Ship Conversion Contracts

Where the capital cost of a newbuilding cannot be justified in light of hire and freight rates anticipated in the period following her delivery, the owner seeking additional tonnage will often choose to enter the market for a second-hand vessel. Purchasing an existing ship may, however, prove an unsatisfactory means of meeting the owner’s tonnage requirements for the simple reason that the vessels available in the market place will not have been built to the owner’s specifications and standards and may not therefore entirely meet its specific needs.