Abstract
The international shipping industry is both large and highly important to the global economy as it carries over 90 % of global trade. According to UNCTAD, there are over 45,000 ships in the world. The International Chamber of Shipping (ICS) estimates the number of seafarers at around 1.2 million. According to ISH Global Insight, liner shipping alone contributes over USD430 billion to world GDP and 13.5 million jobs. The shipping industry is inherently capital intensive and requires significant amounts of capital to be invested every year in newbuilding vessels, with the cost of building a ship often exceeding USD200 million. During the last ten years, orders of newbuilding vessels have averaged more than USD130 billion per annum, reaching USD266 billion in the peak of 2007. Furthermore, ships are liquid assets that change hands with high frequency and, as a result, the financing requirement is likely to be even higher as shipowners seek to fund second-hand acquisitions. According to Clarksons, over 1,000 vessels have changed hands on average every year in the last decade and the aggregate annual transaction value between 2004 and 2014 has exceeded USD25 billion, reaching a peak of USD47 billion in 2007.
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Giannakoulis, F. (2016). Overview of Shipping Finance. In: Kavussanos, M., Visvikis, I. (eds) The International Handbook of Shipping Finance. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-137-46546-7_3
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DOI: https://doi.org/10.1057/978-1-137-46546-7_3
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Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-137-46545-0
Online ISBN: 978-1-137-46546-7
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