Baltic Exchange launches Escrow Service for vessel sales
(Posted on 02/05/18)
The Baltic Exchange will be launching an Escrow Service for its members to hold deposits for ship sale transactions. The move will allow Baltic Exchange members to take advantage of the Exchange's trusted position in the marketplace when undertaking the sale or purchase of a vessel.
Announcing the initiative last week at its Freight & Commodities Forum during Singapore Maritime Week, the paid-for service will be available for use in transactions where the buyer of the vessel is a Baltic Exchange member. The service is likely to be extended to disputes related payments.
The Escrow Service will be run by the Baltic Exchange's Asia office in Singapore and will be subject to the Singapore Exchange's (SGX) detailed compliance and money laundering procedures. OCBC Bank will be providing the joint deposit account.
Headed up by the Baltic Exchange's Head of Asia-Pacific, Chris Jones, a sale & purchase broker with over 40 years of experience, the service will initially be offered from Singapore with a view to further expansion to other Asian shipping centres.
Chris Jones said: "Having the Baltic Exchange provide this service solves the problem as to where the deposit should be held in a vessel transaction. Buyer and seller alike can be certain that the Baltic Exchange will apply its high standards of compliance as well as have a full understanding of the complexities of any maritime transaction."
He added: "This service will add real value to the many sale & purchase brokers who are Baltic members and are currently expected to provide this service to clients. It will allow them to undertake the highest level of due diligence and compliance checks, reduce the administrative burden of organising a client escrow account and allow them to focus on adding value to the transaction."
The service will go live in May 2018 and will cost US$ 5,000 per side.
Leading classification society DNV GL has announced that all DNV GL classed vessels are now able to... Read more
Mr. Hiroaki Sakashita has been appointed as Senior Executive Vice President as well as Executive Director... Read more
ACO Marine, together with a group of leading wastewater treatment system manufacturers and environmental... Read more
A successful collaboration between KVH Videotel, a world leader in the provision of e-learning for the... Read more
A new Ballast Water Management System (BWMS) developed by Flow Water Technologies Ltd, called FlowSafe... Read more
MacGregor, part of Cargotec, has signed an agreement with Ocean Sourcing Pte Ltd to support MacGregor... Read more
KVH Industries, Inc., a leader in mobile connectivity, announced that it recently shipped its 9,000th... Read more
Inmarsat, the global leader in mobile satellite communications, is staying ahead of fast-changing dynamics... Read more
World Fuel Services (WFS), via its fully owned subsidiary Gib Oil Limited, has extended its capacity... Read more
The Clean Shipping Alliance 2020 has expressed strong concerns about a proposal submitted by the European... Read more