The maritime services market is a multi-billion dollar industry and has always occupied a strategic place in world affairs. But, like any other industry over the years, it is suffering from lack of liquidity, centralization and the inequitable distribution of benefits between differing stakeholders. Big banks, private debt buyers, high net worth individuals and other financial institutions generally reign in this massive industry making it very monopolized.
The need for a fairer shipping market is growing as trade is expanding and companies need better options for their shipping needs. Shipowner.io is a new Ethereum-based decentralized shipping platform that aims to solve all the core issues associated with the industry. It is working on portfolio diversification, increased liquidity and an overall fairer share of profits.
The shipping industry is another area where intermediaries are taking the lion’s share and Shipowner is working to diminish the role as much as possible without compromising transparency (rather increasing it). Portfolio diversification involves placing different assets in different areas in a dynamic environment and the company is working to promote this without the actual need of physically buying/selling/renting ships.
With its revolutionary platform, anyone can achieve the necessary levels of diversification having no need for big capital holders and their bottomless pockets. So, medium level businesses will benefit from the platform by dealing directly with the ship owners.
The process of asset monetization in Shipowner.io is simple enough. The first step is to complete an initial evaluation of the requirements, then asset selection based on a set of Artificial Intelligence algorithms and proprietary risk-reward models is done, followed by agreement on final terms.
The asset is then proceeded for tokenization using a dedicated legal structure with the rate kept low as compared to getting the financing from regular banking or investment channels. These fractions can then be bought by Shipowner.io’s investors, who are looking to own a part of these assets, and once the sale is complete, funds are transferred to the actual owner of the ship.
While this process seems complex, in shipping terms, it is actually really straightforward, transparent and takes less time than conventional channels. The platform is expected to go live by the second quarter of 2018 allowing seamless transfer of actual shipping assets between users. More than $200M worth marine assets will go on for diversification on the platform with the expected rise to $14B by the year 2023.
The founders are all experienced mariners and other experts, who have decades of experience in the industry. It is a solid marketplace that can disrupt the conventional shipping channels and the way they have been operated for hundreds of years.