his charterers: the company is ready to spend up to $2m from its own pocket in 2010 to cover part of the costs incurred by super-slow steaming on its larger containerships. The company envisages about half of its current fleet of 43 ships sailing routinely at slower speeds before the end of 2010, with charterers free to choose the speed. To encourage the process, Seaspan has made another open pledge to its charterers that it will never invoke minimum-speed clauses in its charterparties. -
Lloyd's List |
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U.S. ports: import container traffic status and outlook
Beginning in early 2010, the major U.S. retail container handling ports could experience their first year-over-year increase in import cargo volume in more than two years, according to the monthly Port Tracker report released November 23 by the National Retail Federation (NRF) and IHS Global Insight. - Source AAPA |
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Jobs to be slashed at New York and New Jersey
A proposed cull of 150 employees in a streamlined 2010 budget at the Port Authority of New York and New Jersey will bring staffing levels at the authority to their lowest in 40 years. The new employee total of 6,977 represents a decline of some 500 personnel since 2004. - Lloyd's List |
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Natural gas industry is poised for further growth, survey shows
Natural gas executives are expecting good times ahead for the industry, according to a Deloitte survey, but they also see more job cuts and cost-reduction measures next year. About 84% of the respondents were optimistic about gas because of an output boost from shale and coal-bed methane formations, as well as prospects that a federal climate bill would raise demand for gas-fired power production, a Deloitte official said. - Houston Chronicle |
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Capital Link hosts annual Greek Investing Forum – “Greece: Positioning for the Rebound”
Investing in Greece, and presenting the Greek story, was the theme of Capital Link’s annual forum held on December 3rd. Key areas of strategic interest include tourism, global shipping, information technology, renewable energy, and real estate, and of Greece's unique position as a logistics hub for a wide geographic area including Southeastern Europe, the Mediterranean, the Middle East and the Black Sea. At the same time, the Athens Exchange was positioned to provide investors with additional portfolio investment opportunities.
The New York Forum enabled investors to get an update on the challenges and opportunities in these areas through a series of presentations and panel discussions, coupled with networking opportunities and one-one-one meetings. The most interesting exchanges were in the shipping sectors with Nick Tsakos, CEO of Tsakos Energy Navigation joining Peter Evensen of Executive Vice President of Teekay Corporation on the wet side and Mr. Dale Ploughman, CEO of Seanergy Maritime and Dr. Tasos Aslidis, CFO of Euroseas on the dry.
The Forum gathered over 600 business and political leaders from the United States and Greece. For the fifth consecutive year, the conference was under the auspices of the Ministry of Economy, Competitiveness & Shipping and the recently appointed Minister Mrs. Louka Katseli was the Keynote Luncheon Speaker. |
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OSG settles
US tanker giant OSG looks to have finally settled a dispute over the bareboat charters of five products tankers. In a statement Friday OSG said it had entered into a settlement agreement with American Shipping Co (AMSC) and Aker Philadelphia Shipyard. “The agreement settles all outstanding commercial disputes between OSG and Aker and provides for the dismissal with prejudice of all the claims in the arbitration among the parties,” OSG said. - TradeWinds |
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Dubai 5-year debt insurance costs fall over 120 bps-CMA
The cost of insuring Dubai sovereign debt plummeted by more than 120 basis points on Monday after the emirate surprised markets with an announcement that it had obtained a $10 billion lifeline from neighboring Abu Dhabi to help repay some of its debt. This represents a nearly 230 bps descent from the trading close on Nov. 27, just two days after the emirate shocked investors by requesting for a standstill on the debt of its state-owned Dubai World conglomerate. -
Reuters |
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DP World and Jafza allay fears
The chief executives of two Dubai World subsidiaries excluded from the sprawling holding company’s restructuring have outlined how they believe they can survive their parent’s debt crisis largely unscathed. Mohammed Sharaf of DP World, the world’s fourth-largest container port operator, and Salma Ali Saif Bin Hareb of Jebel Ali Free Zone Authority, an operator of customs-free trading zones, told the Financial Times they had plentiful cash to meet their finance and investment needs for the foreseeable future. Both companies, which the government has said do not need debt restructuring, play an important part in facilitating trade between the Middle East and the wider world.
- Financial Times |
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Fall in large claims boosts American P&I Club returns
Economic slump key to drop but pattern of claims the same. Weak shipping markets are having a positive impact for certain insurers, with the American P&I Club reporting a significant drop in the frequency of large claims in recent years. Only six claims in excess of $1m have been recorded so far this year, compared with 18 in 2005 and a similar number in 2006, when trade conditions were still strong.
- Lloyd's List |
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Holland & Knight – Raising Capital event brings hope of access to the money tree
On December 8th, Holland & Knight hosted a breakfast seminar on the opportunities and realities of raising capital in today’s marketplace. With a 3Q ’09 uptick in investments for the year (still lower than the comparable period in ’08), the skies were not completely sunny.
Silicon Valley still commands the largest chunk of the investment pie, followed by New England (of which NY metro comprises half). Start ups are down 10.9% in Q3 from Q2.
And while 2009 saw the disappearance of Venture Capital, the leveraged load, IPOs, M&A and Private Equity, we are now seeing improved economic prospects, including the return of the equity markets, and the high yield market. |
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Clay Maitland launches blog – Platform for urging quality shipping
 Earlier this month saw the launch of Clay Maitland’s blog entitled “Clay Maitland: On a Quest for Quality in Shipping.” With a stated aim of creating a discussion on safer ships, cleaner seas and protecting the environment, Clay tackles the tough subjects of crew welfare, concerns about the market and more, along with contributions from Michael Grey.
In a recent post on the impact of the bear market, Clay opined:
Many of us fear the impact on the lending institutions that specialize in ship mortgage finance. The more philosophical say: “The banks always start lending again.” The pessimists say that parts of the ship banking market resemble Monty Python’s dead parrot. You may think that it is just resting, but some departments really are deceased. Worryingly, the combination of specialized knowledge and prudence that makes a good banker is born of experience.
With extensive (if unannounced) layoffs now occurring in the shipping departments of leading British and German banks, many an experienced hand is being, or will be, lost to the industry.
Go to Clay’s blog and respond to his posts. The more the merrier! |
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Congratulations, Christine!
NYMAR webmaster Christine Olick recently gave birth to a baby girl, Arcadia Snow. Mother and baby are doing great! Congratulations, Christine!!!
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