Vessel Sale & Purchase

One of the most important aspects of the shipping industry is the sale and purchase of ships. It calls for professional knowledge pertaining to specific type of ship and its function, legal knowledge, and dealing and bargaining knowledge; especially since you are dealing in significantly large sums of amount.

The sale and purchase of a ship is one of the most complicated procedures in the shipping industry, far more complicated than, say, a new ship construction contract. The Sale and Purchase contract necessitates a wide range of professional knowledge as well as strong negotiation skills. Furthermore, because of the legal effect raised by the Maritime liens attached to the used ship, the buyer should check the history and any court writs to reduce any future loss from the purchased ship. As a result of the complexities of this market, a professional shipbroker plays an important role during the transaction.

Normally, the shipowner (seller or buyer) will appoint brokers as middlemen to handle the transaction to reduce the number of disputes and smoothen the sale and purchase procedure.

The sale and purchase of a ship is divided into three stages:

(1) The negotiation and contract stage

(2) The inspections stage and

(3) The completion stage

All the stages include various important issues and regulations. The advantage of associating with Farohar is that it is not only completely familiar to all these stages but also has experienced SMEs and teams to executive a hassle-free negotiation between the Parties. Farohar helps all it’s clients – Sellers or Buyers, to make a safe & smooth sailing of the complicated process. Some of the key aspects are as follows:

  • Helps in preparing formal contract (Sale/Purchase), Memorandum of Agreement (MOA)
  • Assists in document inspection such as Class records, certifications, mortgages records, maintenance and compliance records, insurance policies
  • Assists in physical inspection of vessel right from surface checks, logbook to Sea trial, thus eliminating the need of a third-party surveyor. This saves lots of time and cost.
  • Facilitating classification society’s final inspection of underwater parts in drydock, documents and physical delivery of vessel
  • Ensure and safeguard client’s (seller) interest by way of full payment before delivery
  • Ensure and safeguard client’s (buyer) interest by ensuring that vessel is free of all charters, mortgages and debts.

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