Charterparty

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A Charterparty (sometimes charter-party) is a maritime contract between a shipowner
and a "charterer" for the hire of either a ship for the carriage of passengers or
cargo, or a yacht for pleasure purposes.

The name "charterparty" is an anglicisation the French charte partie, or "split

paper", i.e. a document written in duplicate so that each party retains half.[1][2]

Contents
1 Types of charterparty
2 Legal aspects of charterparties
3 Typical clauses
3.1 Bunker clause
3.2 Ship clause
3.3 Ice clause
3.4 Lighterage clause
3.5 Negligence clause
3.6 Ready berth clause
4 See also
5 References
6 External links
Types of charterparty
Main article: Chartering (shipping)
There are three main types of charterparty: time, voyage and demise and another :

In a demise (or bareboat) charter, the charterer takes responsibility for the
crewing and maintenance of the ship during the time of the charter. He assumes the
legal responsibilities of the owner, and is known as a disponent owner.[citation
needed]
In a time charter, the vessel is hired for a specific amount of time. The shipowner
manages the vessel but the charterer gives orders for the employment of the vessel,
and may sub-charter the vessel on a time charter or voyage charter basis.
In a voyage charter, the charterer hires the vessel for a single voyage, but the
shipowner provides the master, crew, bunkers and supplies.[3]
A demise charter operates as a long lease of the vessel, with the charterer
completely in charge. In time and voyage charters, the shipowner still runs the
ship, but when in port the charterer becomes responsible for loading and unloading
the ship within the agreed period of laytime. If the charterer exceeds the allowed
laytime, demurrage[4] becomes payable.[5]

Legal aspects of charterparties

Whereas a charterparty is the contract between a shipowner and a charterer, a
contract of carriage lies between the shipper and the carrier. A carrier will issue
a shipper with a bill of lading, a receipt for cargo shipped which also serves as
evidence of the contract of carriage. (In a demise charter, the charterer is the
carrier; in a time or voyage charter the shipowner is the carrier).

The US Carriage of Goods by Sea Act (COGSA), and the UK Carriage of Goods by Sea
Act 1971 (which ratifies and incorporates the Hague-Visby Rules) do NOT apply to
charterparties, but do apply to bills of lading (and similar documents such as
ships delivery orders, or sea waybills).[6]

When a bill of lading is issued to a charterer by the shipowner, the question

arises as to which is the dominant document.[7][8] If a shipper returns a bill of
lading to a carrier (perhaps as a pledge), the carrier will hold it only as a token
of the pledge.

In both USA and the UK, the COGSA legislation provide a statement of the minimum
duties that a carrier owes to the cargo-owner. If the charterer has shipped cargo,
charterparty document may incorporate the COGSA or the Harter Act, since the
charter is also a cargo-owner. Such an incorporation is valid and enforceable even
without the issuance of a bill of lading. In the reverse case, if a carrier issues
a third-party shipper with a bill of lading that incorporates charterparty terms,
the shipper/cargo-owner would not be liable for fees such as demurrage, which are
payable only by a charter.

Lawsuits brought for the breach of an obligation under a charterparty fall within
admiralty jurisdiction. If a breach of charter terms creates a maritime lien, the
suit may be in rem (i.e. against the vessel itself).[citation needed]

In pleasure boating, the most frequent charter arrangement is bareboat yacht

charter. A voyage or time charter is used only for larger yachts and is uncommon.
Yacht charter flotillas are mostly made up of boats belonging to individuals or
companies who only use their boats on a part-time basis or as an investment. A
recent innovation in recreational boating is "time-share chartering" whereby
several charterers are assigned a certain number of days per month or season in a
manner which resembles real-estate time-share.

Typical clauses
A charterparty may contain these clauses.

Bunker clause
A bunker clause stipulates that the charterer shall accept and pay for all fuel oil
in the vessel's bunkers at port of delivery and conversely, (owners) shall pay for
all fuel oil in the vessel's bunkers at port of re-delivery at current price at the
respective ports. It is customary to agree upon a certain minimum and maximum
quantity in bunkers on re-delivery of the vessel. Since the OW Bunker test case,
ship operators need to take care to ensure that bunker supply terms are suitable.

Ship clause
Under this clause, the owner of the ship writes clearly that the ship would be
seaworthy at the start of the voyage in every respect, in other words, the ship
would be appropriate to travel to the country for which it is taken.

Ice clause
An ice clause is inserted in a bill of lading or a charterparty when a vessel is
bound for a port or ports which may be closed to shipping by ice when the vessel
arrives or after the vessel's arrival.

