Chapter 1 CHARTERING

1.1 1.2 1.3 Definition Historical Introduction Types of Contracts of Affreightment 1.3.1 1.3.2 1.3.3 1.3.4 1.3.5 1.3.6 1.3.T 1.3.8 1.4 Introduction Voyage Charter Time Charter Bareboat Charter Lumpsum Charter Contract of Affreightment Booking Note Forward Voyage Charter

Evidence in Matters of Affreightment 1.4.1 1.4.2 1.4.3 1.4.4 Introduction Charterparty Bill of Lading Bill of Lading versus Charterparty

1.5

Parties Involved 1.5.1 1.5.2 1.5.3 1.5.4 1.5.5 Owner Charterer Transport Broker Choice of Broker Brokerage Freight

1.6

Structure of Costs 1.6.1 1.6.2 1.6.3 1.6.4 1.6.5 Introduction Costs in Voyage Charters Costs in Time Charters Costs in Bareboat Charters Overview table

1.7

Obligations of Parties 1.7.1 1.7.2 1.7.3 1.7.4 Introduction Obligations of Owner Obligations of Charterer A Lien on the Cargo

Chapter 2 CHARTER PARTIES

2.1 2.2 INTRODUCTION Standard Forms 2.2.1 Parts of a Charter Party 2.2.2 Drawing up a Charterparty VOYAGE CHARTER PARTY 2.3.1 Introduction 2.3.2 GENCON Charterparty 2.3.2.1 2.3.2.1.1 2.3.2.1.2 2.3.2.1.3 2.3.2.1.4 2.3.2.1.5 2.3.2.1.6 2.3.2.1.7 2.3.2.1.8 2.3.2.1.9 2.3.2.1.10 2.3.2.1.11 2.3.2.1.12 2.3.2.1.13 2.3.2.2 2.3.2.3 2.3.2.4 Clause 1 Introduction Shipbroker (box 1) Place and Date (box 2) Owners'/Place of Business (box3) Charterers'/Place of Business (box 4) Vessel's Name (box 5) GRT/NRT (box 6) Deadweight Cargo Carrying Capacity in Tons abt.) (box 7) Present Position (box 8) Expected Ready to Load (abt.) (box 9) Loading/discharging Port or Place (box 10/11) Cargo (box 12) Freight Rates (box 13) Clause 2 - Owners' Responsibility Clause Clause 3 - Deviation Clause Clause 4 - Freight Payment (box 14) A. Prepaid B. On delivery Clause 5 - Loading and Discharging Box 15 Costs/Risks/Cargo Cargo Handling Gear Stevedore Damage Clause 6 - Laytime (box 16) 2.3.2.6.1 Introduction 2.3.2.6.2 Arrived Ship 2.3.2.6.3 Notice of Readiness

2.3

2.3.2.5

2.3.2.6

2.3.2.6.4 Loading/Discharging Time A. Laytime expressed in days/Hours a. Running Days or Consecutive Days b. Working Days c. Working Days of 24 Hours d. Working Days of 24 Consecutive Hours e. Weather Working Days f. Hours (Running or Consecutive Hours) B. Laytime not expressed in Days C. Laytime Expressed in Quantity D. Excluded Time E. Week-End Clause F. Reversible Laydays 2.3.2.6.5 Interruptions 2.3.2.6.6 Statement of Facts 2.3.2.6.7Time Sheet 2.3.2.7 Clause 7 - Demurrage (box 20) 2.3.2.7.1 Demurrage 2.3.2.7.2 Damages for Detention 2.3.2.7.3 Payment of Demurrage 2.3.2.7.4 Dispatch Money 2.3.2.8 Clause 8 - Lien Clause 2.3.2.9 Clause 9 - Cancelling Clause 2.3.2.9.1 General principle 2.3.2.9.2 Lay/Can 2.3.2.10 Clause 10 - Bills of Lading 2.3.2.11 Clause 11 - Both to Blame Collision Clause 2.3.2.12 Clause 12 - General Average and New Jason Clause 2.3.2.13 Clause 13 - Taxes and Dues Clause 2.3.2.14 Clause 14 - Agency Clause 2.3.2.14 Clause 15 - Brokerage Clause 2.3.2.14 Clause 16 - General Strike Clause a. Port of Loading b. Port of Discharging 2.3.2.17 Clause 17 - War Risks (Voywar 1993) 2.3.2.18 Clause 18 - General Ice Clause a. Port of Loading

b. Port of Discharging 2.3.2.19 Clause 19 - Law and Arbitration 2.4 A WORKED-OUT GENCON CHARTER PARTY 2.4.1 Introduction 2.4.2 Analysis of Printed Clauses 2.4.3 Analysis of Additional Clauses P & I Bunker Deviation Clause, 1948 Chamber of Shipping War Risks Clauses 1 and 2 2.5 TIME CHARTER PARTY 2.5.1 Introduction 2.5.2 Definition 2.5.2.1 Bareboat Charter 2.5.2.2 Time Charter 2.5.2.3 Trip Time Charter 2.6 Ordinary Time Charter 2.6.1 Forms of Charter Parties 2.6.2 Hire 2.6.3 Description of Vessel 2.6.3.1 Vessel's Name 2.6.3.2 Vessel's Flag 2.6.3.3 Vessel's Class 2.6.3.4 GRT/NRT 2.6.3.5 Engine Power 2.6.3.6 Speed Capability in Knots and Fuel Consumption 2.6.4 2.6.5 2.6.6 2.6.7 Seaworthiness of Vessel Physical Condition of Vessel Operating Restrictions of Vessel Payment of Hire 2.6.7.1 Inflation 2.6.7.2 Adjustment Rate of Hire 2.6.7.3 Escalator Clause 2.6.7.4 Devaluation or Realignment of Exchange Rate 2.6.7.5Adjustment of Hire a. For Speed b. For Fuel Consumption 2.6.8 Period of Hire (Flat Period) and Re-delivery of the vessel 2.6.9 Suspension of Hire or Off-hire 2.6.10 Disputes 2.6.11 Laying-up of Vessel 2.7 WORKED-OUT TIME CHARTER PARTY (See Figure 2.12)