Mate’s Receipt:

Mate’s receipt. This is a document used in the shipment of a cargo. When the goods are received by or
for the sea carrier, a “mate’s receipt” is issued either directly by the ship or by the ship’s agents. This is
the first evidence that the goods are received and statements on the document describe the quantity of
goods, any identifying marks and the apparent condition.

This information is inserted from visual evidence when the goods are received. The quantity can be
verified by a “tally” or count being made of the number of packages and the tally clerk’s receipt may be
attached to the mate’s receipt. This information on the mate’s receipt is very important because this
information should also be transferred on to the bill of lading.

Stowage Factor of Cargo:

The stowage factor of a cargo is the ratio of weight to stowage space required under normal conditions.
It indicates how many cubic meters one metric ton of a particular type of cargo occupies in a hold.

Thus its unit is m³/t, for example, iron pyrites has a stowage factor of 0.53 m³/t

The stowage factor of a cargo may vary, since it depends on the packaging and the nature of the cargo
i.e. whether the cargo is loaded in bulk (directly into the hold) or it is first converted into some packages
and then these packages are loaded into the hold.

Broken Stowage of Cargo:

Broken stowage is the amount of space lost in the hold. It is generally almost nil when cargo is granular
and loaded directly into the hold, while if the cargo is packaged into some non-uniform packages, then
the space lost might be sufficient. This space lost is broken stowage and is measured in terms of the
percentage of the broken stowage. For example, as in above if BS of iron pyrites is 0.53 m³/t and broken
stowage is 10%, then effective BS becomes (0.56 + 0.056 (10% of 0.56) 0.616 m³/t.

Tramp ship owners take higher financial risk:

In tramp shipping it is not decided well in time what voyage ship will have to perform. What charter
rates ship will get, what bunker price needs to be paid, If next voyage is expected to be long and ship is
having shortage of bunker, then she will have to take bunker at whatever price it is available at the
moment or to make stopover at intermediate port of the next voyage specially for taking the bunkers. if
there is any crew exchange due and ship is moving to remote areas then also it adds to unexpected
expenses as repatriation expenses.

The tramp shipping industry is also known to be risky as freight rates and bunker prices are highly
volatile and their impacts on the profit and loss of the market participants are very crucial. While part of
this uncertainty is due to the general supply-demand interaction, the cyclical nature of the industry,
political events such as wars, and economic crises. This uncertainty, i.e., volatility, is one of the main
characteristics of tramp shipping freight rates. This is the major source of the market risk for the
participants in the tramp shipping industry.

Time Charter has control on the ship:

These types of charter differ from voyage charters in that the owner places the vessel, crew and
equipment at the disposal of the charterer. The charterer then generally has full commercial control of
the vessel, including arranging bunkers, handling operations, port charges and other matters that would
normally handle by the owner under a voyage charter. Under a time charter the owner will receive hire
based on the period of the charter or per dead-weight tonne per month.

Turnaround time of a ship:

Turn Round Time (TRT) is The total time spent by a vessel at the port from its arrival at reporting station
(Pilot station or anchorage) till its departure from the reporting station. It thus includes pre-berthing
waiting time, navigation time (inward movement and outward movement time), stay at working and
non-working berths and shifting time.

National Shipping Board:

The National Shipping Board is the highest Advisory Body on matters related to Indian Shipping including
the development there of and on such other matters arising out of the Merchant Shipping Act as the
Central Government may refer to it for advice. The establishment of such a Body was recommended by
the Reconstruction Policy Sub-Committee as early as 1947. The Ship owners too had urged the
formation of such a Body. Accordingly, in 1958 when the Merchant Shipping Law was revised and
consolidated, the opportunity was taken to provide for the formation of a Permanent statutory body
called the National Shipping Board. The National Shipping Board was established on 1st March, 1959.

Brief history

The National Shipping Board inaugurated on 10th March, 1959 by Pandit Jawaharlal Nehru, the
then Prime Minister of India, came into being some 40 years after s.s,”Loyalty”, the first Indian
ship of the pioneering successful national shipping venture in modern times viz. the Scindia
Steam Navigation Company, left the Indian shore on her maiden voyage overseas to London on
5th April,1919. As on date the Board played a distinguished role in the maritime development
of the country as its deliberation and recommendations have contribute to the evolution of
sound and pragmatic National Maritime over the years. So far the Board has taken 115
meetings.
 Non Negotiable Bill of Lading:
As the name suggest, non-negotiable bill of lading cannot be negotiated and these are not the
document of title. That means the holder of a non-negotiable bill of lading cannot be the owner of the
cargo. The non-negotiable bills of lading are issued for documentation purposes such as for customs
purpose. Before releasing the cargo at the discharge port, the master must check that original of the
negotiable bill of lading is presented to him.

Relationship between Load Line and Cargo Capacity of a ship:

A ship’s waterline is the line where its hull meets the surface of the water. A load line, also called
Plimsoll mark, is a marking indicating the extent to which the weight of a load may safely submerge a
ship, by way of a waterline limit. It is positioned amidships on both sides of a vessel’s hull and indicates
the draft of the ship and the legal limit to which a ship may be loaded for specific geographical areas and
seasons of the year. The purpose of the load line is to ensure that a ship has sufficient freeboard (the
height from the waterline to the main deck) and thus sufficient reserve buoyancy (volume of ship above
the waterline).

