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How is a Ship Vetted on the Shipfinex Platform

  • Writer: Chandrama Vishawakarma
    Chandrama Vishawakarma
  • 15 minutes ago
  • 8 min read
Blue ship loaded with containers on ocean, under icons of checklist, agreement, and blockchain. Text: Shipfinex Newsletter - Anatomy of a Deal.

From the Shipfinex Team


You've probably wondered: what happens before a ship appears on our marketplace? How do we know it's actually worth your capital? What prevents a bad vessel from slipping through?


These are exactly the questions you should be asking. Because when you're purchasing fractional ownership in a multimillion-dollar maritime asset, "trust us" isn't good enough. You deserve to know the exact process that stands between a ship owner's application and your opportunity to own a piece of global trade.


Today, we're pulling back the curtain on our vetting process. This is the due diligence that happens before you ever see a ship listed on Shipfinex. Consider this your insider's guide to how we separate exceptional maritime assets from the rest.


Why Vetting Matters More Than You Think


Blue background with "Six-Stage Vetting Process" text. Icons and steps listed: documentation review, expert assessment, due diligence, legal, tokenization, monitoring.

Here's a reality check: not every ship generates consistent earnings. Not every vessel is maintained to acceptable standards. And not every ship owner operates with the transparency and professionalism that aspiring owners deserve.


The maritime industry moves over $14 trillion worth of goods annually, but it's also an industry where information asymmetry has historically favored insiders. Ship owners know their vessels intimately. They know the maintenance history, the operational challenges, the actual earning potential. Traditional maritime finance relied on personal relationships and insider knowledge to navigate these information gaps.


We're changing that. Our vetting process is designed to level the playing field, ensuring that every ship listed on Shipfinex meets rigorous standards for quality, profitability, and transparency. When you browse our marketplace, you're only seeing vessels that have passed multiple layers of scrutiny. Here's how we do it.


Stage 1: The Initial Application and Documentation Review


It starts when a ship owner expresses interest in tokenizing their ship. They don't just fill out a form and get listed. The first stage involves a comprehensive documentation submission.

We require the ship owner to provide complete ship documentation, including the ship's official registration papers, classification society certificates, and historical maintenance records. Without proper documentation proving legal ownership and regulatory compliance, the application doesn't move forward.


Our internal team reviews this initial documentation for red flags. We're looking at ownership history to ensure there are no disputes or liens. We're verifying that the ship’s registration is current and in good standing with the relevant maritime authority. We're checking that insurance is active and adequate for the vessel's value and operational profile.


Ships with unclear ownership, inadequate documentation, or regulatory compliance issues are rejected before we invest further resources in vetting them.


Stage 2: Third-Party Expert Assessment


Blue background with white text: "Third-Party Assessment Coverage Areas." Four sections detail physical, market, operational, and valuation assessments.

Here's where things get serious. Ships that pass our initial documentation review are then submitted to reputable third-party maritime experts for independent assessment. This isn't our team making subjective judgments. These are experienced maritime surveyors and technical experts conducting objective evaluations.


These third-party experts are typically from established maritime surveying firms with decades of experience in ship valuation and condition assessment. They're the same professionals that banks, insurance companies, and large shipping corporations use when making multimillion-dollar decisions.


The third-party assessment covers several critical areas. First, there's the physical condition assessment. Surveyors examine the ship's hull, machinery, navigation systems, and safety equipment. They're looking for signs of deferred maintenance, structural issues, or operational limitations that could affect the vessel's earning potential or require expensive repairs.


Second, there's the operational assessment. Experts evaluate the ship's historical performance, including fuel efficiency, downtime records, and operational costs. A ship might look good on paper, but if it's constantly requiring repairs or consuming excessive fuel, its profitability suffers.


Finally, there's the valuation assessment. Independent experts provide a fair market valuation of the ship based on current market conditions, the ship's condition, and its earning potential. This valuation becomes the basis for the tokenization structure and ensures aspiring owners aren't overpaying for their fractional ownership.


Ships that fail to meet acceptable standards in any of these areas are rejected. We don't compromise on quality because your capital deserves protection.


Stage 3: Financial and Operational Due Diligence


Assuming a ship passes the third-party technical assessment, we move into financial and operational due diligence. This is where we dig into the numbers.


We analyze the ship's historical earnings, typically examining at least three years of operational data. We're looking at charter rates achieved, occupancy rates, operational expenses, and net profitability. A ship might be in excellent physical condition, but if it hasn't consistently generated strong earnings, that's a problem.


We also evaluate the ship owner's operational track record. How long have they been in the maritime industry? What's their reputation among charterers and within the shipping community? Do they have a history of transparent communication and professional management? The quality of the ship owner matters almost as much as the quality of the ship itself.


During this stage, we also assess the proposed charter arrangements if the ship has existing or pending charter contracts. Charter agreements are essentially the ship's revenue contracts. We need to understand the terms, the creditworthiness of the charterers, and the likelihood of contract renewal or replacement.


We're also examining the operational cost structure. Crew costs, fuel expenses, maintenance budgets, insurance premiums, and port fees all impact the net earnings that will eventually be distributed to owners. We verify that the ship owner's cost projections are realistic and that there's adequate margin for unexpected expenses.


Stage 4: Legal Structure and SPV Formation


Blue diagram showing "SPV Legal Protection Structure" with shield illustrating "Individual SPV", "Owner Protection", and icons labeled.

