Entrusted by the transferor, we decide to hold an online public auction on www.shipbid.net from 10:00 to 10:30 on April 8th , 2021.
1. Auction Ship: “Hua Rong 5” Bulk Carrier
PoR: Jiaxing, China; Class: CCS; LOA: 195.76m; MLB: 32.26m; MLD: 17.80m; GRT: 32438; NRT: 17244; DWT: 52712.9MT; M/E: 6S50MC-C7 * 1 set 7980kW; Blt: Zhejiang Donghong Ship Industry Co., Ltd, China on May 21st, 2012 (exact data from the ship certificates)
Remarks: The ship is on voyage.
2. Bidding Rules: it is a reserved bid with 2 or more bidders can sign up. If there are less than 2 bidders, the auction will fail directly. The starting price is CNY76.60 million, and the deposit is CNY8.0 million (or USD1.25 million). Bid increase: a multiple of CNY0.1 million.
3. Application: Application time available from the announcing time until bidding starts on April 8th, 2021 (subject to the time of deposit, finish online registration and get the bidding number. It is recommended to pay deposit 1-2 days in advance in order to avoid any problems). After the deadline, no application will be accepted. Deposit in US dollars should be paid before 16:00 April 7th, 2021(Beijing Time). This auction accepts the application of natural persons with full civil capacity or legal registered companies at home and abroad.
4. Inspection time and place: Declare later
5. Deposit Account:
Bank: Industrial and Commercial Bank of China, Zhoushan Branch
Bank Add: No.628 Dingshen Road Lincheng Zhoushan China
SWFIT Code: ICBKCNBJZSC
Beneficiary: Zhoushan Yi Ge Ship Auction Co., Ltd
6. Contacts: Mrs. Wen：+86-18058087023, +86-580-2038333;
Zhejiang Shipping Exchange Co., Ltd.
Zhoushan Yi Ge Ship Auction Co., Ltd.
March 2nd, 2021
Article 1 Bidding Rules is made by relevant laws, regulations and policies of our Country and with Shipbid practical situations, to standardize the bidding behaviors, maintain an open, fair and equal transaction order, and protect legitimate rights and interests for all the parties involved.
Article 2 The Transaction Rules of the ship bidding (hereafter to be referred as bidding) is suitable for standardizing all the online bidding behaviors. All the parties involved should abide by the Rules and bear legal responsibilities for their own behaviors.
Article 3 All legal personalities, natural persons and other organizations in and abroad PRC can participate in the bidding only if they have the qualifications of the auction announcement except those provided by laws and regulations.
Article 4 The auction announcement and other documents are formulated by the auctioneer.
Article 5 The auction information including videos, pictures and written introductions offered by the Seller will be uploaded through the Shipbid system after verified by the auctioneer.
Article 6 The Seller shall take all the legal responsibilities and economic losses if he provides with fake information.
Article 7 The bidders couldn’t participate in the bidding activities until they register as the buyers through the Shipbid system.
The passwords should be kept safely. If forgotten, bidders could retrieve through the Shipbid system. And if divulged, bidders should login in time to change the passwords.
Article 8 Before submitting the application for the bidding, the bidders should carefully read the auction announcement, ship’s information, transaction rules and other relevant documents, then login the Shipbid system to fill in true and effective information as required.
Article 9 The bidders should submit the applications in accordance with the auction announcement before the Shipbid starts.
If legal personalities, natural persons and other organizations need joint-bidding, they should fill in related information and the proportion of capital contribution of each party as required and sign the Joint Bidding Statement.
Article 10 The bidders apply on the Shipbid system by themselves, and pay the deposit either on line or offline. Foreign bidders could also apply for bidding with the Guarantee Letter of bank as the auctioneer required. One deposit is only for one lot. And if the bidders want to bid several ships at the same time, corresponding deposits are required.
The bidders are entitled to bid only if the deposit fully paid to the nominated account (based on the arrival time of the deposit) or the original Letter of Guarantee delivered to the auctioneer (based on the arrival time of the Letter of Guarantee to persons in charge) within the required time. The bidders shall not be eligible for bidding if the deposit is delayed or not fully paid or the Letter of Guarantee is not received on time.
Article 11 The bidding shall be conducted with time limit. Qualified bidders can participate in the bidding. The initial offer shall not be lower than the starting price and each offer shall be no less than the specified bid increment.
If it is an auction with reserve price, “YES” will be revealed in the system. Otherwise it will display “NULL”.
Article 12 The bidder shall make a cautious bid, and the offer will be irrevocable once submitted.
Article 13 The last limited time of the Shipbid is FIVE (5) minutes. If there is a new bid within 5 minutes countdown, another 5 minutes will be set.
No new offers would be accepted after the final countdown, and the bidding history will be revealed.
Article 14 Once there is/are (a) bidder offer(s) in the Shipbid, the target bidder (hereinafter called the Buyer) shall be confirmed in accordance with the following rules
(1) Where there is no reserve price, the highest bidder would be the Buyer.
(2)Where there is a reserve price, the bidder with the highest offer and not lower than the reserve price would be the Buyer; If the highest offer is lower than the reserve price, the bidding will be pass.
When the time for the bidding is over, the bidding system will be automatically closed.
Article 15 The Buyer should confirm his qualification with the enterprise or individual valid certification to the auctioneer within 3 working days after the bidding. After verification and confirmation, the Buyer should sign the Purchase Confirmation.
If the Buyer's qualification is not approved, the bidding result will be invalid, the deposit would be confiscated, and the lot should be bid again. The Buyer should pay the commissions for both parties due to his breach of the contract; Also, the previous Buyer should pay the balance of price if the final purchase price is lower than the first purchase one.
