These fees are not new to the sector but Fotis Giannakoulis, the Morgan Stanley analyst who has been critical of some companies’ related-party dealings, says such sale-and-purchase (S&P) and newbuilding commissions are never justifiable.
“That can create incentives to buy, at the peak of the cycle, very expensive assets, or even over ordering assets without any clear incentive to profitability,” he said.
The
