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Cavalier Shipping insights on the current shipping finance market and recent events in the shipping space.
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Style Drift: The Cost of Teekay and Scorpio’s Foray Into Other Tanker Stocks
What should a public tanker company do with its excess cash in today’s market? The answer for two prominent tanker companies: invest in other publicly listed tanker companies.
American Political Optics vs. Shipping Logic
Leaked messages from the recent “Signalgate” controversy underscore an uncomfortable truth: senior US policymakers continue to misunderstand—or disregard—the structural realities of global shipping.
New U.S. Trade Representative Fines | Consequences in the Caribbean
These USTR fines, designed to target China’s shipbuilding dominance, inadvertently places Caribbean economies and smaller carriers at significant economic risk. The Bahamas and neighboring island nations, having minimal influence over vessel sourcing, face unintended but severe economic consequences.
Platform Supply Vessels (PSVs) in Paradise
Following the oil price crash from 2014-2016, many PSVs became redundant in their original roles. Fortunately, several have found new purpose in serving the unique maritime logistics needs of the Bahamas.
Quid Pro Quo? CMA CGM’s $20 Billion Investment in US Shipping
CMA CGM's $20 billion pledge may be strategically timed to mitigate potential financial damage from a proposed policy targeting shipping operators with significant numbers of Chinese-built vessels, or who have ordered vessels from Chinese shipyards.
The End of an Era | John Fredriksen Exits Golden Ocean
With two fewer public shipping companies under Fredriksen’s control in a matter of months, speculation is growing. At 80 years old, is JF—the man known simply by his initials—strategically unwinding one of the most remarkable single-generation shipping empires ever built?
Why Vessel Prices Remain Stubbornly High
Just as inflation in everyday goods can persist when consumers have more disposable income, ship prices can remain elevated when their natural buyers—shipowners—are flush with cash.
US Navy Shipbuilding - Up Next for Department of Governmental Efficiency?
As U.S. government spending scrutiny intensifies under the Trump Administration, the Navy’s shipbuilding budget may be up next for examination at Elon Musk’s Department of Governmental Efficiency.
US Offshore Wind Casualties
Polarizing legislation like the Jones Act can make for unlikely allies.
BDRY: A Valuation Unicorn Among Public Dry Bulk Shipping Stocks
Unlike most publicly-listed dry bulk shipping companies, the Breakwave Advisors Dry Bulk Shipping ETF (BDRY) trades at a slight premium. Public dry bulk shipping companies on average trade at a 25% discount to their net asset value (NAV) yet BDRY stays close to its NAV. How can this be?
Comparing Public and Private Shipping Company Valuations
Public shipping companies’ end valuations are far more variable than private shipping companies’, since the latter group doesn’t have the constant mark-to-market pricing mechanism of public markets–P/NAV–as a factor.
Shipping’s Illiquidity Premium
Is a 2% premium enough for investors to restrict their ability to quickly exit their bets in order to take profit (or minimize losses)?
The Jones Act Parallel Market
One man’s trash is another man’s … Jones Act-qualified LNG carrier?
Shipping Market Timing is Everything
When buying low and selling high account for the majority of returns in an investment, market timing is everything.
Re-post: ‘Not all equal’: Why Aristides Pittas’ latest spin-off could actually work for investors
Earlier this week, I sat down with Joe Brady of TradeWinds to discuss the recent Euroseas Ltd. spinoff and our thoughts at Cavalier Shipping.
Contextualizing Shipping Investment Returns
What is the average yearly return on a shipping investment? A decade after I was first asked this question, I’ve decided to do the math myself.
Euroseas/EuroDry 2018 Spin-off: Repeatable?
A basic corporate valuation principle: the day after a company pays a dividend, the valuation of the company will decrease by the amount of the dividend (whether paid in cash or stock).
Yet, the conventional corporate finance rules don’t often apply to public shipping companies—take the 2018 Euroseas Ltd. spin off ofEuroDry Ltd., for example.
Greek Shipping Company Spin-Offs
Last week Euroseas Ltd. (ESEA), led by Aristides Pittas, announced its intention to spin off three vintage container ships into new company Euroholdings at the end of the month.
Funding VLCC Newbuilds: Bruton Ltd
Let’s say you ordered a pair of newbuilding dual-fuel Very Large Crude Carriers (VLCCs). How would you fund their construction costs?
EnTrust / Belships M&A
2024’s final major shipping M&A announcement came just before the holidays, with affiliates of US-based fund manager EnTrust Global offering NOK 20.50 per share to acquire dry bulk owner and operator Belships ASA.