Marine transactions are often infrequent but highly significant events. Whether the transaction involves the purchase of a vessel, a new build, a major refit or a charter arrangement, the sums involved are substantial and the consequences of something going wrong can be serious.
These transactions commonly involve parties based in different countries, operating under different legal systems and commercial practices. Even where experienced brokers and advisers are involved, trust can be difficult to establish without clear and independent financial arrangements.
Escrow accounts and third-party managed payment accounts are therefore widely used in the marine sector. They provide a neutral mechanism for holding and releasing funds, giving all parties confidence that money will be handled strictly in accordance with agreed terms.
Payment risk in the marine sector often arises from timing and distance. Deposits and stage payments are frequently required long before a vessel is delivered, while final documentation, surveys or regulatory approvals may only be completed close to or after handover.
There is also a heightened jurisdictional risk. Vessels, owners, shipyards and brokers may be located in different countries, and enforcement of contractual rights can be complex if disputes arise. Once funds have moved across borders, recovery may be slow or uncertain.
In addition, marine transactions often rely on a small number of key counterparties. If a shipyard, owner or manager encounters financial difficulty, funds that were assumed to be secure may be exposed unless they have been properly segregated from the outset.
Escrow is commonly used in vessel sale and purchase transactions to hold deposits and balance payments pending completion. This ensures that funds are available but not released until ownership transfers and agreed conditions are satisfied.
In new build and refit projects, escrow is often used to protect stage payments. Funds can be released against milestones, inspections or certifications, reducing the risk to owners while giving yards confidence that payment is secured.
Escrow is also used in charter arrangements, including the holding of charter deposits, security for potential damage, or advanced provisioning allowances. By using escrow, parties avoid relying solely on trust or on the creditworthiness of intermediaries.
Third-party managed payment accounts are used where the focus is on administering ongoing payments rather than holding funds against conditions. In the marine context, this includes managing operating costs, refit expenditure or charter-related payments in a controlled and transparent way.
These accounts are particularly helpful where multiple suppliers, crew, managers or service providers need to be paid from a single pool of funds. By centralising payments, owners and charterers gain clearer oversight and reduce the risk of misapplication of funds.
Managed payment accounts also provide resilience. If a manager, broker or service provider changes, the payment structure remains in place, ensuring continuity and protecting funds from being tied up in another party’s accounts.
Marine Sale & Purchase Escrow is suitable for buyers, sellers and their legal advisors involved in high-value vessel transactions, including commercial ships and large yachts.
It is particularly useful where significant funds are involved, where one or both parties are in different jurisdictions, or where there are inspection, title or regulatory conditions that must be satisfied before completion.
Escrow helps bridge gaps in trust and ensures neither side is exposed to undue risk while the transaction conditions are met.
Shipyard Escrow is suitable for vessel owners, shipyards, project managers and advisors involved in long-term vessel construction projects.
It is particularly relevant where the build involves high-value stage payments, forward purchase of raw materials, or commissioning of bespoke interiors, systems or equipment.
Escrow is also used where the buyer wants assurance that funds will be applied to the build as agreed, and where the shipyard wants confidence that funds are committed before incurring significant upfront costs.
Pricing depends on the structure, value and duration of the arrangements. There is no single fixed fee, as projects and payment flows vary.
Pricing usually reflects three main elements. First, the work involved in setting up the arrangements, including compliance, onboarding and preparation of the account documentation. Second, the ongoing administration of the account while funds are held. Third, the handling of payments or releases during the life of the project.
What pricing covers is the independent holding of funds, administration of agreed payment mechanics, record-keeping, reporting, all bank fees and support throughout the project. It does not cover legal advice, contract administration or dispute resolution, which remain the responsibility of the parties and their advisors.
If something goes wrong, the account agreement provides a clear framework for dealing with it.
If there is a mistake, delay or disagreement about instructions, funds remain safely held in escrow while the issue is addressed. We follow the process set out in the account agreements and do not release funds unless and until the agreed conditions are met.
If a party has a concern about how the account is being operated, we have a formal complaints process. This allows issues to be raised, reviewed and resolved in a structured way, with escalation routes available if needed.
We are a specialist provider focused on escrow and managed payment arrangements. Escrow is not an add-on to another service. It is a core part of what we do.
Funds are held securely and separately, with infrastructure designed specifically for escrow rather than adapted from other uses. Account opening is handled efficiently, and arrangements are administered through a dedicated digital escrow and payments portal, giving authorised parties visibility and a clear audit trail.
Advisors often recommend dospay because we sit independently of the transaction, operate within a regulated framework, have a proven track record and focus on doing one thing well: Holding and administering escrow funds in a clear, neutral and predictable way.
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dospay is a trading name of DOS & Co. Ltd, a company registered in England and Wales with company number 08294966.
DOS & Co. Ltd. is registered with the Financial Conduct Authority under the Payment Services Regulations 2017 (FRN: 833374) for the provision of payment services.
All of our GBP escrow and third-party managed accounts are segregated and safeguarded at the Bank of England.
