Course description

Organizing the Shipowning Entity


The course offers an overview of the various ways of organizing the ownership of commercial vessels. The course provides an insight into company law and organizational forms chosen by owners such as limited companies, partnerships, pools and joint ventures. The management of such companies is covered, as well as the need for and use of third party service providers. The course examines the need for different ship types used in international trade. How to obtain ships through new building and sale and purchase, including contracts used for such purposes is covered, and so is the financing of ships.This includes how to finance the ships with equity, loans and other methods of financing. The need for demolition of vessels, and the markets for demolition as well as practical procedures is covered. The legal framework the companies operate within, ship registration, choice of flag issues and classification is covered. The course also gives a brief overview of the markets in which the ships operate, and the factors determining changes in the markets and freight rates. How owners can hedge risks related to the markets and prices is covered. This includes the use of FFA`s and derivatives.

The course is aimed at giving the students a better insight into and understanding of the shipping industry and practice in connection with owning and managing ships.

Course content

  • The shipping markets, the ship types, the participants in the shipping markets and the employment of the ships in the markets
  • The main functions and the typical structures of fully integrated ship owners. Management companies and management contracts
  • Ship transporation and logistics
  • Ship registries, Nationality and flags
  • The classification societies
  • The Ship owners planning, budgeting , market forecasts and strategies
  • Financing
  • Sale & Purchase of ships
  • New building and repairs
  • Joint ventures and pools
  • Tax and tax planning
  • Risk management
  • Compliance

Learning outcome knowledge

The students will learn about the structure of international shipping companies and the practical and legal challenges facing the shipowners. The course will provide an insight into establishing and operating companies and ships, and methods for acquiring ships and thus the ability to provide transport services in an international market. The course covers rules applicable to limited companies, joint ventures, pooling arrangements, and contracts and procedures used for acquisitions of ships and demolition, as well as crewing contracts and third party ship management. Markets and contracts applicable to sale and the purchase of ships, and how such procedures are carried through from start to conclusion, will be covered. The students will learn how world trade impacts on the decisions to invest in different types of ships. The students will also learn how to finance vessels and risk hedging, and how the rules and regulations of different flag states and port states affect the set up and management of shipping companies and ships. This knowledge gives the students an overview of and understanding of the complexity of acquiring, owning and operating ships.

Exam organisation

  • Written exam: 100%