HSBA Handbook on Ship Finance (eBook)

About the Editors:Dr-Ing Orestis Schinas is the Professor of Shipping and Ship Finance and Head of the Maritime Business School of the Hamburg School of Business Administration (HSBA) since 2008. He has served in senior and top-management positions and has a vast experience in the maritime and logistics industry and has offered his services to private and public entities as well as to international organizations. His professional career includes large corporate and business development projects as well as advanced research assignments in the maritime and port sectors. He holds a Dipl-Ing degree in Naval Architecture and Marine Engineering (NTUA, 1994), a Masters in Shipping Management (WMU, 1998) and he was awarded the doctoral title in 2005 (NTUA) for his thesis on Ship Finance. His work is published in major business and academic journals.Dr. Max Johns is Managing Director at VDR German Ship owners’ Association in Hamburg. He is teaching ship finance at the Maritime Business School of the Hamburg School of Business Administration (HSBA) since 2008. He holds BA and MA degrees from Université Paul Valéry Montpellier III in France, an MBA from KU Leuven in Belgium and was awarded the doctoral title from the University of Tübingen in Germany. He publishes frequently on maritime issues.Carsten Grau is German lawyer –Rechtsanwalt- and Solicitor (England & Wales). He has practiced maritime and corporate law in Bremen and Hamburg since 1998 and specializes in advising corporate entities and individuals in all areas of maritime business. At HSBA, he is module responsible for the maritime law contents in the MBA Shipping programme. He holds a law degree from the University of Hamburg and a German and Liberian Master Mariner License.About the Authors:Sebastian Kewitsch, NAVES Corporate Finance GmbH, http://www.naves-finance.de/Sebastian Kewitsch studied business economics in Rostock and the MBA shipping at HSBA. He began his career at HSH Nordbank AG where he worked in the areas of real estate, shipping and yards and restructuring. Since 2013 he is working as a Vice President for NAVES Corporate Finance GmbH which provides restructuring, financial asset management, transaction, equity and debt advisory in the maritime industry. The group employs some 30 people in Hamburg. sebastian.kewitsch@naves-finance.comVera Alexandropoulou, Attorney at Law, Solicitor, Alexandropoulou Law Firm, alexandropouloulaw.comVera Alexandropoulou is a graduate of the Law Faculty of the University of Athens and has completed postgraduate studies at the University of Heidelberg and Harvard University. She was admitted to the Piraeus Bar Association in 1998 and qualified as a UK Solicitor in 2004. She specialises in shipping, energy and environmental law. In 2005 she established her own law firm. She speaks Greek, German, English, French, Spanish and Chinese. vera.alexandropoulou@alexandropouloulaw.comNicolas Bornozis, President, Capital Link, Inc., www.capitallink.comNicolas Bornozis is the founder of Capital Link, an international advisory, investor relations and financial communications firm with strategic focus on the shipping industry. Capital Link works with the majority of shipping companies listed in European and US Exchanges and has built one of the most extensive and effective platforms for raising awareness of shipping to a wider industry and investor audience. His firm has received industry awards from Lloyds List and Intercontinental Finance Magazine. Nicolas has a Law Degree from the University of Athens and an MBA from Harvard Business School. He has 32 years of experience in the US and European financial and capital