Finance and Insurance

Syndicated marine finance loan volumes fall off a cliff

Shipping might have been enjoying its best year since the collapse of Lehman Brothers, yet loan volumes have fallen off a cliff in 2021.

The ClarkSea Index – a weighted barometer developed by Clarksons covering the main shipping sectors – stands at $36,535 a day, with the average in the year to date up 90% year-on-year and 108% on the 10-year trend.

However, these buoyant numbers have not been reciprocated by lenders who have turned off the taps during the pandemic.

Dealogic’s recently published nine-month Marine Finance Rankings highlight a clear dip in loan volumes, something ship finance title Marine Money has described as “shocking” in terms of magnitude.

The approximate $19bn in shipping loans recorded in the first nine months of the year is the lowest amount recorded by Marine Money since it began tracking this data in 2005. The $19bn figure is down by 46.4% compared to the same period last year and down by 57% compared to the average marine finance volume recorded since 2005.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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