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Victoria Mindova

World economic crisis created difficulties in the shipping industry and in all other sectors of the economy. According to data submitted to the international forum dedicated to the shipping industry, "Access to capital in today's market conditions," international trade has dropped by half compared with the period before the outbreak of financial crisis in late 2008. Meanwhile, Greek ship owners are a driving force in international maritime transport and manage more than 20 percent of the world fleet. The forum brought together representatives from the international financial community and shipping companies, who together discussed alternative methods of successful financing in a time of a market crisis. 

The lack of liquidity in the market and the slow pace of economic development in the world pose serious difficulties in financing the shipbuilding industry. Uncertainty in the future market development makes banks and financial institutions cautious in lending credit, which also reflects on the financing of the shipping companies. According to the representative of Global Shipping & Ports Leader PricewaterhouseCoopers Sokratis Leptos, access to capital is an essential condition for the survival of shipping companies, allowing the implementation of profitable investment projects. Leptos made a brief dissection of the market situation, explaining that the big meltdown in the banking system in the United States, was followed by a wave of financial tremors around the world. Banks have tightened rediting and have become more cautious in the way of investment. 

Estimates are that in 2010 financial institutions will still maintain a conservative policy in the financing of new projects and will exercise closer/stricter oversight over the utilization and repayment of loans. This will create a vacuum and will further stifle an already reduced global trade. Exit from this vicious circle, according to specialists from PricewaterhouseCoopers, is to find new formulas for cooperation between banks and shipping companies that are adequate to the new economic reality. "We must take into account the definition of Darwin on evolution and species. Not the strongest or the smartest but the most adaptable will survive," said Sokratis Leptos confirming the thesis that the new market conditions require new funding and survival approaches. 

The world crisis and the prudency of financial institutions created a new niche market that opens the opportunity for new investors - different from the familiar until now players. This view was expressed by the Executive Director of Goldman Sachs Financial Group Jim Karp. He meant people/companies with liquidity, which have not had access to the shipping industry, but are now looking for new and different opportunities for investment and profit. By distancing the banks, before them opens a new opportunity to develop their business - the shipping industry has access to fresh new capital. Main conditions for access to these new capitals are for entrepreneurs to have sound balance sheets and feasible business plans. The main task of companies like Goldman Sachs is serving as a bridge between entrepreneurs and investors, and thus supporting and contributing to the development and expansion of international commercial trade. 

"Greek commercial fleet and Greek economy need a few basic things - funding in good conditions, adequate and modern legal framework, good management and open horizons," said Louka Katseli minister of economy, development and commercial shipping. The Minister said that the Greek merchant navy plays an important role in the way the country will exit the economic crisis today. Although the shipping industry is in much better shape than other sectors of the economy, minister Katseli admitted that it needs support and flexible financing.