These loadlines are as follows:

TF (Tropical Fresh)

F (Fresh)

T (Tropical)

S (Summer)

W (Winter)

WNA (Winter North Atlantic)

 Lay Days (or Lay Time) w.r.t. Voyage Charter:
In commercial shipping, laytime or layday is the amount of time allowed, in a voyage charter or time
charter, for the loading and unloading of cargo. Sometimes it is given separately for loading and
discharging and sometimes it is given as combined number of days for both the operations.

Under a in a voyage charter or time charter, the ship-owner is responsible for operating the vessel, and
the master and crew are the employees of the ship-owner, 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.

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 indicating that ship is ready in all respects to load or discharge

Charterer becomes virtual owner of the ship in bare boat charter:

A bareboat charter or demise charter is an arrangement for the chartering or hiring of a ship or boat,
whereby no crew or provisions are included as part of the agreement; instead, the people who rent the
vessel from the owner are responsible for taking care of such things.

In a bare-boat or demise charter, on the other hand, the owner gives possession of the ship to the
charterer and the charterer hires its own master and crew. The bare-boat charterer is sometimes called
a "disponent owner". The giving up of possession of the ship by the owner is the defining characteristic
of a bareboat or demise charter.

In a bareboat charter, no administration or technical maintenance is included as part of the agreement.

The charterer obtains possession and full control of the vessel along with the legal and financial
responsibility for it. The charterer pays for all operating expenses, including fuel, crew, port expenses
and P&I and hull insurance.

A bareboat charter is in effect a financing arrangement. It is generally considered a lease contract,

specifically a finance lease, for accounting purposes, under both international financial reporting
standards.

Voyage Estimate is essential prior to acceptance of voyage chartering:

Voyage estimate is calculation of voyage expenses considering the voyage to the load port and from
load port to the discharge port, standard consumption of fuel during sailing and in port, any canal
expenses if applicable for the voyage, charter cost for the size and type of vessel and any other
additional expenses specific to the voyage etc..

Only after knowing what cost has to be incurred by the charter, it makes sense in accepting the
chartering concept as charterer can easily work on profit margin for the voyage after cost calculation.

Specialised merchant vessels:

These are ships designed to carry only special type of cargoes and are employed only to carry those
special type of cargoes. For example Oil/Chemical/Gas Tankers, RORO, Container Ships, Bulk Careers
etc.

Besides these specialized ships, there are ships too which even carry cargoes which are not being
transported as regularly as other cargo. Example of these ships ‘Semi-Submersible Ship’ which at the
time of loading is ballasted to sink the vessel main deck under water and cargo (generally floating heavy
object) is brought and aligned with the deck for loading. Ship then de-ballasts and the cargo is loaded on
deck and secured for the voyage.

Bad Weather causes maximum cargo damage:

Ship owner has better control of his ship under liner service:
Liner Shipping means liner services when a Shipping Company engage their fleet of ships to carry cargo
between predetermined ports at regular intervals, under publicly advertised schedule. The special
features of this service can be highlighted as under:-

a) The service is offered at regular interval, say weekly or fortnightly basis.

b) Obligation to accept cargo from all customers and to sail on the date fixed by a published schedule
even if ship is not fully loaded.

c) A fixed port rotation or itinerary or schedule to follow.

d) The service is comparatively cheaper and reliable.

For example: One of the leading container shipping line-CMA CGM Shipping Line has offered 10 Nos
liner services routed through Japan>China to US East Coast ports on weekly fixed schedule. Ships
engaged in this route will cover US ports viz New York, Norfolk, Savanna & is likely to complete outward
voy within 39 days as per declared schedule.

With fixed schedule, port rotation, fixed freight and regular cargo makes it easier for the ship owner to
operate his ship in liner service with good network and better control.

On the other hand, in tramp shipping or chartering, the service is not scheduled and the entire vessel is
normally chartered for a given voyage or for a period of time. This arrangement of ship's employment is
known as voyage charter or time charter. These two modes of transportation have also dissimilarity with
regard to contractual terms which determines relationship between shipper & carrier. In case of liner
shipping, shipper has to act as per terms and conditions contained in the Bill of Lading & similar printed
documents. Carrier does not negotiate with shipper on this issue. But In tramp shipping, the trader
normally charters and pays a negotiated rate for the whole ship, either for a voyage or for a period of
time.

Factors Influencing Freight Rate:

Freight rate is the cost per ton or lump sum charges for carrying certain amount and type of cargo. It is
decided based on costs to be incurred by charterer for transporting the cargo.

We can say all the cost elements and factors affecting those cost elements are the factors influencing
the freight rate as given below in stepwise manner. But remember that freight rates are decided upon
the over impact of all the factors and not based on only one cost element.

Charter Rate:
New ship will have higher charter rate and thus adds to the cost of carriage and thus freight rate is
expected to be higher, while older ships charter rate will be lesser (generally because of reduced
performance) and thus it can affect freight rate to be lesser.

Now seeing the reverse side of this: New ships are expected to perform better and hopefully carry cargo
faster than the older ship and thus utilizing the lesser number of days in charter and thus total charter
cost is going to be less and this can bring down the freight rate down or vice versa for older ships.