Article 16 The payment of balance shall be remitted to the nominated account in time according to the Purchase Confirmation.
Article 17 The Buyer should sign the Sale and Purchase Agreement by the Purchase Confirmation with the seller within the required time and make relevant transaction procedures.
Article 18 The auctioneer should publicize the bidding results through the Shipbid system after the bidding.
Article 19 After paying the balance, the Buyer himself should handover the lot and manage the transaction procedures in time. If the Buyer fails to manage within required time, he himself should pay the costs caused by the delay and afford the consequences of possible damage or losses.
Article 20 The Buyer himself should register the lot and bear all relevant expenses occurred according to the regulations and policies during the transaction procedures.
Article 21 The bidding currency is RMB. Both the starting price and purchase price do not include the expenses and taxes occurred during transaction procedures.
Article 22 If the bidder obstruct others to bid, manipulate or monopoly the bidding price, or make malicious collusion, the auction will be cancelled once above behaviors are found, and relevant legal responsibility will be borne by the bidder.
Article 23 If the bidder cannot normally login the Shipbid system to apply, offer or bid because of following reasons such as virus invasion, hardware failure, network congestion or passwords forgotten and divulge, etc., he himself should bear the consequences and the bidding will not be suspended.
Article 24 The auctioneer reserves the right to suspend or withdraw the bidding before it starts according to the laws and regulations.
Article 25 The auctioneer reserves the right to suspend or withdraw the bidding if force majeure or accident has caused the online auction to fail.
Article 26 These rules are general rules for online auction transactions of ships. In case of any conflict with the announcement or agreement of a single item, the terms of a single item shall prevail.
The time concerned in the bidding all depends on Shipbid system service time, except the deposit arriving time which depending on the bank recording time. All the time of information arriving is subject to the time when the information received by Shipbid.
Zhejiang Shipping Exchange Co Ltd is responsible for the interpretation of the Rules.
1. This additional provision is a supplement to the bidding rules and has the same legal effect as the bidding rules.
2. Auction Ship: “Hua Rong 5” Bulk Carrier
PoR: Jiaxing, China; Class: CCS; LOA: 195.76m; MLB: 32.26m; MLD: 17.80m; GRT: 32438; NRT: 17244; DWT: 52712.9MT; M/E: 6S50MC-C7 * 1 set 7980kW; Blt: Zhejiang Donghong Ship Industry Co., Ltd, China on May 21st, 2012 (The ship is on voyage).
The above data are recorded in the ship's inspection certificate for reference only. The bidding object is subject to the status at the time of inspection. If there is any discrepancy between the actual situation and the data above, the bidding and bidding price won’t be disturbed. Once the auction is concluded, the bidding company and the transferor shall not assume any liability for defects or quality problems of the bidding ship.
3. After Auction
3.1 After the auction finished, the buyer must confirm the result of auction by email or fax on the same day, and signed the Purchase Confirmation with the bidding company within 2 working days after the auction.
3.2 The bid deposits of the unsuccessful bidders shall be returned within 2 working days after the auction, and the bid deposit shall not bear interest.
4. Transfer (cancellation) and Delivery of the Ship
4.1 The buyer shall pay 30% of the purchase price and all the commission before 16:00 (Beijing Time) April 15th, 2021, and the buyer shall pay the balance of the purchase price and ROB charge and any other sums payable 1 banking day before delivery (the bidding deposit will be credited against part of the balanced purchase price at last payment). Any delay shall be deemed as breach of contract.
4.2 The original ship owner (as Seller) should complete all the procedures of cancellation relating to the ship within 10 working days after signing the Protocol of Delivery and Acceptance Ship.
The buyer shall not start the ship or shift it to other sea areas (except for force majeure such as weather) until obtain the ship's cancellation certificate.
4.3 The latest date of Delivery shall be no later than June 25th, 2021;
Delivery Place: 1 SAP Zhoushan or Ningbo, China
5. Related expenses
5.1 Auction commission: After the auction, the buyer shall pay the bidding company 1% of the purchase price as commission (settled in USD).
5.2 In this auction, the transferor provides with a Value-added Tax Common Invoice for the purchase price of the ship. If the transferee asks to issue the Value-added Tax Invoice of other tax rates, the corresponding increased taxes and fees shall be borne by the transferee himself. All expenses incurred after the ship delivery shall be borne by the buyer himself.
5.3 When the ship is delivered, the buyer and the transferor shall make on-site measurement of the remaining oil on the ship, and the price of remaining oil shall refer to the last bunkering invoice. The estimate ROB charge shall be paid by the buyer directly to the account nominated by the transferor no later than 1 working day prior to the day of delivery. The transferor will not provide with ROB invoice.
5.4 All expenses and the custody responsibility incurred before the handover of the object ship shall be borne by the transferor; After the handover of the ship, the expenses and risks incurred by the object shall be borne by the buyer, and the custody of the object shall also be borne by the buyer.
6. Liability for Breach of Contract
In case of any following circumstances, the bidder shall be liable for the negligence of the contract; the transferor and the auctioneer have the right to confiscate the deposit for compensation to relevant parties:
6.1 The bidder withdraws the application unilaterally after paying the deposit;
6.2 The bidder does not participate in the subsequent bidding;
6.3 None of the bidders bid during the bidding process.
7. Matters not covered herein shall be settled through negotiation by the bidding company, the transferor and buyer.
Zhejiang Shipping Exchange Co., Ltd.
Zhoushan Yi Ge Ship Auction Co., Ltd.
March 2nd, 2021