Worldwide economic networks make commercial shipping the foundation of the global flow of goods because marine transport has established itself as the most efficient mode of transport, both from an economic and an ecological point of view. 95% of the intercontinental transport of goods is now carried out by shipping.
Preferred investment of professional investors
Tangible assets – specifically in the division of transport – represent an important component in the allocation of large assets for many professional investors, such as asset managers or family offices. 50% of them say that they regularly deal with the transport sector as a form of investment.
The preference for this investment class is derived from the interaction of various factors, which are a prerequisite for the investment decision. Tangible assets provide the desired protection against inflation as well as – depending on the risk organization – capital preservation and capital propagation. The low correlation of logistics investments to other asset types in the portfolio, such as stocks, bonds or real estate, is held in high regard. The transport asset class accounts for approx. 30% of tangible asset investments.
The range of investment types is complex, ranging from direct investments to individual / club transactions, with the possibility of individual designs in advance, to the use of existing open and closed structures. The investment horizon is generally medium‐ to long‐term.
A requirement for the investment of professional investors in tangible assets is the performance of the partner – a partner like CONTI. This applies to the analysis of the market in advance and the ability of the investment to be structured.
Throughout the world, about 45,000 merchant ships are active in the international transport of goods, representing a value of approx. US$ 519 billion. After 20 to 25 years, ships have an age that no longer makes them attractive for further use in the charter market from a cost perspective. This means that, from today’s perspective, an average fleet value of approx. US$ 21 billion a year will be due for renewal for reasons of age alone in the next 25 years.
New technologies – identifying market potential
Merchant shipping is in a state of transition. Ship building and marine technology are evolving rapidly to meet the demands of the market. The focus is increasingly being placed on ecological aspects such as energy efficiency. And this is not just to satisfy more demanding international environmental regulations, but also for the companies’ own business interests. The recent crisis in business and shipping crisis is forcing ship owners to make fundamental changes and advancements.
Bulbous bow optimization in container ship construction, for example, leads to less flow resistance and thus reduced fuel consumption. Widebeam ship designs increase and optimize the cargo capacity. Size classes grow with increasing cargos, permitting the development of new and highly popular types of ships, such as the so‐called Ultramax, in the bulker market.
A good research department analyzes the markets and quickly spots the changes, and thus necessary investments.