Course 10 of 20 · Freight and Shipping Desk Academy

Ship Finance, Working Capital & Operator Liquidity

Stage C, Operator economics and market practice. Level 5 of 10.

Funding the freight book: bunker prepayment, the hire and freight cash cycle, claim receivables, credit lines, guarantees and the cash needed to carry paper margin.

115 chapters · 11 modules · every chapter one 8 to 10 minute explainer · builds on: Course 03, Course 05, Course 08, Course 09

Enrol or enquire See the 115 chapters
How a chapter is delivered

One chapter is one idea taken to the point of use

Each chapter covers one idea to the point where you can use it, and comes two ways: a narrated explainer, and a deep dive audio discussion of around thirty minutes that works the same material at depth.

Self-paced throughout, and the same chapters can be taught as a cohort. Chapters run in order: each one assumes only what the chapters before it taught, and capability belonging to a later course is named and deferred rather than half-covered.

Curriculum

11 modules · 115 chapters

Open any module for its full chapter list, in teaching order.

M0 Who Pays for the Ship and Who Pays for the Voyage Ch 1-9
  1. Two Balance Sheets Behind One Fixture
  2. Hire Falls Due Before Freight Arrives
  3. Empty Account, Full Line, Arrested Hull
  4. What a Ship Is Worth to a Lender
  5. The Capital Line Inside a Voyage Result
  6. Disponent Owner, Charterer, Mortgagee
  7. Who Approves a Bunker Stem at Midnight
  8. Return on the Capital a Vessel Day Consumes
  9. How the Modules Fit and Where Threads Stop
M1 The Voyage Cash Cycle Ch 10-21
  1. Drawing the Dated Cash Line of One Voyage
  2. Fuel Paid For Before the Cargo Is Loaded
  3. Advancing Funds to a Port Agent
  4. Ninety Five Percent on the Bill of Lading
  5. Freight Prepaid Against Freight Collect
  6. Canal Tolls and the Money Demanded Up Front
  7. Deadfreight, Despatch and the Invoice Nobody Expected
  8. Finding the Peak Funding Day of One Voyage
  9. Pricing the Voyage Funding Gap Per Day
  10. A Worked Voyage Cash Cycle, Part One: Stem to Sailing
  11. A Worked Voyage Cash Cycle, Part Two: Discharge to Collection
  12. Three Voyages Running at Once
M2 Hire in Advance, Freight in Arrears Ch 22-31
  1. Semi-Monthly Hire and the Fifteen Days You Fund
  2. The Relet That Collects After You Have Paid
  3. Deducting Off-Hire From the Next Payment
  4. Bunkers Bought on Delivery and Sold Back on Redelivery
  5. The Last Voyage and the Fuel You Must Leave Behind
  6. Address Commission and Brokerage on Their Own Clock
  7. Paying Hire Punctually When the Money Is Not There
  8. Withholding Hire You Have Not Won Yet
  9. A Pool Distribution Instead of a Freight Invoice
  10. A Worked Operator Fortnight
M3 The Vessel as a Financed Asset Ch 32-42
  1. What a Ship Mortgage Actually Secures
  2. Loan to Value at the Moment of Purchase
  3. Amortisation, Balloon and the Earnings You Must Make
  4. Assignment of Earnings and Where Freight Must Be Banked
  5. Assignment of Insurances and the Loss Payable Clause
  6. Three Valuations of the Same Hull
  7. Sale and Leaseback as a Funding Choice
  8. A Bareboat Charter That Is Really a Loan
  9. Lease Structures Seen From an Owner's Cash Position
  10. Newbuilding Instalments and the Refund Guarantee
  11. Demolition Value as the Floor Under a Loan
M4 Loan Covenants Against a Trading Decision Ch 43-52
  1. The Minimum Value Clause and a Falling Market
  2. Curing a Security Shortfall in Thirty Days
  3. Financial Covenants on a Shipowning Group
  4. Covenant Headroom Measured in Vessel Days
  5. Whose Valuation the Covenant Actually Counts
  6. Employment Covenants and the Charter a Lender Must Approve
  7. Insurance and Class Covenants as Trading Constraints
  8. Cash Trapped Inside a Single Ship Company
  9. Cross Default Across a Fleet of Separate Borrowers