Type of Cargo:

If cargo is neutral and easy to carry, does not affect ship structures the freight can be negotiated to be
less while if cargo is hazardous or it can cause damages to ship structure, freight is expected to be
higher.

Size of the Ship:

Of course bigger size ships will have more charter rate as compared to the smaller ones, but if sufficient
cargo is available to carried and utilize the full capacity of the ship, then it turns out to be cheaper in
terms of freight rate.

Passage to be performed:

If passage involves passing through certain canals to cut down on the sailing distance, it does adds to the
cost of the voyage as canal transit cost is also added and thus it affects freight rate to higher side.

But there is other factor of using canal passage, as it cuts down on the sailing duration it also reduces
the total charter cost, bunker cost etc.. with the reduction in time. So it is overall impact which is
considered in calculating the freight rate.

In Voyage Charter Master can divert the ship under special situation:
In any charter party it is a common clause that charterer will not take ship to certain parts of the world,
beyond certain higher latitudes and to areas where it is not safe for the ship to be e.g. area under war or
any other similar situation.

When during the course of performing the voyages, if any of the above situation arises where, in the
good judgement of the master it is not safe for the ship to continue on voyage or continue loading or
discharging in any port, he has authority to divert the ship to safer areas or to take the ship out of
unsafe port.
 Demurrage:
In every charter party, duration for loading and discharging or combined duration is well defined and is
to be strictly followed by the charterer.

Demurrage is the charge/penalty paid by the charterer to the ship owner for delaying the ship in port for
loading and/or discharging beyond the specified period allowed which is Lay Days or Lay Time.

Dispatch:
Dispatch is the amount to be paid by the ship owner to the charter for completing the cargo operation in
lesser than the allowed time in the voyage. By doing this charter saves some time for the owner and
thus enables him to engage his ship on next assignment earlier than expected. So it is like a bonus to be
paid for performing better in port. Dispatch is generally calculated at half the rate of Demurrage.

Manning Agency:
These are agencies supplying man power against payment of certain fee or charges/commission to the
ship owners and do not have their own ship.

Notice of Readiness:
The Notice of Readiness (NOR) is the document used by the Ship Master, to notify his ship readiness, in
every respect, to load and/or unload the goods during the period of his charter. ... The Notice Of
Readiness (NOR) is always to be tendered in accordance with the terms of the Governing Charter Party

Requirements for a valid notice of readiness to be served

• The vessel is an arrived vessel.

• The vessel is ready to receive or discharge the cargo.
• The notice of readiness is tendered to and received by the proper person according to the
charter-party.
• The notice of readiness is tendered in a contractual way.
• The notice of readiness is tendered at a time that is allowed by the charter-party.

Stale Bill of Lading:

According to international commercial practice, Bill of Lading along with other shipping documents must
be presented to the bank not later than twenty-one days of the date of shipment as given in the Bill of
Lading. In some cases, the Importer may indicate the number of days within which the documents are to
be presented from the date of shipment. Exporter has to comply with the stipulation period of time
indicated. Otherwise, the Bill of Lading becomes stale and is not accepted by the bank for payment. A
stale bill is one which is tendered to the presenting bank so late a date that it is impossible for the bank
to dispatch to the consignee’s place, in time, before the goods arrive at the destination port. Here, Bill of
Lading reaches after goods reaches at destination. If a bill of lading presented to consignee or a bank
after the last date specified in the documentary credit becomes stale. So a Stale Bill of Lading can be
rejected by the bank where in such Bill of lading is presented for negotiation under documentary credit.

FOB & CIF Sale:

FOB – Free on Board (or Freight on Board). This basically means that the cost of delivering the goods to
the nearest port is included but YOU, as the buyer, are responsible for the shipping from there and all
other fees associated with getting the goods to your country/address.

What the seller is responsible for: Getting the product on the ship and clearing it for export.

What the buyer is responsible for: Insuring the shipment and handling the importation process,
including paying for any import duties.

CIF – Cost, Insurance and Freight. In this case, the price also includes sea freight charges and insurance
to deliver the goods to YOUR nearest port. But only to port – from that point onwards, you take the
shipment into your hands.

In this case risk is transferred to the buyer once the goods are loaded on the ship.

LCL & FCL:

Full Container Load (FCL) is a container shipping option where a container is exclusively used for a single
shipment and the container is not shared with other cargo shipments, and the costs are borne by one
party. Even if the container isn’t enough completely filled to the brim with cargo, the shipping party can
choose to still opt for it. There are many reasons why they would choose to send as FCL shipments, such
as;

• FCL shipping costs less than LCL. The cost of unit per freight is higher with LCL than FCL, and
importing fees need to be paid regardless of the size of your shipment or choice of container
shipment
• FCL shipments offer a faster lead time/delivery. As a FCL shipment include cargo that is meant
for a single party and not shared, even if it stops at various ports, they do not need to be opened
and reworked, and delays can be avoided.
• The freight forwarder will be able to bring a container to your desired address for you to load
the goods onto the container yourself

LCL Shipping
Less than Container Load (LCL) is another shipping term when various cargo shipments share the same
container as well as the container shipping costs. There are many reasons why LCL container shipping is
chosen, such as;

• LCL Shipping is usually chosen when the there aren’t enough goods to fill up and entire
container
• LCL shipping can allow you to lower your warehousing costs, that is, in the event you are
stocking a warehouse until you are able to accommodate a FCL shipment, thus lowering your
warehousing/inventory costs

Factors influencing proper cargo stowage on board a sea going vessel

Ans: Cargo stowage is main concern mostly on general cargo ships as in other ships like tanker carrying
oil, bulk career carrying granular and bulk products, Containers carrying fixed size containers and RORO
ships carrying cars or vehicles to be placed only at designated stowage locations at decks.

