- To ensure a thorough knowledge and understanding of the practice and etiquette of this specialist sector of shipbroking, dealing with newbuilding contracts, second-hand sales and purchases and demolition sales.
- To develop relevant communication skills
- All types of ships.
- Terminology of measurements including dimensions, tonnages, cubic capacities, TEUs.
- Types of machinery, cargo handling and any other specialised equipment.
- Current and future development of vessels new and specialised designs including innovations.
- The effects of recent legislation.
- Geographical location of newbuilding yards, demolition buyers and areas where particular types of vessels are utilised. Cargoes and trading routes, physical or meteorological limitations on dimensions and ship types.
REGISTRATION & CLASSIFICATION:
- The main and ancillary purposes of ship registration.
- Requirements, advantages and disadvantages of various flags; dual flagging.
- The role and function of classification societies and classification society registers.
- When and how classification may be involved in a ship’s sale.
THE PARTIES INVOLVED:
- Shipowners – Development of differing types of owning groups e.g. individual entrepreneurial owners, corporate structure, conglomerates, investment groups, pools.
- Other parties involved – brokers, charterers, ship breakers, bankers, other financiers, lawyers, notaries, consuls and registrars.
- The markets for new building, second-hand and demolition sales and purchases and their inter-relationships.
- Factors affecting the market including natural catastrophes, environmental, aid programmes, political crises. Tramps and liners. National traditions and weaknesses.
- The production and interpretation of both statistical and written market reports.
CONTRACTS AND DOCUMENTATION:
- The necessary content of a contract for the sale and purchase of a ship whether for new building, second hand or demolition, including detailed understanding of fundamental clauses.
- Drafting summaries of agreements and Memoranda of Agreement.
- All standard forms currently in use as a base for a contract and necessary or desirable additional extra clauses or alterations.
- Procedures, reasons for and form of documentation produced by buyers, sellers and other parties in connection with completion of a sale and delivery and legal transfer of a ship.
- The different certificates and compliances that might be relevant the time of sale of a ship. Issuing authorities and validities including compliance with international and national authorities.
- The conduct, etiquette, ethics and procedures of a negotiation. Translating a principal’s requirements into suitable clauses.
- Drafting offers with the correct sequence of clauses, counter offers, specific clauses, recapitulations, completion agenda and understanding their implications.
- The importance of information given ‘without guarantee’.
FINANCE AND INSURANCE:
- The information needed by a financier when considering a project.
- Providers and different methods of financing including mortgages, leasing and bareboats
- Means of providing security for loan.
- Currencies, interest and exchange rates.
- The role and function of insurance in sale and purchase transactions inclulding P & I insurance.
- Role and legal position of the valuer, liabilities and protection.
- Reasons for and types of bodies requiring valuations. Salient facts needed to carry out valuations. Methods of assessing values.
LEGAL ASPECTS OF SALE AND PURCHASE:
- Law relating to sale and purchase. Areas of dispute including: Validity of agreement;
- Entitlement to commission; Rejection of the vessel by buyer; Condition of the ship on delivery; Validity of Notice of Readiness; Description of vessel in the preamble; ramifications and significance; Brokers’ liability.
- The effect of legislation on both existing vessels and new buildings or construction.
NB: No exemption is permitted from this subject.