Lighterage clause
A lighterage clause is inserted into charter-parties which show as port of
discharge any safe port in a certain range, e.g. Havre/Hamburg range.

Negligence clause
A negligence clause tends to exclude shipowner's or carrier's liability for loss or
damage resulting from an act, default or neglect of the master, mariner, pilot or
the servants of the carrier in the navigation of manoeuvring of a ship, not
resulting, however, from want of due diligence by the owners of the ship or any of
them or by the ship's husband or manager.

Ready berth clause

A ready berth clause is inserted in a charterparty, i.e. a stipulation to the
effect that laydays will begin to count as soon as the vessel has arrived at the
port of loading or discharge "whether in berth or not". It protects shipowner's
interests against delays which arise from ships having to wait for a berth.

See also
Air charter
References

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Laytime
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In commercial shipping, laytime or laydays is the amount of time allowed[1] in a
voyage charter or time charter for the loading and unloading of cargo.[2] [3]

Under a in a voyage charter or time charter, the shipowner is responsible for

operating the vessel, and the master and crew are the employees of the shipowner,
not the charterer. However, once the vessel has "arrived" at a port the charterer
then assumes responsibility for the loading and unloading of cargo, and he has a
period of laytime in which to carry this out. (Note that the actual loading may be
performed by a third-party stevedore).

The moment when laytime commences is determined by a Notice of Readiness (or

"NOR"), which the master or agent of the ship must give to the port when the ship
has arrived at the port of loading or discharge. The charterparty contract
determines the precise meaning of "arrival". Usually, "arrival" is when the ship
has arrived at the port and is ready in all respects to load or discharge; but it
may be, say, when the ship has passed buoy #2 in the approach channel, or once the
vessel has pass through lock gates.[4]
If the charterer does not comply with the NOR, the carrier may cancel the contract
and seek damages.[5] If the charterer's delay means that laytime is exceeded, a
predetermined penalty (i.e. liquidated damages) called "demurrage" is incurred.[6]
[7] If the whole period of laytime is not needed, a refund called "despatch" may be
payable by the shipowner to the charterer. Despatch is normally paid at 50% of the
demurrage rate, but this depends on the terms of the charterparty. The ship may
thus be able to leave port early. Despatch does not normally apply to tanker
charters.[citation needed]

References
Laydays may be measured in days (or portions thereof), hours, or even tides.
Maritime knowhow website: Gencon, clause 6 Archived 2011-04-04 at the Wayback
Machine.
Maritime knowhow website: Notice of Readiness Archived 2011-07-14 at the Wayback
Machine.
Maritime knowhow website: Gencon, clause 9 Archived 2011-04-04 at the Wayback
Machine.
The Mihalis Angelos
The Suisse Atlantique
Hong Kong Fir Shipping Co Ltd v Kawasaki Kisen Kaisha Ltd
External links
Look up laytime in Wiktionary, the free dictionary.
Haugen Consulting LLC Explanation of laytime and demurrage
Laytime-Calculation.com Software for Laytime Calculation (Common known solution)
Hydrostatix.com Software for Statements of Facts and Laytime Calculation (Common
known solution)
Further reading
Todd, Paul (1988) Contracts for the carriage of Goods by Sea, page 88, BSP
Professional Books, Oxford, U.K ISBN
History of India
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This article is about the history of the Indian subcontinent with India in focus
prior to the partition of India in 1947. For the modern Republic of India, see
History of the Republic of India. For Pakistan and Bangladesh in focus, see History
of Pakistan and History of Bangladesh.
"Indian history" redirects here. For history of Native Americans, see History of
Native Americans in the United States.
Part of a series on the
History of India
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Outline of South Asian history
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The history of India includes the prehistoric settlements and societies in the
Indian subcontinent; the advancement of civilisation from the Indus Valley
Civilisation to the eventual blending of the Indo-Aryan culture to form the Vedic
Civilisation;[1] the rise of Hinduism, Jainism and Buddhism;[2][3] the onset of a
succession of powerful dynasties and empires for more than three millennia
throughout various geographic areas of the Indian subcontinent, including the
growth of Muslim dominions during the Medieval period intertwined with Hindu
powers;[4][5] the advent of European traders and privateers, resulting in the
establishment of British India; and the subsequent independence movement that led
to the Partition of India and the creation of the Republic of India.[6]

In psychology
Psychologists first began to study the way space is perceived in the middle of the
19th century. Those now concerned with such studies regard it as a distinct branch
of psychology. Psychologists analyzing the perception of space are concerned with
how recognition of an object's physical appearance or its interactions are
perceived, see, for example, visual space.

