Morning Session – Fundamentals is King
Despina Travlou
Managing Director & Founder, Slide2Open Communications
Despina Travlou, Managing Director of Slide2Open Communications, in her welcome speech addressed the audience by posing the Conference’s main enquiry: How will the shipping industry move, sailing into the troubled waters of regulatory requirements and technological innovation, if it cannot rely on the market itself? and concluded: It is our market. We built it and we support it. We take care of it, not because it is ours, but because it is us.
Self-regulation, old and new forms of financing, adherence to new requirements, use of new technologies. Our playing field may appear different, but our market fundamentals are stronger than ever.
Fotis Kouvelis
Minister of Maritime Affairs and Insular Policy
Minister of Maritime Affairs and Insular Policy of the Hellenic Republic, Mr Fotis Kouvelis, announced during the Slide2Open Shipping Finance 2019 conference, that the legislative framework for the realization of significant investment in 20 large Greek ports (apart from Piraeus) is almost complete.
In greater detail, Minister Kouvelis noted that Greek shipping was hit by the crisis and that shipping finance will be negatively affected for as long as the side effects of the crisis persist. He stressed the need to renew the fleet and adopt new ways of funding, adding that leasing is one of them. The Greek State supports leasing, provided that the vessels acquired shall fly the Greek flag. He also stressed that significant investment will be required over the next years, due to changes in fuel, and added that the State will support the development of realistic plans for this transition, underlining that the State is open to ideas that will help Greek Shipping maintain its lead. Last, he noted that legislation for sub-concessions in 10 major ports (including Corfu, Igoumenitsa, Volos, Heraklion, Patras and Alexandroupoli) is at the final stage; these concessions relate to specific activities such as cruise, yachting, ship repair, management and transport of liquefied fuel, etc.
Ioannis Plakiotakis
Member of the Hellenic Parliament, Former President of New Democracy Party – Maritime Affairs & Insular Policy Coordinator of New Democracy Party
The former President and head of the shipping policy branch of the “New Democracy” political party Ioannis Plakiotakis stressed the challenges deriving from the stricter regulatory framework and changes in legislation concerning fuel. He noted the need for new vessels and new ways of shipping finance. He predicted an increase in demand for dry cargo and stressed that there exists no ideal way of funding, while there must be political will to support the shipping cluster and to upgrade public and private shipping education. He also stressed that the legislative framework has to be simplified in order to attract investors, noting that the Greek shipping industry currently supports, directly or indirectly, 250,000 jobs.
Yuri Bender
Editor-in-Chief, Professional Wealth Management at Financial Times
Q&A: The Conference’s moderator, Yuri Bender, editor-in-chief, PWM at the Financial Times poses questions to Minister Fotis Kouvelis and the representative of the Opposition, Ioannis Plakiotakis.
Basil M. Karatzas
CEO, Karatzas Marine Advisors & Co.
Basil M. Karatzas, CEO of Karatzas Marine Advisors & Co, presented the current developments in the Shipping Industry and analyzed the purpose of the Conference, relating to the moto of the Conference, the last sentence of the novel The Great Gatsby by F. Scott Fitzgerald:
So we beat on, boats against the current, borne back ceaselessly into the past.
Prof. Dr. Wolfgang Drobetz
Professor of Corporate Finance and Ship Finance, Department of Business Administration, University of Hamburg
Prof. Dr. Wolfgang Drobetz, Professor of Corporate Finance and Ship Finance in the Department of Business Administration of the University of Hamburg, presented an equation which reveals that the market does not believe much in the development of the shipping sector. In turn, this leads to low investment. He added that growth expectations are higher in the general market, as opposed to the shipping market, and noted that the risk in the shipping market is high, while one cannot exclude the emergence of a “bubble”.
Dr. George D. Pateras
Deputy Chairman of Contships Management Inc., President, Hellenic Chamber of Shipping
Dr. George D. Pateras, Deputy Chairman of Contships Management Inc. and President of the Hellenic Chamber of Shipping, discussed the fast evolution of the sector and moved on to a “self-criticism”. He stressed that “we are victims of our success, which led us to greed”, noted that the shipping markets are improving, and expressed the hope that shipping has learnt from its past mistakes.
