Introduction to shipping finance pdf

Extensive product offering, including both debt and leasing products. Free finance books download ebooks online textbooks tutorials. The international handbook of shipping finance theory. Thoroughly understand the basic principles of islamic finance. Introduction to shipping as the loan portfolio of danish ship finance covers a large variety of ship types, the companys customers are exposed to a correspondingly large number of national, regional and international events. The main forms of trade finance include open account, advance payment, documentary collection, letters of credit, guarantee standby letters of credits,trade credit insurance, factoring, forfaiting and structured finance. If a company liquidates its assets, debt has higher priority than, or is senior to, equity. In its broadest context, shipping finance even picks up the advance of money for nonshipping purposes, provided the common theme that binds all these types of finance together applies, namely the lenders security will be a mortgage or charge over the. Ship finance course cambridge academy of transport. In this lecture we will explore certain concepts that we will use in the subsequent lectures. A company profile is a detailed document containing all the aspects of the business operations, from its financial and physical resources to its management structure.

The aim of this lecture is to provide a broad overview which will set the scene for the many detailed lectures provided. Sep 05, 2017 business managers will gain a basic understanding of the complex world of finance with introduction to finance. During the preworld war ii period, private equity was the major source for the finance of vessel acquisitions. Post office box 24348 seattle, wa 981244348 contact. Former ceo braemar seascope and former president institute of chartered shipbrokers. Introduction the hereby thesis aims to examine the financing methods used widely in shipping industry, especially in the drybulk segment from a both theoretical and applied.

It is thus important to understand the ways we can leverage additional resources to preserve healthy ecosystems on land and in the oceans. Personal finance, corporate finance, and public finance all fall under the umbrella of this broad term. The book also covers all forms of shipping documentation, ship types, trade routes and ports. A corporate profile for a company is a document that details corporate side of the company. It defines and describes all aspects of shipping, the personnel who work in it, the history behind it and touches on the financial side of.

Shipping can be a real minefield full of regulations and terms that seem to mean nothing, even when a freight forwarder explains a term it can still make no sense. Division of intrasc payments are a function of power, market. Seaborne trade is about 90% of the total world trade and seafarers contribute substantially by ensuring that. Ship registration ship sale and purchase mechanics of a transaction ship finance where the money comes from and the necessary securities shipping as a global business and, together with our colleagues from uk chamber of shipping, a look at.

Erpt is estimated using the following dynamic lags regression. Aswath damodaran 2 first principles n invest in projects that yield a return greater than the minimum acceptable hurdle rate. In simple terms, shipping finance transactions involve a lender providing. Dring orestis schinas is the professor of shipping and ship finance and head of the maritime business school of the hamburg school of business administration hsba since 2008. Shipping is the most cost effective method of transportation of goods. The primary purpose of a sc is to satisfy customer needs. Every business is a process of acquiring and disposing assets. Shipping finance laboratory for maritime transport. Finance f1 california state pta toolkit june 2020 these finance tools help financial officers of unit, council, and district ptas gain a better understanding of their responsibilities, keep and maintain accurate records, and exercise proper control of all pta monies. Since the introduction of basel iii in 2010, a stream of literature has emerged regarding the impact of the new banking regulations on bank finance. Introduction to shipping, offshore and logistics dnb london branch current challenges in ship finance markets presentation to shippingforum 18th o t b 2012october 2012. Scb shipping finance clear focus on servicing our existing client franchise within the standard chartered bank footprint of asia, africa and the middle east.

Ship charterpurchase decisions guest lecture by sydney levine, shipping intelligence inc. Shipping finance of 2014 has altered substantially regarding that of last decades and the shipping companies traditional capital structure of bank lending along with. Strong commitment to support existing client relationships throughout shipping cycles. Oecd council working party on shipbuilding wp6 workshop on supply and demand in the shipbuilding industry ship finance and its possible impacts on excess capacity henri dambrieres hda conseil 9 november 2015 the shipbuilding industry impact of shipping financing nov. Introduction to shipping this is a great place to start if youre new to shipping and want to learn a little more about whats involved. Like business profiles, you would need to list the products andor services that you provide your. The exchange rate passthrough erpt is a measure of how responsive international prices are to changes in exchange rates. Introduction to shipping, offshore and logistics dnb london.

The first option trade, the blackscholes equation, the risk neutral world, monte carlo methods, the binomial model, derivative contracts on nontraded assets and real options, discrete hedging, derivative contracts on nontraded assets and real options, discrete hedging, jump diffusion, regime switching, mean. Shipfinance introduction page 6 of 187 1 introduction 1. Free finance books download ebooks online textbooks. Instead students should appreciate the topics covered in their practical contexts, being able to relate different ship finance instruments and practices to the cyclical nature of the shipping industry. Evolution of shipping finance aikaterini kotika 6546 mg4226 l6 capstone. He has served in senior and topmanagement positions and has a vast experience in the maritime and logistics industry and has offered his services to private and public entities as well as to.

