Why shipowners might be better off sharing profits than taking on debt

AI Summary

The article argues that shipowners may benefit from profit-sharing finance instead of conventional loans, whose repayments remain due regardless of freight-market conditions. It presents earnings-sharing as a way for investors to share vessel performance while owners retain control, against a backdrop of growth in major shipping banks' portfolios.

Traditional loans demand repayments regardless of freight markets. Earnings-sharing structures offer a different proposition: investors participate in a vessel’s fortunes while owners retain control. Captain Vikas Pandey from Shipfinex explains.  Ship finance looks healthy on paper. Petrofin Research estimates that the top 40 shipping banks grew their portfolios by 6% in 2025 to $300.6bn, and …