Anastasios V. Papagiannopoulos
President of BIMCO and Principal of Common Progress Co Na SA
Anastasios V. Papagiannopoulos, President of BIMCO and Principal of Common Progress Co Na SA, discussed the high uncertainty surrounding the trade war between the United States and China and expressed the hope that it will end within the year. He stressed that protectionism hurts shipping and that universal rules for shipping are required in order to ensure a level playing field. An important issue is the choice between scrubbers and low sulphur fuel and he concluded that “we must be proactive and keep an open mind”.
Spotlight
Captains of the Industry
Costas Paris and The Wall Street Journal on the Shipping Industry – Interview with George Procopiou, Founder, Sea Traders S.A., Dynacom Tankers Management Ltd. and Dynagas Ltd.
On a live on stage interview with Costas Paris and The Wall Street Journal, the prominent Greek Shipowner George Procopiou, founder of Sea Traders S.A., Dynacom Tankers Management Ltd. and Dynagas Ltd., said that the crisis after 2008 is due to the problems of the banking sector being transferred to the shipping sector, just as in the past commercial activity had been hit by high interest rates imposed by the banks in an attempt to overcome their own problems. He also predicted that the trade war between the United States and China will be smoothened out over the next 5-6 months because, if it continues, potential losses will exceed potential gains. He added that 15% of the world fleet will have fitted scrubbers by 2020, when the new environmental regulations will enter into force. It is for this reason that the remaining part of the world fleet will have to seek other solutions. He also noted that LNG will be the least harmful fossil fuel and will “bridge” the transition to clean energy solutions. Finally, he submitted his own proposal, namely to design new vessels with an emphasis to new engines, propellers, etc. Were this to happen, the sector would gain more than 50% of emission reduction resulting from the reduced speed of vessels alone.
Peter Sand
Chief Shipping Analyst in BIMCO
Peter Sand, Chief Shipping Analyst in BIMCO, mentioned that the real challenge for the shipping sector is to timely adjust to the new regulatory framework and the new environmental reality. He noted that the sector will grow, but “we have to know and look for opportunities”. He also predicted a 3% increase in container transport in 2019, adding that supply will still be larger than demand. Finally, he said that part of the added cost related to the adjustment to new environmental regulations will pass on to shipowners/operators.
Q&A Session
Q&A Session
The Conference’s moderator, Yuri Bender, editor-in-chief, PWM at the Financial Times poses a question to George Procopiou.
Coffee break
Noon Session – Money Matters
Basil M. Karatzas
CEO of Karatzas Marine Advisors & Co.
The “Money Matters” session of the Conference started with Basil M. Karatzas, CEO of Karatzas Marine Advisors & Co, who talked about “toxic lending”, which is a drag for the shipping sector as a whole and noted that the new reality poses a challenge also for banks, which will have to become more flexible and adjust to the new environment. He noted that there exist many trends and that prudent management is required.
Yves Kallina
Senior Vice President of the Global Loan Syndicate, HSH Nordbank
Yves Kallina, Senior Vice President of the Global Loan Syndicate, HSH Nordbank discussed the currently existing numerous choices for shipping finance, together with their restrictions. He added that banks do not like fluctuations, therefore if a shipping firm decided to differentiate its activity, it should not be strange if the collaborating bank also changed its stance. The new legislative framework for the environment affects banks as well. Banks will also face serious consequences if they finance activities that do not respect the new environmental regulations. He called upon the world of shipping not to wait for institutional investors to knock on their doors, but to work with specialized consultants and draft specific plans that will answer the questions of institutional investors and then seek these investors. He stressed that there exists considerable room for making “proper use” of financing from institutional investors, as long as shipping firms are in a position to clearly answer the relevant questions.
Fredrik Bock-Hagen
Managing Director of Ocean Yield Malta Ltd.
Fredrik Bock-Hagen, Managing Director of Ocean Yield Malta Ltd., noted that bank financing to shipping will be available for the larger companies while the banks have become more selective and smaller companies will struggle more to obtain attractive bank financing. He said that leasing is developing rapidly also in shipping and that Chinese firms in the sector have become more “aggressive”, adding that Chinese leasing takes about 4 to 6 months to complete, while a process with Ocean Yield is much more efficient and could be completed within a short time period. He also referred to bond financing, but noted that the conditions for such investments are very demanding and dependent on the shipping market and bond market sentiment.
