NSA 2512 Organizing the Shipowning Entity


NSA 2512 Organizing the Shipowning Entity

Responsible for the course
Cathrine Bjune

Department of Accounting - Auditing and Law

According to study plan

ECTS Credits

Language of instruction

The course offers anoverview of the various ways of organisng the ownership of ships, from captains sailing their own ships to large commercial vessels owned by multinational compnies, operated even throgh pools and joint ventures.the new ways of owning ships will be examined, due to market and fleet volatility. We will look at general organisational forms of companies and see how vessels are operated in the markets, and focus on how the shipwning companies, how they are organised, how they are managed, internally or by using third party providers. The role of third party ship managers will also be covered.

The purpose of shipping companies is to own and operate ships, and provide shipping services, and therefore methods for acquiring tonnage through sale and purchase, new building and chartering are covered.Ship finance is important when purchasing a newbuilding or a used veessel. The students will learn from the banks that deal wit these risk all t banks perspective and positionn on this hot toic. The different organizational forms the company can take are covered, including limited companies, joint ventures and shipping pools. The course provides an insight into company law and organizational forms chosen by owners, as well as outsourcing issues and contracts used. There is a focus on the legal aspect of ship management, management contracts and choice of flag. The course is aimed at giving the students a better insight into and understanding of the shipping industry and practice in connection with owning and managing ships.

Learning outcome
Acquired knowledge
The students will learn about the structure of international shipping companies, and the practical and legal challenges facing the shipowners. The course covers rules applicable to limited companies, joint ventures, pooling arrangements, as well as the methods for acquiring ships, building contracts or used ship. Markets and contracts applicable to sale and the purchase of ships,and how such procedures are carried through from start to conclusion will be covered. and time chartering, voyage and bareboat chartering are covered together with simple methods for calculating tonnage demand and assessing the costs associated with chartering. This knowledge gives the students an overview of and understanding of the complexity of shipowning.

Acquired skills
After completing the course, the students will be able to understand the structure of shipping companies, and how the international aspect of shipping determines chosen organizational forms used and applicable laws. They will also have knowlegde about common contracts used for outsourcing of shipping functions, and why third- party providers are often used in a global and highly skilled industry, subject to a large number of international rules and regulations. The students will be able to assess methods for structuring the ownership of ships, and to make comparisons between different forms. The students will recognize the markets for ship sale and purchase, ship building and chartering, and be able to use standard contracts applicable to such transactions.

After completing the course, the students will understand the connection between global consumption and the need for shipping services, and be able to reflect on the need for ships and thus shipowning companies. By focusing on future need and environmental aspects of shipping, the students will be able to make informed reflections on the business of owning and operating ships and the need for third party service providers.


Compulsory reading
Falkanger, Thor, Hans Jacob Bull and Lasse Brautaset. 2011. Scandinavian maritime law : the Norwegian perspective. 3rd ed. Universitetsforlaget. Chapters 3,4, 5 , 6 and 7
Stopford, Martin. 2009. Maritime economics. 3rd ed. Routledge. Chapters ,6,7,8, 16. Selected chapters will be mandatory reading

Grammenos, Costas Th., ed. 2010. The Handbook of maritime economics and business. 2nd ed. Lloyd's List. Selected chapters to be posted on Itslearning
Handouts and selected articles

Recommended reading

Selected articles

Course outline
  • Basic English and Norwegian company law
  • Organizing the shipowning company - players in the market
  • Limited companies
  • Single purpose companies
  • Pools and joint ventures
  • Tasks and functions of the shipping company
  • Ship management and standard contracts commpnly useds
  • Ship sale and purchase
  • Shipbuilding contracts
  • Basic Chartering of vessels

    Computer-based tools
    No specified computer-based tools are required.

    Learning process and workload
    33 hours of lectures and 12 hours of case work and reviews in class.

    Recommended workload in hours
    Participation at lectures and excursions
    Case work and review by lecturer in class
    Work on cases handed out by lecturer
    Preparation for lectures
    Exam preparation
    Total recommended time use

      A three-hour written exam concludes the course.

      Examination code(s)
      NSA 25121 - 3-hour written exam, counts 100% towards the final grade in NSA 2512 Organizing the Shipowning Entity 7,5 credits

      Examination support materials
      A BI approved calculator is allowed. TEXAS INSTRUMENTS BA II Plus™
      Support materials at written examinations are explained under exam information in our web-based Student Handbook. Please note use of calculator. http://www.bi.edu/studenthandbook/examaids

      Re-sit examination
      At next exam for the course.

      Additional information