Ship Mortgage Enforcements – Preserving Your Security?

By Bill Amos, Partner, Ince & Co., Hong Kong

This article considers the options available to ship finance banks when their borrowers default. To place matters in context, there are a number of comparisons to be made between the current crisis and previous shipping downturns.

For those of us in Asia the last downturn we experienced was 2003’s SARS-related crisis, which was short-lived and regional. A vessel could be re-possessed and re-positioned from Asia to Europe and be operated profitably. In marked contrast, the present recession is a global phenomenon.

In the past, the shipping market cycle was not always in synch with the wider economy, often managing to experience “bust” when other sectors were booming. The October 2008 collapse in the dry bulk market exactly coincided

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