markets. nbornozis@capitallink.comDr. Christos Sigalas, Seanergy Maritime Holdings Corp., http://www.seanergymaritime.com/ and University of Piraeus, http://www.unipi.gr/Dr. Christos Sigalas is a professional business planning and corporate finance senior analyst with work experience in maritime shipping, investment banking and telecommunication industries. Dr. Sigalas holds a PhD (2012) with honours from University of Piraeus and an MBA (2005) with honours along with a BSc (2002) in Management & Business Administration from Athens University of Economics and Business. csigalas@seanergymaritime.com.gr or csigalas@webmail.unipi.grAndreas MietznerCompany - Organization: Continental CharteringWebsite link: www.continental-chartering.deShort Bio 2-5 linesEmail research@continental-chartering.deAndreas Mietzner is shipping analyst at the ship broking firm Continental Chartering. He graduated with a diploma in economics from the Albert-Ludwigs-University Freiburg majoring in psychology and econometrics. He gained further academic experience at the University of Cadiz and University Udayana. He is an expert on shipping markets and provides professional advisory, analysis and vessel valuation services.Christoph Sturm, Co-Founder Deutsche Seewert GmbH & Co. KG, www.seewert.de and MarLink Schiffahrtskontor GmbH & Co. KG, www.marlink.netChristoph Sturm has 24 years of practical experience in ship owning, ship managing, chartering and ship financing with assignments in Germany, Asia and the US. He currently focusses on independent interim management and advisory services to the German shipping industry, christoph.sturm@marlink.net or christoph.sturm@aol.com

Foreword 8
Preface 10
Contents 14
List of Contributors and Editors 24
List of Figures 26
Part I Introduction to Ship Financing 31
1 Demand and Supply of Maritime Transport Services: Analysis of Market Cycles 32
1.1 The Demand and Supply Side of Shipping Markets 32
1.1.1 The Demand Side 33
1.1.2 The Supply Side 34
1.1.3 World Seaborne Trade and Merchant Fleet Development 35
1.1.3.1 Dry Bulk Shipping Markets 36
1.1.3.2 Liquid Bulk: ``The Tanker Markets'' 40
1.1.3.3 Container Shipping Markets 41
1.1.3.4 Other Specialized Shipping Markets 45
1.1.3.5 Spillover Effects: Intra-Competition of Shipping Markets 47
1.1.3.6 Spillover Effects: Inter-Competition of Shipping Markets 48
1.1.4 How to Interpret and Work with Shipping Statistics 48
1.1.4.1 Different Sources Reporting the Same Item Will Seldom Match 49
1.1.4.2 Different Release Dates Will Lead to Slightly Differing Numbers 50
1.1.4.3 Different Time Series of the Same Source Often Won't Match 50
1.1.4.4 Beware of Different Use of Vocabulary or Units 50
1.1.4.5 Time Series Regarding Particular Vessel Sizes Will Evolve Around ``the Market'' 51
1.1.5 Forecasting Challenges and Limitations 51
1.1.5.1 The Crisis of the Container Shipping Industry in 2009: Forecasts and Outcomes 52
1.1.5.2 The Crisis of the Dry Bulk Shipping Industry in 2009: Forecasts and Outcomes 55
1.1.5.3 The Crisis of the Tanker Shipping Industry in 2009: Forecasts and Outcomes 56
1.2 Analysis of the Market Cycles 58
1.2.1 Different Types of Shipping Cycles 58
1.2.2 Lessons Learned from the Various Cycles 59
1.2.3 Lessons Learned in the Last Boom Period (2002–2008) 60
References 61
2 Loans and Risk Management Considerations 62
2.1 Introduction 62
2.1.1 Reviewing Loan Calculations 63
2.1.2 Financial Viability Criteria 67
2.1.2.1 The NPV and IRR Criteria 67
2.1.2.2 Required Freight Rate 67
2.1.3 Concluding Remarks 68
2.2 Analysing a Simple Case 69
2.3 Risk Management 71
2.3.1 Project-Related Lending Risks 72
2.3.1.1 Credit and Counter-Party Risk 72
2.3.1.2 Financial Risks 72
2.3.1.3 Interest Rate Risk 73
