7C Shipping

Our services are all linked to strategic planning and the optimization of the operation of vessels. This spans from advice on the potential viability of business cases and structuring of projects to running full ownership structures. Further tasks relating to the optimization of specific parts of the operation can also be undertaken. Our main clients are financial investors and shipping banks.

Our services:

Asset management:

Taking the role in a vessel owning SPV, traditionally handled by the senior management in a ship owning entity. This service is provided by senior managers with a blend of commercial and technical skill-sets as well as in-depth financial understanding. The asset managers are independent and serve as the owner’s representatives, providing a direct link to the parties with an economical interest in the vessel. Furthermore, the asset managers optimize the overall operation of the vessel and the coordination between day-to-day technical and commercial managers of the vessel.

Main advantages of using an independent asset manager:

• Flexibility to appoint the best-suited technical and commercial manager for the specific type of vessel, who can optimize the financial returns.

• No conflict of interest, when pursuing the owner’s interest.

Commercial Management: 

Looking after the owner’s interest in connection with the commercial contracts for the vessel, we act as the in-house chartering manager and S&P team.

• Employment: Our team has comprehensive experience in identifying the best-suited commercial management structure for the vessel. This can be via a Bareboat, Time Charter, Pool, or Commercial management agreement with a leading player in the segment. We have experience in negotiating individual contracts and ensuring the overall performance during the term of the charter contracts.

• Sale & Purchase: We have ample experience in:

    - handling sale and purchase transactions and having a range of direct contacts to buyers and very good relationships with the leading S&P brokers.

    - the crucial aspect of coordinating the successful delivery of the vessel concerned to a new buyer without claim of deduction in price.

Structuring:

When creating a structure for a successful vessel-owning company, there are a number of both strategic and operational issues that need to be considered already in the initial phase. These include among others:

• Earning potential: How does the available market data apply to the specific vessel in practice? What is the optimal employment strategy and what are the cash flow risks of this?

• Cost picture: What is the risk for cost overruns on the specific vessel?

• Day-to-day management of the vessel: Does the optimal solution require a 3^rd party technical manager or an integrated vessel owner/technical manager? Similarly, does it require a 3^rd party commercial operator or an integrated vessel owner/commercial manager?

• Responsibilities: Who should oversee and be responsible for the overall performance of the owning company?

• Financing structure: Which model of financing creates the optimal risk/reward structure?

• Exit: What flexibility is required for an early exit? 

Our team is very experienced in shedding light on these and many other questions from a practical perspective, which is key to creating a well-functioning vessel-owning entity, giving it the best chances for success. 

Ownership structures:

Creating ownership structures, which are arms-length owners of vessels. We are in this respect for instance able to provide:

Flexible structures to be suited to the individual client’s requirements and not constrained by financial and balance sheet issues.

• Clear transparent structures with a named beneficial owner with whom the ownership risks lie.

Our approach is that we provide a service for a fee and that we do not have ambitions to create a large ship-owning company. This also means that while we are able to source capital for Ownership structures (i.e. working capital), our input will be based on a balanced risk/reward evaluation.

Advisory:

We also offer our services on an advisory/consultancy basis where we do not lead the project, but only assist with specific tasks as may be required. These include, but are not limited to:

• Earnings potential: We can assist in evaluating the viability of an existing or new business, and advise on the pros and cons of various employment strategies.

• Costs: We can assist with cost evaluation of existing and new projects and advise on where improvements can be made.

• S&P: We can assist in the negotiation of the sale and purchase of individual vessels and advise on smooth delivery, optimizing the overall proceeds of a sale.

We will be happy to discuss how our past experience can assist in going forward.

© 7C Shipping Ltd