Block Fee Agreement

8 Apr

Are occasional investigations included in ship classification fees? If the ship classification contract is “pay-per use,” all interventions are billed individually. In the case of a “block royalty” contract, the shipowner will agree with us on the possible inclusion or exclusion of extra-budgetary interventions. The costs associated with investigating a class`s vessels are generally charged between the shipowner and the classification company in the so-called block royalty contracts. Press release: Korean Register (KR) has signed a five-year contract with german naval management company Held to provide ISO 9001, ISM Company Audit (DOC), ISM Ship Audit (SMC) and ISPS and MLC compliance services for the company`s fleet of more than 30 vessels. Bulk pricing agreements, which are, for example, common for contracts with classification companies, are not available for the German flag, as the amount of individual taxes is set by legal regulations. Slippery taxes allow for discounts when multiple applications are filed simultaneously. With regard to the technical control of ships and offshore installations, the register is managed by the following RS standard documents, which are listed below, as well as by applicable international conventions, codes, agreements, national requirements for flag state accreditation: the administration has developed a bulk pricing concept for MLC inspections and certifications. Owners and operators have the option to pay individually for certain MLC services, or they can enter into an MLC block royalty agreement (BFA) that will result in substantial financial savings. The first collection of vessels in service is carried out on vessels registered for the first time at the time of the class change, when determining the possibility of assigning a class to a vessel built without technical supervision by the registry when the class is assigned to a vessel whose registration class has been withdrawn. Annual survey. The aim is to determine that the vessel meets the requirements to maintain the class at an adequate level and to verify the operation of mechanisms, devices and facilities that meet the requirements of the classification and construction rules of sea vessels.

Bernhard Held added: “We particularly appreciate the proactive support of KR Hamburg and the customer service mentality of the classification company is very good. One of our ships recently needed urgent assistance at an isolated port in Russia, which is covered by KR block royalty agreements. A local IACS representative was able to help us, but the costs were fully covered by KR. We are particularly pleased to be working with Mr. Suhr and his colleagues at the Kr office in Hamburg and we feel that kr offers great value for money. We mentor shipowners around the world through our global network of offices and our highly qualified staff. The decision is made on the spot to ensure quick responses, but with follow-up to ensure a harmonization of processes at the enterprise level.