Ship financing faces competition

The largest finance hubs in Asia Pacific are working hard to attract more shipping companies and ship owners as they seek to become the most important finance centers for the industry in the region.

"It is difficult to say whether Hong Kong is more important than Singapore as a ship finance center," says David Cheng, honorary chairman at Credit Agricole Ship Finance Asia.

No single place generates enough business to make it worthwhile for a bank to focus on shipping finance exclusively, says Cheng. Rather, banks typically take a regional approach.