Portfolio company buys a vessel.

The ship owning company agrees to a contract (known as a charter) to transport goods for another company.

Charters can either be for a set amount of time, for example 12 months, at an agreed price, or for a single voyage

The ship conducts charters on an ongoing basis

There is an established market for second-hand ships

A ship will retain a scrap value. The owner will decide when is the best point to scrap the ship, dependent on prevailing market conditions