Traditionally, the most common way of financing ships has been through debt and equity financing.  However, over the past decade or so, ship leasing has become a very significant competitor and alternative for the provision of finance for acquisition of ships.  Recent market studies expect the global ship lease market to grow at a significant pace over the next five years ― even after accounting for the recent expansion of Chinese leasing companies into the market, as well as the potential impact of the Covid-19 pandemic.

In September 2020, the world’s largest international shipping association, BIMCO, recognising this growth and appetite for ship leasing transactions, released the SHIPLEASE standard form contract, an ‘industry first’ standard. This contract was developed for sale and leaseback transactions involving second-hand ships, but can readily be adapted for newbuilds.

Presentations

• “Ship Leasing and Sale and Leaseback Transactions: Current International Trends and the BIMCO Shiplease”, CML Lunch Seminar, NUS Law, 26 October 2022
• “Selected Principal Legal Issues in Ship Leasing Transactions and Recommendations for Law Reform”, CML Lunch Seminar, NUS Law, 3 March 2023