Global solutions for the shipping industry
The shipping and ports industry has been facing dramatic changes in recent years. While global demand for transportation services remains strong, the deregulated market place is forcing individual companies to compete harder for new and existing customers. As cost pressures and service demands escalate, shippers and carriers are collaborating strategically to share resources and information while also realising economies of scale. Business cycles are becoming shorter so all players have to be quick to respond to market forces and continually anticipate change.
Customised offerings for the shipping industry
Deloitte provides internal-control related services to shipping companies through assistance in selecting appropriate internal control frameworks by which the achievement of control objectives could be measured. Deloitte assists in developing and documenting control objectives including those related to the Company’s disclosure controls for compliance with Sarbanes-Oxley, facilitating workshops, surveys and interviews to understand and document existing business processes, associated risks and controls and designing an initial assessment of control effectiveness. Deloitte provides recommendations for management to address control weaknesses and helps in deploying Risk and Control Tracking System (RCTS) which is a web-enabled database intended to serve as the repository for the documentation of the Company’s key business processes. Deloitte also helps shipping companies in analysing potential control deficiencies and management’s prioritisation along with drafting follow-up action plans.
Deloitte is the Independent Registered Public Accounting Firm for a number of shipping companies which have successfully completed initial public offerings in the United States over the past twelve months. We serve these clients through a network of talented professionals who possess extensive knowledge of U.S. accounting principles and the U.S. Securities and Exchange Commission’s (SEC) complex offering requirements and practices and have a proven track record of successful offerings in the United States. As part of the initial public offering process, Deloitte may perform many services in addition to the audit of the financial statements. We assist in the evaluation of alternatives for entering the U.S. capital markets and perform high level diagnostic reviews to identify significant issues. Deloitte reads and comments on the companies’ formulation and drafting of non-financial statement information, such as Selected Financial Data, Management Discussion and Analysis, Quantitative and Qualitative Disclosures about Market Risk and other parts of the Registration Statement. We also participate in drafting sessions and conference calls with the company underwriters and attorneys and assist the company in resolving comments from the SEC review.
- Port Security
TransPORT is Deloitte’s customised service offering that aims to provide tangible and objective advice and solutions that are in the best interests of the transport industry. The service can deliver bespoke solutions during all implementation phases for safe ports and secure supply chains. It begins with the defining and evaluating of security threats. Based on intelligence and assessments, analysis of possible terrorist operating modes, likelihood of events and past experience, we help our clients to develop security risk management systems from both a Process and IT point of view. We have worked with seaports and other players in this industry across a variety of functional areas and have ready access to appropriate sources for benchmark and best practices. Buyers of this service have been ports, terminals/warehouses, carriers (road, train, ships, and multimodal with containers) and shippers.
- Tax Leasing
Deloitte specialises in advising corporations all around the world on tax efficient structuring and operating arrangements of ships. We have helped our clients design international shipping structures, finance new LNG tankers, assisted in the merger of ship operating companies, helped clients with tonnage tax regimes, financial and lease modelling, structured financing for vessels, tax efficient financing of vessels, designing optimal group operating structures for shipping companies and cross border financing.
- Valuation Services
Deloitte maintains a leading valuation practice featuring a vast global network with seamless delivery capabilities, deep financial and accounting acumen, and robust industry experience. Our valuation practice helps companies successfully realise the value of their assets in today’s rigorous regulatory environment by providing independent and well-supported valuations. We understand how to develop value conclusions under GAAP, tax, and regulatory rules that allow companies to understand the value of an entity, asset, or liability so they can make informed business and investment decisions. We help clients to properly quantify and articulate value for taxation, transaction, financing, litigation, and strategic management purposes. Deloitte specialises in the valuation of a number of asset groups including ships and rail cars. Some of the valuations we have performed have been on vessels like Panamax Bulk Carriers, Capesize Bulk Carriers, LNG Carriers, Cable Laying Vessels, Chemical Carriers, Fast Ferries, Conventional Ferries, Container Vessel, LPG Carriers, Dredgers, Cruise Ships, Cruise Lines, Cable Layers, Suezmax Oil Tankers and Containerships.
- Port Analysis Model
The model was designed by Deloitte to conduct an analysis of port commercial activities starting with the examining of port goals and ambitions along with an analysis of port stakeholders; including central and local governments, competing ports, terminals, stevedores, shippers, logistical service providers, port personnel, the community and the market. The model analyses the type of products and services on offer, defines customers the port serves, analyses business constraints, examines key drivers, evaluates strategic positioning and helps develop an action plan to achieve key deliverables.
- Financial Forecasting Solutions
One of the specialised service offerings by Deloitte is ‘Cognos’ which is a system that enables empowering management and is equipped with a long-term (20 year) financial forecasting solution. Cognos implementation keeps track of Revenue Growth through price realisation, mitigation of regulatory risk and the improvement of planning and the growth of investor trust. It includes a 20-year forecast for Economic Earnings, Corporate Income Statement, Cash Flow and Balance Sheet. This is critical to shipping companies given the dynamic environment of fuel prices, interest rates, inflation and other such factors. The solution has allowed Deloitte clients to assess the long-term costs and profitability of operating each of its routes, vessels and terminals and assists management in making long-term operational decisions.
- Commercial Effectiveness Optimisation
Being part of such a dynamic and competitive environment, many shipping clients are now striving to better understand their client portfolios, needs and profitability to more effectively target and focus their commercial activities around the globe. Deloitte specialises in assisting these clients through developing Customer Surveys, Customer Segmentation and Customer Value Analysis.