2.3.1.4 Freight Rate Risks 73
2.3.1.5 Fuel Prices 73
2.3.1.6 Vessel (Asset) Values 73
2.3.2 Industry-Related Risks 74
2.3.2.1 Risks Relating to the Shipping Industry 75
2.3.2.2 Risks Related to the Company 80
2.4 Concluding Remarks 83
3 Legal Treatment of Ship Finance Loans: Analysis of the Ship Loan Contract 84
3.1 A Banker's View on Shipping 84
3.1.1 Credit Crisis: The Effect of the Recession 84
3.1.2 Outlook on Shipping Markets 85
3.2 Commonly Used Structures 85
3.2.1 Debt Provision: Syndicated, Bilateral, and Club Transactions 86
3.2.2 Equity Contribution: Shares, Private Placements, or Private Equity 86
3.2.3 Mezzanine Finance 87
3.3 Analysis of the Loan Agreement 87
3.3.1 Term Sheet 88
3.3.2 Loan Agreement 91
3.3.3 Closing of a Transaction 96
References 96
Part II Equity Financing 97
4 The German KG System 98
4.1 KG as Incorporation 98
4.2 Historic Start with ``ABC'' 100
4.3 Forms of Funds 105
4.3.1 Single-Ship-Fund 105
4.3.2 Savings Fund 105
4.3.3 Fleet Fund (Flottenfonds) 105
4.3.4 Fund-of-Funds (Dachfonds) 106
4.3.5 Opportunity Funds 106
4.4 Participants 106
4.4.1 Ship-Owner/Ship Manager 106
4.4.2 Ship Financing Bank 107
4.4.3 Syndicator/Emission House 107
4.4.4 Trustee 107
4.4.5 Equity Broker 108
4.4.6 Advisory Board 108
4.4.7 Ancillary Service Providers 108
4.4.8 Investor 109
4.5 Strategic Approach and Key Features 109
4.6 Tonnage Tax 110
4.7 Outlook 112
5 Equity Capital Market in Shipping 113
5.1 Introduction 113
5.2 General Principles of the AIFMD 115
5.2.1 Purpose and Scope of the AIFMD 115
5.2.2 Regulatory Requirements 115
5.2.3 Specifically: Valuation and Depositary 117
5.2.4 Transparency Requirements 117
5.2.5 EU Passport, Non-EU AIFs/AIFMs 118
5.3 Implementation of the AIFMD in Germany Through the Investment Code (``Code'') 118
5.3.1 Purpose and Scope of the Code 118
5.3.2 Public AIFs and Special AIFs 119
5.4 Institutional Investors 121
5.4.1 Classification of Institutional Investors 121
5.4.1.1 Definitions According to the AIFMD and the Code 121
5.4.1.2 Potential Institutional Investors 121
5.4.2 Structures 122
5.4.2.1 Objectives 122
5.4.2.2 Private Equity Structures 122
5.4.2.3 AIFs 123
5.5 Conclusion 124
6 Other Equity Markets for Shipping 125
6.1 Norway and its Limited Partnership Structures 125
6.1.1 Norwegian Market for Private Equity Investment 126
6.2 Types of Structures 127
6.2.1 Norwegian Limited Partnerships 127
6.2.2 The Limited Partnership ``KS'' 128
6.2.3 The Silent Partnership ``IS'' 129
6.2.4 The Limited Liability Company ``AS'' 130
6.2.5 The General Partnership ``ANS'' 131
6.3 Taxation Aspects of Norwegian Limited Partnerships/Silent Partnerships 131
6.4 Example of a Typical Silent Partnership Transaction 132
7 Business Acquisitions as a Tool for Proactive Financial Management: The Case of Seanergy Maritime Holdings 135
7.1 Background Information 136
7.2 The Acquisition of BET 142
7.3 Concluding Remarks 145
8 HCI Hammonia Shipping AG: A Case Study 147
8.1 Introduction 147
8.2 Initial Public Offering 149
8.3 Company Structure 149
8.4 Business Model 150
8.4.1 Focus on Container Shipping 151
8.4.2 Involvement of the Initiators 151
8.4.2.1 HAMMONIA Reederei GmbH & Co. KG
8.4.2.2 Peter Döhle Schiffahrts-KG 152
8.4.2.3 HCI Capital AG 152
8.4.3 Concept of Employment 152
8.4.4 Currency 153
8.4.5 Dividends 154
8.5 Basic Income Tax Principles 154
8.5.1 Level of the Shipping Partnerships 154
8.5.2 Level of the Holding Company HHX 154
8.5.3 Level of the HHX Retail Investors 155
8.5.4 Level of the HHX Institutional Investors 155
8.6 Corporate Governance and Compliance 156
8.6.1 Financial Reporting 157
8.6.2 German Corporate Governance Code 157
8.6.3 Risk Management System/Internal Monitoring System 157
8.6.4 Insider List (Insiderverzeichnis) 157
