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The Greek Chapter of the International Association “Women’s International Shipping and Trading Association” held its Annual Conference at the fantastic location of the popular Yacht Club of Greece overlooking the Mikrolimano Port and a quiet Saronic Bay.
Some 200 hundred of distinguished guests from the Maritime Community mixed with more than 60 WISTA Shipping Executive Ladies who used this excellent opportunity to host their business associates and supporters.
from left to right: M. Bodouroglou, D. Gialouris, I. Anastasopoulou, V. Liouta, J. Elvey, Th. Ntalakos, J. Pachoulis
The WISTA Hellas President Ms. Anna-Maria Monogioudi also Director of Aegean Protective Coatings SA. was graciously co-coordinating the activities for what proved to be again a very successful business event, amply supplying food for thought to the important decision making guests.
An analysis of the prevailing circumstances in the Chartering and Trading Market presented by Mr. John Pachoulis, Managing Director of MegaChart Inc. and President of the Hellenic Shipbrokers Association underlined the extreme contrast of the 2002-2007 unique shipping boom to the 2008-2009 unprecedentent reduction of the charter rates. Several examples of renegotiation examples of period charter contracts were mentioned, proving that many sensible Shipping Entrepreneurs approached their existing commercial differences in a practical way.
Mr.Theodoros Ntalakos of Intermodal Shipbrokers Co dealt in his presentation with the Newbuilding Market prevailing situation, the number of cancelled contracts sofar and the compelling arguments utilized mainly by the Shipowners during the renegotiations of numerous contracts. Many of the data included in his analysis might be useful for helping answer the Shipowners’ dilemma i.e. Stick with the project since the market is cyclical and the vessels have a long trading life or cut their losses, negotiate or cancel.
Mr Jonathan Elvey, managing partner of the Piraeus office of the law firm Ince & Co, talked in a most entertaining and interesting way about some of the main issues in the current market concerning the renegotiation of shipbuilding contracts. He focused particularly on the credit crunch and the current economic crisis. He said that in general terms this does not excuse performance and therefore it is risky to use it to renegotiate.
But he said that yards and buyers are conscious of the difficulties in obtaining security for claims which are not covered by contractual guarantees. Therefore they are sometimes prepared to renegotiate because they know that if the deal fails they may be unable to recover their full claim. Mr Elvey also talked about examples of breaching contractual terms in newbuilding contracts in a way which give the other party the right to terminate. He said that sometimes these termination rights appear in explicit terms in the contract, but sometimes they can be triggered by breaches which do not refer explicitly to termination.
Marfin Bank Shipping Manager Mr. Dimitris Gialouris, a Banker that during his career has seen several up and downs of this industry, elaborated on the owners’ approach of signing newbuilding contracts whenever a free berth was in the market with no power however to negotiate the terms with the Shipyards. His opinion is that commercial and legal skill will be required to navigate the conflicting pressures and steer the circumstances to a mutual benefit for the shipyard, the shipowner and its lender. Commercial compromise is therefore the obvious solution.
Paragon Shipping Inc. a New York listed company represented by its Chairman and CEO Mr. Michael Bodouroglou concluded his interesting presentatation by displaying the Company’s strong position secured by 1st class charters for 2, 7 years average remaining term, generating sufficient cash flow for debt service and capital in place to double the size of the fleet. The company has no newbuildings or FFAs exposure.
Mrs. Ioanna Anastasopoulou Attorney at Law also practicing Mediator from the Vgenopoulos and Partners Law firm introduced a challenging issue regarding the interpretation of “force majeure” according to the Greek Civil Code in contrast to the English Law applicable in most shipping contracts.
The presence and the opening speech of Mrs. Rodi Kratsa, Vice President of the European Parliament who has been named Wista Personality for the year 2008 and is an honorary member of Wista Hellas, added fresh and encouraging information about the European Parliament’s position about shipping issues of strategic importance.
from left to right: K. Karagiorgi, Jenny Pournara, D. Gialouris, A-M Monogioudi, V. Chalkidi, Th. Ntalakos, J. Elvey, M. Bodouroglou, V. Liouta
Mrs. Victoria Liouta , Lawyer & Marine Claims Consultant, also a Wista member was the Moderator for this successful Forum. Mrs. Liouta introduced the speakers to the audience and directed the discussion. Mrs. Vera Chalkidi Commercial Director of “Athenian Sea Carriers” recently elected President of the ExCo of WISTA closed the session and invited all participants to join the International Wista Annual Conference between 29 Sept.-1 Oct. 2010
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