Write a one-page essay on the amendments to the NSF2012

Deliverables: No heading and sub-headings. It must be an essay report (A4 lined paper) and no
bullet points.

Due: Next lesson

Your name and Student ID: Cheng Kok Hong, P7157918
Word count: 500-700 words (One page) Value: 5%

Norwegian Sale form 2012 compare to 1993

Due to market demand and need to reflect the ever-evolving shipping industry practices, the
Norwegian Shipbrokers' Association, with Baltic and International Maritime Council ("BIMCO")
proposed in February 2012 to replace the ageing NSF 1993.

On the whole, there is four main fundamental difference between NSF2012 and NSF 1993

The NSF2012 contains clear, well-defined definition and terms, at the beginning to represent more
accurately vessel specification such as "Vessel IMO No.", In NSF2012 as compare to "Register
No." under NSF 1993. Continue throughout the forms, with increase specifics suggested payment
terms, transaction, and duration, as compared to NSF1993, such as the allowance of negotiation of
deposit amount, as compared to NSF1993, where it was peg at 10% of purchase price. On to the
transaction portion, NSF2012 suggested the opening of deposit holder account, with documentation
provided equally without delay by both parties within three banking days.

Under NSF2012, clear suggestion was provided to handle the events of physical delivery, prior,
during and conclusion. With NSF2012, buyer must liaise with seller at least nine-days, before
tendering of notice of readiness ("NOR") if an underwater inspection is required, with consideration
to vessel current class status, for acceptance. Noted in NSF2012, if an underwater inspection was to
be carried out, any additional days needed for the repositioning of the vessel, cancellation date shall
be extended accordingly. If any damage was noted, NSF2012, provide provision for deduction of
purchase price again averaged estimated repair cost from two independent shipyards around area of
delivery

The NSF2012 set out clear terms to account for unused bunker and lubricant remaining on board
between buyer and seller. Under NSF1993, the prices of payable reference to the current market net
price at the port on the date of delivery. With NSF2012, buyer and seller may still calculate the
payable base on current market prices; they may also calculate using sellers last payment invoice
for current remaining on board, once both parties have settled on the calculation method, then the
alternative method is removed.

NSF2012 compare to NSF1993, reflect more accurately current market standard document of
delivery. Under NSF1993, documentation needs did not well clarify, often result in the situation
where MOA was carried out without agreement on the date of document delivery. Therefore, with
NSF2012, detail approach hope to assist both parties to address documentation needs early into the
deal. Where the agreed documentation, subject to the jurisdiction of corporation and vessel
operational needs, to meet the specification and description listed.

Updated in NSF2012 governing law and jurisdiction clause was refer to Arbitration Act 1996,
instead of NSF1993, Arbitration Acts 1950 and 1979, and LMAA small procedure shall conduct any
claims below the sum of US$100,000.
Finally, in NSF2012, contain two new causes, "Notices" and "Entire Agreement", not previously
found in NSF1993. All notices between parties involved shall now be in writing and provided with
clause 17. The entire agreement clause 18, was inserted to avoid any disputed arise from agreement
alleged made orally during negotiation, to prevent buyers from making unsubstantiated claims. An
entire agreement clause, contract the parties agree to the terms of the contract between them are
found within the text of contract document and nowhere else.