Problems faced by the shipping industry in raising capital in the securities markets

This papers examines the reasons for the shipping industry's general failure to exploit the enormous capital raising potential offered by the world's major security markets. The basic reason put forward is one of joint ignorance and lack a of communication. On the one hand shipping perceives the market as being unsympathetic to its requierments. On the other hand, the Stock market assess it as a minor activity and this is combined with a presumption of industrial instability. An analysis of recent initial public offering of equaity options in shipping highlights the inadequacy of companies who have ventured that way. In particular it is pointed out that shipping companies who embark on such a course must not forget that equaity is, at one end the same time, the cheapest and the most expensive money which they can raise. There is a further underlying problem for the industry, which is that market capital raising neccessiates the loss of personal control.