Sea Technology

JUN 2017

The industry's recognized authority for design, engineering and application of equipment and services in the global ocean community

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Page 18 of 72

18 st / June 2017 world of trade spinning on the right axis. Knowing How to Play Your Hand Globally, banks hold tens of bil- lions of shipping exposure. For many banks with investments in the ship- ping industry, an exposure of $5 to 6 billion in shipping assets is not un- usual. While in global banking terms, such figures may not raise any eye- brows, these figures are more than just a drop in the pond, and we have all seen what happens in the global economy when the ripples start. It is critical, therefore, that these organizations are equipped with all of the tools and information needed to make informed, accurate decisions about their exposure to risk. They need absolute transparency and the benefit of access to impartial industry expertise to ensure that they are meet- ing their obligations to their credit committees and that they are in step with the increasingly stringent finan- cial regulations imposed upon them. It is for this reason that we are see- ing more demand for ship inspection service requests from banks and financiers, who are under increasing pressure, particularly those subject to the rulings of the European Central Bank, to have a thorough understanding of their shipping portfolios. While banks and financiers have always required input from inspection services in their decision making, the depth and frequency of requests have changed significantly. Today, banks endeavor to know in forensic yet concise detail the true condition of a large proportion of their portfolios. In large part, this enhanced appetite for ship inspection services across the board is the result of the updated inter- national Basel III Convention and its consequences for lend- W hen it comes to assessing the value of a vessel—whether for sale, charter or insurance purposes—it is only right that every player involved in its exchange enters into the agree- ment armed with a complete under- standing of the assets' true value; that is to say, a comprehensive understand- ing not only of the current monetary value of the asset but a clear picture of its ability to perform now and into the future. Each player also needs to have a clear view of any likely high- cost capital requirements that may be just around the corner. This is where the ship inspector, as the referee or the arbiter of facts, ensures that the game is fair for all in- volved in the transaction. It may sound obvious, but shipping is a high-stakes game, and you do not want to be the team that shows up unprepared. Hav- ing access to all of the facts is criti- cal to ensuring that you can make in- formed decisions and control your business interests. Analogies aside, ship inspection services are critical to owners and op- erators, charterers and the banks and finance houses that provide our industry with the capital it needs to function. Inspection services are pivotal to ensuring that vessels are fairly traded, financially viable assets that can offer a return on investment. Inspections are also fundamental to ensuring that vessels are built, maintained and operated safely and efficiently for all who have a stake in them. And this is an important point: for all who have a stake in them. There is often an assumption that, as an indus- try, shipping operates in isolation. But we are propped up by a broad range of investment houses, hedge funds and high-street banks that take on significant risk in providing the capital and funds to keep us all working and the global Comprehensive Ship Inspection Services Web Portal Tool Aids Holistic Risk Assessment of Shipping Assets By Nick Owens A sample ship report from Idwal Marine.

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