An analyst on Taking Stock with Pimm Fox yesterday said that NM has insured its leases. Does anybody have a link that shows what the insurance is? According to analyst, if a client cancels a lease, NM gets paid by the insurer.
I think this is a distinct competitive advantage for NM. They bought Kleimar and because its a Belgian entity, NM can insure its charters (don't have my notes, but I think it was a government-backed program aimed at revitalizing the Belgian shipping industry, so only domestic firms could participate). Not sure if NNA has coverage (their last 20-F said they were investigating).
I don't think other shipping companies could get this kind of coverage unless they had Belgian operations. NM's agreement with the insurer goes until 2017 (so they can sign a contract until midnight 12/31/17, apparently). So excel guys, you can DCF those rev/cost #s.
Prob more info than you wanted/needed, but I thought it'd be interesting.
This might be helpful
If a counterparty defaults on a payment, Navios is compensated for either the amounts lost (unpaid) or the difference between the previously contracted rate and the spot rate (if re-contracted out). The net result is that Navios has greatly reduced risk for its charter contracts compared to uninsured contracts.