It is only general cargo where we carry different types and size of cargo and stowing it properly to
achieve optimum usage of space and deadweight is difficult.

Factors affecting stowage:

Size and shape of the cargo:

Big size and odd dimension cargoes cannot be placed in confined areas of the holds, especially in the
forward part of the ship and thus causes loss of space.

Cargo with wheels or round shape cargo are to be stowed preferably with support from bulkhead from
one or two sides and then blocked using chokes on other sides. These cargoes will definitely cause loss
of space or we can say excessive broken stowage.

Fragile cargo must be stowed on top of other cargo to avoid damage and cannot be placed at the
bottom else the space above them cannot be utilized.

Use of dunnage: Dunnage plays very important role in protecting the cargo from damage by contact
with other heavier cargo and from sweat inside ship holds. But it also occupies space and needs to be
adjusted in size to suit the type and size of cargo to be stowed inside the hold.

Port of loading and discharge: Cargo arriving for loading in the first port of loading and is required to be
discharged at the last port of discharge makes it difficult for ship staff to plan stowage properly as
sometimes it needs to be discharged and then re-stowed on ship again at other suitable location inside
the hold. (This is equally valid for the Container ships and to some extent for RORO ships)

Load density of the tank top inside hold: Sometimes cargo received is heavier and smaller in size which
will exceed load density of the tank top when loaded directly and thus dunnage has to be used to spread
the load in larger area and keeping it with in the load density limit. This causes loss of base area for
loading other cargo and causes difficulty in planning stowage.
Q2. Different methods of calculating lay days?

Laydays are always planned in advance so that all the required operations are carried out in the
specified time. Laydays are defined in different ways such as:

• Running days – Includes consecutive days including weekends and holidays

• Working days – Includes consecutive days excluding weekends and holidays
• Weather working days – Includes days on which the weather permits to continuous work of
cargo loading and unloading

"PER HATCH PER DAY" shall mean that the laytime is to be calculated by dividing (A), the quantity of
cargo, by (B), the result of multiplying the agreed daily rate per hatch by the number of the vessel's
hatches. Thus:

Quantity of cargo

Laytime = --------------------------------------------------------- = Days

Days Daily Rate X Number of Hatches

Each pair of parallel twin hatches shall count as one hatch. Nevertheless, a hatch that is capable of being
worked by two gangs simultaneously shall be counted as two hatches.

"PER WORKING HATCH PER DAY" (WHD) or "PER WORKABLE HATCH PER DAY" (WHD) shall mean that
the laytime is to be calculated by dividing (A), the quantity of cargo in the hold with the largest quantity,
by (B), the result of multiplying the agreed daily rate per working or workable hatch by the number of
hatches serving that hold.

Largest Quantity in one Hold

Thus: Laytime = ---------------------------------------------------------------------------------------- = Days

Days Daily Rate per Hatch X Number of Hatches serving that Hold

Each pair of parallel twin hatches shall count as one hatch. Nevertheless, a hatch that is capable of being
worked by two gangs simultaneously shall be counted as two hatches.

ON/OFF HIRE Survey:

On-Hire Surveys / Off-Hire Surveys of vessels or marine structures are undertaken either before the
vessel or structure is delivered into a charter, or redelivered from a charter. The survey report should
include a detailed description of a vessel’s cargo spaces/deck areas structural condition, cargo space
cleanliness, bunkers on board, listing of the vessel’s statutory certificates, portable securing equipment,
etc.
The purpose of these On-Hire Surveys / Off-Hire Surveys is principally to determine the extent of
damage, other than fair wear and tear, which may have occurred to the ship between two dates, usually
those of the commencement and termination of charter. Whilst the determination of damage is the
principle purpose of the two requisite reports, one being at the “on hire” survey and the other at the
“off hire” survey, there are often three other requirements. These are generally:

• The checking of documents and certificates

• The establishment of quantities of fuel and stores on board
• Sometimes the establishment of the cleanliness of the cargo spaces

On-Hire Surveys / Off-Hire Surveys is very important for a client when hiring a vessel to limit their
liability, by ensuring they have the correct information on the condition of the vessel and work required
in respect of the Charter Party. Hence it is in the interest of a Client to get an independent survey carried
out on their behalf which will then be used as evidence for their liabilities for the Charter period.

When attend to check the condition of the vessel when it is chartered from or redelivered back to the
owner which usually includes in part the structure, document and bunker, Vessel survey to get a general
impression by inspecting selected areas:

• Accommodation
• Passenger areas
• Safety equipment
• Cargo areas
• Machinery spaces etc.
• Planned Maintenance System for outstanding items
• Sample of any prearranged open spaces (tanks etc).
• Certification and Classification records to be inspected
• Brief interviews with some of the crew members

Seaworthiness and cargoworthiness:

Seaworthiness is the ability of the vessel to safely navigate the intended waters, meaning that its hull,
engines and general instruments are in safe condition prior to and during the commencement of the
intended voyage.