8.6.5 Ad Hoc Disclosures 158
8.6.6 Directors' Dealings 158
8.6.7 Voting Rights Announcements (Stimmrechtsmitteilungen) 158
8.6.8 Takeover Bid 159
8.7 Development of the HHX Fleet 159
8.8 Economic Development of the Company 160
8.9 Summary and Outlook 163
Part III Asset Pricing 164
9 Valuing Vessels 165
9.1 Introduction 165
9.2 Reasons for Valuations and Valuation Approaches 166
9.2.1 Reasons for Valuations 166
9.2.2 Valuation Approaches 166
9.3 Equivalence of Value and Price 167
9.4 The LTAV Method 170
9.4.1 Methodology 170
9.4.2 Determination of Free Cash Flows 171
9.4.3 Determination of the Discount Rate (WACC) 176
9.4.4 Suitability of the LTAV Method 182
9.4.5 Sample Calculation Using the LTAV Method 183
9.5 Possibilities for Applying the LTAV Method 183
9.5.1 LTAV for Investment and Divestment Decisions 183
9.5.2 LTAV for Accounting Purposes of Vessel Owners 185
9.5.3 LTAV for Accounting Purposes of Banks 185
9.6 Concluding Summary 186
References 186
10 Developing a Dynamic Vessel Valuation Method Based on Real Market Transactions 188
10.1 Introduction 188
10.2 Other Approaches of Vessel Valuation 189
10.3 Algebraic Estimation on the Basis of ``Last Done'' 190
10.3.1 Three-Level Approach 190
10.3.2 Identification of Sales of Comparison 190
10.3.3 Age Adjustment 191
10.3.4 Criticism 195
10.4 Qualitative Adjusted and Audited Algebraic Estimation on the Bas is of ``Last Done'' 196
10.4.1 Incorporating Market Changes 196
10.4.2 Adjusting the Age Adjustment Factor 199
10.4.3 Incorporation of Other Attributes and Adaption of the Attribute Adjustment 204
10.4.4 Ex-Post Auditing of the Result 205
10.5 Conclusion 205
Part IV Institutional Framework 206
11 Shipping Finance in Greece 207
11.1 History of Shipping and Ship Finance in Greece 207
11.2 Types of Ship-Owning Companies 208
11.3 Legal Framework 209
11.3.1 The Three Main Pillars 209
11.3.2 Registration Issues 210
11.4 Taxation 211
11.5 Financing 213
11.5.1 Loans 213
11.5.2 Regular Type Structure of Term-Loan Ship Finance 214
11.5.3 Mortgage 215
11.5.4 Alternative Forms of Financing 215
11.5.5 The Global Economic Crisis and the Effect on Ship Financing 218
11.5.6 Examples of Ship Finance Transactions Involving Greek Companies 219
11.6 Concluding Remarks 220
References 221
12 New Turkish Law on Ship Finance 223
12.1 Introduction 223
12.2 Sources of Law 224
12.2.1 International Conventions 224
12.2.2 Conflict of Laws 224
12.2.2.1 The Code 224
12.2.2.2 Rights In Rem 225
12.2.2.3 Maritime Liens 225
12.2.2.4 Contracts 225
12.2.3 National Law 226
12.2.3.1 Civil Law 226
12.2.3.2 Maritime Law 226
12.3 Rights In Rem 227
12.3.1 Definition and Legal Qualification of ``Ship'' 227
12.3.2 Registration 228
12.3.2.1 National Ship Register 228
12.3.2.2 Register for New Buildings 230
12.3.2.3 Special (Flag-in) Register (Roll) 231
12.3.2.4 Turkish International Ship Register 231
12.3.2.5 Home Port Log 233
12.3.2.6 Statistics 233
12.3.2.7 Authority 234
12.3.2.8 Public Registers 234
12.3.2.9 State Liability 234
12.3.3 Ownership 235
12.3.4 Usufruct 236
12.3.5 Mortgage on Ships and New Buildings 236
12.3.5.1 Sources 236
12.3.5.2 Legal Character 237
12.3.5.3 Creation of Ship Mortgage 238
12.3.5.4 Claims Secured 239
12.3.5.5 Property Subject to the Mortgage 240
12.3.5.6 Rank 241
12.3.5.7 Protection Against Deletion 242
12.3.5.8 Ships Under Construction 242
12.3.5.9 Mortgage Bonds 243
12.3.5.10 Enforcement 243
12.3.6 Maritime Liens 244
12.4 Contractual Agreements 245
12.4.1 Shipbuilding 245
12.4.2 Ship Sale and Purchase 245
12.4.3 Financial Leasing 246
12.4.4 Bareboat Charter and Temporary Change of Flag 247
12.5 Outlook 247
References 247
13 Double Tax Treaties: Practical Problems in Article 8 of the OECD Model Convention 250
