Post Crisis Ship Finance - Greek Perspective - Dissertation Example

When we discuss shipping and port an individual cannot ignore Greece and its shipping companies. The unique shift in paradigm in the Greek shipping industry is noteworthy. Greek shipping fleets dominated the sea waves for centuries. The shipping firms are mainly located in Greece or in other maritime centers like London. This enabled them to successfully predict the global industrial trends as far as they are linked with marine activities. The strategic position of these centers also enabled them of better overseas connectivity.

These reasons helped them to be proactive in shipping and that eventually translated into an industrial advantage. (Pallis, 2007, pp.2-11; Harlaftis, n.d.; Jones & Amatori, p.264-267) Minute observation on the Greek shipping industry deciphers many positive and negative features of this sector. Though traditionally Greece is a maritime nation, they gave the least importance to ports and the development of the maritime infrastructure. The strategic geographical location of Greek ports provides crossroads for three continents.

It enabled Greece to become the node to connect the Far East with European countries via Suez Canal. Though geographically favored they failed to develop an effective framework for coastal shipping. This eluded the Greek shipping industry to gain prominence in the short sea maritime transportation. Due to structural change in production, transport and distribution as well as expansion of world maritime trade, the Greek port sector suddenly faced a serious revamping. Such revamping will enhance interconnectivity both through the sea and hinterlands.

The funds for modernization are mobilized by viable sources from the capital market. On the other hand installation of new technologies will also help in competing owing to better operational functionality, both regarding local and global arena. The most remarkable situation that should be mentioned is being the leader in the shipping industry; the last 30 years just witnessed a downward spiral in this business. Greek shipping industry witnessed both pre-oil and post-oil crises of maritime order. The expansion of the industry was eminent due to the culmination of transaction cost-saving, the reputation of capital building and assurance of quality.

The qualitative demand and “quality shipping” ensured them to get maritime orders that led to bulk shipping. With the passage of time, many Greek seafarers who were captains or ship officers became ship owners and that boosted the industry. It is also true that such a boost only made this transformation i.e. owners from captains or officers, possible. The “flag-state” policies of the Greek government to attract Greek shipping companies to Greece also benefited the industry. The government also gave tax relaxations to existing companies to sustain the competition.

Due to globalization and worldwide competitive pressures and progressive policies towards Europeanization changed the regulations that once governed the global shipping industry. These changes in regulations and improvement in capital mobilization led to an increase in demand for a capital base for shipping business, new investments, and disclosure of operational information. This also materialized into the professionalization of the management of the firm and also paved the way for endorsement for different sources of financing.

These factors together changed the competitive scenario of the industry. (Pallis, 2007, pp.2-11; Harlaftis, n.d., Antapassis Rosaeg & Rosaeg, 2009, pp.277-283)