Maritime & Shipping – Ship Sale and Purchase

Ship Sale and Purchase

ship1The sale and purchase of a second-hand vessel are seemingly simple and straight forward but fundamentally important if a meticulous and experienced maritime lawyer is involved from the very beginning when an intended vessel have been identified by the potential buyer.

 

In a ship and purchase of second-hand grab dredger handled by our Shipping and Maritime Department, during the process of due diligence it was discovered that the intended grab dredger in fact have two first naval mortgages registered in Singapore and have been in default of repayment since 1996. In a recent case, a UK Protection and Indemnity Club member brought a vessel unaware of a claim against it in Singapore. A writ had been issued before the sale but it was not served until afterwards. At the end, the member was forced to settle the claim in order to have the vessel released from arrest.

 

Documentation forms an essential element in a second-hand ship transaction and we have experienced lawyers in advising shipowners, ship managers and fleet operators during all the stages, including:-ship2

1. the form to be used, NSF 1987 or NSF1993;

2. classification and flagging; and

3. payment and delivery terms.

 

For newbuilding, our Maritime and Shipping Department will assign an elite team of drafters and lawyers which will then work hand in hand with the client and the shipbuilder from the design stage up to stage of delivery of the new hull over a minimum of 18 months period on:-

1. advising and drafting of a newbuilding contract;

2. advising and drafting of ship finance contract and documents; and

3. advising on delivery, registration of vessel and classification.

 

All our team members have good working relationship with shipbuilders in South Korea and PRC and proved to be a valuable asset to clients entrusting the task of overseeing progress of the newbuilding to our Department.