Capital Link’s Fifth Annual Invest inInternational Shipping Forum gathered the world's most influential key maritime executives to examine the volatile landscape that is shaping the global shipping community. The Forum was hosted recently in cooperation with NYSE Euronext and NASDAQ OMX at the historic Metropolitan Club in New York City. Regarded as one of the most highly anticipated maritime shipping events of the year, this year’s gathering attracted well over 950 delegates.
The Forum aimed to provide investors with a comprehensive review and outlook of the global shipping marketplace. It featured topical panel discussions, company presentations and one-on-one meetings with company management. It covered industry sectors including dry bulk, tankers (products & crude oil), containers, commodities, banking and shipping, capital markets and shipping as well as the global economy and how it affects shipping markets.
Capital Link is organizing on an annual basis Shipping Forums in New York City, London, and Athens that bring together foremost executives of U.S. and foreign-listed shipping companies, analysts, commercial and investment bankers, industry participants and investors. Its Shipping Forums in New York City and London are primarily focused on the global investment community, attracting large numbers of institutional investors, financial planners, financial advisors, private bankers, securities analysts, retail & institutional brokers and financial press & media.
The company’s President Nicolas Bornozis outlined Capital Link’s commitment to serving as a link between investors and shipping globally and highlighted the evolution and the key role of the Shipping Forums in the industry. He mentioned that the success of the Forum this year is particularly remarkable given that the shipping markets are in a transitional phase and the capital markets have not been focusing on shipping. He stressed that the Forum’s success demonstrates that shipping has a following by a large investor base that are waiting for the right time to “jump back in.” Mr. Bornozis also outlined Capital Link’s commitment to serving as a link between investors and shipping globally. Furthermore, he highlighted the evolution and the key role of the Capital Link Shipping Forums in the industry.
The Luncheon Keynote speaker, Mr. Joe Angelo, Managing Director of INTERTANKO, addressed the audience on the “Opportunities and Challenges in Shipping.” In his keynote speech, Mr. Angelo first informed the audience about INTERTANKO and the good performance of the tanker industry. He then focused on the two major issues confronting the industry which are piracy off the coast of Somalia and safe operating costs. He told the audience that "piracy off the coast of Somalia has spiraled out of control into the entire Indian Ocean which could have a significant change in impact on the world's economy. The governments of the world must increase their will to eradicate piracy." He also informed the audience about the newly established web site www.SaveOurSeafarers.com and encouraged all to visit it. With regard to safe operating costs he said that "if the current tanker rates continue as they are, they may be well below the costs required to run a ship in compliance with both internal criteria, and broader safety requirements." This was a concern to INTERTANKO and its members and they have entered into a dialogue with charterers to address this potential problem.
Mr. Richard du Moulin, President of Intrepid Shipping and former Chairman of INTERTANKO, made introductory remarks at the luncheon. Mr. du Moulin discussed two areas that are often missed by investors and the banking community. Balance sheets, EBITDA, earnings per share, and financial metrics are well understood. But there are two key factors often ignored or only given lip service. First is operating expertise with a serious safety culture. This provides earning power, customer satisfaction and safeguards shareholder value. The core element of this skill is a motivated, trained, respected body of mariners aboard the ships, served by a professional shoreside staff. When this fails, events such as Deepwater Horizon and Exxon Valdez, or in other industries Bhopal (Union Carbide) or Vioxx (Merck) occurs. The second factor is an independent and experienced board of directors that works with management to guide the company forward. Too many shipping companies have boards made up of relatives, friends, or brokers dependent on company largesse. Tying this back to operating expertise and a safety culture, boards should ensure that part of management’s compensation is based on safety record. The two boards Mr. du Moulin serves on, follow this example – Tidewater and Teekay. Finally, he mentioned that one should ask: “If a company ignores or mistreats the mariners who are on their ships, out of sight and out of mind; how will they treat their shareholders?”
Capital Link is a New York-based Advisory, Investor Relations and Financial Communications firm. Among other activities, Capital Link has made a strategic commitment to the shipping industry becoming the largest provider of Investor Relations and Financial Communications services to international shipping companies listed on the US and European Exchanges. The company’s headquarters are in New York with a presence in London and Athens. Capital Link is a member of the Baltic Exchange.
