CONTENTS
1.0 ABOUT US: UNSTOPPABLE BROKER COMPANY .......................................................... 2
2.0 INTRODUCTION .................................................................................................................... 2
3.0 SALES AND PURCHASE (SECONDHAND) MARKET STAGE ....................................... 4
3.1 NEGOTIATION AND CONTRACT STAGE ............................................................................................................ 4
3.1.1 INFORMATION ABOUT THE SHIPS .......................................................................................................... 6
3.1.2 THE CONTRACT ......................................................................................... Error! Bookmark not defined.
3.2 INSPECTION STAGE.............................................................................................. Error! Bookmark not defined.
3.3 COMPLETION ........................................................................................................ Error! Bookmark not defined.
4.0 Conclusion................................................................................... Error! Bookmark not defined.
5.0 References ................................................................................... Error! Bookmark not defined.
1.0 ABOUT US: UNSTOPPABLE BROKER COMPANY
Unstoppable is a ship broker company that was established in 2000. The owner of this
company is Datuk R. Marco. Our company has a lot of experiences especially in dealing with sale
and purchase of the ship because our company experiences in dealing with buyer or seller is almost
15 years. Our company has received an award and become a top 10 broker company in Asia.
Some of the companies that we have cooperated with is China Ocean Shipping Company,
MEDITERRANEAN SHIPPING COMPANY (MSC), Maersk Line and some other immense
companies. Our company served clients worldwide this is because they believed in us and our
company has served them right.
Contact us:
Address (main company): 774 Lorong Utama 6 Pasir Gudang 80200 Johor
Office number: 04-3342431 Fax: 07-3342432
Email: Unstoppable@gmail.com
Website: www.unstoppable.com.my
Office hours: Monday until Sunday at 8a.am until 12 a.m
2.0 INTRODUCTION
Nowadays shipping industry is one of the most vital industry which contribute a lot of
revenue to a countries. It constitutes roughly 90% of the world’s trade (Pegg, 2013). However, to
be successful in this industry there are various activities that need to be deal with. In this writing
it will interpret one of the most extensive and prominent activity in shipping which is the process
of sales and purchase is of ships. The process can be classified to negotiation and contract stage,
inspection stage, and completion stage by Unstoppable Broker Company to assist their client China
Ocean Shipping Company (COSCO). This writing will expound details information about these
stage which are very convenient to all reader especially the individual that are related to shipping
industry.
3.0 SALES AND PURCHASE (SECONDHAND) MARKET STAGE
3.1 NEGOTIATION AND CONTRACT STAGE
Firstly, at this stage the ship owner or buyer which is Chino Ocean Shipping Company
(COSCO) will identify what kind of ship that they would like to purchase. In this case COSCO
would like to purchase a second hand ship, which is a container vessel with a budget not more than
13 million USD. As the process of purchasing second hand vessel is much more convoluted.
COSCO will appoint a sales & purchase broker to assist them as a middleman and deal with the
complicated tasks. As COSCO put they trust in our company, which is Unstoppable Broker
Company. They have gave the responsibilities to search and purchase the vessel to us.
The responsibility of sales & purchase broker is, to find out the detail information about
the ship such as the flag state of the vessel has been register, flag convenience, capacity of the ship
and et cetera. In addition, sales & purchase broker have to know the market trend since the ship
values can slump, or climb, virtually overnight and the timing of a purchase. These knowledge are
very crucial to advise the clients on its probable direction and have a good knowledge of the second
ships and their owners. The most important thing is we need to choose the best seller company that
sale their vessel at the best price but in a good quality and not exceeding our client budget.
Once, we find out all the details that the COSCO needs about the ship, we will inform the
COSCO Company. The results in the survey, we find out two best sellers which are Sea Boats and
Marine Ship Company that wish to sale their container vessel, hence the price that they offer are
not outpace with the budget provided by COSCO. After notified COSCO, they has enjoin our
company to proceed with the negotiating the price with both the seller’s broker and try to win the
best price for them. During the negotiation process, the Sea Boat’s broker offer to sale their
container vessel at $13.5 million and the Marine Ship Company’s broker at $14million. Both price
has exceeding our client budget, so we compose a counter offer to get the price which comply with
the client budget. In results, both company’s broker has decided to sale their second hand container
vessel which is Sale Boats sale their vessel with $12.5 million cheaper compared to Marine Ship
Company which is $13million and it is not exceed our customer budget. Also, Sea Boats container
vessel have a large capacity, which is 333 TEUS and the ship has been used only for 2 years. The
price is so reasonable to our client compared to Marine Ship Company that sale their container
vessel with capacity 300 TEUS and the ship has been used for 15 years.
Next, we will come back to COSCO with the negotiation price and recommend them to
choose Sea Boats compared to Marine Ship Company with all the details that we get. However,
COSCO have planned to buy both vessel since at that specific time the demand of space on ships
is very lofty. In that circumstances, we informed both of the seller companies seller’s broker which
is Sea Boats and Marine Ship Company that the transaction is on. Next, our company discuss the
appropriate terms and condition with the seller brokers. Lastly, since both parties has agreed with
terms and regulations the transaction will be proceeded to contract stage.
3.1.1 INFORMATION ABOUT THE SHIPS
Diagram 1.0: Sea Boats Container Vessel (Apollo Duck, n.d).
(Source:
http://commercial.apolloduck.com/feature.phtml?id=288115)
Diagram 1.1: Maritime Ship Company (Apollo Duck, n.d). (Source:
http://commercial.apolloduck.com/feature.phtml?id=395873)
Short Details and Specification
Price (USD)
12,500,000
13,000,000
Location
Bangladesh
Mediterranean Malta
Company
SeaBoats
Maritime Ships Company
Vessel type
Single screw general cargo / container
vessel for worldwide trade.
Geared container vessel for sale.
Builder
Ananda Shipyard & Slipways Ltd.
Dhaka. Banglad
Year constructed
2012
MAN B& W 8L48/60 – 8400 kW.
Service speed 17.5 knots on 33mt
IFO 380
2000
Class Society
Germanischer Lloyd
Flag
GIBRALTAR
GL + 100 A 5 E "Equipped for
Carriage of Containers"
Antigua & Barbuda Flag
Figure 1.3 below show the flow of negotiation:
Appoint
Ship owner/buyer
Ship broker
(Identify a vessel)
(As a middleman)




find out details about the ship,
capacity of the ship
has to know the market trend
He must have a good knowledge of
ships and their owners.
negotiate the price with seller
Ship broker will be send
to negotiate the price
with the seller
Ship owner/ buyer will
be informed about the
details of the ship
Ship owner/buyer agree
with the price that has been
negotiated between the ship
Contract will be
broker and the seller and
prepare
also the terms and condition
given by the seller