Maritime Treasury Solutions
Increasing operation efficiency & income.
Shipping & Trading Advisory
A range of high-valued advisory services in order to navigate shipping companies through periods of low income and high risks. Our systems are managed by artificial intelligence tools designed within dynamically adaptive neural networks.
Our systems scan market movements and changes through correlated and non-correlated markets to constantly identify and measure risks and opportunities for expansion or additional income.
Maritime Treasury Advisory
A treasury advisors main duties are to maintain an oversight of the entire financial administration of a company. Our objective is to provide the highest levels of risk management and promote capital preservation. We offer advanced solutions to manage daily cash, short-term liquidity, cash flows and cash positioning, surplus funds, procuring financing, and gathering data.
Synthetic Hedging Advisory
Synthetically hedging advisory solutions tailored for each industry sector’s risks such as, income risk, interest rate risk, credit risk, and price risk, through highly liquid and efficient markets.
Proprietary Trading Advisory
We offer over 25 years of trading experience within the capital markets and specifically the shipping industry asset classes as well. We offer advanced quantitative strategy advisory and integration of artificial intelligence within our clients corporate treasury systems, trading systems, and risk management systems.
Risk Management Advisory
Development and implementation of appropriate methods for the management of the risks identified and quantified. After the risks have been identified and the sensitivity of a financial institution to those risks has been adequately quantified, the next step is to select the instruments which are best suited to the management of those risks and lastly monitor those risks as the markets progress. Learn More.
Investment Advisory
Manage assets efficiently & effectively
We advise the incorporation of alternative shipping related income through synthetic treasury services and tailored investment solutions.
Risk Management Advisory
Neutralize Unecessary risk
Instead of hedging risk, which has proven inefficient and not-sustainable, we provide alternative solutions to neutral shipping related risks.
Challenges Ahead
The COVID-19 pandemic’s impact on maritime trade volumes in 2020 was less severe than initially expected but its knock-on effects will be far-reaching and could transform maritime transport.
the COVID-19 pandemic exposed and magnified challenges that already existed in the maritime transport industry, disregarding the latest freight rate increases in certain sectors. As seen in all markets but in specific the shipping industry, the volatility of charter rates have drastically increased over the last 15 years, meanwhile additional regulations and laws have caused maybe companies to lead towards bankruptcy.
Shipping finance has been under a lot of uncertainty where we have seen major banking institutions liquidate their shipping portfolios as they no longer are willing to absorb the relative carried risk. Debt pricing has increased due to increase risks in the market, and therefore the financial efficiency of the industry. At Trajan Capital we take into account all the challenges ahead and design bespoke advisory strategies to navigate through difficult market conditions.
Top Investment Risks 2030
Shipping Finance & Major Risks
Why is Shipping Finance a major risk in the shipping industry?
The main risk in bank shipping finance is the credit – or default – risk. This is primarily due to the volatility of the vessel’s income, which is the main source of the loan repayment; and the consequent fluctuations in the vessel’s market value which is, in most cases, the main security for the loan. It can be said that a shipping company looks like a “Floating Rate Bond with unknown duration”.
- The vessel represents the initial capital (nominal value);
The coupon payments must be paid to investors/creditors (the interest)
The worse is that the repayment of the “bond” may happen at a given time in the future, under highly volatile & uncertain conditions. Furthermore, although the company is the “borrower” and the liable party for the funds, it is not the issuer.
The main risk which a shipping companies’ profitability are exposed to.
Vessel’s income (operating) is the only source of income, which by itself is highly volatile & unpredictable; it is based on many assumptions and on the prevailing markets’ conditions.
In contrary, there are many sources of cost & risk, which highly affect the overall profitability of the shipping business, such as fuel costs, commodities prices, inflationary expectations, crew wages, market prices (not to mention additional sources such as legal, environmental, etc.).
Furthermore, based on the nature of the business, there are certain geographical, operational, environmental and legal issues which significantly affect the operation of a shipping company.
Our Solutions
“There are no secrets; only different views of parallel universes where hidden opportunities exist”.
At the core of our strategy is to eliminate costs (if possible, where it is applicable) and to create new sources of income for the organization. Instead of advising for long-term commitment of risk capital, we prefer advising a companies liquidity short-term to achieve better risk/reward ratio and simultaneously facilitate the operation of the company. We advise on multiple risk management and investment solutions such as commodity trading, hedging risks, FFA (Forward freight agreement) trading or investing, active treasury management, and many more.
Furthermore, we are constantly looking for new sources of generating profits, by making our assets quite efficient and working capital through maritime treasury solutions. (working capital vs. frozen or negatively yielding assets).
Our Expertise
We have deep knowledge within the financial arm of the shipping industry, providing high-valued advisory solutions which promote business efficiency and risk-awareness. We service all sectors of the industry (Bulk, Chemical, Oil, Container, etc.)
As investment advisors and specialists, we guide owners and managers through periods of low freight-rates, to integrate alternative income solutions to minimize exposure to income risk.
Professional investing is like shipping, but
where no time span and geographical barriers exist.”
Contact Us
Are you in the shipping industry?
Start today by submitting our survey to get an understanding of your business and your objectives and our advisors will reach out to you regarding solutons we offer.