Danish Ship Finance has released its much-anticipated latest semi-annual shipping market report, the reading of which may make smaller, traditional shipowners uncomfortable.

Danish Ship Finance predicts that as the shipping industry moves along its decarbonization path, more ships will be tied up in long-term contracts to pay for all the new, more expensive green fuels, and larger shipowners can better cope with the shift.

Ships committed to long-term contracts are unlikely to participate in future asset plays, Copenhagen said.

"These vessels will create value through cash flow earnings from operations rather than asset plays," Danish Ship Finance predicts, and acknowledges that this may sound very unattractive to many, as cash flow earnings from operating vessels have been a weak driver. value of the ship sector and business model over the last 15 years.

Introduction of long-term fuel off-take agreements likely to go hand in hand with long-term employment contracts

The average shipowner today owns four to five vessels. The report, led by Christopher Rex, predicts that this extreme fragmentation will change with the advent of alternative fuels.

"Few shipowners have the balance sheet to secure long-term fuel offtake agreements with alternative fuel producers," warns Danish Ship Finance, adding, "The introduction of long-term fuel offtake agreements is likely to be balanced with long-term employment of flush contracts to balance costs and revenues. "

The influential report, read by thousands of people in the industry, also claims that the first barrier to entry into shipping is about to disappear.

The Danish report suggests that "the ability to offer premium products with market-leading low emissions footprints at affordable prices could be the first real barrier to entry into an industry that has traditionally competed on cost."

Mayflower ModelFor the largest ship model production factory, adhering to the spirit of craftsmanship, for the major shipyards to provide professional isometric scaling ship model, but also for you to provide display ship model, undertake a variety of model production, if you need to please contact: 13127032803