Cargoworthiness means the suitability of the vessel to safely carry out the transportation of the
intended cargo for a particular voyage. From the technical perspective, to determine cargoworthiness, it
is very important to consider load distribution, cargo securing, type of cargo, machinery and equipment
and good seamanship.

Seaworthiness is a relative term, and the ship only needs to be seaworthy for the purpose of the
particular voyage. The vessel must be sufficiently seaworthy to meet the perils likely to be encountered
on the intended voyage. Seaworthiness embraces not merely the condition of the ship generally but also
the suitability and adequacy of her equipment, bunkers, etc., the sufficiency and competency of her
master, officers and crew, and including what has been described as cargoworthiness.

Responsibilities of Chief Engineer:

The chief engineer of the ship is the head of the technical department of the ship. It is his duty to ensure
that the engine room machinery works properly for a smooth voyage.

According to the Safety of life at sea (SOLAS) convention, it is the responsibility of the chief engineer to
look after the safety of maritime professionals working in the engine room. The duties of the chief
engineer are clearly mentioned in STCW 95 section A- III /2.

SOLAS states that the operation of the ship and its equipment should be properly taken care of by the
chief engineer, satisfying all minimum standards of safety.

Duties of the chief engineer in both general and emergency conditions on the ship are:

1. Chief engineer should ensure that all the ship’s machinery and equipment are working in an efficient
manner in order to support safe navigation of the ship.

2. He should carry out all his duties while complying with the rules and regulations laid down by the
flag state administration, IMO, and port state authorities.

3. Frequent inspections of equipment dealing with ship and personal safety must be carried out by him
at regular intervals of time

4. All items used for pollution prevention should be frequently checked and tried out for proper
operating condition

5. Chief engineer should lay down a set of standing orders for each crew member under his command

6. The standing orders should be given in accordance with the routine maintenance schedule as laid
down by the Planned Maintenance System (PMS), which is prescribed by the manufactures

7. He should see that details of every operation and activity should be properly maintained in log and
record books, which state the compliance of the system.

8. Life-saving and fire preventing equipment should be checked a regular basis for their operating
condition. (Operating mechanism and linkages should be inspected and lubricated frequently)

9. In order to minimize sources of fire, chief engineer must ensure that proper operation and
maintenance of fuel and lubricating oil and purifying equipment is carried out to minimize leakage. In
case there are leakages, they should be rectified at the earliest.

10. He should also make sure that the amount of waste oil that is collected should be as less as possible.
The collected oil should be burnt in an incinerator or given to shore-based collecting facilities.
11. Chief engineer should ensure that the maintenance of incinerator is carried out as per the rules and
regulations laid down by the management.

12. It is imperative of him to check that from the effluent mixture, only clean water is pumped out of
the ship only through an oily water separator. (According to few company rules, only the chief engineer
should handle the Oily water separator)

13. In order to make sure the maintenance and repair procedures are carried out properly, necessary
machine spare should be made available in the ships store by filing a proper requisition at the right time.

14. It is the duty of the chief engineer to motivate his crew to develop a “safety first” attitude in his
work.

15. Chief engineer also makes sure that his crew attends all shipboard emergency drills and safety
meetings.

16. Each and every crew member should know how to tackle every kind of situation on the ship. The
chief engineer must provide guidance to his crew during drills so that they know how to get out of an
emergency situation safely in the minimum time possible.

17. While tackling an emergency situation, the Chief Engineer must follow the company guidelines and
procedures for dealing with emergencies.

18. At the sight of an emergency, response time matters a lot. Therefore, the chief engineer must be
able to guide his crew in minimum time to attend and rectify the task.

19. Chief engineer must have the knowledge of equipment such as fixed firefighting installation, the
operation of quick closing valve etc. in order to deal with extreme emergency situations.

20. He must also have the knowledge of shipboard emergency equipment response machinery panel,
along with other important emergency machinery

21. During an emergency situation, the chief engineer must maintain proper communication with the
master regarding the situation of emergency, as the ship’s master is in touch with the local authorities
and the shipping office.

22. He must be co-operative with the master so that both deck and engine departments function
towards bringing the emergency situation under control in the quickest possible time

23. Last but not the least, the chief engineer should maintain a proper conduct with his crew members
and address their queries and requirements to the best of his abilities.

Duties and Responsibilities of Master:

A) Responsible for overseeing all work onboard

• As the Master represents the interest of the company, he shall be responsible in ensuring that
the necessary work is accomplished onboard and in accordance with existing laws and rules and
regulations of the company.
B) Responsible for ship’s operation and safe navigation

• To ensure a safe voyage, the Master must abide by the condition and provisions of the laws
relating to safe-keeping of the voyage and ensure that the necessary preparatory measures
were undertaken prior thereto, especially when the ship is entering port, passing through a
narrow channel, navigating under poor visibility and other threatening circumstances.