13.1 Introduction 250
13.1.1 Purpose of Double Tax Treaties 251
13.1.2 Brief History of Article 8 of the OECD Model Convention 252
13.1.3 Reflection of Article 8 in German Tax Treaties 252
13.1.3.1 Paragraph 1 of Article 8 252
13.1.3.2 Paragraph 2 of Article 8 253
13.1.3.3 Paragraph 3 of Article 8 253
13.1.3.4 Paragraph 4 of Article 8 254
13.2 Article 8 of the OECD Model Convention 254
13.2.1 General 254
13.2.1.1 Special Purpose Provision 254
13.2.1.2 Ranking Compared to Other Treaty Provisions 255
13.2.2 Requirements (Paragraph 1) 255
13.2.2.1 Operation of Ships 255
13.2.2.2 International Traffic 256
13.2.2.3 Determination of Profit 257
13.2.3 Consequences (Paragraph 1): Tax Exemption 257
13.2.4 Inland Waterways (Paragraph 2) 257
13.2.5 Place of Management Aboard (Paragraph 3) 258
13.2.6 Pool Agreements, etc. (Paragraph 4) 258
13.3 Major Practical Problems 258
13.3.1 Preparatory and Ancillary Activities 258
13.3.2 Containers 259
13.3.3 Bareboat Charter 260
13.3.4 International Traffic 260
13.3.4.1 Investment Income 261
13.4 Future Developments 262
Part V Challenges and Advances 263
14 Ship Leasing 264
14.1 Overview 265
14.1.1 General Leasing Definition 265
14.1.2 Ship Leasing Definition 265
14.1.3 Ship Leasing Market Size 266
14.2 Leasing Motivations 267
14.2.1 Lessee's Perspective 267
14.2.1.1 Cash Management 267
14.2.1.2 Funding Diversification 267
14.2.1.3 Cost 267
14.2.1.4 Accounting 268
14.2.1.5 Technological Obsolescence Risk Mitigation 270
14.2.2 Lessor's Perspective 270
14.3 Ship Lease Contract and Structure 271
14.3.1 Time Charter 271
14.3.2 Bareboat Charter 272
14.3.3 ``Hell and High Water'' Bareboat Charter 273
14.3.4 Tax Leasing 274
14.3.5 Sale and Leaseback Transaction 274
14.3.6 Optionality and Flexibility Features 276
14.4 Lease Pricing 277
14.4.1 Return on Asset/Return on Equity 277
14.4.2 Cash Yield 278
14.4.3 Residual Value Impact on Pricing 278
14.5 Risk Management 279
14.5.1 Credit Risk 280
14.5.2 Asset Risk 280
14.5.3 Financial Risk 281
14.6 Lessor Universe 282
14.6.1 Specialists Versus Generalists 282
14.6.2 Corporate Lessors Versus Project Leasing Structures 282
14.6.3 Bank Lessors Versus Independent Lessors 282
14.7 Latest Developments and Outlook 282
14.7.1 Proposed Lease Accounting Changes 282
14.7.2 Impact of Debt Funding Constraints 285
14.7.3 Impact of High Profile Industry Defaults 285
References 286
15 Pools in International Shipping 287
15.1 Background 287
15.2 Shipping Pools and Their Raison d'tre 289
15.3 Benefits to Owners 290
15.4 Financial Impact of Pooling 290
15.5 Typical Pool Structure 291
15.6 Determinants of Pool Points 292
15.7 Money Flows 293
15.8 Commercial Strategy 293
15.9 Pool Entry and Exit Rules 296
15.10 Guiding Principles 297
15.11 The Role of Shipping Pools in Marine Finance 298
15.12 Future Challenges 299
16 Restructurings in Shipping 300
16.1 The Challenging Environment of Today's Shipping Market 300
16.2 Potential Contributions of the Key Stakeholders 304
16.2.1 Shareholders 304
16.2.2 Banks 304
16.2.3 Other Stakeholders 305
16.3 The Restructuring Process 306
16.3.1 Preparation Phase 306
16.3.2 Negotiation Phase 307
16.3.3 Implementation Phase 307
16.4 Excursion: The Critical Role of Access to External Capital 308
16.5 Lessons Learnt from Successful Restructurings 309
16.6 Case Study of CSAV 310
16.7 Conclusions 313
17 Risk Management and Applications 314
17.1 The Freight Market 315
17.2 The Charter Market (Tramp Owners) 316
17.3 The Container Market: A Commodities Market 318
17.4 Freight Indices 319
17.5 Derivatives 319
17.6 Freight Index-Linked Vessel Employment 321
17.7 Examples 323
17.7.1 General Example 323
17.7.2 Example Using FFAs 324