  10. A Worked Covenant Test Through a Market Fall
M5 Drydock, Survey and the Off-Hire Gap Ch 53-62
  1. The Survey Bill That Arrives Every Five Years
  2. Accruing a Drydock Reserve From Daily Earnings
  3. The Ballast Passage to the Yard Nobody Pays For
  4. Instalments Continue While the Ship Earns Nothing
  5. Off-Hire Interrupting a Plan Already Committed
  6. Loss of Hire Cover and the Deductible You Carry
  7. A Condition of Class and the Repair You Cannot Defer
  8. Retrofit Capital on a Hull You Still Owe Money On
  9. Performance Deductions Against the Repair Budget
  10. A Worked Drydock Funding Plan
M6 The Operator Who Owns Nothing Ch 63-72
  1. A Book of Chartered-In Tonnage and No Collateral
  2. What a Lender Looks At When There Is No Hull
  3. Negative Working Capital as a Permanent Condition
  4. Assessing a Disponent Owner With One Ship Name
  5. The Charterer Whose Only Asset Is the Fixture
  6. Performance Security Inside a Charter Party
  7. A Guarantee From a Group of Mortgaged Hulls
  8. Which Entity on the Recap Actually Owes You
  9. Watching a Charterer Between Hire Payments
  10. How an Operator Usually Fails
M7 Bunker Credit and the Maritime Lien Ch 73-82
  1. Thirty Days of Supplier Credit on a Stem
  2. Stemming Fuel for a Ship You Do Not Own
  3. The Supplier's Claim Against the Hull Itself
  4. No Lien Clauses and the Notice at the Gangway
  5. A Vessel Arrested and the Money Needed by Morning
  6. Club Letters Instead of Cash Security
  7. When a Fuel Trader Fails Holding Your Prepayment
  8. Prepaid Fuel Against a Dedicated Bunker Line
  9. Fuel Price Protection and the Collateral It Demands
  10. A Worked Bunker Funding Decision
M8 Claim Receivables and Collection Ch 83-92
  1. A Demurrage Receivable Is Not Cash
  2. The Claim Clock and the Bar That Ends It
  3. Provisioning for a Claim You Expect to Settle Short
  4. Hire Deductions You Will Spend Months Recovering
  5. Posting Security Against a Cargo Claim
  6. The Lien on Cargo for Unpaid Freight
  7. The Cesser Clause and the Party Left Holding the Debt
  8. Financing a Book of Freight Receivables
  9. Credit Insurance on Freight and Hire Due
  10. A Worked Claims and Receivables Book
M9 Paper Margin Against Physical Freight Cash Ch 93-102
  1. The Cover That Empties the Account While the Ship Earns
  2. Sizing Opening Collateral to a Vessel's Days
  3. A Daily Call Against a Monthly Hire Receipt
  4. A Rally Through a Sold Forward Position
  5. Posting Something Other Than Cash Against a Route Position
  6. Who Holds the Cover in a Broker Clearing Arrangement
  7. Projecting Tomorrow's Call From Today's Route Book
  8. Three Clocks: Daily Margin, Hire in Advance, Monthly Index
  9. The Position Closed at the Worst Point of the Winter
  10. A Collateral Budget as a Limit on Coverage
M10 Facilities, Liquidity and a Worked Quarter Ch 103-115
  1. The Facility Set a Freight Book Actually Needs
  2. A Committed Line When Three Ships Need Fuel
  3. Sizing a Facility to the Week You Hope Not to See
  4. What Borrowing Costs a Shipping Desk
  5. Explaining a Freight Position to a Credit Committee
  6. The Monthly Pack a Shipping Lender Expects
  7. Liquidity Runway Measured in Trading Days
  8. Concentration on One Charterer and One Route
  9. A Worked Funding Quarter, Part One: The Book Committed
  10. A Worked Funding Quarter, Part Two: The Week It All Lands
  11. A Worked Funding Quarter, Part Three: Redelivery and Release
  12. What the Chartering Desk Must Be Told
  13. What Ship Finance and Credit Cannot Fix

The brochure gives each of these 115 chapters a paragraph on what it covers and what you can do once you have worked through it.

This is course 10 of twenty

It stands alone, and it is also the entry point to the Freight and Shipping Desk Academy pathway.

Enrol or enquire See the whole pathway