The course discusses about the fundamentals of shipping finance. The course consists of two parts Maritime transportation, Functions of Shipping, Challenges facing the shipping industry, Market Structure of Shipping, Shipping Markets, Shipping Services and Networks, Charter services, Liner shipping services, Shipping Alliances, Frequency of service, Fleet and vessel size, Number of port calls.
The course gives a brief introduction about the sources of finance for shipping companies such as Ship Finance, Sources of Ship Financing, Financing from banks, Mortgaged-backed loans, Financial and Non-financial covenants, Equity as a Source of Capital, Debt as a Source of Capital, Leasing as a Source of Capital, Mezzanine Financing, Capital Budgeting and Cost of Capital.
The course further discusses about the Types of investment decisions, Evaluation Criteria, Non-discounted Cash Flow Techniques-Payback period (PB), Accounting Rate of return (ARR), Discounted Cash Flow Techniques-Net Present value (NPV), Internal Rate of return (IRR), Profitability index (PI), Discounted Payback period, Salient Features of Investment Decisions, Conflict in Ranking.
Finally, the course gives a detailed insight into the Cash Flow, Charter Rates, Forward Freight Agreements (FFA), Sale and Purchase of Ships, Stages of Ship S & P, Second-hand ship sale contracts, Information about Ship Sales, S & P Confidentiality.