Joint Ventures in Shipping and other specialist sectors

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Joint Ventures in Shipping and other specialist sectors

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Unlike joint ventures in other ‘non-specialist’ sectors, the control and management of a shipping joint venture will not be linked to equity contributions, but almost always vest in the shipping company being funded, or designated vessel operators, which are often a subsidiary of the shipping company.  

On top of the absence of control, sometimes the ship owner shipping JVs sometimes do not come with vessel ownership either. 

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Poor Contract Management leaks 17% of its Economic Value

Contract language expresses the intent of the parties, but many times one party or both parties don’t even know what the contract says. The contract lays out a framework, but people actually assure that it comes to fruition. Relationships, not contracts, produce meaningful results.

Unlike joint ventures in other ‘non-specialist’ sectors, the control and management of a shipping joint venture will not be linked to equity contributions, but almost always vest in the shipping company being funded, or designated vessel operators, which are often a subsidiary of the shipping company.  

On top of the absence of control, sometimes the ship owner shipping JVs sometimes do not come with vessel ownership either. 

More to explorer

mountain, colors, paint-6538890.jpg

Poor Contract Management leaks 17% of its Economic Value

Contract language expresses the intent of the parties, but many times one party or both parties don’t even know what the contract says. The contract lays out a framework, but people actually assure that it comes to fruition. Relationships, not contracts, produce meaningful results.