Ship Sale & Purchase (s&p) And Chartering Masterclass Training Course

Introduction

In the dynamic and highly specialized maritime industry, mastering Ship Sale & Purchase (S&P) and Chartering is absolutely essential for shipowners, investors, brokers, legal professionals, and financial institutions seeking to navigate complex transactions and maximize commercial opportunities. This essential training course is meticulously designed to equip shipping executives, commercial managers, shipbrokers, maritime lawyers, financial analysts, and corporate development professionals with the specialized knowledge and practical skills required for in-depth knowledge of ship acquisition, disposal, and various charter party agreements. Participants will gain a comprehensive understanding of the entire S&P process, from market analysis and valuation to negotiation and closing, alongside a deep dive into the intricacies of different charter types, enabling them to execute successful deals and optimize vessel utilization. Our rigorous curriculum emphasizes hands-on application, international industry standards, and real-world case studies pertinent to complex maritime commercial transactions, empowering you to make astute business decisions and secure favorable terms.

This maritime commercial operations course is crucial for individuals and organizations striving to move beyond basic shipping contracts towards a strategic, expert-level understanding of the unique commercial and legal dynamics within the global shipping market. Mastering vessel valuation for S&P, implementing effective charter party negotiation strategies, and understanding risk management in ship acquisition and disposal are indispensable for optimizing asset portfolios, maximizing revenue generation, ensuring legal compliance, and achieving sustainable growth in a competitive sector. This program offers an unparalleled opportunity to elevate your expertise in strategic maritime commercial management and asset transaction execution, positioning your organization at the forefront of global shipping deal-making and driving significant long-term value creation through astute S&P and chartering practices.

Target Audience

• Shipowners & Operators
• Shipbrokers (Sale & Purchase, Chartering)
• Maritime Lawyers & Legal Advisors
• Commercial Managers in Shipping Companies
• Financial Analysts & Investment Professionals in Maritime
• Corporate Development & M&A Specialists
• Marine Insurance Underwriters

Course Objectives

• Understand the fundamental concepts of ship sale and purchase (S&P) and chartering.
• Learn about the key stages and documentation involved in a ship S&P transaction.
• Master different methodologies for vessel valuation in the S&P market.
• Develop proficiency in negotiating and executing effective ship sale and purchase agreements.
• Explore various types of charter parties (Time, Voyage, Bareboat) and their commercial implications.
• Understand the critical clauses and responsibilities within typical charter party agreements.
• Learn about robust risk management strategies in both S&P and chartering.
• Identify the critical role of shipbrokers and their ethical considerations.
• Develop skills in freight market analysis and charter rate determination.
• Understand the legal and contractual aspects governing S&P and chartering transactions.
• Explore strategies for optimizing fleet utilization and revenue generation through chartering.
• Drive the implementation of sound commercial strategies for ship acquisition, disposal, and deployment.
• Position yourself as a leader in executing successful maritime commercial transactions.

Duration

10 Days

Course Content

Module 1. Introduction to Ship Sale & Purchase (S&P) Market

• Overview of the global S&P market and its drivers
• Key players in S&P: sellers, buyers, brokers, financiers, lawyers
• Understanding different types of S&P transactions: newbuilding, secondhand, demolition
• The cyclical nature of the S&P market and its relation to freight markets
• Strategic reasons for ship acquisition and disposal

Module 2. Vessel Valuation for S&P

• Principles of ship valuation: market value, fair market value, investment value
• Factors influencing vessel values: age, type, size, technical condition, market sentiment
• Methodologies for valuation: comparable sales, discounted cash flow (DCF), residual value
• Role of shipbrokers and independent appraisers in providing valuations
• Impact of environmental regulations and technology on vessel values

Module 3. The S&P Process: Key Stages

• Market research and identification of suitable vessels
• Offering and counter-offering: establishing commercial terms
• Memorandum of Agreement (MOA): common forms (e.g., Norwegian Saleform)
• Due diligence: technical inspection, financial checks, legal review
• Closing procedures and delivery of the vessel

Module 4. Negotiating Ship Sale & Purchase Agreements

• Key clauses in the Memorandum of Agreement (MOA): price, payment, delivery, conditions precedent
• Understanding "as is where is" vs. "ready to load" delivery
• Disputes and remedies in S&P transactions
• Pre-delivery and post-delivery issues and their resolution
• Strategies for effective negotiation in S&P

Module 5. Introduction to Ship Chartering

• Defining chartering and its role in commercial vessel operation
• Types of charterers and their motivations
• Overview of the different types of charter parties (Voyage, Time, Bareboat)
• Freight rates, hire rates, and their determination
• The role of chartering brokers and their functions

Module 6. Voyage Charter Parties (V/C)

• Understanding the main clauses in a Voyage Charter Party (e.g., GENCON, ASBATANKVOY)
• Laytime and demurrage/despatch calculations and disputes
• Freight payment terms and commissions
• Responsibilities of owner and charterer in a voyage charter
• Commercial implications of voyage charters

Module 7. Time Charter Parties (T/C)

• Main clauses in a Time Charter Party (e.g., NYPE, BALTIME)
• Hire payment, off-hire periods, and deductions
• Responsibilities for bunkers, stores, and operational expenses
• Speed and consumption warranties and performance claims
• Delivery and redelivery provisions in time charters

Module 8. Bareboat Charter Parties (BBC) & Demise Charters

• Characteristics of a Bareboat Charter Party (e.g., BARECON)
• Transfer of operational control and responsibility to the charterer
• Implications for crewing, maintenance, insurance, and compliance
• Lease vs. finance considerations for bareboat charters
• Bareboat charter as a financing tool

Module 9. Legal & Contractual Aspects of Chartering

• Understanding common law principles and maritime conventions related to chartering
• Breach of charter party and remedies
• Force majeure clauses and their application
• Arbitration and dispute resolution mechanisms in chartering
• The role of maritime lawyers in drafting and interpreting charter parties

Module 10. Risk Management in S&P and Chartering

• Identifying and mitigating financial risks in S&P (e.g., market volatility, currency)
• Operational risks in chartering (e.g., vessel performance, port delays)
• Credit risk assessment of charterers and buyers
• Insurance considerations for S&P and chartered vessels
• Legal risks and contractual pitfalls

Module 11. Freight Market Analysis & Forecasting

• Understanding the drivers of freight rates in different shipping segments
• Analyzing supply and demand dynamics for vessels
• Utilizing freight derivatives (FFAs) for hedging
• Key indices and their interpretation (e.g., Baltic Dry Index)
• Forecasting methodologies for short-term and long-term freight rates

Module 12. Digitalization in S&P & Chartering

• Online S&P platforms and digital marketplaces for vessels
• Data analytics for S&P market trends and charter rate predictions
• Digital tools for contract management and negotiation
• Blockchain applications for secure S&P and chartering documentation
• The impact of smart contracts on traditional agreements

Module 13. Advanced Topics & Future Trends

• Sale and leaseback transactions as an S&P financing alternative
• Distressed S&P deals and restructuring
• The impact of ESG (Environmental, Social, Governance) factors on S&P and chartering decisions
• Autonomous vessels and their implications for future chartering models
• Evolving geopolitical and economic influences on shipping markets

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre.

We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 7 working days before commencement of the training.