MSI Consultancy Case Study – Defining Shipping Strategy

The client was had an existing shipping arm which had been underinvested, was generating limited profits and was poorly aligned with the wider business.

MSI was contracted to generate a business strategy based on assessing an optimal fleet configuration based on carrying domestic cargoes.

MSI completed an accurate assessment of total cargoes being shipped by the company and worked closely with the commercial team of the company to understand the probability of converting current cargoes carried by third parties to captive cargoes.

Identification of potential trading opportunities to maximise vessel utilisation and revenue and calculation of optimal fleet size based on the agreed strategy.

We designed and developed a financial stabilisation mechanism to help smooth out the shipping business’ revenue stream and provided cashflow and valuation forecasts to inform the financial modelling of the shipping business.

The MSI team discussed potential joint venture partners with the company, based on their regional presence and trading profile and supported a well-known investment bank in designing the restructured entity.

We delivered a series of meetings with the company’s commercial teams responsible for marketing its exports to establish an accurate picture of the addressable market for the shipping company. This was ultimately translated that into actual vessel demand and recommended an optimal fleet mix, based on current trading patterns and cargo preferences.

We then designed a mechanism for stabilising the company’s revenues to make it more attractive to international partners, as well as lowering its financing costs.

This was presented to the leadership team of the shipping business as well as the senior executives of the company.

To learn how MSI’s Consultancy Services can help your business understand and profit from market dynamics in shipping, offshore and shipbuilding, please get in touch.