Before departure from a port, the Master must check the following to ensure that the ship navigates
safely:

1. That the hull, engine, drainage, steering apparatus, mooring apparatus, windlass, lifesaving
equipment, radio equipment and other equipment and apparatuses are in good condition;
2. That the cargoes/commodities loaded does not exceed the allowable weight;
3. That the draft does not hamper ship safety;
4. That supplies and provisions like fuel oil, fresh water, medicine and ship stores are adequate;
5. That all charts, sailing direction and other papers are ready;
6. That the necessary information and navigational notices are gathered;
7. That all crewmembers are onboard and in the peak of health;
8. That all guests and visitors are ensured to have left the vessel;
9. That necessary preparation for the accomplishment of the voyage has been done;

C) Maintain peace, order and discipline onboard

• The Master is responsible in managing the working time of each crew, He must ensure that each
is given a healthy working condition and harmonious relationship is maintained onboard.
• In case of misconduct by any crewmember, the Master can exercise his disciplinary powers
against him, in accordance with the POEA Rules on Discipline. Whenever disciplinary action is
meted out to a crewmember, the Master must record such action in the vessel’s Log Book.

D) Accomplishment of voyage

• The Master shall decide the sailing time from the port in accordance with the sailing instruction
and operation direction. He must start to sail out as soon as possible for departure are
completed and navigate to the next port of call without changing he schedule route, except in
instances allowed by maritime laws.

E) Responsible for GMDSS, Emergency Battery, Radar Transponder, EPIRB, etc.

• The Master has full responsibility of the above-mentioned gadget/equipment. He shall ensure
that they are properly maintained and operated only by persons authorized to do so. When the
assigned GMDSS operator is indisposed, he shall appoint another crewmember in his stead until
the former is capable of taking over.

F) Determine the course and speed of the vessel

 • The Master is responsible for determining the course and speed of the vessel. He must
undertake that the vessel reaches its destination on time and must not change its course except
for reasons allowed by law.

G) Keep confidentiality of documents

• The Master must ensure confidentiality of documents and communications. He shall undertake
that only those authorized shall be allowed to view important papers to safeguard the interest
of the Owners and the Company whom the Master represents.

H) Economic operation of the vessel

• The Master must endeavor to promote the company’s interest by operating the vessel safely
and economically by knowing fully well the ship’s construction and capacity. In navigation, he
must strive to maximize the Owner’s profits by accomplishing the voyage on scheduled date and
must endeavor to prevent losses by taking extra precautionary measures to avoid accidents and
other catastrophic incidents.

I) Handling of cargo and persons other than the passengers and crew;

J) Disposition of marine casualties;

K) Transmit emergency distress signals

• The Master has authority to transmit emergency distress signal if warranted by the situation.

L) Rescue a ship when in distress

• The Master may use his best judgment and undertake to help a vessel in distress, but upon due
consideration of his own vessel’s safety.

M) Handling over responsibility (handling over duties to an officer of the Deck Department)

• As Standard Operating Procedure (SOP), the Master shall prepare a Hand Over Note before
turnover of duties to any officer of the Dec Department. The Hand Over Note shall contain
important matters such as the vessel’s present condition, peculiarities, equipment, seals,
important/confidential documents, ship’s money, present voyage, and charter party. Cash on
hand must be turned- over in the presence and the incoming Master.

N) Grant of permission for going ashore

• During the stay of the ship in port, the Master shall use his best discretion to allow his crew to
go ashore. However, half of officers and ratings of each department must stay onboard for
safety reasons, such as when an immediate shifting or maneuvering needs to be done. The crew
who went on shore leave must return on the specified time.

O) Disposition in case of manpower shortage

• The Master must immediately inform the company whenever there will be crew shortage as
result of sickness or other emergencies.
P) Prevent stowaways

• Before sailing, the Master must ensure that all guests and visitors have left the vessel and that
no unauthorized person are inside the ship.

Q) Carry out burials at sea

1. During unavoidable circumstances where burial at sea is inevitable in accordance with the
provisions of relevant laws. He must keep close contact with the company and coordinate with the
bereaved family.

R) Put up a muster and implementing drills

• The Master shall keep a record of all crewmembers under his command and from time to time
implement drill for attending to emergencies.

S) Work management

• The Master shall be responsible for the management of crew work onboard. He must intensify
crew morale by motivating each crewmember to perform his best and recognize good
performance by good evaluation. He shall give the right orders and categorize the load given to
each department. In giving out orders, crew safety must be of foremost consideration.

T) Issuing orders for labor after working hours

• Whenever work needs to be done after official working hours, the Master must give instructions
in order to accomplish the work at hand.

U) Education and guidance (OJT)

• The Master must give his crew opportunities to learn new things onboard.

V) Shipboard accounting

• The Master is the custodian of vessel fund and shall be accountable to the Owners on how it
was spent. He shall keep a record of all vessel expenses for proper accounting when his term
expires.

W) Send and receive notices and inform everyone of said notices

• The Master is responsible for sending and receiving important vessel communication. He has the
duty of disseminating all relevant information he received from the Agent, Principal or Ship
Owners to his crew and vice-versa.

X) Safeguarding of important documents

• It is the Master’s responsibility to safeguard/keep important documents, especially those that

are required by law to be presented to authorities. He shall also ensure that ship documents are
all valid and /or updated on time.

