Trends in Ship Finance in Shipping Law News 09/02/2026 The ship finance industry continues to evolve in a manner previewed in years past by regulatory action and evolving lender profiles. This Holland & Knight article explores recent trends in traditional bank lending and the rise of direct and private credit lenders. Key topics include the impact of Basel IV in Europe, proliferation of revolving credit facilities, burgeoning role of direct lenders, impact of the Nordic bond market and effects of the suspended U.S. Trade Representative (USTR) port fees on lease finance strategies. The Impact of Basel IV: A Challenge for Ship Finance One of the seemingly evergreen narratives in ship finance is the still-unclear impact of Basel IV on lending by European banks. Basel IV, the latest iteration of global banking standards, was implemented in the European Union at the beginning of 2025. It aims to strengthen regulation, supervision and risk management. However, the full extent of the impact of Basel IV on ship finance remains unclear and has led to a cautious stance among many European banks. European banks are historically, and continue to be, major financiers for shipowners. Basel IV has a significant impact particularly on European banks and has led to a more selective approach to new ship finance deals. Going forward, European banks are likely to prioritize top-tier shipowners with better credit ratings. For smaller owners or those with less-predictable earnings, access to traditional bank finance remains challenging. This uncertain environment is prompting both lenders and borrowers to explore alternative structures and partners. Revolving Credit Facilities: A Preferred Tool for Larger Shipowners Another conspicuous trend is the increasing use of revolving credit facilities (RCFs) by shipowners. Traditionally associated with corporate borrowers, RCFs have become commonplace among shipping companies, particularly those with strong earnings and credit profiles. The flexibility of an RCF allows shipowners to draw, repay and redraw funds as business needs evolve, positioning them to capitalize on market opportunities or weather unexpected downturns. In the past few years, several high-profile shipowners have secured substantial RCFs, often with tenors of five to seven years. These facilities are typically provided by syndicates of international banks, demonstrating that where risk is deemed acceptable, traditional lenders remain competitive. The preference for RCFs reflects both the stronger financial position of many shipowners and a broader industry focus on the future – shipowners recognize the cyclical nature of shipping and want to ensure liquidity for fleet renewal, expansion or opportunistic acquisitions. RCFs have also emerged as a key tool for established public and private companies simplifying their capital structure through a global Norwegian or U.S. bond financing. In these instances, the RCF typically is positioned as senior or pari passu with such bonds rather than the sole source of debt financing. The Rise of Direct Lenders: Expanding Beyond Niche Lending It is no secret that when traditional bank lending becomes more selective, direct lenders – private credit funds, other “alternative credit providers” and institutional investors – have stepped in to fill the void. Initially, these alternative financiers focused on high-margin, higher-risk credits: smaller shipowners, distressed deals or less-conventional asset types. Over t