Charter Parties & BIMCO Wreck Contracts Flashcards
What is a charter party?
A written form of agreement between ship owner/vessel operator and prospective charterer, forms the charter party.
To reduce the time & expense in negotiation, standard forms have been drafted and approved by groups such as BIMCO, which are fair to the charterer and owner.
Three basic types of Chartering types?
Voyage
Time
Demise (Bareboat)
What is a voyage charter?
Port will be specified
Cargo will be specified
Port of Discharge Specified
Vessel owner reduces their risk by specifying time limits to load/discharge cargo (lay-days). These costs are at the expense of the charterer
Owner pays other expenses related to vessel
Similar to calling for a taxi, specific number of people pickup from one location & drop off at another upon agreed price
What is a time charter?
Owner provides vessel and crew for a set period of time (Vision)
Charterer may direct vessel at their wishes to carry cargo at a time that suits.
They must return the vessel (re-delivery) to a certain location on time or face penalties for late delivery.
The owner pays fixed costs relating to the vessel & crew.
Charterer pays operational costs (Fuel, lube & water)
Booking a limousine with a driver for a set period. During hire period, you can direct the limo at your discretion within reason. Pick up any number of people, up to capacity, have the limo returned at pre-agreed place & time
Demise Chartering
In this charter, the owner will provide a vessel of a certain period of time.
Charterer provides crew (May be sub contracted to manning agency) & sail her as they see fit during the agreed time.
Charter will treat the vessel as if they owned it, picking up all operational/manning costs.
Remuneration to owner by way of daily hire.
What would be included in the statement of facts?
Complete details relevant to the time of vessel arrival, details of cargo loading/discharge,nany delays due to weather, ship delays etc.
Amount of Fuel oil, Lubes, Water onboard at start/end of agreed charter.
What would you do in event of any disagreements between the parties?
Master may NOTE PROTEST. Inform all interested parties.
What is General Average?
in essence: That which has been sacrificed for the benefit of all, shall be made good by the contribution of all
What is the objective of general average?
To ensure the owner of a vessel or cargo who has occurred an expenditure, or suffered a sacrifice of his property to save the vessel from a perilous position receives a contribution to his loss from all who have benefited from the action.
What action would a vessel take following declaration of General Average?
A ship will over take to a Port of Refuge upon declaring General Average. It is in these port calls that, very often, the majority of general average expenditure is incurred.
Who would the parties be to a common Maritime Adventure?
This could include;
The ship owner
Each consignee of cargo onboard
Where vessel is on a time charter: The owners of the bunker fuel
The recipient of freight, who will normally be the ship owner or time charter
The owner of equipment on a vessel e.g. Dive spread or drilling equipment onboard.
What is an essential element of a general average act?
In order to have the right to claim a contribution from other parties to the ‘common maritime adventure’, the owner of a vessel must show that there was a ‘general average act’
Defined in the York Antwerp rules as:
“There is a general average act when, and only when, any extraordinary sacrifice or expenditure is intentionally and reasonably made or incurred for the common safety for the purpose of preserving from peril the property involved in the common maritime adventure.”
What are some examples of sacrifices that may be allowed in General Average?
- Cargo jettisoned to float a grounded vessel, prevent a capsize of a dangerously listed vessel.
- Machinery damage sustained during reflecting operations, except in cases of salvage
