The service will go live in May 2018 and cost US$5,000 per side.
The Baltic Exchange will be launching an escrow service that will be run in its Asia office in Singapore for its members to hold deposits for ship sale transactions. It will debut in Singapore with a view to further expansion to other Asian shipping centres.
According to an announcement, the paid-for service will be available for use in transactions where the buyer of the vessel is a Baltic Exchange member. The service is likely to be extended to disputes related payments.
The service will be subject to the Singapore Exchange's (SGX) detailed compliance and money laundering procedures. OCBC Bank will be providing the joint deposit account.
Jones commented, "Having the Baltic Exchange provide this service solves the problem as to where the deposit should be held in a vessel transaction. Buyer and seller alike can be certain that the Baltic Exchange will apply its high standards of compliance as well as have a full understanding of the complexities of any maritime transaction."
He also noted that the service will allow clients to undertake the highest level of due diligence and compliance checks. It will also "reduce the administrative burden of organising a client escrow account and allow them to focus on adding value to the transaction," he added.
The service will go live in May 2018 and will cost US$5,000 per side.
In November 2016, the Baltic Exchange was acquired by the Singapore Exchange (SGX).
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