Y) Strictly follow foreign laws

 • Maritime laws, rules and regulations are different in each country. Thus, the Master must strive
to observe each countries laws in good faith to avoid penalties for the vessel.

Z) Adopt measures during emergencies

• The Master shall take measures necessary to respond to emergencies though not expressly
granted by this Instruction. In case un urgent situation arises, the Master need not ask prior
permission from the Agent/Company, he can respond to the matter at hand using his best
discretion and shall inform the company as soon as he is able to do so under the circumstances.

AA) Turn over duties and responsibilities to the chief officer in his absence

• In the absence of the Master, the Chief Officer takes over his duties. The Master in cases where
he is indisposing to perform his functions (e.g. sickness, shore leave, etc.) shall give proper
instructions to the Chief Officer to ensure smooth vessel operations.

Owner’s Lien on Cargo:

When a charterer has failed to pay an owner for hire or freight due under the time or voyage charter,
the owner may wish to explore its options and take steps to secure its claim by having control over cargo
and/or bunker.

This means that for an owner to exercise a lien over cargo, the cargo must still be on board its vessel or
be safely stored in a warehouse that the owner has control over. As soon as the owner releases the
cargo to the consignee or its authorized agent/representative, the owner is no longer able to exercise
such a lien.

A lien clause must be incorporated into the relevant bill of lading (BL), expressly or by reference, for an
owner to be entitled to lien cargo that belongs to a third-party BL holder, rather than the charterer. This
is essential to avoid an unlawful lien against receivers under the BL.

The lien should be exercised when the vessel is at, or anchored off, the discharge port. The lien cannot
be exercised when the vessel is elsewhere, although there may be exceptional circumstances whereby
an owner can prove that a lien at the discharge port would be impossible and the lien would be lost if
the vessel proceeded to the port

The lien must also be legally enforceable and practically possible within the framework of the local
jurisdiction in which the discharge port is located.

Cargo Plan and factors affecting stowage of cargo (Stowage plan)

Cargo plan is detailed distribution of various cargo within the cargo space considering following factors:

• Safety of cargo and ship

• Stability parameters
 • Port rotation (order of port)

Safety of Cargo and Ship: This is especially important when handling dangerous cargo or heavy cargo.
Dangerous cargo must be stowed in designated tank (If it is liquid cargo) or location only to avoid
damage to other cargo and ship. When selecting the tank for loading dangerous liquid cargo, Tank
structure and coating must be suitable for the cargo which will not cause any reaction with the cargo
and thus cause damage to cargo and/or tank structures.

Heavy cargo as far as possible should be loaded with support of solid ship structure (e.g. bulkhead) on
any side if possible and secured properly to the strong points and using adequate dunnage to avoid
slippage/shifting and thus causing damage to the ship structure and/or other cargo.

Stability: As per IMO stability guidelines ships are required to maintain min GM of 0.15m after
considering any virtual loss which might have occurred because of partially filled bunker tanks. To
achieve this, it is imperative to load heavier cargo at the bottom of the hold and lighter cargo at higher
level. This has to be followed irrespective of the port of discharge of heavier cargo.

Besides maintaining min GM as stated above cargo stowage must also result in Even Keel situation with
optimum draft and trim for ship to sail out of the port and at sea.

Port rotation: Its obvious that cargo which is to be discharged first must be stowed above other cargoes
to avoid re-arranging cargo in the port.
 RULES FOR VOYAGE ESTIMATION CALCULATION:
1. "PORT" shall mean an area, within which vessels load or discharge cargo whether at berths,
anchorages, buoys, or the like, and shall also include the usual places where vessels wait for their turn or
are ordered or obliged to wait for their turn no matter the distance from that area. If the word "PORT" is
not used, but the port is (or is to be) identified by its name, this definition shall still apply.

2. "BERTH" shall mean the specific place within a port where the vessel is to load or discharge. If the
word "BERTH" is not used, but the specific place is (or is to be) identified by its name, this definition shall
still apply.

3. "REACHABLE ON HER ARRIVAL" or "ALWAYS ACCESSIBLE" shall mean that the charterer undertakes
that an available loading or discharging berth be provided to the vessel on her arrival at the port which
she can reach safely without delay in the absence of an abnormal occurrence.

4. "LAYTIME" shall mean the period of time agreed between the parties during which the owner will
make and keep the vessel available for loading or discharging without payment additional to the freight.

5. "PER HATCH PER DAY" shall mean that the laytime is to be calculated by dividing (A), the quantity of
cargo, by (B), the result of multiplying the agreed daily rate per hatch by the number of the vessel's
hatches. Thus:

Quantity of cargo

Laytime = --------------------------------------------------------- = Days

Days Daily rate X Number of Hatches

Each pair of parallel twin hatches shall count as one hatch. Nevertheless, a hatch that is capable of being
worked by two gangs simultaneously shall be counted as two hatches.

6. "PER WORKING HATCH PER DAY" (WHD) or "PER WORKABLE HATCH PER DAY" (WHD) shall mean that
the laytime is to be calculated by dividing (A), the quantity of cargo in the hold with the largest quantity,
by (B), the result of multiplying the agreed daily rate per working or workable hatch by the number of
hatches serving that hold.

