Market Opportunity - Maritime Assets
Shipping is the most cost-effective method of transporting commodities and finished goods over long distances. Shipping demand is closely correlated to global trade growth which is driven by expanding population, urbanization, income levels in emerging economies and global sourcing and manufacturing patterns.
Vessel values and charter rates have declined in recent years, primarily due to an oversupply of vessel capacity combined with weak global economic activity. We believe there are significant opportunities to acquire cargo ships at historically low prices and employ them in a manner expected to generate attractive current returns and capital gains.
We target modern, commodity-sized vessels that accommodate a variety of end-users and can be utilized on most major and regional trade lanes.
We charter our ships to the world's top shipping lines and seek to limit the aggregate portfolio counterparty concentration.
Employing our vessels on staggered charter expirations allows us to diversify charter renewals and cash flows.