Panos Michalopoulos
Managing Partner in WEMETRIX
Panos Michalopoulos, Managing Partner in WEMETRIX, talked about IFRS standards, which are compulsory and considerably affect shipping companies. He noted that WEMETRIX is in a position to undertake projects all over the world and that it has the highly specialized human recourses required in order to effectively assist shipping firms in their regulatory compliance.
Kyle Shostak
Director and CEO, Navigator Principal Investors LLC
Kyle Shostak, Director and CEO, Navigator Principal Investors LLC, discussed the key criteria that a shipping company must fulfill to have a chance to be considered for funding by institutional investors. He noted that the fee of the company will not be in cash, but will take the form of a small part of the shares of the company to be financed. There exist many capital opportunities for shipping firms and added that SPACs (Special Purpose Acquisition Companies) is the simplest route for the public listing of a shipping company.
Panel Discussion
Current State of Shipping Banking Industry and Emerging Ship Financing Trends
The panel discussion that followed was moderated by Basil M. Karatzas, CEO of Karatzas Marine Advisors & Co. and focused on the main shipping financing practices, as well as to the relevant legal issues deriving from the new regulatory framework.
The panelists were:
Fredrik Bock-Hagen, Managing Director of Ocean Yield Malta Ltd.
Michael Frisch, Chief Commercial Officer and Member of the Executive Board, Danish Ship Finance
Martin Hugger, Managing Director, Meerbaum Capital Solutions
Yves Kallina, SVP Global Loan Syndicate, HSH Nordbank
Gina Panayiotou, Head of Shipping, Michael Kyprianou & Co. LLC.
Kyle Shostak, Director and CEO, Navigator Principal Investors LLC
Markus Wenker, Head of Ship Finance, Hellenic Bank
Yannis Dimarakis
Managing Partner of Scotwork Hellas
Yannis Dimarakis, Managing Partner of Scotwork Hellas, noted that, in the current fluid environment, Greek shipping is up against novel challenges. He stressed that many different parameters in a series of issues often lead to a conflict, either among firms or within the firms themselves. However, a conflict is not necessarily negative as it often constitutes the “lubricant” for change and progress.
Lunch break
Afternoon Session – From Physical to Digital
Keynote speech
Ruthie Amaru
Chief Marketplace Officer in Freightos – Amazon FBA Shipping Calculator
After lunch, the “From Physical to Digital” session of the Conference started with Ruthie Amaru, Chief Marketplace Officer in Freightos – Amazon FBA Shipping Calculator, who informed the audience that 40% of shipping firms has already drafted a digital strategy, which proves that digital transformation is underway, even if individual company policies are not always the right ones. She noted that shipping firms are afraid of digital transformation and went on to explain that there is nothing to fear; on the contrary, if they do not move to it, they may lose in terms of competitiveness. Digital transformation offers many opportunities, and it is up to us to recognize and capture them – risk often yields the best things in life.
Eirini Liadi
ICT Key Account Manager, OTE Group
Eirini Liadi, ICT Key Account Manager, OTE Group, revealed that OTE, having recognized the need for digital transformation of the country and businesses, has moved to the realization of a 2-billion-euro investment plan by 2022. The plan envisages the establishment of modern technological infrastructure, which will come along integrated business ICT solutions. She stressed that the Group is in the position to adapt its consulting and monitoring services to the latest requirements of the shipping sector, which constitutes a pillar of stability for the Greek economy. She also emphasized the fact that shipping companies are up against important decisions and she gave the example of cyber-attacks, which can cost dearly, as “one-off solutions are not solutions; just temporary situations that can be more expensive and less secure”. She added that shipping companies have to proceed to their digital transformation in order to be competitive in the new digital era. OTE Group, being highly active in the ICT sector, constitutes the first choice for businesses seeking innovative solutions in the sectors of health, tourism, information security, energy, data centers, the cloud and IoT.
Charalambos Saperas
Lead Engineer in INTRASOFT International
Charalambos Saperas, Lead Engineer in INTRASOFT International, talked about blockchain technology. Although cryptocurrencies constitute its most well-known application, blockchain technology can do much more and, especially, enhance confidence between citizens and states as well as between businesses and customers. And this because it creates a very secure, reliable and transparent transactions framework, which can boost all financial transactions (not only those concerning the movement of money).
