Organizing the Shipowning Entity

Introduction

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
• Risk management, strategies, market forecasting
• The main functions and the typical structures of fully integrated ship owners. Management companies and management contracts 
• ESG (Environment, Social and Governance) - implications for the shipping industry
• Ship transportation 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