Banks supply about 60% of shipping finance, and leasing houses, funds and other providers supply the rest. Petrofin Research’s end-2024 report puts all lending to shipping, leasing and export finance included, at about $625 billion on a cautious indicative count, and says the growth of the global fleet is funded primarily from non-banking sources.
The top 40 banks themselves held $289.65 billion of shipping loans at the end of 2024. The Petrofin Index for Global Ship Finance, which started at 100 in 2008, stood at 63.
The Petrofin index barely moved while the fleet grew
The index rose from 62 to 63 in 2024, and the global fleet grew faster. Europe held 52% of the top 40 banks’ lending, $152 billion, and Japanese banks held 22%. Asian and Australian banks declined, which Petrofin ties to their concentration in leasing. Lending by all banks, local ones included, came to about $400 billion, roughly 60% of all ship finance, down from 62% a year earlier.
Non-bank lending grew faster than bank lending in 2024, mostly through leasing. Petrofin points out that banks are regulated under Basel IV, while alternative finance providers are largely unregulated, and that no figures are available for funds. It also says banks competed hard to keep clients in 2024 and often accepted lower margins to win new business.
Leasing houses and funds lend at higher loan-to-value
Shipping finance split into two tiers in 2024. Banks offered low loan-to-value ratios on most deals, with the exception of dual-fuel and LNG newbuildings. Chinese, Japanese and Korean sale-and-leaseback providers offered higher ratios, often 70-75% or more, and so did specialist funds such as Neptune, Australis, Entrust and Sole. The same report notes that the Clarksons average vessel price index jumped from 149 to 176 in 2024 while vessel earnings were insufficiently high to support those prices. Shipowners mitigated this by accepting lower loan-to-value ratios and by using their own liquidity to cover the gap at high dollar interest rates.
Capital markets were mixed. Shipping IPOs and follow-on offerings underperformed in 2024, but shipping bonds doubled from $7.4 billion in 2023 to $14.5 billion.
Hanjin lost its lenders and its cargo stayed on the water
Hanjin Shipping shows what a refusal by the main creditor looks like from a shipper’s side. By August 2016 the company owned only 44% of the container fleet it operated, and the rest was chartered in, according to Wikipedia’s Hanjin entry. It had asked its creditors in April 2016 to restructure its debt. On 30 August the banks withdrew their support, and Hanjin filed for receivership in Seoul the next day.
The Seoul Central District Court then asked the state-run Korea Development Bank, the main creditor, for debtor-in-possession financing. KDB declined, saying it was questionable whether it could recoup the money. The Hanjin Group’s own offer of 100 billion won (US$91.41 million) fell far short of what the court said was needed to normalize operations. Meanwhile, cargo worth billions of won was stranded at sea, and Hanjin vessels could not dock or unload because port operators feared they would not be paid.
The timing hurt retailers stocking up for Thanksgiving, Christmas and Black Friday, and the same Wikipedia entry says the repercussions were more prominent on smaller companies. A cargo owner in a similar position can check where a box last reported with container tracking by number.
The Seoul Central District Court declared Hanjin bankrupt on 17 February 2017. By August 2017 the trustee had raised about $220 million against $10.5 billion in creditor claims, around 2%, Global Trade reported, and the line had at least 180 creditors.
What the 2025 survey changed
Banks grew again. Petrofin’s 2025 survey, reported by Shipping Telegraph, puts the top 40 banks at $300.6 billion, up 6% on a 2024 base it now gives as $283.6 billion, with all banks together at about $425 billion, just over 60% of an indicative $680 billion for ship finance in all forms. Japanese banks raised their share of the top 40 from 22% to 26%.
Competition among lenders improved terms for borrowers, with margins eroding and conditions loosening. Banks have also started to be more careful on loan-to-value and to prefer financially strong clients. Petrofin expects bank loans to grow only modestly in 2026 and 2027, with newbuilding finance, rising fleet values and a lack of scrapping adding to the total, while banks seek to limit risk and not increase loan-to-value.
Frequently asked questions
Which banks lead ship finance today?
According to Petrofin Research's 2025 survey, as reported by Shipping Telegraph, BNP Paribas heads the top 40 list. Among Greek banks, National Bank of Greece leads, followed by Eurobank, Piraeus Bank and Alpha Bank, and all four sit in the global top 40. No bank left ship finance in 2025.
Do shipowners often default on ship loans?
In the outlook section of its end-2024 report, Petrofin says shipowners service loans reliably, supported by robust liquidity, with defaults remaining rare. It also says high US dollar interest rates combined with strong liquidity led to a wave of early loan repayments.
Did US policy on Chinese ships change ship lending in 2025?
Petrofin says US policies temporarily affected non-bank lending in 2025, because Chinese vessels and vessels bought through Chinese leasing were targeted. Banks filled the gap with refinancings and fresh financings. Chinese leasing resumed its growth quickly once the threat of restrictions and penalties subsided.