Bimco believes it can simplify shipping asset plays as it launches its first-ever sale and purchase (S&P) contract form.

The Denmark-based shipowners’ organisation said the Shipsale 22 agreement has now been launched after two years of work.

The aim is to speed up the negotiation and execution process with a “modern and comprehensive” alternative to existing sale and purchase forms.

The work involved a drafting team of nine industry specialists who provided broking, legal and commercial expertise.

The process has also included an extensive industry consultation that provided more than 800 comments and suggestions.

The new contract closely follows the typical chronological sequence of events that play out in an S&P transaction, Bimco explained.

Belgian shipowner CMB’s chief learning officer Francis Sarre led the Bimco team.

He said: “With Shipsale 22, the team has focused on drafting an agreement that is clearly written and will need far fewer amendments and additional clauses compared to other standard sale forms.

“This will make the negotiation process faster and simpler and ultimately saves users time and money,” Barre added.

The agreement consists of four parts.

Logical lay-out

The first section summarises key information such as the details of the ship, any inspections, and the purchase price.

The second contains the terms and conditions of the agreement in an easy-to-follow structure, and the third deals with documents to be provided plus the protocol of delivery and acceptance.

The fourth part is where any items that are excluded from the sale should be listed.

Despite being a new and more modern agreement, it retains the necessary familiarity for users transitioning from other forms used for buying and selling ships, Bimco argues.

The document is available to download as a sample copy on the Bimco website.