Past Exam Questions Flashcards

Question

What 12 points are on the checklist for a firm offer of a voyage charter?

Answer 1

1. Vessel Details (Name, DWT, year built, flag, class) 2. Cargo Description (type, quantity, grade if needed, tolerance) 3. Loading Port(s) 4. Discharge Port(s) 5. Laycan Dates (start and end window) 6. