March 2021 | Remember our phrase “The rest is pure mathematics” in our article on the renaissance of the asset class ship? We will explain this mathematics in more detail in the coming posts. Through this it will become clear why a digital investment in ships is not only timely, but above all makes sense at the present time.
Specifically, we turn to the Hamburg shipping company Vogemann. The current investment into the traditional company from 1886 is designed as a digital security. Vogemann Green Ship Token is a tokenised profit participation right. It has a fixed annual interest payment of eight per cent and a 50/50 profit sharing between the shipping company and its investors. The issue volume is 50 million US dollars. A minimum invest is significantly lower than those of usual tangible asset investments in the shipping sector. Why? Because of the tokenisation, which divides the asset into many small, digital units. So Investors can participate from 1,000 US dollars – in a purely digital investment process.
The purchasing strategy focuses on bulk carriers, so-called bulkers, with a carrying capacity of between 30,000 and 70,000 tonnes. This corresponds to the handysize to supramax/ultramax size. Newbuildings are eligible as well as second-hand ships. However, these must not be more than ten years old and must have certain low consumption and emission values.
Digital investment with a strong market presence
Investors in the Green Ship Token benefit both from the high charter rates and the increase in value of the ships. Vogemann’s strong market presence has positive effects on both aspects. Because: in addition to the shipping company, an own brokerage as well as a number of service companies are part of the group of companies. In conclusion, Vogemann covers the entire range of services related to bulkers.
This leads to a very high capacity utilisation as well as to corresponding charter rates and optimal fleet management. Vogemann has contacts that enable access to special second-hand vessels because it is an established and active market participant. As soon as the market reaches its peak or attractive offers are received, the shipping company will sell the bulkers again. And this will generate maximum profits. Vogemann has already gained extensive positive experience with this principle of anti-cyclical investing in the past.
Now you are certainly asking yourself how you can gain access to this asset. Quite simple – in a moment you will read how the digital investment process of the Green Ship Token works.
First, an outlook:
In the next few posts, we will look at the following aspects.
How is the global fleet developing in the bulker segment?
This aspect is important because the number of ships is declining. In this case, competition is not stimulating business. Instead, the correlation between supply and demand will increasingly determine charter prices. In conclusion, anti-cyclical investing is the motto. So Vogemann is clearly ahead of the competition.
How does a ship generate ongoing profits during its operation?
Simply put: through the rates at which the ship is chartered out. In our cash flow analysis the values are transparently comprehensible and at the same time very conservatively calculated. So you will see what real opportunities profit sharing offers. And, the shipping company shows that in its current investment of the Green Ship Token.
How does the energy efficiency of the ships influence the charter rates?
This is where the increasingly strict requirements for environmental protection in shipping will separate the wheat from the chaff. Because whoever has the most efficient ships in the market will achieve the highest prices from leasing. And Vogemann is already seeing this competitive advantage today. Worldwide only two of around 2700 Handysize bulkers already meet the CO2 emission requirements of 2029. Both are Vogemann newbuildings in Green Dolphin design. So the increase in charter rates is already 20 percent.
So stay tuned!
How does the digital investment work?
Basically, the digital subscription route on www.greenshiptoken.com is no more complicated than online banking. Nevertheless, please plan about 15 minutes for the subscription process. Thats’s because the verification of your identity takes place online via Video-Ident. Here we have summarised the individual steps for you:
Your interest is paid out automatically. Easily track the status at any time via your investor account at www.greenshiptoken.com. Additionally, you will find ongoing updates on your investment.
The subscription page offers further advantages for financial investment brokers and asset managers. You can easily manage your investors in the sales dashboard. Onboarding new investors is just as comfortably. And also following investments are made easy for you. Because once registered in the system, you benefit from ongoing commissions as a partner of neoFIN Hamburg.
Do you have any questions about digital investment? We will be happy to guide you through the process. So get in touch with us!