Other, more specialized topics studied include amodal perception and object
permanence. The perception of surroundings is important due to its necessary
relevance to survival, especially with regards to hunting and self preservation as
well as simply one's idea of personal space.

Several space-related phobias have been identified, including agoraphobia (the fear
of open spaces), astrophobia (the fear of celestial space) and claustrophobia (the
fear of enclosed spaces).

The understanding of three-dimensional space in humans is thought to be learned

during infancy using unconscious inference, and is closely related to hand-eye
coordination. The visual ability to perceive the world in three dimensions is
called depth perception.

Geographical space
See also: Spatial analysis
Geography is the branch of science concerned with identifying and describing places
on Earth, utilizing spatial awareness to try to understand why things exist in
specific locations. Cartography is the mapping of spaces to allow better
navigation, for visualization purposes and to act as a locational device.
Geostatistics apply statistical concepts to collected spatial data of Earth to
create an estimate for unobserved phenomena.

Geographical space is often considered as land, and can have a relation to

ownership usage (in which space is seen as property or territory). While some
cultures assert the rights of the individual in terms of ownership, other cultures
will identify with a communal approach to land ownership, while still other
cultures such as Australian Aboriginals, rather than asserting ownership rights to
land, invert the relationship and consider that they are in fact owned by the land.
Spatial planning is a method of regulating the use of space at land-level, with
decisions made at regional, national and international levels. Space can also
impact on human and cultural behavior, being an important factor in architecture,
where it will impact on the design of buildings and structures, and on farming.

Ownership of space is not restricted to land. Ownership of airspace and of waters

is decided internationally. Other forms of ownership have been recently asserted to
other spaces�for example to the radio bands of the electromagnetic spectrum or to
cyberspace.

Public space is a term used to define areas of land as collectively owned by the
community, and managed in their name by delegated bodies; such spaces are open to
all, while private property is the land culturally owned by an individual or
company, for their own use and pleasure.

Abstract space is a term used in geography to refer to a hypothetical space

characterized by complete homogeneity. When modeling activity or behavior, it is a
conceptual tool used to limit extraneous variables such as terrain.

One consequence of this postulate, which follows from the equations of general
relativity, is the prediction of moving ripples of space-time, called gravitational
waves. While indirect evidence for these waves has been found (in the motions of
the Hulse�Taylor binary system, for example) experiments attempting to directly
measure these waves are ongoing at the LIGO and Virgo collaborations. LIGO
scientists reported the first such direct observation of gravitational waves on 14
September 2015.[21][22]

Cosmology
Main article: Shape of the universe
Relativity theory leads to the cosmological question of what shape the universe is,
and where space came from. It appears that space was created in the Big Bang, 13.8
billion years ago[23] and has been expanding ever since. The overall shape of space
is not known, but space is known to be expanding very rapidly due to the cosmic
inflation.

Spatial measurement
Main article: Measurement
The measurement of physical space has long been important. Although earlier
societies had developed measuring systems, the International System of Units, (SI),
is now the most common system of units used in the measuring of space, and is
almost universally used.

Currently, the standard space interval, called a standard meter or simply meter, is
defined as the distance traveled by light in a vacuum during a time interval of
exactly 1/299,792,458 of a second. This definition coupled with present definition
of the second is based on the special theory of relativity in which the speed of
light plays the role of a fundamental constant of nature.

Physics
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Space is one of the few fundamental quantities in physics, meaning that it cannot
be defined via other quantities because nothing more fundamental is known at the
present. On the other hand, it can be related to other fundamental quantities.
Thus, similar to other fundamental quantities (like time and mass), space can be
explored via measurement and experiment.

Today, our three-dimensional space is viewed as embedded in a four-dimensional

spacetime, called Minkowski space (see special relativity). The idea behind space-
time is that time is hyperbolic-orthogonal to each of the three spatial dimensions.

Relativity
Main article: Theory of relativity
Before Einstein's work on relativistic physics, time and space were viewed as
independent dimensions. Einstein's discoveries showed that due to relativity of
motion our space and time can be mathematically combined into one object�spacetime.
It turns out that distances in space or in time separately are not invariant with
respect to Lorentz coordinate transformations, but distances in Minkowski space-
time along space-time intervals are�which justifies the name.

