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Shipping business strategic study

Client: A leading Asian shipyard

An Asian shipyard was forced into the ownership of dry and liquid bulk vessels as the ship owner defaulted on the payment. Drewry was approached to provide the business strategy for the company’s shipping operations.

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Client Objectives

  • To conduct a detailed study to facilitate key strategic decisions regarding the shipping operations on the basis of sustainability and profitability for the business.

 

Drewry Approach

  • Market review and outlook of liquid bulk and dry bulk shipping;
  • Develop financial models to assess the impact on the profitability of the two shipping companies owned by the shipyard;
  • Operating strategy (exit or expansion strategy) and recommendations for future shipping operation.

 

Results Achieved

  • Detailed analysis of liquid and dry bulk sectors culminating in the estimation of short and long term charter earning potential and asset values.
  • Given the significant, potential financial implications of continued operations in a weak market, the shipyard has been winding down its capabilities by gradually selling its assets and focusing on its core shipbuilding specialism.

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