Abstract
Financial modeling of ship investments can quantify downside risk and upside potential before a decision to invest is made, and also be used as a tool to monitor risks and performance during the investment period. A good financial model is also an excellent tool for communicating opportunities or potential problems to management, lenders and investors. This allows for opportunities or potential problems to be identified early and plans for alternative actions to be prepared in advance. Meaningful financial analysis and modelling of ship investments can, therefore, contribute to better management of risks and hence better risk-adjusted returns.
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14.1.1 Market Data
Clarksons Shipping Intelligence Network contains the full range of information collected by Clarkson Research including its periodicals, extensive lists and analysis of the fleet, order book and time-series of key commercial shipping data: https://sin.clarksons.net.
14.1.2 OPEX Data
Moore Stephens provide online data as a benchmarking tool for all major vessels’ operating costs, currently covering 24 vessel types: www.moorestephens.co.uk/Shippingopcost.aspx .
14.1.3 Software for Financial Modeling of Ship Investments
Microsoft Excel® is most widely used for financial modeling and users can either employ Excel to build their own models from scratch, or make use of some of the Excel based ship investment applications like ShipInvest (www.scscom.demon.co.uk), Invest in Ships (www.seaxl.com) or Pacoship (www.pacomarine.com).
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Patterson, L. (2016). Financial Analysis and the Modeling of Ship Investment. In: Kavussanos, M., Visvikis, I. (eds) The International Handbook of Shipping Finance. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-137-46546-7_14
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DOI: https://doi.org/10.1057/978-1-137-46546-7_14
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