Navigating safely through fluctuations

KGAL ship funds have enabled investors to benefit from the growth of global trade since 2003. The markets for ships are highly cyclical. Following many years of growth, we are currently facing one of the worst crises the industry has ever seen.

Long-term contracts with charterers with good credit ratings and loss-of-hire insurance policies shielded our investors in the initial years of the crisis. However, the expiration of contracts is currently leading to a host of new challenges. Ships have to be maintained to a high standard through professional asset management to ensure that, despite limited deployment options, they remain the first choice for charterers in future. We earn the trust we need from banks and investors to pursue our activities through reliable cash-flow management and controlling.

With AL Ships GmbH, the company responsible for our joint activities with V.Ships, we are best equipped to deal with these challenges and to harness the significant opportunities for the future that arise from the crisis.

Focus on safety

KGAL’s risk-averse approach to ship funds has proved its worth in the crisis. Matching refinancing in US dollars avoids exchange rate losses. Ship funds assuming responsibility for the operating cost risk is an essential precondition for tax exemption under the specific tonnage tax for shipping. As our management fees are partly linked to operating costs, we are, like our investors, keen to keep running costs low.