A Study On Auctions Of Merchant Vessels

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Study on Auctions of Merchant Vessels

CHAPTER 2: LITERATURE REVIEW

Introduction

The aim of this study is intended to inculcate the explanation of different notions related to auctions of merchant vessels. The body of the research will incorporate the notions attached to meet the pretext of the paper. These notions will help develop an effective understanding of the whole process of auction behind the merchant vessels. Moreover, this will allow the researcher to inject an effective understanding of the modus operandi in the readers mind.

Discussion and Analysis

The importance of passenger ships for the long-haul segment has decreased, however major trading nations even today tend to rely heavily on sea trade, against its counterparts being railway and air routes. Realizing the importance of merchant ships, the nations around the world tends to attach great importance to it and as a result tends to use different notions with it. However, the fact needs to be kept in mind that in shipping industry merchant vessels are only bought or sold on voluntary basis. As it is bought or sold on voluntary basis thus it is very rare that the buyer will be willing to pay the price requested by the owner. On the other hand it may happen that a certain company, drifts to temporary or even permanent financial difficulties, with the result that lie creditors and others may even have to resort to legal claims forced to implement security. In practice, creditors use the threat of seizure for the debtor arrears, or enough to provide security. Shipping traffic interruption tends to lead to economic losses which are usually quite significant, so the threat of a seizure tends to be very effective when it comes to exerting pressure.

In the modus operandi, the owner tends to sell the vessel through a voluntary public auction or in the event of insolvency of a sale, which can either be due to the seizure of the ship or in any case tends to stand against the court orders. As highlighted above that the auction of the merchant vessels are not very common. Levy of execution of the measures targeting the property are far the most common means to generate any auction of this nature. The Voluntary Auction includes that the ship owner may at any time sell the vessel voluntary, if the sale is otherwise permitted, as per the laws of the state. Vessel in ...