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Led by Aristotle Onassis Simulacrum
The ship sale and purchase specialism of the maritime series, following the coverage of the Institute of Chartered Shipbrokers' Ship Sale & Purchase syllabus. Eleven modules take the practitioner into the trade of buying, selling, and scrapping ships — the ship as a product, measurement and light displacement, shipyard and demolition geography, registration and classification, the parties to a sale, the newbuilding/secondhand/demolition markets, the Norwegian Saleform, negotiation, finance, valuations, and the legal position of the broker. Led by the Aristotle Onassis Simulacrum, with the legal modules taught by Lord Mansfield and the finance and valuation modules by Penelope Smythe-Bottomley.
Led by Aristotle Onassis Simulacrum
The question
How well must an S&P broker know ships — enough to talk to a buyer as one professional to another, and to describe accurately what he is selling? This module covers the ship as a product: the level of construction knowledge the broker needs; the differences among dry bulk ships, liners, and tankers, with detailed sketches; the tanker categories and bulk-carrier size ranges; the design of decks, holds, hatches, and cargo gear and the importance of ballast and ballast water treatment systems; propulsion and other machinery; and the trends in ship development driven by legislation and convention.
Outcome
You can describe a vessel accurately to a buyer and identify the features and developments that bear on its sale. (The ship)
Sub-units
Led by Aristotle Onassis Simulacrum
The question
Numbers describe a ship — but which number rules the scrapyard, and why? This module covers ship measurement: the full terminology (light displacement, GT, NT, DWAT, TEU, moulded depth, LOA, LBP, draft, air draft, bale and grain cube) and the other describing dimensions; the crucial importance of light displacement tonnage in sales for demolition, since the breaker buys the steel; and what a general arrangement plan shows a buyer.
Outcome
You can interpret a vessel's measurements and identify which matter for a trading sale and which for demolition. (The ship — measurement)
Sub-units
Led by Aristotle Onassis Simulacrum
The question
Where are ships built, where are they broken, and how do the trades shape what tonnage a buyer wants? This module covers the geography of S&P: the location of the main shipbuilding areas and the capabilities and specialisation of the major yards; the location of the major demolition buyers; and how cargoes, trade routes, and meteorological phenomena influence the types and sizes of ships employed, and so the demand that drives the market.
Outcome
You can reason about where a vessel would be built or broken and the tonnage demand behind it. (Geography)
Sub-units
Led by Lord Mansfield Simulacrum
The question
When a ship is sold, what happens to her flag and her class — and why does the buyer care so much? Taught by Lord Mansfield, this module covers registration and classification: the need for registration and the differences among national-flag, offshore, flag-of-convenience, and open-register registration, with the advantages and disadvantages of each; how the broker becomes involved in changing registration at delivery; the need for classification and what it entails; the role of the societies and the standing of IACS membership; and the importance of class historical records and the broker's role in arranging their inspection.
Outcome
You can reason about the flag and class issues in a sale, the buyer's registration choices, and the inspection of class records. (Registration and classification)
Sub-units
Led by Aristotle Onassis Simulacrum
The question
Does an entrepreneur selling his only ship negotiate like a conglomerate disposing of a division — and who else is in the room? This module covers the parties: the types of shipowner among buyers and sellers (entrepreneur, limited company, conglomerate division, investment group, shipping pool) and how their negotiating attitudes differ; the other players (brokers, breakers, charterers, financiers); the completion professionals (lawyers, notaries, consuls, registrars, class representatives); and the structure of an S&P office and the importance of record-keeping.
Outcome
You can identify the parties to a transaction, anticipate how the principals will negotiate, and name the professionals needed at completion. (The parties involved)
Sub-units
Led by Aristotle Onassis Simulacrum
The question
Why are there three markets in ships, not one, and how does the freight market drive what a ship is worth? This module covers the markets: the differences and interrelationships among newbuilding, secondhand, and demolition and how the information each requires differs; the factors influencing the S&P market generally and each market particularly; how the chartering market directly drives the secondhand market and indirectly the demolition market, while the world economy drives the newbuilding market; the influence of external factors; and the skill of preparing and interpreting market reports.
Outcome
You can reason about how a freight-market movement or external event will affect each of the three S&P markets. (Markets)
Sub-units
Led by Lord Mansfield Simulacrum
The question
What is the contract that sells a ship, and can you work through the Norwegian Saleform clause by clause? Taught by Lord Mansfield, this module covers the contract and documentation: the anatomy of a sale agreement and the differences for newbuilding, secondhand, and scrap; the standard Memorandums of Agreement and the Norwegian Saleform (1993 and 2012 versions); the intention of its clauses and the crucial clause numbers; the pre-purchase and underwater inspection clauses and their timing; compiling additional clauses; and the documentation required to complete the legal transfer.
Outcome
You can identify the relevant Saleform clauses, draft an additional clause, and list the documentation needed to complete the transfer. (Contracts and documentation)
Sub-units
Led by Aristotle Onassis Simulacrum
The question
How is a ship sale negotiated through offer and counteroffer — and why can a buyer walk away after inspection without giving any reason? This module covers the negotiation: firm offer and counteroffer and the custom of each party's broker, and the importance of time limits; drafting an opening offer with any specially compiled clauses; the recapitulation and the subjects, especially "subject inspection," and how they are lifted; the compiling of ship's particulars on a "believed to be correct but not guaranteed" basis; and the etiquette and ethics customary among S&P brokers.
Outcome
You can draft an opening offer, run the negotiation to a recap, and handle the subjects, observing the etiquette of the trade. (Negotiation)
Sub-units
Led by Penelope Smythe-Bottomley Simulacrum
The question
A ship costs tens of millions — so how does a buyer raise the money, and what secures the loan? Taught by Penelope Smythe-Bottomley, this module covers finance: the ways a buyer raises funds and the sources and information financiers require; the role and function of a mortgage as security for a purchase loan; leasing and bareboat chartering as alternative methods of acquiring tonnage; and the effect of interest rates, foreign currency, and currency fluctuation on raising and servicing finance.
Outcome
You can explain how a purchase is financed, the role of a mortgage, and the interest-rate and currency risks involved. (Finance)
Sub-units
Led by Penelope Smythe-Bottomley Simulacrum
The question
What is a ship worth, who needs to know, and how is the answer reached without ever stepping aboard? Taught by Penelope Smythe-Bottomley, this module covers valuations: the duties of a valuer and the reasons for valuations and the bodies requiring them; the legal liabilities upon and protection needed by valuers, and how a valuation is presented with appropriate caveats; and the information on which a valuation is based and the method of assessing value — including the important point that it does not involve physically surveying the vessel.
Outcome
You can explain how a valuation is assessed, the caveats it should carry, and the valuer's liability. (Valuations)
Sub-units
Led by Lord Mansfield Simulacrum
The question
What does the law require of the S&P broker, and what does "free of encumbrances and maritime liens" actually promise a buyer? Taught by Lord Mansfield, this module covers the broker's legal position and dispute resolution: acting under the specific authority of the principal and breach of warranty of authority, with and without negligence; what "free of all encumbrances and maritime liens" implies; the importance of a valid notice of readiness and the cancelling date; the principal areas of dispute on delivery; the broker's right to commission and its protection; and resolving disputes by arbitration, litigation, and mediation.
Outcome
You can identify the broker's position and liability in a sale dispute, the contractual promises and deadlines engaged, and the route to resolution. (Legal aspects of sale and purchase)
Sub-units