Once we're satisfied with the ship's physical condition, market positioning, and financial performance, we move to legal structuring. This is a critical step that many aspiring owners don't fully appreciate.


Each ship accepted onto our platform is placed into its own legally distinct Special Purpose Vehicle, or SPV. The SPV structure is what provides legal protection for owners and separates the operations of the ship from the parent company. It also provides clear legal title to the fractional ownership represented by Maritime Asset Tokens.


The SPV formation process involves working with maritime lawyers and corporate formation specialists. We ensure the SPV is registered in an appropriate jurisdiction, that all maritime liens and encumbrances are properly addressed, and that the ownership structure is completely transparent and legally sound.


This legal due diligence also includes reviewing all existing contracts related to the ship, including charter agreements, management contracts, insurance policies, and financing arrangements. We need to ensure there are no contractual restrictions that would prevent tokenization or limit the rights of fractional owners.


The SPV formation typically takes several weeks and involves multiple legal reviews. We don't rush this process because legal clarity is non-negotiable. When you purchase Maritime Asset Tokens, you're buying legal shares in the SPV that owns the ship. That legal structure must be bulletproof.


Stage 5: Tokenization and Blockchain Recording


After the SPV is properly formed and all legal documentation is in place, we move to tokenization. This is where the ownership of the SPV is digitized into Maritime Asset Tokens on our secure blockchain.


The tokenization process involves several technical and legal steps. We determine the total number of tokens to be issued based on the ship's valuation and the desired ownership structure. We encode the ownership rights, earnings distribution mechanisms, and governance provisions into the smart contracts that govern the tokens.


Critically, the tokenization is recorded in the SPV's corporate register. This ensures that token holders are recognized as legal shareholders with all the rights and protections that come with share ownership. This isn't just blockchain entries. This is legally recognized ownership recorded in official corporate documents.


The blockchain recording provides transparency and immutability. Every token issuance, every transfer of ownership, and every earnings distribution is permanently recorded on the blockchain. This creates an auditable trail that protects both ship owners and aspiring owners from disputes or fraud.


Stage 6: Marketplace Listing and Information Disclosure


Only after completing all the previous stages does a ship appear on our marketplace. But even then, our vetting doesn't stop.


When a ship is listed, we provide comprehensive information disclosure. You see detailed vessel specifications, including the ship's type, size, age, and technical capabilities. You see the third-party assessment reports, including condition ratings and valuation. You see historical earnings data, operational cost breakdowns, and projected returns.


We also provide information about the ship owner, including their operational track record and management approach. Transparency isn't optional. It's fundamental to our model.

We also implement ongoing monitoring after a ship is listed and begins accepting fractional ownership. We track operational performance, verify earnings distributions, and maintain communication with the ship owner. If performance deviates significantly from projections or if operational issues arise, we notify owners immediately.


What This Vetting Process Means for You


This multi-stage vetting process exists for one reason: to protect your capital and ensure you're only seeing maritime assets that meet our rigorous standards.


When you browse ships on Shipfinex, you're not seeing every ship that applied. You're seeing the ones that passed comprehensive technical, financial, and legal due diligence. You're seeing ships that independent experts have validated. You're seeing opportunities that have been structured with legal protections and transparency.


This doesn't eliminate all risk. Maritime assets, like any asset class, carry operational and market risks. Ships can experience mechanical issues. Charter rates can fluctuate. Market conditions can change. But what our vetting process does eliminate is the risk of fraudulent listings, undisclosed problems, or ships that never should have been offered for fractional ownership in the first place.


Why We're Transparent About Our Vetting


Vetting timeline on a blue background, detailing eight weeks of processes: documentation, financial analysis, tokenization, and listing.

You might wonder why we're sharing all this detail about our internal processes. Simple: because transparency builds trust, and trust is the foundation of fractional ownership.

Traditional maritime finance operated in opacity. Deals were done behind closed doors, based on relationships and insider knowledge. Information was closely guarded. Small aspiring owners were shut out entirely.


We're building something different. We believe aspiring owners deserve to know exactly how we protect their interests. We believe transparency about our vetting process demonstrates our commitment to quality. And we believe that when you understand the rigor behind our listings, you can make more confident decisions about which ships to own.


What Happens After Vetting: Ongoing Monitoring


Our responsibility doesn't end when a ship is listed and tokens are purchased. We maintain ongoing monitoring of every ship on our platform.


We receive regular operational reports from ship owners, including performance metrics, maintenance activities, and any significant events. We verify earnings distributions against charter revenues to ensure accuracy. We monitor market conditions that could affect the ship's value or earning potential.


If issues arise, whether operational problems or market shifts, we communicate transparently with owners. You're not left wondering what's happening with your maritime assets. You receive regular updates and have access to current information about your ship's performance.


This ongoing monitoring is an extension of our vetting commitment. We vet ships before listing them, and we continue overseeing them to protect owner interests throughout the asset's life on our platform.


The Question You Should Ask


Here's the question every aspiring owner should ask before purchasing fractional ownership in any maritime asset: "What vetting process ensures I'm not buying into a problem?"

On Shipfinex, you now know the answer. Third-party technical assessment. Financial due diligence. Legal structuring. Blockchain transparency. Ongoing monitoring. Multiple layers of protection between a ship owner's application and your opportunity to invest.


That's not just a promise. That's our process. And it's the reason we can offer you fractional ship ownership with confidence, knowing every vessel on our platform has earned its place through rigorous evaluation.


The next time you browse ships on our marketplace, you'll know exactly what went into getting them there.

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