Basil Karatzas

Basil Karatzas

Basil Karatzas

info@karatzas.com

Basil M. Karatzas is the CEO of Karatzas Marine Advisors & Co., a shipping finance advisory and ship-brokerage firm based in the New York City. Basil has more than fifteen years of shipping market expertise, holds an MBA in International Business and Finance from Rice University in Houston, Texas, and has graduated from the Owner / President Program at Harvard Business School.

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Aberdeen’s Evolutionary Maritime History

By Basil Karatzas 2019-08-08 09:41:00

It’s been said that the best way to understand world history and culture is to look at the maritime history of the world. Since water covers much of the earth, most of the interaction and trade (and conflict) among peoples shows up in their maritime activity. We were in Aberdeen, Scotland, recently on an offshore asset valuation project and had free time to visit the Aberdeen Maritime Museum, a highly recommended way to spend a few pedagogical hours on maritime...

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What Would Columbus Do?

By Basil Karatzas 2019-07-03 21:57:18

Is shipping really more complicated today? Given current technological and regulatory developments, one can easily feel overwhelmed. So many decisions to be made for bunker fuels alone. Looking ahead, there are so many more innovative developments on the horizon that could affect how ships trade and sail in the future. One would think that making decisions in the maritime industry today is hard (which it is). Some might say that our generation has it harder than previous generations when it comes to...

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View from Las Palmas: Six Drillships at a Dock

By Basil Karatzas 2019-06-27 20:56:39

While on assignment to value offshore assets on behalf of banks, we took this spine-chilling picture of six drillships sitting idle at Puerto de la Luz, the port of Las Palmas, Gran Canaria, Spain. Doing what we do, we immediately thought of value and valuations: These six shipping assets were valued collectively in excess of $3 billion, or more than $500 million each, at the top of the market a decade ago. A similar asset – and a bit more...

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We Will Always Have Posidonia

By Basil Karatzas 2018-06-13 11:34:54

It’s an even-numbered year and it’s June, which - for those in shipping - can only mean one thing: it’s Posidonia time! And, Posidonia it was, the 50th occasion of the international shipping community convening to Athens for the industry’s flagship event. The cold facts: it has been reported that more than 100 countries have been represented, more than 1,800 exhibitors showcased their trades and more than 22,000 visitors attended the event with an estimate of half of those visitors...

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bulk carrier

Is the Dry Bulk Tramp Trade at an Inflection Point?

By Basil Karatzas 2017-12-01 15:58:08

As punishingly brutal as the shipping industry can be in bad times, it’s fulfillingly rewarding in good times. Who can forget the days from a decade ago when Capesize bulkers were earning $250,000 per diem and the ships themselves were changing hands in excess of $150 million?  We are a long way from those good old days, but memories of and even hopes for the prompt arrival of great times keep many a shipowner persevering in this business. It’s well-known...

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Wall Street

Setting Sail (Again) on Wall Street

By Basil Karatzas 2016-12-13 16:38:12

Shipping is an industry full of surprises. And volatility. Up until February of this year the surprise had been mainly about the terrible state of the freight markets. The last few months, however, have surprised on the upside. Freight rates for the dry bulk market have moved to cash-flow positive levels and tanker rates have been fair, despite some relative weakness. That’s a long way from saying the market has recovered since many shipowners remain in financial distress and several...

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Hanjin

Moral Hazard Case Study: Hanjin Shipping

By Basil Karatzas 2016-09-06 17:51:45

Not a week has passed since we posted an article on The Maritime Executive’s website about moral hazard in shipping and already the shipping world has got a big-proportioned, real-life case study of the risks in the industry. We argued that when shipowners are over their heads in debt with little promise of ever recovering any equity, they care precious little about financing, operations, trade, safety and even the environment. Last week Hanjin Shipping, based in South Korea and...

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euros

Shipping's Moral Hazard

By Basil Karatzas 2016-08-30 21:21:30

Low freight rates have been a concern for a great number of reasons and a wide range of market participants. Shipowners faced with weak cash flows cannot perform on their loans, causing problems for lenders. Investors faced with poor returns turn to asset sales, driving values even lower. Shipbuilders faced with a great deal of slippage and defaults on existing orders have seen demand for additional newbuilds vaporize. All the concerns mentioned above – and...

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Bulkers

Posidonia 2016 at BDI 600

By Basil Karatzas 2016-06-13 20:55:48

The biennial shipping exhibition of Posidonia in Greece just ended with another stellar performance for the venue, with 22,000 attendees and 1,800 exhibitors from 90 countries. In terms of attendance, it was up by 14% from another stellar year, in 2014. It’s nice seeing that, even in challenging times, executives in shipping have a traveling budget and Greece still manages to stage the biggest exhibition of the industry. Aside from the big crowds and numbers, however, one could see signs...

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CWinner

The Banking System's "Safety Trap"

By Basil Karatzas 2016-05-02 20:44:58

Times for most shipping sectors are very tough, by many standards, even if one takes a long-term historical perspective. The Baltic Dry Index is up almost 100 percent in the last forty days – and still, dry bulk vessels are barely achieving break-even rates on the spot market. Bulker asset prices are very low, despite recent improvement. Bulk carriers older than ten years typically change hands for a few times their scrap price. The dry bulk freight market has taken...

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