Funding needed for shipping innovation, adviser claims

At a recent seminar held by the company, maritime efficiency specialist Fathom Shipping’s Alison Jarabo noted that technological solutions are emerging to control costs and comply with regulations – among them scrubbers, ballast water treatment and ship performance management systems. But the market will fail unless shipowners and operators have the finances to deploy the technologies, she added.

Richard Greiner, shipping partner, Moore Stephens said: “Although we have seen a partial return to the shipping sector by banks, there is still a shortfall in available finance. This comes at a critical time for the industry, with significant investment required in technology and services to achieve compliance with environmental regulation and to maximise commercial performance.

Greiner noted a need for financing from technology firms as well as their end users. He added that the highly fragmented, tightly regulated and fast developing market was ripe for private equity funding, and was already attracting interest from financiers.

“Private equity investors who have a firm grasp on the potential risks and rewards available in today’s shipping services sector could be a good match for well-founded shipping services and technology providers who have a clearly identified market for their products,” Greiner added.