The sale and purchase of shipping assets such as ships are an essential aspect of the shipping industry. It is a huge investment and requires different kinds of experts who facilitate the deals between two parties. As magnificent a ship looks, there is a need for a brokerage. So whether new contracts are built, used vessels in the secondary market are being purchased, or when old sea vessels are scrapped or demolished, every transaction requires the presence of brokers who assist in carrying out the same.
Ship Sale and Purchase brokers, also referred to as S&P brokers, are highly specialized brokers who are experts in the business of selling and purchasing ships. Much like a real estate agent, a shipbroker acts as a vital intermediary between parties who wish to purchase and sell ships for their maritime trade. They do not own sea vessels; however, act as middlemen who make sure the deal is executed seamlessly.
Duties of S&P Broker
A ship is a technically complex piece of equipment. In addition to this, it is bought and sold in an international market that is tremendously volatile. Therefore, a shipbroker is required to be an expert in the market while extending timely and accurate information to the clients. The duties of a shipbroker are as follows-
- A broker puts the owner and prospective buyer in contact with each other.
- Renders opinions on a ship’s valuations
- Acts as an escrow agent
- Helps to obtain ship finance
- Aids in negotiating a shipping contract
- Is responsible for drafting the S & P agreement
- Assists the party in obtaining the vessel’s inspection, survey and assessment.
- Assists in resolving any previous maritime lien issues.
- Secures title abstracts and also provides opinions on any issues related to titles.
- Prepares vessel registration documents
- Resolves disputes that arise out of the transaction
A sale and purchase broker is either retained by a potential buyer or seller to handle the transaction. They possess the knowledge of ships, their functions, legal knowledge, and know-how to handle the dealing. As an intermediary, they provide information pertaining to the deal to both parties and negotiate the price & terms on behalf of all principals.
A ship can be purchased or sold directly by the seller (shipowner) to a potential buyer. However, for negotiation of favorable contract terms and best price, most transactions take place through a broker due to the scope of services and expertise. Therefore, if you are someone in the shipping industry looking forward to selling or purchasing a ship, connect with experienced brokers.
Apart from this, Ship Condition Assessment and Inspection also plays a vital role in the ship sale and purchase process. It assists a potential buyer make the right decision relating to their purchase of a ship. The ship inspection or assessment reports aid the buyer to get an accurate knowledge of the seaworthiness of the vessel and other factors that they need to consider before making a purchase.
How Does Sinotech Marine Assist in the Sale and Purchase of a Ship?
Sinotech marine is known in the marine industry for its ethical and transparent ship inspection services. Our team comprises marine inspectors, surveyors and assessors who perform ship inspection/assessment to help customers stance the right choice. With our services, we aim to help our clients reduce financial risk, forecast operating costs & capital expenditure in the next few years of vessel operation after purchase and minimize all hidden costs- while investing in a ship.
We offer data-driven ship condition assessment services to assist our clients in making wise decisions during the sale and purchase procedure. Due to the fast turnaround time of our reports, we extend our clients an opportunity to make faster decisions. Connect with us to make your asset investment beneficial.