The recycling market has undergone a number of basic structural changes over the last decades, and 5 years ago BIMCO developed a new standard form that takes into account current business practices in the highly specialised recycling trade. The revision has also been politically expedient following the launch of the "Industry Code of Practice on Ship Recycling" in August 2001. Perhaps more importantly, the contract includes an undertaking by the parties to comply with the "IMO Guidelines on Ship Recycling" adopted in December 2003. This paper aims to take delegates through the document and also to explain the chain of communication between the ship owner and the recycling yard, as well as explaining the complex nature of sales negotiations, the role of brokers, the commercial risk and payment terms often involving an intermediate buyer.
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