Finance and InsuranceGreater China

Splash Extra: Chinese ship leasing surges

An average 5% interest rate differential between Chinese leasing and institutional investors in the west is proving irresistible with finance institutions from Beijing and Shanghai gaining an ever growing share of the global ship finance scene, according to the cover story in the latest issue of Splash Extra.

Chinese lessors are well on track for their goals of 6+% growth this year, based on their mid-year results.

“Chinese leasing is still by far cheaper for most shipowners compared to what is available from funds, credit funds, alternative capital and lessors based in the west,” Basil Karatzas, the CEO of New York-based Karatzas Marine Advisors, told Splash Extra.

Not everyone is convinced that the phenomenon of Chinese leasing will continue to thrive with one Splash reader commenting in an ongoing poll on our site: “Chinese leasing is the new subprime of shipping.”

Elsewhere in the 12-page July issue we look at the rise of the LR3 wannabes, new suezmax crude tankers that have never traded dirty.

This month’s feature looks at how smaller shipowners are increasingly becoming a relic as access to ship finance at competitive rates becomes harder and harder.

Splash Extra launched in January this year and has quickly built up a loyal readership who appreciate the concise and topical approach to maritime journalism. To subscribe to the monthly title costs as little as $100 per year. To subscribe, click here.

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