• Membership
  • Advert Rates
  • Careers
  • About Us
  • Contact Us
  • Digital Store
Sunday, June 1, 2025
The Trumpet Newspaper Nigeria
No Result
View All Result
  • Home
  • News
    • Breaking News
    • Headlines
    • Metro
    • Health
  • Politics
  • Business
    • Ecommerce
    • Economy
    • Start-up
  • Entertainment
  • Sports
  • Opinion
    • Religion
    • Columnists
    • Contributors
    • Editorial
  • Global
    • Climate
    • Culture
    • Tourism
    • Technology
    • Weather
    • Social Media
  • e-Edition
  • Home
  • News
    • Breaking News
    • Headlines
    • Metro
    • Health
  • Politics
  • Business
    • Ecommerce
    • Economy
    • Start-up
  • Entertainment
  • Sports
  • Opinion
    • Religion
    • Columnists
    • Contributors
    • Editorial
  • Global
    • Climate
    • Culture
    • Tourism
    • Technology
    • Weather
    • Social Media
  • e-Edition
No Result
View All Result
The Trumpet Newspaper Nigeria
No Result
View All Result
ADVERTISEMENT
Home News

Global ship financing by local, foreign banks hits $600 billion in 2023

‘IMO’s SOLAS, MARPOL conventions are core pillars in maritime operations’

Edu Abade by Edu Abade
November 13, 2024
in News
Reading Time: 3 mins read
0
Global ship financing by local, foreign banks hits $600 billion in 2023
0
SHARES
18
VIEWS
Share on FacebookShare on TwitterShare on LinkedinShare on WhatsAppShare on Pinterest
In what is indicative of an increasingly booming shipping industry, total lending for the ownership, acquisition and construction of ships by local and international banks amounted to about $600 billion globally as of 2023, industry experts have revealed.

The experts stated that the amount is huge and significant and underscores the key roles of banks, insurance companies and other financial institutions in the acquisition, construction and operations of vessels globally.

Specifically, Managing Director and Chief Executive Officer (MD/CEO) of a subsidiary of the Nigeria Liquefied Natural Gas (NLNG) Shipping and Marine Services Limited (NSML), Abdulkadir K. Ahmed, stated this, yesterday, at the Association of Maritime Journalists of Nigeria’s (AMJON) Maritime Finance Conference in Lagos.

ADVERTISEMENT

Ahmed, who spoke at the conference with the theme: Vessel Acquisition, Construction: Nigerian Banks, Insurance Firms, Government and the Blue Economy, said with increasing focus on deepening the contribution of marine and blue economy’s contribution to economic growth, the role of finance and insurance in the maritime industry could not be overemphasized.

Stressing NSML’s vision in supporting the growth and development of the Nigerian maritime industry, he maintained that finance and insurance remain critical to the growth and development of the maritime sector, especially with regard to how they impact vessel acquisition and construction (newbuild) activities.

His words: “Vessel ownership and acquisition occurs within 2 segments of the shipping industry-The Sales and Purchase segment where second-hand vessels are traded and acquired and the Newbuilding market where newbuild vessels are constructed from scratch.

“Irrespective of the market owners play in, the importance and role of finance cannot be overemphasised.”

Citing a Petrofin Index for Global Ship Finance, Ahmed pointed out that the top 40 banks lending to shipping in 2023 amounted to $284.27 billion, while the total global bank lending of all banks, including local banks, approached $375 billion in 2023.

“While a cautious and indicative figure for global ship finance, including all forms of lending-leasing, export finance and alternative providers-is approximately $600 billion.

“These amounts are huge and significant and underscore the key roles of financial institutions including insurance institutions in the acquisition, construction and operations of vessels globally,” he stated.

He explained that while engagements at the conference focus on financing and insurance in the vessel acquisition and construction process, which are undeniably critical components in the maritime industry, it was imperative to equally examine the indispensable roles of regulations, standards and competence in the multifaceted process.

Read Also: FG needs over N16 Trillion to complete nationwide road projects – Umahi

“These elements form an integral part of the ship or vessel acquisition process. The shipping and maritime industry is a highly regulated one with great emphasis on safety, reliability and environmental sustainability.

