Most recent update on the discontinuation of Libor and how it relates to the maritime industry

Our Global Leaders in Maritime detail how the introduction of IFRS 9 will impact derivatives within the shipping industry

The concerns over the impact of the shipping industry on the environment have intensified the last few years with a number of initiatives being undertaken by various stakeholders. Our Global Maritime Leaders outline the new Poseidon Priciples and what it means for the industry.

Libor is widely used as a benchmark rate in the shipping finance industry.  The discontinuation will affect ship financing loan agreements, floating rate notes (“FRNs”), leasing arrangements and derivatives among others. Our shipping experts share their thoughts on how this will impact the industry.
 

The turmoil in the shipping and financial markets since 2008 has resulted in a significant decrease in funds available for borrowing and has led shipping companies to seek alternative methods of financing for the acquisition of vessels such as the sale and leaseback option. With the adoption of IFRS 16 from 1 January 2019, Panos Drakoulakos details how this will impact sale and lease backs as an alternative financing method.