Something about Vessel Nomination

[sheepriver]

Hi Everyone! Glad to be here!
Our company is doing seaborne iron ore import on CFR terms recently and I'm quite a greenhand in this area. I find that doing CFR is actually quite risky for buyer since there is no gurantee for both the credit standing of the carrier and the condition(such as seaworthiness/cargoworthiness) of the vessel nominated by the seller. We tried to make an express stipulation in the contract that "buyer has the right to decline any vessel nominated by seller ask for substitution " but failed since seller won't accept it.
I'd appreciate it if anyone one here could share his/her experience in handling the issue other than buying some insurance? How do you controll your risk in sea voyage as CFR buyer taking out an insurance? How could buyer somehow keep away from any potentially unqualified owner or vessel nominated by seller?

Thank you very much!

[picant]

Hi Pal,

Incoterms 2010 CFR indicates that insurance is buyer's care, so you may require a certificate issued by the carrier stating vessel age and seaworthness. The insurance company probably will hold you covered even if the carrying vessel will not have such data.
Ask your bank and insurance agent-Ciao

[sheepriver]

Thanks for your reply!

Hi Pal,

Incoterms 2010 CFR indicates that insurance is buyer's care, so you may require a certificate issued by the carrier stating vessel age and seaworthness. The insurance company probably will hold you covered even if the carrying vessel will not have such data.
Ask your bank and insurance agent-Ciao