What is escrow?
Escrow is a simple idea borrowed from real estate and large trade deals: instead of paying the repair yard directly, the buyer places the agreed amount with a neutral third party. The money is held there and is only released to the yard once the work is accepted.
On MaritimeNG, an escrow deal runs in four steps:
- Agree the deal — the owner and the yard agree the scope and price.
- Fund the escrow — the buyer places the agreed amount into escrow. The money is ring-fenced and is not yet the yard's to spend.
- Work is carried out — the yard performs the repair while both sides keep a clear, time-stamped record of milestones.
- Release or resolve — when the work is accepted, funds are released. If either side raises a claim, the deal is frozen and handed to an independent mediator.
Escrow is optional. For a quick job with a yard you already trust, direct payment is perfectly fine. Escrow earns its keep on larger jobs, first-time counterparties, and cross-border deals where enforcement would otherwise be slow and expensive.
What it means for shipowners
The core benefit is that money moves only when the job is done. If a yard takes the deposit and disappears, or delivers work that was never agreed, the funds are still in escrow rather than gone. That single fact changes the balance of a first-time relationship.
What it means for repair yards
Escrow is not a trap — it is a guarantee. Before a yard commits labour, dry-dock slots and materials, it can see that the funds already exist and are locked in. There is no invoice to chase after the vessel has sailed to the next port. For a smaller yard, that certainty can be the difference between taking a job and turning it down.
The practical effect
Escrow widens the pool of counterparties both sides can safely work with. An owner can try a well-reviewed but unfamiliar yard; a yard can accept an owner it has never dealt with — because the payment risk is handled by the structure, not by trust alone.
Neutrality by design
It is worth being clear about what a platform should and should not do here. MaritimeNG is neutral by design. We only record the facts of a deal and hold the funds in escrow. We do not inspect the vessel, we do not grade the welds, and we do not decide whether a repair was "good enough."
That is deliberate. A platform that both holds the money and judges the work has a conflict of interest baked in. Instead, if a dispute arises, the case goes to an independent mediator from the registry — someone with the technical standing to weigh the evidence. The platform's job is to keep the process honest and the record clean, not to play judge.
When to use escrow
Escrow is not a turnstile you must pass through — it is insurance you can choose when a deal warrants it. For routine work with trusted partners, keep it simple and pay directly. For the jobs where a failure would really hurt, escrow turns "I hope this goes well" into "the money is safe until it does."
If you have a repair coming up and want the payment protected, you can request a protected deal. No payment is taken up front — we set up the deal with you and the yard first.