Largest Quantity in one Hold

Thus: Laytime = ---------------------------------------------------------------------------------------- = Days

Days Daily Rate per Hatch X Number of Hatches serving that Hold

Each pair of parallel twin hatches shall count as one hatch. Nevertheless, a hatch that is capable of being
worked by two gangs simultaneously shall be counted as two hatches.
7. "DAY" shall mean a period of twenty-four consecutive hours running from 0000 hours to 2400 hours.
Any part of a day shall be counted pro rata.

8. "CLEAR DAYS" shall mean consecutive days commencing at 0000 hours on the day following that on
which a notice is given and ending at 2400 hours on the last of the number of days stipulated.

9. "HOLIDAY" shall mean a day other than the normal weekly day(s) of rest, or part thereof, when by
local law or practice the relevant work during what would otherwise be ordinary working hours is not
normally carried out.

10. "WORKING DAYS" (WD) shall mean days not expressly excluded from laytime.

11. "RUNNING DAYS" or "CONSECUTIVE DAYS" shall mean days which follow one immediately after the
other.

12. "WEATHER WORKING DAY" (WWD) or "WEATHER WORKING DAY OF 24HOURS" or "WEATHER
WORKING DAY OF 24 CONSECUTIVE HOURS" shall mean a working day of 24 consecutive hours except
for any time when weather prevents the loading or discharging of the vessel or would have prevented it,
had work been in progress.

13. "WEATHER PERMITTING" (WP) shall mean that any time when weather prevents the loading or
discharging of the vessel shall not count as laytime.

14. "EXCEPTED" or "EXCLUDED" shall mean that the days specified do not count as laytime even if
loading or discharging is carried out on them.

15. "UNLESS SOONER COMMENCED" shall mean that if laytime has not commenced but loading or
discharging is carried out, time used shall count against laytime.

16. "UNLESS USED" (UU) shall mean that if laytime has commenced but loading or discharging is carried
out during periods excepted from it, such time shall count.

17. "TO AVERAGE LAYTIME" shall mean that separate calculations are to be made for loading and
discharging and that any time saved in one operation is to be set off against any excess time used in the
other.

18. "REVERSIBLE LAYTIME" shall mean an option given to the charterer to add together the time allowed
for loading and discharging. Where the option is exercised the effect is the same as a total time being
specified to cover both operations.

19. "NOTICE OF READINESS" (NOR) shall mean the notice to charterer, shipper, receiver or other person
as required by the charter party that the vessel has arrived at the port or berth, as the case may be, and
is ready to load or discharge.

20. "IN WRITING" shall mean any visibly expressed form of reproducing words; the medium of
transmission shall include electronic communications such as radio communications and
telecommunications.

21. "TIME LOST WAITING FOR BERTH TO COUNT AS LOADING OR DISCHARGING TIME" or "AS LAYTIME"
shall mean that if no loading or discharging berth is available and the vessel is unable to tender notice of
readiness at the waiting-place then any time lost to the vessel shall count as if laytime were running, or
as time on demurrage if laytime has expired. Such time shall cease to count once the berth becomes
available. When the vessel reaches a place where she is able to tender notice of readiness laytime or
time on demurrage shall resume after such tender and, in respect of laytime, on expiry of any notice
time provided in the charter party.

22. "WHETHER IN BERTH OR NOT" (WIBON) or "BERTH OR NO BERTH" shall mean that if no loading or
discharging berth is available on her arrival the vessel, on reaching any usual waiting-place at or off the
port, shall be entitled to tender notice of readiness from it and laytime shall commence in accordance
with the charter party. Laytime or time on demurrage shall cease to count once the berth becomes
available and shall resume when the vessel is ready to load or discharge at the berth.

23. "VESSEL BEING IN FREE PRATIQUE" and/or "HAVING BEEN ENTERED AT THE CUSTOM HOUSE" shall
mean that the completion of these formalities shall not be a condition precedent to tendering notice of
readiness, but any time lost by reason of delay in the vessel's completion of either of these formalities
shall not count as laytime or time on demurrage.

24. "DEMURRAGE" shall mean an agreed amount payable to the owner in respect of delay to the vessel
beyond the laytime, for which the owner is not responsible. Demurrage shall not be subject to laytime
exceptions.

25. "DESPATCH MONEY" or "DESPATCH" shall mean an agreed amount payable by the owner if the
vessel completes loading or discharging before the laytime has expired.

26. "DESPATCH ON (ALL) WORKING TIME SAVED" (WTS) or "ON (ALL) LAYTIME SAVED" shall mean that
despatch money shall be payable for the time from the completion of loading or discharging to the
expiry of the laytime excluding any periods excepted from the laytime.

27. "DESPATCH ON ALL TIME SAVED" (ATS) shall mean that despatch money shall be payable for the
time from the completion of loading or discharging to the expiry of the laytime including periods
excepted from the laytime.

28. "STRIKE" shall mean a concerted industrial action by workmen causing a complete stoppage of their
work which directly interferes with the working of the vessel. Refusal to work overtime, go-slow or
working to rule and comparable actions not causing a complete stoppage shall not be considered a
strike. A strike shall be understood to exclude its consequences when it has ended, such as congestion in
the port or effects upon the means of transportation bringing or taking the cargo to or from the port.