17.8 Main Arguments for the Index-Linked Employment of Container Vessels 324
17.9 Failures and Limitations of the Index-Linked Employment of Container Vessels 325
17.10 Counter-Party Risk in the Derivatives Market 325
17.11 The Role of the Broker 326
17.12 Costs 326
17.13 Illustration of Charter Agreements and Derivatives in the Balance Sheets of Ship Owners and Charterers 326
17.14 Employment of Vessels: Index-Linked Employment from a Contractual Perspective 330
17.15 Legal Overview of Container Freight Swap Agreements 331
17.16 Credit Support Annex 332
17.17 Maritime Sector Regulatory Environment: EU 332
17.17.1 Liner Conferences 333
17.17.2 Shipping Consortia 333
17.17.3 Freight Indices 334
17.18 Regulatory Environment: US 334
17.18.1 US Perspective on CFDs 334
17.18.2 History of CFDs 335
17.18.3 Current US Shipping Climate/FMC Activities 336
17.18.4 Conclusion and Opposition from the Industry 337
18 Islamic Finance in Shipping: Dawn of a New Reality 339
18.1 Introduction 339
18.2 Basis of Islamic Finance 341
18.2.1 Prohibitions in Islamic Finance 341
18.3 Islamic Financial Instruments of Ship Finance 342
18.3.1 Murabaha (``Cost Plus'' Finance) 342
18.3.1.1 Example of Murabaha Finance 343
18.3.1.2 Risk Management Tools in Murabaha 344
18.3.2 Istisna'a (Procurement) 344
18.3.2.1 Example of Istisna'a Transaction 345
18.3.3 Musharaka (Partnership Financing or Profit and Loss Sharing) 346
18.3.3.1 Example of Musharaka Finance 347
18.3.3.2 Risk Management Tools in Musharaka Finance 348
18.3.4 Ijara (Lease) 348
18.3.4.1 Example of Ijara Transaction 349
18.3.4.2 Risk Management Tools in Ijara 350
18.3.5 Sukuk (Islamic Bonds): Al Ijara and Al Istisna'a 350
18.3.5.1 Sukuk Al Ijara 351
18.3.5.2 Sukuk Al Istisna'a 352
18.4 Important Considerations in an Islamic Ship Finance 353
18.4.1 Requirement of Title to the Asset 353
18.4.2 Dispute Resolution and Governing Laws 354
18.4.3 Sharia'a Compliance and Oversight 354
18.4.4 Taxation and Capital Adequacy 355
18.5 Conclusion 356
References 356
Part VI Related Services 358
19 Investor Relations and Their Role in Effective Corporate Communications 359
19.1 What Are Investor Relations? 359
19.2 A Historical Perspective on Investor Relations 361
19.3 Investor Audience 362
19.3.1 Growth Investors 362
19.3.2 Value Investors 362
19.3.3 Income Investors 363
19.3.4 Industry Specific Investors 363
19.3.5 Growth and Reasonable Price Investors 363
19.3.6 Arbitrage Investors 363
19.3.7 Quantitative Investors 364
19.3.8 Technical Analysis Investors 364
19.4 International Investor Relations 364
19.5 The Investor Relations Process: The IPO 365
19.6 The Investor Relations Process: After the IPO 366
19.7 The Investor Relations Firm 367
19.8 Shipping Investor Relations 367
19.9 Conclusion 368
20 The Role of Newbuilding Broker 370
20.1 The Newbuilding Broker 370
20.1.1 Information Gathering 372
20.1.2 Owners Background 372
20.1.3 Owners Trading Areas and Patterns 373
20.1.4 Owners Motivation 374
20.1.5 Yards Track Record and Background 374
20.1.6 Yards Current Status and Conditions 375
20.1.7 Yards Financial Status 376
20.1.8 The Letter of Intent 377
20.1.9 Technical Specifications and List of Suppliers 379
20.1.10 The Shipbuilding Contract 380
20.1.11 Description and Class 380
20.1.12 Contract Price 381
20.1.13 Adjustment of the Contract Price 381
20.1.13.1 Delayed Delivery 382
20.1.13.2 Insufficient Speed 382
20.1.13.3 Excessive Fuel Consumption 382
20.1.13.4 Deadweight Below Contract Requirements 382
20.1.14 Inspection and Approval 383
20.1.15 Trials and Completion 383
20.1.16 Delivery 384
20.2 The Shipbuilding Phase 384
20.2.1 Resale Opportunities 385
20.2.2 After Sales Service/Problem Solving 386
20.3 Concluding Remarks 386
About the Editors 387
Index 388