George Christopoulos
Vice Admiral (Engineer) Hellenic Navy, retired and Marine Operations LAROS by Prisma Electronics
George Christopoulos, Vice Admiral (Engineer) Hellenic Navy, retired and Marine Operations LAROS by Prisma Electronics, discussed the data revolution and noted that the shipping industry is already experiencing it. Companies will soon realise the importance of their digital transformation: the sooner they realize it, the larger their competitive advantage. He stressed the advantages of LAROS, which adopts a comprehensive approach and can efficiently help shipping forms, even in achieving lower fuel consumption.
Panel Discussion
Advanced Technologies in Shipping:
How novel technologies reshape a traditional market
The panel discussion that followed focused on “Advanced Technologies in Shipping: How novel technologies reshape a traditional market”.
The panelists were:
Greg Atkinson, Director & Chief Technology Officer, Eco Marine Power Co. Ltd., Fukuoka, Japan, Managing Director, Ohori Capital Pty. Ltd.
John N. Cotzias, Projects & Finance, Xclusiv Shipbrokers and President, Hellenic Shipbrokers Association
Pandelis Esmeroglou, Chartering Director, Olympic Vision Maritime Co. Inc.
Gerasimos Michalitsis, New Ventures Senior Manager, INTRASOFT International
Christos Giordamlis, CEO, Prisma Electronics S.A.
Carlos Sanchez Vinas, Vice-President of Business Development, LATAM at Intercash, CEO, CosmoPay Card Mexico
Late Afternoon Session – Shipowners’ Time
Shipowners’ Panel Discussion: Where there is a Will, there is a Way
Yuri Bender, editor-in-chief, Professional Wealth Management at The Financial Times, coordinated the “Where there is a will, there is a way” panel, and discussed with:
George D. Gourdomichalis, Managing Director, Phoenix Shipping & Trading S.A.
Stavros Gyftakis, Chief Financial Officer, Seanergy Maritime Holdings Corp.
Harry Kosmatos, Corporate Development Officer, Tsakos Energy Navigation Ltd.
John Platsidakis, f. Chairman, INTERCARGO, Managing Director, Anangel Maritime Services Inc.
George A. Tsavliris, Principal, Tsavliris Salvage Group
Panelists stressed that shipping is a longevity business passed on from generation to generation and this is the model of the traditional Greek family shipping business. The rules of business and society have changed. Only 12% of Fortune 500 firms from 1955 still exist today, whereas committed Greek shipping firms continue to prevail. They all agreed that the perception of shipping in the future will be highly different and they wondered: Will we be able to cope with over regulation? They concluded that shipping will depend on other substantial forms of financing, ie equity, bonds, etc. and availability of finance will be restricted.
Moderator: Yuri Bender, editor-in-chief, Professional Wealth Management at Financial Times
Panel Discussion
The New Wave: The Next Generation in Shipping
The last panel of the Conference, “The New Wave: The Next Generation in Shipping”, comprised the young generation of shipping.
The discussion was moderated by Danae Bezantakou, CEO of Navigator Shipping Consultants.
The participants were:
George Sp. Alexandratos, General Manager, Apollonia Lines SA & Vice President, Hellenic Chamber of Shipping
Alexander C. Hadjipateras, Executive Vice President of Business Development, Dorian LPG (USA) LLC
Isabelle Rickmers, Managing Director, Zeaborn Ship Management.
Emmanouel A. Vordonis
f. Chairman and Executive Director of Thenamaris Ship Management Inc.
The epilogue of the Conference works was addressed by Manolis A. Vordonis, f. Chairman and Executive Director of Thenamaris Ship Management Inc. who noted that he listened to young people talking about regulatory frameworks, new technologies etc., but they were using “another” language, as they discussed a lot about people, the human factor and feelings. He stressed that the shipping industry is developing with the help of (and rendering a helping hand to) other industries; that it is in the shipping DNA to serve people and that it will keep on doing it with zeal and love. He concluded with this feeling of love and called all participants to “make our country as it was”.
Cocktail Reception co-hosted by TEN Ltd.
