Monolith
11Apr/21Off

Pool Agreement Vessel

A supply pool is a collection of tankers among the different owners who are under the tutelage of a single administration (specifically the "Pool Manager"). The main reason why tanker pools are formed is the increase in the total revenues of each tanker. A final point that financial service providers and banks must respect. Pool agreements generally restrict a participant`s ability to reject his rights, but they should not prevent a transfer to a financial operator/lender of the right to obtain pool revenues allocated to a vessel concerned. The result rights derive from both the pool agreement and the time charter, so that the financial lender/lender also wishes to take over a transfer of the participant`s rights under the corresponding time charter. Other common security measures for bailers/mortgages - such as insurance assignments, subordination of charterer rights and subordination of trustee rights - should in principle be no more difficult to create with a pool structure than under a conventional agreement involving a time charter and an external manager. The owner must adapt to the operating mechanisms of the pool (post-fixture) which may not always comply with the owner`s guidelines or requirements. For example, an owner may purchase higher kidnap and Ransom insurance when crossing a piracy zone and pass these fees on to the charterer. However, when a vessel is in a swimming pool, the owner must meet the insurance premiums accepted by all pool members.

Anything that goes beyond the agreed premium must be paid by the owner. This first part of this article explains what tanker pools are and why they are formed. The second part of this article deals with tanker pooling agreements, specifically: nature and purpose; a tanker owner`s obligations to the pooling contract; a pool manager`s obligations under the pooling contract; and how tanker owners are compensated under the pooling contract. Revenue-sharing formulas also vary in transparency, The main objective is to take into account the gross revenues of all vessels grouped over a period of time, consider costs (which may be both administrative and certain operating costs of the vessel, depending on the role of the pool manager) and commissions to be paid to the pool manager and divide the net balance between the vessels in the pool by referring to the pool points of each vessel that have been adjusted to reflect the average time of the vessels in the pool during the reporting period. As mentioned above, the Pool Manager relies on charterers to keep ships in the pool and is therefore inclined to satisfy charterers.

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