Lesson 2: Charter Parties Flashcards
Charterparty is…
A contract in which the owner of a ship lets it to others for the use of transporting goods
Three types of Charterparty
- Time Charter: in which the charterer contracts the ship for a specific period of time.
- Voyage Charter: in which the charter hires the ship for a specific voyage. From load port to discharge port.
- Demise charter: time charter but for longer periods of time, usually years. The charter has more power on the ship
Shipbrokers
What happens if a broker acting as agent exceeds his authority?
- To facilitate a deal
- Specialize in different types of ships
- if the broker is acting as an agent their will be a contract with obligations between the broker and the party on whose behalf it is acting
- breach of warranty of authority
Hague-Visby Rules
- Mandatory framework of rights and obligations that apply to the carriage of goods by the sea.
- To ensure that obligations under charter party and B/L are the same
Seaworthiness
A ship has passed the required test and safety checks to navigate and defend itself from the perils of the sea.
Reasonable Dispatch
Where the contract does not specify exact time, but is implicated that in a reasonable time.
Deviation
Intentional and unreasonable change of route
Safe Port
- Hazards need to be more than temporarily
- Come and go without being exposed to danger which cannot be avoided with good navigation.
What are a charterer’s primary and secondary obligations in relation to nominating a safe port?
- The port must be safe when the Charterers nominate it
- f the Charterers subsequently find out, prior to the vessel’s call at the port, that the port has become unsafe, they must cancel the original nomination and order the ship out of danger
What right does a liberty clause give the owner of a vessel?
- Allows the Owners to perform what might otherwise be considered a deviation
