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There may be a big funds outlay concerned In the event the proposal is recognized. While customer is trustworthy and threat of dishonoring the agreement is small, deal is just for three decades. Business observe will be to lease vessels over a “time charter” basis usually for 1, three or 5 year intervals.

Consequently, we advise the organization to keep the ship extended than 15-yr time period, given that working the vessel above a longer interval will earn supplemental gain as well as the ship is often scrapped a while later, granting the exact same million bucks.

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