Mr. Nicolas Bornozis, President & CEO – Capital Link Inc. Speaking at The Propeller Club's First Annual Hellenic American Shipping Gala in Athens on July 11, 2023

Back in 2016, the Propeller Club awarded me for my contribution to strengthening the bilateral relations between the United States and Greece in the maritime field, so I am particularly honored and grateful for the invitation to join and address you tonight. Capital Link has been involved and supported the journey of shipping, and Greek Shipping in particular, in the U.S. capital markets and we have had the privilege to work with the vast majority of the companies recognized here tonight.

The real advent of shipping to the U.S. capital markets started in 2002, when Tsakos Energy Navigation transferred its listing from Oslo to the New York Stock Exchange. Since then, there has been a flurry of activity with shipping companies from Greece and elsewhere listing on stock exchanges in New York, which remains for financial capital for shipping and beyond.
All of us here tonight know firsthand the significance of shipping in the global supply chain, as the vast majority of world trade, nearly 90%, is transported on ships. Mr. Efthimios Mitropoulos, during his tenure as Secretary General of the International Maritime Organization (IMO) has stated that without shipping, half of the world would starve, and the other half would freeze, and this is not an exaggeration.

However, when shipping made its advent to the U.S. capital markets it was a new asset class the majority of investors did not know much about. Furthermore, as a new asset class, and not being part of any stock market indices, it was not an asset class that investors needed to own. Actually, to most investors, shipping at the time was the “invisible” industry, as the modes of transportation that they had seen and were familiar with were airlines, trucking and railroads. While they could connect shipping with the names of the Golden Greeks, like Onassis, Niarchos and Livanos, to the vast majority of investors at the time it was an exotic asset class, a volatile, cyclical and seasonal industry.

Fast forward now from 2002 to today, shipping has made its presence felt in the U.S. capital markets. There are today 48 shipping companies listed with a total market capitalization of nearly $39 billion. This figure refers to common stock and does not include preferred issues or bonds. Within this universe, there are 27 shipping companies of Greek interests, with a total market capitalization of about $9 billion. There are well over 1,000 institutional investors active in maritime stocks. Furthermore, in the case of nearly two-thirds of the listed companies, individual investors own more than half of the free float, indicating the interest of the wider investment community in the industry.

Today, three factors have had a transformational impact on the acceptance of shipping stocks in the U.S. capital markets.
First, after a series of difficult years with low or negative profitability, the shipping industry is enjoying a period of healthy profitability. As shipping companies have made money, so have their investors.
The second factor is the pandemic. When we are all home locked down, we all ran to the computers ordering all kinds of goods online. We all remember the difficulties and bottlenecks in the global supply chain due to covid. The Wall Street Journal came out at the time with a very descriptive motto “No Shipping - No Shopping”, which made shipping a household name. It raised awareness of the broader consumer and investor community of the vital role of shipping in the global supply chain.
Third, geopolitics as the result of the Ukraine invasion and the gradual disengagement of the West from Russian energy sources. The push for “energy security” raised awareness of the vital role of shipping as the lifeline for global trade, for the well-being of the economies and for national security.

Looking ahead, shipping has established a strong beachhead in the U.S. capital markets but it still remains a small percentage of the overall U.S. stockmarket. Additional listings will help the sector increase its profile, offering more opportunities and alternatives to investors. And this can happen, as today the publicly listed companies represent only about ten percent of the global fleet. At the same time, the capital needs of the industry are increasing, as the result of energy transition and regulatory requirements, which necessitate significant investments in fleet upgrades and renewal. So, the public markets can play a significant role in providing capital to the industry. And today, shipping is in the periscope of a much broader investor universe, which looks at shipping as a vital industrial activity and part of the global logistics infrastructure.

Thank you for the opportunity to address you tonight. Raising the profile of Greece and Greek shipping is not just a professional activity for my sister Olga and myself. It is a passion to which we have happily dedicated almost a lifetime. We are privileged to have been part of the journey of shipping, and Greek shipping in particular, in the public markets and look forward to continuing this journey alongside you.