Investments worth millions of dollars are not taken on instinct; MSI is regularly called upon to provide the expert consultancy that underpins newbuilding decisions.
MSI was approached by a European infrastructure investor which was considering an investment in a dual-fuel feeder containership.
The company requesting the funds had provided an analysis of the investment and the client asked MSI to review the investment opportunity and provide an independent red flag assessment.
MSI performed the following tasks:
- Overview of the feeder containership market, including key supply/demand drivers, historic charter rates, regulatory headwinds, etc.
- Provision of MSI’s inhouse forecasts for feeder containership asset prices and freight markets.
- Assessment of the green energy transition and use of alternative fuels, both at an industry-wide level and specific to the containership market.
- This involved a comprehensive review of the availability of green fuels, their attractiveness for charterers and the feasibility and likely timing of fuel switching.
- High level review of shipbuilding and charterer contracts as well as counterparties.
- Detailed commentary on alternative methodologies for determining ship’s residual values and forecast achievable earnings.
- Commentary on residual value, freight rate and revenue forecasts provided by the company requesting funds, identifying potential areas of concern for the client.
MSI delivered in the report in a PowerPoint style format including text, data and charts, with additional supporting data provided in Excel. MSI also presented key findings to the client through a series of meetings. To learn how MSI’s Consultancy services can help your business understand and profit from market dynamics in shipping, offshore and shipbuilding, please get in touch.
