Shipping Finance challenge

Due to the financial crisis and the overcapacity, the KG model is no more attractive to the German ship owners. The Basel-3 regulation and stricter bank regulation affects the shipping finance sector substantially. The traditional capital source was no longer sufficient to attract the ship owners. The globalization, Chinese growth in the shipping sector will be a threat to the KG model of shipping finance. After the financial crisis, bankers and investors demand the greater security for their investment. Credit rating agencies, risk indices play a future in the shipping investment and the loan term will become stringent. The shipping finance sector requires a new model for sustainable investment solutions to the shipping industry.

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