CMB Financial Leasing started our journey on international shipping finance in 2015.
After five years of fast growth, we thought 2020 was a good time for us to take a step back and review the key aspects of our strategy, including client base, asset types, growth trajectory and product offering, in order to establish our growth plan for the next five years.
The timing of internal assessment coincided with the unfortunate rampant spread of Covid-19 in the first and second quarters, during which time international shipping was subject to heavy doubt due to a variety of reasons, such as travel restrictions, labour shortages and demand reduction, whose impact was only aggravated by the volatility of the capital market and the uncertainly of geopolitics.
The pressure was felt in most shipping sectors across the board, with one or two pleasant exceptions.
After a year like no other, TradeWinds asked 40 shipping industry stakeholders what they see for 2021 after a year beset by the coronavirus, and how the pandemic will shape shipping's future.
Although very limited new transactions were written during the first three quarters, we spent a lot of time staying very closely with our existing clients to understand their needs and concerns, hear what they had to say about the market, and offered assistance when necessary.
We are very grateful that all of our clients shared with us their market insight and future outlook with great transparency and impeccable professionalism.
Nobody gave us nasty surprises whatsoever.
One thing that is especially worth mentioning is the fact that our clients in the cruise business, which was no doubt the worst-hit among all shipping sectors during the difficult time, reacted to the market very proactively and respectfully. All the right measures were taken at the right time.
The trust and friendly cooperation of our clients impressed us and gave us a lot of comfort and confidence. We feel very lucky to have the client based as such. Our portfolio proves to be well-diversified, healthy and very resilient to market volatility.
Looking into 2021 and beyond, we are ready to embrace the coming year with optimism and a lot of hope. We are following the news about vaccine in the US, UK, China and the rest of the world in the press, and are hopeful that life will be edging its way back to normal next year.
However, we are aware of the fact that the ratio of newbuilding ordering to the existing world fleet is at a 30-year low, which means the scope of business opportunities for shipping finance is narrowed.
We shall continue to pursue our strategy of serving the leading names in the industry both in China and outside, and we very much look forward to the continued support of our existing and new clients.
