Vessel Management Agreement Template for England and Wales

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Key Requirements PROMPT example:

Vessel Management Agreement

"I need a Vessel Management Agreement for a newly acquired cargo vessel based in Southampton, where we want to delegate full technical and crew management to a third-party manager, but retain commercial management in-house, with the agreement to start from March 1, 2025."

Document background
The Vessel Management Agreement is essential for vessel owners seeking professional management of their maritime assets under English and Welsh law. This document is typically used when owners wish to delegate operational responsibilities to specialized management companies. The agreement covers crucial aspects such as technical management, crew administration, regulatory compliance, and financial arrangements. It ensures alignment with UK maritime legislation, including the Merchant Shipping Act 1995 and relevant international conventions. The agreement is particularly important for maintaining operational efficiency, regulatory compliance, and risk management in vessel operations.
Suggested Sections

1. Parties: Identification of vessel owner and management company

2. Background: Context of the agreement and vessel details

3. Definitions: Key terms used throughout the agreement

4. Appointment and Duration: Terms of manager's appointment and contract duration

5. Manager's Obligations: Core responsibilities including technical, operational, and crew management

6. Owner's Obligations: Responsibilities of vessel owner including funding and documentation

7. Financial Arrangements: Management fees, expenses, and payment terms

8. Compliance and Reporting: Regulatory compliance and reporting requirements

9. Liability and Indemnity: Risk allocation between parties

10. Termination: Circumstances and procedures for contract termination

Optional Sections

1. Insurance Arrangements: Specific insurance requirements and responsibilities when not covered in a separate agreement

2. Crew Management: Detailed crew management provisions when crew management is included in scope

3. Commercial Management: Charter party and commercial operations provisions when commercial management is included in scope

4. Environmental Compliance: Specific environmental obligations when vessel operates in environmentally sensitive areas

Suggested Schedules

1. Schedule 1 - Vessel Particulars: Detailed specifications of the managed vessel(s)

2. Schedule 2 - Management Services: Detailed scope of management services

3. Schedule 3 - Budget and Financial Terms: Detailed financial arrangements and budgeting procedures

4. Schedule 4 - KPIs and Performance Standards: Performance metrics and standards

5. Schedule 5 - Insurance Requirements: Detailed insurance specifications

6. Schedule 6 - Forms and Procedures: Standard operating procedures and reporting forms

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Clauses
Industries

Merchant Shipping Act 1995: Primary UK maritime legislation governing vessel registration, safety requirements, and crew matters

Marine and Coastal Access Act 2009: UK legislation covering marine licensing and coastal operations regulations

SOLAS Convention: International Convention for Safety of Life at Sea, incorporated into UK law, setting minimum safety standards

MARPOL Convention: International Convention for Prevention of Maritime Pollution, incorporated into UK law, governing environmental protection at sea

STCW Convention: International Standards of Training, Certification and Watchkeeping Convention, incorporated into UK law, setting crew qualification standards

Maritime Labour Convention 2006: International convention setting standards for crew working conditions and rights, incorporated into UK law

Merchant Shipping (Safety Management Code) Regulations 2014: UK regulations implementing the International Safety Management (ISM) Code

Merchant Shipping (Port State Control) Regulations 2011: UK regulations governing vessel compliance requirements in ports

Employment Rights Act 1996: UK legislation governing basic employment rights and responsibilities

Equality Act 2010: UK legislation protecting against discrimination in the workplace

Working Time Regulations 1998: UK regulations governing working hours and rest periods

Environmental Protection Act 1990: UK legislation providing framework for environmental protection and pollution control

Merchant Shipping (Prevention of Oil Pollution) Regulations 2019: UK regulations specifically addressing oil pollution prevention from vessels

UK GDPR: UK data protection legislation governing personal data processing and protection

Data Protection Act 2018: UK legislation implementing and supplementing data protection requirements

Common Law Contract Principles: Fundamental principles of contract law developed through case law in England and Wales

Unfair Contract Terms Act 1977: UK legislation regulating unfair terms in contracts and limiting exclusion clauses

Supply of Goods and Services Act 1982: UK legislation governing contracts for the supply of goods and services

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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