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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.
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.
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.
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.
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.
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.
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