辽宁邦德信律师

Source： LIAONING BANDCN LAW FIRM www.bandcn.com.cn
written by : Liu Jun
The proposed buyers of Second-hand vessel certainly pay attention to the conditions of the

second-hand vessel that is on sale. But, how to obtain the detailed conditions of second-hand

vessel? On one hand, the buyers can obtain first-hand vessel materials by the ways of inspection

on board, travel following the vessel and drydocking inspection or diver inspection when deliver

and acceptance of the vessel. On the other hand, the buyers can easily obtain many second-hand

materials by some ways. The sellers usually provide the buyers the copy of vessel technical

materials, vessel survey certificate and other vessel certificates. In addition, the buyers can buy

one survey report of the second-hand vessel from the Classification Society the said vessel applies

at his own expense. It is very important for the buyers to obtain first-hand materials of the said

vessel. The buyers will rely on these materials to make decision to buy the said vessel or not. So,

what will be stated, as bellows, are some issues the purchaser should pay attention to when

obtaining first-hand materials of the said vessel conditions.



Inspection on board the second-hand vessel

The buyers will decide to inspection on board the second-hand vessel when he obtains some

elemental materials and thinks the said vessel relatively meets his requirement. At first, the buyers

ought to try their best to collect more vessel materials, then analyze these materials and find out

some issues the materials can not show but the buyers wonder very much. The buyers must list

these issues for reference to inspection; the buyers ought to determine suitable inspection

personnel on board. Professional senior surveyors are most suitable personnel but the employing

expense will be doubtlessly high. However, employing excellent surveyors is worth high expense

when the buyers will buy one expensive second-hand vessel, especially buying it from abroad. Of

course, the buyers may appoint one or two chief engineer officers to inspect on board. Thirdly, the

inspection personnel ought to conduct inspection according to the issues above mentioned. When

inspection, the personnel should carefully examine, inquire more, preciously note main points,

take photos, video and so on. Then, they make survey report and submit it to the buyers. At last,

the buyers sort out and analyze the survey report above mentioned and other materials and decide

whether to buy it or not and how much to offer. Usually, the buyers should reply to the seller in

one week after inspection on board. When shipping market is under good trends, like today, if the

buyers think the said vessel suitable, he should seize the opportunity moment to make agreement

with the sellers and prepay a deposit, usual 10 per of the said vessel price.



Travel following on board

After signature of the sales contract of the second-hand vessel and before deliver, the buyers

usually arrange two or three representatives, usual being master, chief mate, chief engineer officer

and second engineer officer to board on the said vessel and follow the vessel in the coming days.

Before the representatives who will follow the vessel boarding on the vessel, the sellers will

request to sign a letter of indemnity on personal risk liability with the said representatives. It will

be usually contracted that during the said representatives following the vessel, the sellers shall be

not liable to any injuries or deaths to the representatives. So, the buyers should try their best to

contract more favorable conditions between the sellers and the representatives, for example,

adding after the clause above the content, “with the exception that these arise from fault of the

shipowners or his employees or agents.



The task of the representatives following on board is to learn about and familiarize themselves

with the vessel’s technical conditions in order to better navigate or manage vessel after acceptance

of the vessel. The said representatives can still supervise and prevent the seller or his

crewmembers removal or sale of vessel’s equipment, spare parts, articles etc. on board before

deliver of the vessel. In addition, the said representatives ought to learn about latent defect of the

vessel not discoverable before by various channels. During following, the said employees should

pay attention to malfunction of the equipment and solutions and some special indications in

relation to equipment maintenance of the vessel.



Drydocking inspection or diver inspection when deliver of the vessel.

The buyers can learn about more vessel conditions by inspection above mentioned in favor of

arranging operation and repair of the vessel after acceptance.



If deliver and acceptance of the vessel at one shipyard, the buyers can arrange drydocking

inspection to ascertain latent defect or defect underwater of the vessel. If at other place, the buyers

may employ diver to dive in water to inspect the vessel.



How to deal with the said defect (sometime the defect will affect vessel classification) depends on

the stipulations of both. Therefore, the buyers should attach importance to the stipulations.

Anyway, the sellers prepare a lot for deliver and acceptance and even cease vessel operation, so

the said defect discovered by the above survey does not usually affect the deal of the vessel, only

affects the final vessel price to some degree.