In addition, time and space dimensions should not be viewed as exactly equivalent
in Minkowski space-time. One can freely move in space but not in time. Thus, time
and space coordinates are treated differently both in special relativity (where
time is sometimes considered an imaginary coordinate) and in general relativity
(where different signs are assigned to time and space components of spacetime
metric).

Furthermore, in Einstein's general theory of relativity, it is postulated that

space-time is geometrically distorted- curved -near to gravitationally significant
masses.[20]

Philosophy of space
Leibniz and Newton

Gottfried Leibniz
In the seventeenth century, the philosophy of space and time emerged as a central
issue in epistemology and metaphysics. At its heart, Gottfried Leibniz, the German
philosopher-mathematician, and Isaac Newton, the English physicist-mathematician,
set out two opposing theories of what space is. Rather than being an entity that
independently exists over and above other matter, Leibniz held that space is no
more than the collection of spatial relations between objects in the world: "space
is that which results from places taken together".[5] Unoccupied regions are those
that could have objects in them, and thus spatial relations with other places. For
Leibniz, then, space was an idealised abstraction from the relations between
individual entities or their possible locations and therefore could not be
continuous but must be discrete.[6] Space could be thought of in a similar way to
the relations between family members. Although people in the family are related to
one another, the relations do not exist independently of the people.[7] Although
there was a prevailing Kantian consensus at the time, once non-Euclidean geometries
had been formalised, some began to wonder whether or not physical space is curved.
Carl Friedrich Gauss, a German mathematician, was the first to consider an
empirical investigation of the geometrical structure of space. He thought of making
a test of the sum of the angles of an enormous stellar triangle, and there are
reports that he actually carried out a test, on a small scale, by triangulating
mountain tops in Germany.[14]

Henri Poincar�, a French mathematician and physicist of the late 19th century,
introduced an important insight in which he attempted to demonstrate the futility
of any attempt to discover which geometry applies to space by experiment.[15] He
considered the predicament that would face scientists if they were confined to the
surface of an imaginary large sphere with particular properties, known as a sphere-
world. In this world, the temperature is taken to vary in such a way that all
objects expand and contract in similar proportions in different places on the
sphere. With a suitable falloff in temperature, if the scientists try to use
measuring rods to determine the sum of the angles in a triangle, they can be
deceived into thinking that they inhabit a plane, rather than a spherical surface.
[16] In fact, the scientists cannot in principle determine whether they inhabit a
plane or sphere and, Poincar� argued, the same is true for the debate over whether
real space is Euclidean or not. For him, which geometry was used to describe space
was a matter of convention.[17] Since Euclidean geometry is simpler than non-
Euclidean geometry, he assumed the former would always be used to describe the
'true' geometry of the world.[18]Leibniz argued that space could not exist
independently of objects in the world because that implies a difference between two
universes exactly alike except for the location of the material world in each
universe. But since there would be no observational way of telling these universes
apart then, according to the identity of indiscernibles, there would be no real
difference between them. According to the principle of sufficient reason, any
theory of space that implied that there could be these two possible universes must
therefore be wrong.[8]

Isaac Newton
Newton took space to be more than relations between material objects and based his
position on observation and experimentation. For a relationist there can be no real
difference between inertial motion, in which the object travels with constant
velocity, and non-inertial motion, in which the velocity changes with time, since
all spatial measurements are relative to other objects and their motions. But
Newton argued that since non-inertial motion generates forces, it must be absolute.
[9] He used the example of water in a spinning bucket to demonstrate his argument.
Water in a bucket is hung from a rope and set to spin, starts with a flat surface.
After a while, as the bucket continues to spin, the surface of the water becomes
concave. If the bucket's spinning is stopped then the surface of the water remains
concave as it continues to spin. The concave surface is therefore apparently not
the result of relative motion between the bucket and the water.[10] Instead, Newton
argued, it must be a result of non-inertial motion relative to space itself. For
several centuries the bucket argument was considered decisive in showing that space
must exist independently of matter.

Kant

Immanuel Kant
In the eighteenth century the German philosopher Immanuel Kant developed a theory
of knowledge in which knowledge about space can be both a priori and synthetic.[11]
According to Kant, knowledge about space is synthetic, in that statements about
space are not simply true by virtue of the meaning of the words in the statement.
In his work, Kant rejected the view that space must be either a substance or
relation. Instead he came to the conclusion that space and time are not discovered
by humans to be objective features of the world, but imposed by us as part of a
framework for organizing experience.[12]