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Liquidity Management

Leading Provider of Ship Management Services

Unlocking the value of trapped cash and enhancing yield


About

This leading provider of ship management services supports ship owners around the world. Based in Hong Kong, the company operates across 50 entities with representative offices in 15 countries in the APAC, EMEA and WHEM regions.

The company engages in ship management, crew management, education and training of seafarers, technical services and commercial operations globally.

 

The Challenge

Doing business around the world, the treasury team for this major provider of ship management services struggled to manage its numerous banking relationships. To overcome this challenge, the team recognized that it needed to rationalise banking relationships, improve visibility and control of surplus in-house funds and client working funds, as well as maximize interest yields on it surplus funds.

To achieve these critically important objectives, treasury needed to leverage technology and innovative liquidity management solutions in order to improve its operational efficiency.

 

The J.P. Morgan Solution

  • The treasury team turned to J.P. Morgan to implement a USD cash concentration structure to maximize liquidity.
  • The team used Loan Management Accounting (LMA) to generate enhanced yields for its portfolio of stable balances, while avoiding any commingling with in-house funds.
  • Group interest credited to a designated interest pay-out account.

 

 

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The Impact

  • By implementing an optimal account structure, the treasury team was able to successfully improve visibility and control of liquidity.
  • Treasury was also able to maximize the yield on surplus funds through the use of J.P. Morgan’s advanced liquidity management and yield enhancement solution.
  • Ultimately, treasury was able to leverage the bank’s market-leading automated solution to improve its overall operational efficiency.

 

J.P. Morgan is the marketing name for the Treasury Services business of JPMorgan Chase Bank, N.A. and its affiliates worldwide.

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