Question

[vic mcclymont]

Company A owns a tanker and puts on a long term charter to company B.
Company A takes out a one voyage mortgage on the cargo of the tanker, is this legit?
Vic

[Ivan Cloherty]

Company A owns a tanker and puts on a long term charter to company B.
Company A takes out a one voyage mortgage on the cargo of the tanker, is this legit?
Vic

That's the way the oil business is conducted, the cargo may get sold many more times before it is actually discharged, it happens mostly in the oil business, but also happened during the cement cargo bonanza in the 70's, nothing illegal in it, in a lot of cases the cargo is worth more than the ship, depends on market conditions at the time, like the song 'money makes the world go round, the world go round' and always will.

Banks will give the cargo owner a mortgage as long as he holds title to the Bill of Lading and the cargo is worth more than the mortgage required, it's how tanker owners financed their new builds

[Captain Kong]

When I was in VLCCs from the Gulf, we sailed with no destination
slow steaming and many times stop engines and drift south on the current to Cape Town the drift north on the Benguela current,
The cargo was on the New York Stock Exchange, and many many buyers, oil prices were rising and a man could make a few million Dollars profit buying a cargo and hold for a few days then sell, Three Million Barrels at a $2 price rise gets him Six Million Dollar profit.
Off to my bunk,
Brian

[robpage]

When I worked for Gulf oil we would load oil in Angola for discharge in port Arthur Texas at their refinery and then we can spend one or two weeks going round in circles in the Gulf of Mexico while the price of oil went up and down on the New York exchange then we could either end up going to a different refinery or a different Port so although he was carrying their oil in their ship the destination was always quite fluid

[j.sabourn]

Was similar to grain cargoes. Cpould be sold two or three times before port of discharge was declared. If bound for Europe was nearly always Lands End For Orders. JWS.

[Lewis McColl]

When I was on the British Merchant we loaded a cargo in Trinidad , BP own part of the setup there and the plant had a decision to make, either start shutting down as they had to much LNG and no more room or sell off a cheap cargo to make room. The costs and time to shutdown a Gas Train will run into many millions.
We loaded the cargo and headed up to the east coast of the US, to discharge at Cove Point. They could not take the cargo as they were also well up on stock. we steamed around the Bermuda Tri Angle for 10 days. At that time the UK were running low on stock at the Isle of Grain. BP were contracted to deliver x number of cargos year, be it by there own vessels or chartered tonnage. Rumour has it Tony Heywood the CEO then of BP got a phone call and was told that Gas carrier that is digging holes in the Ocean with nowhere to go, get her to IOG now or BP will never discharge another Cargo at the Isle of Grain again. We discharged in the Isle of Grain.

[vic mcclymont]

I understand all of that, same in fruit season, never new where we going to discharge.
No one has answered the question.
Can a shipowner mortgage the charity parties cargo, is this legal?
Also is it legal to take more than one mortgage out on a ship at the same time.
Vic

[Lewis McColl]

I would have thought that to take more than one mortgage out on a ship at the same time would not be possible, I have heard of owners doing a re mortgage with the same lender not sure if that is the same thing as you are asking Vic?

[vic mcclymont]

Lewis, from what I gather two mortgages running concurrently.
Vic

[j.sabourn]

Most of the ships in the offshore industry used to be brought down here from the graveyard in Singapore where a lot were also layed up at Loyang where Lou was imprisoned during the war. I brought 3 or 4 down and took the same amount back. They were on bare boat charter which meant the charterers paid all costs appertaining to the vessel. During that period they could sub charter to anyone they wanted. This also applies to most bareboat charters. JS.