Cash Buyer & Ship Recyclers
Role of Ametheus
From the day a vessel takes to the water it has a commercial viability of roughly 3 decades. Changing conditions, wear and tear while sailing and regular employment affect the maintenance and running costs of a vessel. Once the vessel is no longer commercially viable for trading or chartering, it will be considered for recycling. The ship owner then, may decide to sell the vessel for recycling at market rate. This is where Ametheus come in starting from the market valuation, sale, delivery and beaching of the ship, we see through the whole process and links vessel owners with cash buyer and Ship recyclers. We assist the owners in dealing with local formalities, clearances and local port authorities. We pay the owners at delivery, managing at our risk the modality and time structure of cashing in a Letter of Credit from our end breaker.
We deliver on a transaction; as committed in the contract and negotiations regardless of the outcome. We handle unknown variables and fluctuating markets. Our clients / owners are assured of smooth and swift beaching.
What is Cash Buyer?
A “Cash Buyer” as the name suggests, is an entity that purchases a vessel for “Cash” from the owners and delivers it to a ship recycling yard (Ship Recyclers). Cash Buyers are not brokers. Cash Buyers are PRINCIPALS/TRADERS. Cash Buyers take delivery of vessels on both “delivered” and “as is where is” terms.
Business functions performed by a Cash Buyer include sale and purchase, financing (taking title of the vessel against full payment), market research, evaluation (forecasting future prices, demand/supply factors and other relevant business-specific issues) and risk management (underwriting market, operational, performance, currency, demand/supply, and various other risks).
Benefits of a dependable Cash Buyer to Ship Owners:
- Ease of delivery due to standardization of vessel descriptions and delivery contracts
- Negotiations conducted with a limited number of buyers rather than a multitude of ship recycling yards in several different countries
- One stop service… do not have to go to different yards in the world. Ship owners get intel on worldwide recycling markets and specific yards, with one call
- Guidance: since cash buyers do business with yards globally, they are BEST qualified to guide owners on various recycling options
- Receive intimate knowledge and current state of the individual recycling markets
- Cash payments instead of payments via Letters of Credit (L/C)
- Risk mitigation on behalf of the ship owners, especially in cases of a falling market, currency fluctuations, and unexpected legislative and regulatory changes
- Managing ship owners CSR requirements
- Ability to propose, guide, and execute green recycling contracts
- Financial stability to ensure hassle-free completion of agreements
Benefits of a dependable Cash Buyer to Ship Recyclers:
- Having a large inventory of vessels at all times gives ship recyclers the ability to choose a vessel of their choice
- Extensive financial experience helps in providing recyclers with the option of negotiating LCs (Letters of Credit) convenient to them
- Extensive understanding of local regulations and procedures makes delivery and beaching on the yard a hassle-free process
- Understanding the needs of the ship recycler pertaining to their requirements on the types of vessels, Lightweights they are able to negotiate, and their banking requirements makes every transaction a smooth one
- Exclusive local representation helps to offer personalized attention and the ability to cater to the needs of the ship recyclers
- Ability to forecast the markets on the supply-side as well as trends in the ship recycling sector helps to provide ship recyclers with the best service
Please email us to know more about the system: info@ametheus.com
