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There is a major cash outlay associated if the proposal is approved. Even though client is trustworthy and threat of dishonoring the contract is low, contract is just for three years. Sector apply should be to lease vessels on a “time charter†foundation ordinarily for one, 3 or five calendar year periods.
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In January 2001, Mary Linn, vice chairman of finance for Ocean Carriers, a shipping corporation with workplaces in The big apple and Hong Kong, was assessing a proposed lease of a ship for A 3-yr time period, beginning in early 2003. The customer was eager to finalize the agreement to satisfy his have commitments and provided quite beautiful terms.
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