Ship sale + purchase

Ship second-hand sale + purchase (S&P) is the largest revenue-per-transaction segment of the maritime service industry. A single VLCC changes hands for $80-120M; a modern LNG carrier for $180-250M. The contract is a Memorandum of Agreement (MOA) between seller + buyer, with the Norwegian Saleform 2012 (NSF 2012) the dominant form. This page covers the transaction chain — MOA + deposit + inspection + delivery — the crew implications at delivery, and the master + Chief Officer duties in the last weeks of the ship's life under the seller.

The three standard forms

Norwegian Saleform 2012 (NSF 2012). Dominant global form (~70-80% of transactions). Published by Norwegian Shipbrokers' Association. Balanced but seller-friendlier on hidden-defect risk. Standard for Western + Middle Eastern transactions.
Nipponsale 1993/2012. Japanese-flag standard. Used almost exclusively for Japanese seller or Japanese buyer transactions. Simpler + shorter than NSF; less-detailed on damage risk between MOA and delivery.
Shipsale 22 (BIMCO). Newer (2022) form drafted with more balanced buyer protections + explicit sanctions clauses + cyber-security warranties. Growing adoption in EU + Asian trades. Recommended over NSF for post-2022 fixtures.

Transaction timeline

MOA signing. Buyer + seller agree price + delivery place + delivery window. Deposit typically 10% payable to escrow within 3 banking days.
Class + condition inspection. Buyer's appointed surveyor + class rep board the vessel + inspect at seller's cost of preparation. Findings + comments delivered to seller.
Underwater inspection (optional). Buyer arranges class-society-approved diver. Findings inform any drydock decision.
Notice of Readiness (NOR). Seller tenders when vessel is in delivery place + all class + trading certificates current. Delivery follows within contract window.
Delivery. Vessel physically transfers + buyer pays balance to seller's account. Class + trading certificates handed over. Crew signs off + buyer's manning signs on (or existing crew continues per pre-agreement).
Post-delivery. Seller receives Bill of Sale + arranges deletion certificate from previous flag registry. Buyer arranges flag re-registration + mortgage recording if debt-financed. Insurance transitions from seller to buyer.

Delivery — crew implications

SEA termination. Existing crew's SEAs terminate on delivery unless explicitly rolled over. Master + Chief Officer + entire crew formally sign off + settle final wage account. Seller pays.
Repatriation obligation. Under MLC 2006 Reg 2.5, seller pays repatriation. Costs USD 50-200k for the whole crew of a Panamax or larger — factored into the sale price by seller.
Wage account settlement. Full wages + accrued leave + accrued overtime + accrued sea-service bonus. Sign "under protest" if any disputed deduction. ITF inspector + P&I club review disputes.
Buyer's manning takeover. Buyer arranges own crew before delivery (typically at delivery port or the next major crew-change hub). Standard practice: 24-48 hour overlap for handover.
Crew continuity (rare exception). LNG carrier + specialist tanker where crew training is expensive: buyer may accept the existing crew via novation of SEAs. Complex — needs written novation + P&I acceptance + flag-state notification.

Master + Chief Officer duties (last month under seller)

Vessel must be delivered "free of average damage affecting class" (NSF Clause 11). Master + CE ensure any pending class action is either completed or documented.
All class + trading certificates current + physical originals on board. Copy set retained.
Oil Record Book + Garbage Record Book + Ballast Water Record Book current + physically on board.
Cargo hold + tanks + machinery spaces in delivery condition per MOA. Any pre-agreed items removed (spare parts, certain equipment, personal effects) with delivery-inventory sign-off.
Bunker + LO surveys — remaining fuel + lubricating oil sampled + measured. Seller reimbursed by buyer per MOA.
Crew wage accounts prepared + reconciled with the SEA + CBA. ITF inspector notified in advance for any complex fixture.

Frequently asked

Norwegian Saleform 2012 vs Nipponsale — which is used more?

Norwegian Saleform 2012 (aka NSF 2012, published by the Norwegian Shipbrokers' Association) is the dominant form for Western + Middle Eastern S&P — probably 70-80% of transactions. Nipponsale 1993/2012 (Japan) is standard for Japanese seller / Japanese buyer transactions. Shipsale 22 (BIMCO 2022) is newer, more balanced towards buyer + increasingly used in EU + Asian trades. All three follow similar structure: MOA + deposit + inspection + delivery — the differences are risk allocation on hidden defects, damage between signing + delivery, and warranty scope.

How much deposit + when is it forfeited?

Typical 10% deposit paid to escrow (jointly held by seller + buyer's banks) within 3 banking days of MOA signing. Forfeited if the buyer defaults (fails to pay balance at delivery). Returned to buyer if the seller defaults (fails to deliver in condition specified). Bank escrow (never released to seller until delivery) is the market standard — deposit into seller's account without escrow protection is a significant red flag.

What happens to the crew when the ship is sold mid-contract?

MLC 2006 continues to protect the crew regardless of ownership change. Buyer must decide before delivery: (a) accept the existing crew + wage arrangements (rare — usually only for LNG carriers where crew training is expensive to replace), OR (b) accept a delivery in ballast/laden with crew signing off at delivery port (typical). Seller retains all wage liabilities up to sign-off + repatriates crew per SEA/CBA. Buyer signs on their own manning fresh. Complex if the delivery port is remote — sign-off + repatriation can add USD 50-200k to seller costs.

Underwater inspection vs drydock — which right does the buyer have?

NSF 2012 Clause 6: buyer has right to underwater inspection by a class-society-approved diver at buyer's cost. Findings communicated to class society. If findings require class action (typically drydock), seller pays for drydock + any repairs required by class + buyer inspection. If findings do NOT require class action but buyer still wants drydock, buyer pays. Distinction matters — a scratched or paint-flaked hull that doesn't affect class doesn't trigger seller-funded drydock.

What does 'delivery in the same class' mean?

NSF 2012 delivery condition requires the vessel to be free of average damage affecting the class, maintain the same class as at the time of MOA + retain all class certificates + national + international trading certificates. Class letter + trading certificate copies at delivery. If the vessel has been in a casualty between MOA and delivery, seller must remedy or offer proportional price reduction; buyer can accept or cancel + recover deposit.