CHARTERING PRINCIPLES

SUBMISSION OF ASSIGNMENT

PLEASE SUBMIT YOUR ASSIGNMENT ON OR BEFORE 16 NOV. 2015

INSTRUCTIONS:

1. PREPARE AN ASSIGNMENT ON EITHER VOYAGE CHARTER OR TIME

CHARTER.
2. THE STUDENTS TO ASSUME THE ROLE OF THE VESSEL OWNER AND
DESCRIBE A HYPOTHECAL CASE FROM THE ENQUIRY STAGE TO
FINALIZATION AND SIGNING OF THE CHARTHER PARTY.
3. CARGO MAY BE DRY BULK OR LIQUID
4. WHERE EVER NECESSARY SUPPORT WITH CALCULATIONS LIKE LAYTIME
AND VOYAGE ESTIMATION.
5. ALL STEPS TO BE COMPLETE. ATTENTION TO BE PAID TO THE
FOLLOWING STEPS WHILE PREPARING THE CHARTER PARTY.
6. SUPPORTING MATERIAL MAY BE SOURCED FROM THE INTERNET.

STAGES: OFFER - ENQUIRY - COUNTER - FIXTURE CONCLUSION

1. ENQUIRY

VOYAGE CHARTERING

 CARGO
 PARCEL SIZE
 LOADPORT
 DISPORT
 LAYDAYS
 LAYCAN

2. ENQUIRY

TIME CHARTERING

 TYPE OF SHIP
 DURATION
 TRADING AREA
 CARGO
 SPL.REQUIREMENTS

OFFER - 1

 VOYAGE
 DESCRIPTION-SHIP
 PARCEL SIZE
 FREIGHT (CALCULATION OF FREIGHT RATE)
 DEMURRAGE
 C / PARTY.

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 CHARTERING PRINCIPLES

SUBMISSION OF ASSIGNMENT

OFFER - 2

 TIME CHARTER
 DESCRIPTION
 T/C PARTICULARS
 SPEED
 BUNKER CONSUMPTION.
 PERIOD –RATE
 EXCEPTIONS –CP

CHARTERING NEGOTIATIONS-IMPORTANT ASPECTS

1. FIRM OFFER

2. COUNTER (THERE COULD BE ONE/TWO OR SEVERAL COUNTERS EXCHANGED)

3. RECAP OF TERMS (FIXED ON SUBJECTS)

4. CLEAN RECAP (FINAL FIXTURE RECAP)

5. EXECUTION OF CHARTER-PARTY.

SUBJECTS

1. SUBJECT STEM. (SUBJECT TO ENOUGH MERCHANDISE – CARGO

AVAILABILITY)
2. SUBJECT SUPPLIERS.
3. SUBJECT RECEIVERS.
4. SUBJECT CHARTERERS MANAGEMENT APPROVAL.

CHARTERING NEGOTIATIONS

STEP 1: ENQUIRY

(GENERALLY, CARGO ENQUIRY INVITING OFFERS FROM OWNERS THROUGH ONE OR

MORE BROKING CHANNELS)

STEP 2: OFFER

(OFFER FROM OWNERS TO CHARTERERS GIVING DETAILS AND MAIN-TERMS)

STEP 3: COUNTERS

(COUNTERS ARE EXCHANGED ON ACCEPT / EXCEPT BASIS)

STEP 4: VESSEL PUT ON SUBJECTS (AFTER AGREEING MAIN TERMS, VESSEL ON

CHARTERERS SUBJECTS MEANING SUBJECT TO

 CARGO STEM IN ORDER,

 APPROVAL FROM SUPPLIERS /LOAD PORT
 APPROVAL FROM RECEIVERS/DISPORT AND
 CHARTERERS MANAGEMENT APPROVAL

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 CHARTERING PRINCIPLES

SUBMISSION OF ASSIGNMENT

STEP 5: SUBJECTS RECAPTURE DRAWN BY THE BROKERS WITH ALL MAIN

TERMS AGREED.

STEP 6: CHARTER-PARTY TERMS ARE NEGOTIATED.

STEP 7: IF ALL SUBJECTS ARE IN ORDER, CHARTERERS SHALL LIFT SUBJECTS

AND VESSEL STANDS CLEAN FIXED. CLEAN FIXTURE MEANING,
SHIPPING CONTRACT IS ON AND CHARTERERS AND OWNERS ARE
BOUND BY THE TERMS AGREED BETWEEN THEM.

STEP 8: CHARTER-PARTY IS EXECUTED.

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