Charter Parties Flashcards
What is a Charter Party?
Charter parties are written agreements between Shipowners and Charters.
Usually arranged by a third party called a broker.
What is a Bareboat charter?
Bareboat charters are usually long term.
The charter takes effective control of the ship and employs his own crew.
The shipowner will bear Loss of Value of the vessel. Insurance costs in his interest for the Vessel.
What is a Time Charter?
And agreement where the charter, charters the ship for an agreed period of time.
Charter covers PORT, FUEL and LOAD / DISCHARGE Costs.
The Shipowner covers everything else. (Crew and maintenance)
What is a Voyage Charter?
An agreement where the shipowner agrees to carry a specified amount of cargo between named ports.
The shipowner covers all expenses of the voyage.
The charter just pays freight at an agreed rate per tonne.
What are Laydays?
Laydays are the spread of days by which the vessel must be presented for loading.
ie Dublin Port 8-15 Jan
What is the Cancelling date?
This is the final day of Laydays.
The date by which the vessel must be on the berth and in all respects ready to load.
Failure to meet this date will give the charter the option to sue.
What is laycan?
This is simply just a contraction of Laydays and the Cancelling date.
The first layday would be the 8 of Jan and the Cancelling date would be the 15th of Jan.
What is Laytime?
Laytime is the period of time agreed in the charter party for loading and discharging.
The Charter Party will state when Laytime is to commence. (Usually 24hrs after NOR has been tendered.)
When would you tender notice of readiness?
As soon as possible, within the Laycan period.
When the ship is Arrived and is in all respects ready to Load or Discharge the Cargo.
The vessel must be properly secured as stipulated to the Berth or in the Port.
Vessel Cleared.
Holds ready - clean and dry.
Surveys carried out - derricks rigged and ready
What is Notice of Readiness?
Notice given to Charterers that the vessel has arrived in the Port or at the Berth and is fully ready to Load / Discharge the cargo.
Tendered within Working Hours
When does Laytime Commence?
The Charter Party Agreement will state when Laytime is to commence.
Typically NOR will commence 24hr after NOR has been tendered.
What must be done before NoR can be tendered?
Pratique granted (Customs and Health clearance)
Holds and bilges clear, clean and ready.
Cargo gear ready and in working order.
What is Demuurage?
If the ship has not completed loading or discharging within the specified Laytime period.
Payable by the shipper to the ship owner.
What is Despatch?
If the ship completes loading / discharge before laytime expires.
Payable by the Shipowner to the shipper.
