CIT Invests $52M in Globus Maritime

CIT — a division of First Citizens Bank — said its maritime finance business has upped its financing for Globus Maritime Limited by $18 million.

According to a Thursday (Aug. 25) news release, this increase in lending expands CIT’s relationship with Globus Maritime and raises CIT’s financing to the company to $52.25 million. That funding is secured by seven dry-bulk shipping vessels.

“Globus Maritime is a top-level shipping operator known throughout the industry,” said Evan Cohen, managing director and group head for maritime finance. “We’re pleased by this opportunity to increase their financing and continue our support for their operations.”

Based in Greece, Globus owns nine ships and is – according to its website — planning “to grow our fleet through timely and selective acquisitions of modern vessels.”

“We appreciated CIT’s expertise and agility in arranging this expanded financing to support the growth of our dry-bulk shipping portfolio,” said Athanasios Feidakis, president and CEO at Globus Maritime.

Maritime Finance, which is part of CIT’s commercial finance division, provides “customized solutions” for secured loans to a client base of vessel owners and operators around the world, the company said.

See also: Slowing Demand Drives Down Shipping Rates

Last month, PYMNTS reported that high-priced contracts for shipping had fallen out of fashion, leaving some companies trying to renegotiate the agreements they signed at the beginning of the pandemic. Others have begun exploring the spot market to seek lower rates.

All of this could be a boon for manufacturers and retailers in the wake of two years of wildly high prices, and it also indicates that the way the freight sector has been contributing to inflation might be waning.

Shippers have said they’re still shelling out exponential amounts compared to before the COVID-19 pandemic began. A recent Wall Street Journal report noted that one shipper at a large importer has said they’re facing “hundreds of thousands” of dollars in penalties due to missing contracted volumes.