This risk is normally secured by way of a refund guarantee from the builder’s bank, which gives the buyer security for the repayment of the substantial instalments it will pay to the builder ahead of delivery. This blog looks at some of the risks posed to a buyer under a shipbuilding contract (“SBC”) both prior to and after delivery of the vessel.ĭuring the vessel’s construction, the undelivered vessel (and the builder) pose a credit risk to the buyer. However, with a globally ageing fleet and an increasing demand for greener and more efficient vessels, the shipbuilding market is expected to recover and grow at a rate of 5.7% between 2021-2026. The global order book for new vessels has been hit by the economic fall out of the pandemic, associated supply chain issues, over-supply and reduced demand in sectors such as offshore. By Laura Hyne on 9 February 2021 Posted in Contractual Issues, Shipbuilding
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