| The prosperity of the world vessel trading market since 2002 has benefited China to become the global leading new-building country. But during signing and executing the main contract of new-building vessels, various problems emerged. Due to the lack of experiences and the tendency of accommodating the owners best, many yards give up their righteous rights under the contract or give in necessary modifications of the terms & provisions in the contact, which leads to many arbitrations once the market collapsed since Oct 2010. While the owners tried their best to find any possible breaching of the sellers, the yards can only sit tight because the contract doesn't benefit themselves as much as the owners.Cancellation and huge deduction has become so common that no one escaped this wave. Since the contract is complicated and many ones are involved plus the execution normally takes a quite long time, any minor defects can lead to a final impressive loss. I've been in the industry since 2004 and do find while also accumulate experiences regarding to the contract and its'execution. Hereunder we'll discuss the fragile parts of the contract and the reason why they should be aware of. We'll also cover the execution part, and cases will be used to support my own opinions while also remind readers directly with both the caused and the consequences. Personally I hope what I record here can benefit anyone who wear the same shoes as me, I would be most appreciated if this paper can help them to cut some loss during the negotiation and increase their senses of contractual risk control. |
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