Principal position
Direct purchase where commercially appropriate
Pommer & Partners may purchase distressed cargo as principal, subject to inspection, commercial agreement and applicable requirements. Where a purchase is commercially appropriate, it can provide the entitled parties with an agreed recovery value and a defined route for transferring the cargo, subject to contract, payment, title and applicable requirements. Where a purchase is not appropriate, we may act as a commercial counterparty or coordinate the recovery instead.
Purchases are commonly concluded on an AS IS, WHERE IS basis, where the cargo is bought in its present condition and at its present location. That wording allocates commercial risk between the parties; it does not override mandatory law, regulatory restrictions or agreed contractual terms.
Any purchase requires evidence of title and authority to sell, or the written authority of the insurer or other party entitled to dispose of the cargo, together with clarification of subrogation, lien, customs and any third-party rights affecting the cargo.
Pommer & Partners acts as a commercial counterparty, not as an independent adviser. We assess distressed cargo to determine whether a direct purchase or another commercially viable recovery route is possible. Where we purchase, we act as principal and for our own account. Any purchase offer is a commercial bid and not an independent valuation.
Depending on the assignment, Pommer & Partners may act as principal buyer, manage a salvage sale or coordinate commercial recovery. Selected assignments may be undertaken on a No Cure, No Pay basis, subject to the agreed terms.
Relevant terminology in these cases includes ex vessel sales, alternative discharge, rejected bulk cargo, damaged cargo recovery and off-specification agricultural cargo — each of which is a commercial question settled case by case.