The Demolition Market-Free-Samples for Students-Myassignmenthelp

Question: Describe the salient features of part I and Part II of the BIMCO Standard Contract for the sale of vessels for demolition and recycling: and highlight at least five common clauses nromally found in this demolishcon 2001 (2004) contract; and stating why the demilition market is more favourable in less developed contries. Answer: Demolishcon is the revised version of previous salescrap 87 contract used for negotiation while selling a vessel for the purpose of recycling and demolition. The clauses of this document were grouped in two parts(Grube, 2006). The features of these are discussed below in brief: Part I This part of the document mainly covers the details regarding the ship to be sold for recycling. It contains the name and address of the owner of the ship, IMO number, IMO registered owner identification number, IMO company identification number, Ship gross tonnage, port of registry, distinctive letters or number of ship and date of construction, etc. In other words, it contains all the physical details of the ship, the place where it is sold, buyers and sellers information, selling details, etc. Part II This part starts with a preamble of undertakings of both the parties i.e. seller and buyers to comply in accordance to the industry code of practise for selling recycling in a safe and environmentally sound manner. This explains the procedure to be followed for selling of the vessel and provides an outline and the way by which the contractual parties can best act. This contact has to be as per the national and international stated in accordance with clause 17. The 5 clauses which more or less are common which are as follows: Clause 2 (Purchase price) and Clause 4 (Payment): These two clauses are common as both is related to the price of the contact(Puthucherril, 2010). Clause 2 is about the price of the ship set out by the contractual parties while is about the release of same payment which was decided after the timely delivery of consignment. Clause 6 (Advance Notice of Arrival), clause 7(Notice of Readiness of Delivery) and clause 8(Delivery): All these 3 clauses are related to the delivery of the vessel. Clause 6 states the prior notice to the buyers about the vessel position and estimated arrival time of the vessel. Clause 7 states the notices of readiness of the physical delivery of the vessel while clause 8 sets out the conditions in which the vessel must be delivered. As all 3 states the delivery terms and conditions, it could have been explained under one clause. The demolition market is more favourable in less developed or developing countries due to the lax environmental regime. These includes mainly the Asian countries like China, India, Bangladesh and Pakistan where the labour cost is very low in comparison to the western countries. Despite these countries are under Basel convention, they do not follow any safety environmental precaution due to high internal corruption. The other factors being the demand of steel in the domestic market, good value of machinery and other reusable items in the second-hand market and the difference in exchange rate i.e. US dollar against the local currency promotes created bigger market in these less developed countries. China, India and Bangladesh are the 3-major player in this market. China is the leading followed by India and Bangladesh. Bibliography Grube, P. (2006). BIMCO. Retrieved from https://archive.basel.int/ships/docs/11e.pdf Puthucherril, T. G. (2010). Legal Aspects of Sustainable Developments. Boston: Martinus NIJHOFF.