Charter Parties Flashcards
What is a charter party?
A document specifying the terms of a contract between a ship owner and another party who wishes to make use of the entire ship (the charter) rather than simply paying for the use of space on the ship
What are the 4 types of charter party?
- Bareboat or demise (like hiring a self drive car for a week)
- Voyage charter (like hiring a taxi for a pre determined trip)
- Time charter (like hiring a car with a driver to go various places for the day)
- Linear voyage (like getting on a bus)
What is the difference between off hire and on hire surveys?
On hire is a survey conducted before the charterer takes the ship, noting damage, bunkers etc.
Off hire is conducted at the end of the charter
What is deadfreight?
If the charterer cannot produce the quantity of cargo that the master has stated the vessel can load (taking into account required bunkers/stores etc), the tonnage shortfall will be paid by the charterer to avoid an income shortfall to the owner. This is called deadfreight. Normally lower than the actual freight weight.
What is laytime?
The time allowed for charterers to load/discharge without additional payments. Some days may be excluded - Sundays, public holidays etc. Will be noted in the charter party.
What is Despatch?
If loading/discharging is completed in less than the stipulated laytime then the ship owners pays despatch to the charterer.
What is demurrage?
If the charterer delays the ship beyond the stipulated lay time the ship owner is entitled to demurrage.
What is laycan?
The period during which the master must tend notice of readiness to load.
When can commencement of laytime begin?
- The vessel must be an arrived ship
- The vessel must, in all respects, be ready to load.
- A notice of readiness must be served on the charterer or his agents
What are the 3 main functions of a bill of lading?
- Act as a receipt of goods.
- A contract of carriage
- A title to the goods.
Issued by the Carrier to the Shipper
