All Episodes

April 27, 2021 39 min

This week we take a deep dive into the financing of maritime assets. 

 Our guest is Tony Foster, CEO of Marine Capital in London, a maritime asset manager that links institutional capital to the shipping market. 

Through real-life examples of investment strategies, Tony describes the changing behavior of the pension & infrastructure funds who comprise his investors. He explains that nowadays they are primarily driven by concerns about sustainability. 

“Those institutions increasingly make decisions based upon numerous environmental and other precepts which will have to be met for investments to be sanctioned.”

Tony also explains his recent choice to focus on offshore wind “LNG is increasingly challenging: the institutional investors thinks in a longer term perspective: while the debate rages about the future of LNG, naturally it becomes more difficult to place the investment” 

We also touch upon the transition toward zero carbon shipping:  “For deep sea shipping, there are no carbon neutral solutions available as we speak. That solution will come over a generation. There are clear directions but the ultimate choices have not been made. So the transition is currently about Energy Saving Devices, which can be added to existing technologies over the next decade or so, ranging from wind assist, digital technologies, air bubbles, new propellers… There is a pretty serious piece of technical work required on a ship by ship basis to understand how a certain target might be reached. “

But for Tony, the energy savings is facing a fundamental obstacle:  “We have a split incentive problem in the shipping world: a tonnage provider, a typical ship owner that rents out his ship, doesn’t get rewarded for making energy savings improvements.  So the improvement that he makes would be reflected in a higher rate which would directly reflect the value of the savings of fuel, but it won’t reflect the investment that he has to make in the technology. Charterers are happy to take the benefits of the cost savings, but they are not happy to pay a return on the extra investment.”

 Tony also walks us through the market based measures, recently announced or to be expected:  “At a global level, we are ultimately expecting a fuel tax. We think the solution to the gap between the cost of new technologies and the equity risk that goes into those technologies has to be bridged by a variety of means. Although there are administrative issues around the operation of that tax, the IMO is the obvious organ through which it could be administered. “

Last but not least, because ESG also includes Social and Governance, Tony calls for more transparency & collaboration in the industry. 

“One of the key challenges for the attraction of new capital to the industry is its poor record on governance, what is missing is this virtuous circle of collaborative business dealings and transparency of operations.”

Mark as Played

Facebook comments will no longer be available on iHeart

We're taking steps to simplify your experience. If you want to reach out to our hosts or stations, please do so via their website or social media. If you need any assistance please check out our help site.

Chat About Hoisting the sail, a supply chain podcast

Advertise With Us

Popular Podcasts

This is Paris

This is Paris

Join Paris Hilton each week as she speaks candidly with her friends and family, the hottest in movies, music, and television, innovators, creators, newsmakers, and icons. Paris will sit down for edgy, in depth conversations with a multitude of unexpected guests. She will interview people in a way that only Paris can. Questions and topics that are surprising and unanticipated. Honest, fun, open, inspiring and unpredictable. Loves it. Paris Hilton is an influencer, DJ, designer, recording artist, philanthropist, host, actress, model and author. Now, you can get closer and more personal than ever with Paris each week. This is Paris.

Stuff You Should Know

Stuff You Should Know

If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks then look no further. Josh and Chuck have you covered.

The Daily

The Daily

This is what the news should sound like. The biggest stories of our time, told by the best journalists in the world. Hosted by Michael Barbaro. Twenty minutes a day, five days a week, ready by 6 a.m.

For You

    Music, radio and podcasts, all free. Listen online or download the iHeartRadio App.


    © 2021 iHeartMedia, Inc.