You might be wondering why I am still writing about shipping trusts’ business models when there is only 1 shipping trust left. This is because for investors in First Ship Lease Trust (FSL), it is useful to understand the differences between the business models of FSL and Rickmers Maritime to assess whether FSL would go the way of Rickmers Maritime and be wounded up.

On the surface, both FSL and Rickmers are shipping trusts, however, their business models (at least in the initial stages) are quite different. As an analogy, supposed you wish to become a Uber driver but do not own a car. There are 2 ways to obtain a car, either rent a car from a car rental company, or buy a car by taking out a loan from a finance company. From this perspective, a car rental company is very different from a finance company. Rickmers …