“Compliance with conventions, regulations and guidelines are primarily issued by the International Maritime Organisation (IMO). IMO’s Safety of Life at Sea (SOLAS) convention, Maritime Pollution (MARPOL) convention are some of the core pillars of operations in the global maritime industry.

“With the drive for decarbonization and emphasis on the need to reduce greenhouse gas (GHG) emissions, to combat the threats posed by climate change, there are a plethora of new rules and regulations owners need to be aware of when acquiring vessels.

“The landscape of maritime regulations, and by extension the standards, is becoming more and more stringent with resultant impact on design and operations of both new and existing assets,” he said.

On environment, social and governance (ESG), Ahmed noted that from a financing perspective, major financiers and insurance companies of ships globally have signed the Poseidon Principles which is a global framework for integrating climate considerations into lending decisions to promote international shipping’s decarbonization.

Maintaining that the principles are consistent with the policies and ambitions of the IMO to reach net zero emissions in the maritime industry by 2050 compared to 2008 levels, he disclosed that over 34 financial institutions have signed the Poseidon Principles, representing a bank loan portfolio of global shipping of 80 percent of the global ship finance portfolio.

Signatories commit to implementing the Poseidon Principles in their internal policies, procedures and standards, as well as work in partnership with their clients and partners on an ongoing basis to implement the Poseidon Principles.

“The Poseidon Principles for Marine Insurance recognize the role insurers play in the shipping industry and promote responsible environmental stewardship throughout the maritime value chain. These principles enable insurers to assess and disclose their portfolios with responsible environmental impacts and incentivize international shipping’s decarbonization-aimed at supporting a better future for the shipping industry and the society.

“It is, therefore, incumbent on Nigerian ship owners to understand how the drive for decarbonization and net zero emission objectives impact ship finance and insurance in the maritime industry,” he added.

Previous Post

The Importance of School Farms

Next Post

RDI, EDEN, others demand environmental audit of coal mining communities in Enugu

Edu Abade

Edu Abade

Next Post
RDI, EDEN, others demand environmental audit of coal mining communities in Enugu

RDI, EDEN, others demand environmental audit of coal mining communities in Enugu

About The Trumpet

The Trumpet is a Nigerian based national news media, owned, trademarked and operated by Elomaz Communications Limited with headquarters in FCT-Abuja and regional offices in Lagos and Delta States

Follow Us

Resources

  • Home
  • News
    • Breaking News
    • Headlines
    • Metro
    • Health
  • Politics
  • Business
    • Ecommerce
    • Economy
    • Start-up
  • Entertainment
  • Sports
  • Opinion
    • Religion
    • Columnists
    • Contributors
    • Editorial
  • Global
    • Climate
    • Culture
    • Tourism
    • Technology
    • Weather
    • Social Media
  • e-Edition

Recent News

LinkedIn lays off 281 employees across California as Microsoft’s AI strategy reshapes workforce

LinkedIn lays off 281 employees across California as Microsoft’s AI strategy reshapes workforce

May 31, 2025
Delta polytechnic rector urges 53,432 graduands on being institution's loyal ambassadors

Delta polytechnic rector urges 53,432 graduands on being institution’s loyal ambassadors

May 31, 2025
  • Cookie Policy
  • Disclaimer
  • Contact us
  • About Us
  • Cookie Policy
  • Disclaimer
  • Contact us
  • About Us

© 2025 The Trumpet News Papers - Developed by VIS Nigeria.

No Result
View All Result
  • Home
  • News
    • Breaking News
    • Headlines
    • Metro
    • Health
  • Politics
  • Business
    • Ecommerce
    • Economy
    • Start-up
  • Entertainment
  • Sports
  • Opinion
    • Religion
    • Columnists
    • Contributors
    • Editorial
  • Global
    • Climate
    • Culture
    • Tourism
    • Technology
    • Weather
    • Social Media
  • e-Edition

© 2025 The Trumpet News Papers - Developed by VIS Nigeria.

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
Cookie SettingsAccept All
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT
Go to mobile version
Verified by MonsterInsights