〆Leveraging his extensive financial experience in international markets, Basil Karatzas offers advisory and brokerage services in the maritime sector.
Karatzas Marine Advisors & Co. (KMA) was established in 2011 in Delaware, USA. The company’s primary activities involve providing advisory and brokerage services in the maritime field. Their clients include financial institutions, shipowners, investors, insurance companies, law firms, courts, and trading houses associated with the shipping industry. While the firm sometimes acts as an agent for shipowners, it generally forms exclusive contracts, focusing on providing strategic and business advice within niche markets. I spoke with Basil Karatzas, the founder and CEO, about the company’s business strategy.
(Text by Hirofumi Yamamoto)
―First, I would like to ask about the main activities of Karatzas Marine Advisors & Company.
“We primarily act as comprehensive advisors in the shipping industry, focusing on:
- Ship valuation and surveys,
- Arranging financing for ships, projects, and shipping companies,
- Providing strategic advice to investors on investment and risk mitigation in the shipping sector,
- Offering strategic and financial advice on strategy and fundraising to shipowners and operators.”
― Could you tell us about your company’s track record so far?
“Our company has a solid track record of acting as intermediaries for major leasing companies and banks, particularly in cases involving ships in default or those whose leases or charters have expired and not been renewed. Even during market downturns, we have consistently managed to sell vessels at prices exceeding the book value of the sellers.”
“The ships we have sold to date include internationally registered Aframax tankers, Medium Range (MR) tankers, Panamax bulkers, Jones Act (US-flagged) compliant harbor tugs, tank barges, and harbor barges. Additionally, we have served as liquidators for two super purse seiners and tuna fishing vessels in Majuro under the orders of the High Court of the Marshall Islands.”
―Could you tell us about the experience and background of Karatzas CEO in the shipping industry?
“I began my career in shipping as an agent at the Port of Houston, Texas. Since then, I have been involved in chartering tankers, ship brokerage, advisory services, and turnkey solutions for owners.”
“Leveraging my academic background and professional qualifications, I have handled a wide range of vessels, including tuna fishing boats, offshore platforms, and support vessels, diving support vessels equipped with ROVs (remotely operated vehicles), offshore wind power ships, naval vessels, commercial icebreakers, museum ships (such as the triple-expansion steam turbine engine passenger ship built in Scotland for the Great Lakes’ Canadian coastline), FPSOs (floating production storage and offloading units), as well as dry bulk, tankers, and container ships.”
―KMA is a member of both the Baltic Exchange in the UK and BIMCO (Baltic and International Maritime Council) in Denmark, granting access to all members of these two specialized organizations.
“In addition to these two organizations, we are members of the Jones Act US-flagged shipowners’ association, the American Waterways Operators (AWO), and the Equipment Leasing and Finance Association (ELFA), which includes most US banks and leasing companies active in the shipping industry.”
“Personally, I have worked in countries where KMA has clients and business interests, including London, Scotland, Germany, Singapore, Thailand, Indonesia, Hong Kong, Japan, Panama, Canada, the Cayman Islands, and the Dominican Republic.”
―How do you view the Japanese shipping market?
“Japan is an island nation with a large population, a developed industrial base, and a robust banking system with significant capital strength. There have been short-term impacts, of course, such as financial policies affecting exchange rates and interest rates. Additionally, while Japanese ship designs are consistently of impeccable quality, they may not always be commercially optimal for the international market (e.g., product tankers with pump room designs, Moss-type LNG tankers).”
“Currently, there is a significant interest rate divergence between the monetary policies of Japan’s central bank and those of other countries’ central banks. As a result, exchange rates have moved strongly against the Japanese yen. In such a situation, Japanese financing (including loans and leasing) could present powerful opportunities for providing finance to Western shipowners.”
“Furthermore, Japanese financing can stimulate new-build orders at Japanese shipyards, which would be highly beneficial for the Japanese economy and enable further investments. This could increase Japan’s market share in new ship construction.”
■Profile
Basil Karatzas is a graduate of Harvard Business School (HBS) and holds several qualifications, including Accredited Senior Appraiser (ASA) from the American Society of Appraisers, Certified Marine Surveyor (CMS) from the National Association of Marine Surveyors (NAMS), and Accredited in Business Valuation (ABV) from the American Institute of Certified Public Accountants (AICPA). He leverages a diverse network of maritime industry experts, financial professionals, and professional connections.