As the loan portfolio of danish ship finance covers a large variety of ship types, the companys customers are exposed to a correspondingly large number of national, regional and international events. The global economy is dependent on the fleet of merchant vessels and the goods they are transporting. Special need for finance in international trade inco terms fob, cif, etc. He is a coauthor of multinational business finance, fundamentals of multinational finance, and essentials of investing. International finance i about the tutorial international finance deals with the management of finances in a global business. Pdf shipping finance and international capital markets. D anish ship finance a s d anmarks skibskre d it a s annual repor t. Markets, investments, and financial management, 15th edition. In its broadest context, shipping finance even picks up the advance of money for nonshipping purposes, provided the common theme that binds all these types of finance together applies, namely the lenders security will be a mortgage or charge over the ship concerned and its income. This tutorial provides a brief overview of the current trends in finance, along with detailed. Operating leases are only slightly different, the lessee remains responsible for the maintenance costs. The range of circumstances under which international trade is beneficial is much wider than most people appreciate. Ups fiu campus shipping introduction and overview january 27, 2014. This brochure aims to provide a short explanation of green finance to readers outside of the finance space.

When the stock is traded and markets are viewed to be efficient, the objective is to maximize the stock price. He is a past president of the western finance association and the international trade and finance association. A corporate profile should include a company history and a basic background of the business. The hurdle rate should be higher for riskier projects and reflect the. Shipping finance, risk and return guest lecture by kevin hazel, marsoft inc.

Capital structure and financing decisions aswath damodaran stern school of business. Balance of payments is the record of a countrys transactions with the rest of the world. Guide to shipping finance in hong kong mayer brown. Aswath damodaran 2 the traditional accounting balance sheet assets liabilities fixed assets debt equity. It explains how to trade in international markets and how to exchange foreign currency, and earn profit through such activities. Introduction to finance pdf download free pdf books. Financing sources for shipping 1 1 introduction the shipping industry is a key factor in the world trade. It often includes a lot of information about the business. Sc1x supply chain and logistics fundamentals lesson. Basics of finance authors gabor kurthy chapter 1, chapter 2 jozsef varga chapter 3 tamas pesuth chapter 4 agnes vidovicsdancs chapter 5. Lecture notes economics of marine transportation industries. Glossary of shipping terms maritime administration. A lot of the goods that we are consuming has one way or another been transported by ship. Aug 27, 2019 finance is the study of money management and the process of acquiring needed funds.

Introduction to supply chains what is a supply chain. Payment risk ladder it is often a good idea, during, or even before contract negotiations, to consider. Introduction to shipping institute of chartered shipbrokers. Finance is about the bottom line of business activities.

Shipping financeoverview lexispsl, practical guidance for. The international handbook of shipping finance is a onestop resource, offering comprehensive reference to theory and practice in the area of shipping finance. Doc evolution of shipping finance katerina scott academia. Purchase shipping economics, volume 12 1st edition. Introduction to shipping, offshore and logistics dnb. Shipping finance elements and concepts shipping finance. Hsba handbook on ship finance orestis schinas springer. Be aware of the main components of structures found in the case studies provided. It defines and describes all aspects of shipping, the personnel who work in it, the history behind it and touches on the financial side of the industry. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. Finance f1 california state pta toolkit june 2020 finance these finance tools help financial officers of unit, council, and district ptas gain a better understanding of their responsibilities, keep and maintain accurate records, and exercise proper control of all pta monies. Introduction 1 1 the money merrygoround 2 raison dfitre of the markets 2 lenders 2 borrowers 3 securities 4 raising capital 5 bank loans 5 bonds 5 equity 5 gearingleverage 6 conclusion 8 summary 9 revision questionsassignments 9 further reading 9 part 2. For any trade transaction there should be a seller to sell the goods or services and a buyer who will buy the goods or use the services.

Introduction to shipping provides an overview of the shipping industry. Chapter 1 introduction to finance 11 1 what is finance. Students are not required to make calculations as part of this course. Brimming with practical information, examples and interactive activities, this course provides a detailed look at the role and functions of the shipping industry and the responsibilities of organisations, companies and agencies that support it. About this course introduction to shipping aims to build an understanding of the shipping industry by explaining the role and functions. With regards to a finance lease, since the end ownership of the shipping container resides with the lessee, the lessee is responsible for all maintenance and insurance costs. Introduction to ship investment analysis and ship financing by erik stavseth ver 9. An introduction to corporate finance aswath damodaran. In the multibillion dollar international shipping industry, it is important to understand the various issues involved in the finance of the sector. In other words, a company must meet its obligations to creditors those who lent the money before it pays those.