Ship Finance

Ship finance refers to the methods and practices used to fund the acquisition, construction, and operation of ships. It involves secured loans, leasing arrangements, or investment from financial institutions or investors who provide capital in exchange for future revenue from the ship’s cargo or freight. Ship finance is specialized due to the high costs, long equipment lifespan, and fluctuating markets in maritime transport. The goal is to ensure ships are financially sustainable, enabling shipping companies to expand or operate efficiently while managing risks related to ocean trade fluctuations and vessel depreciation.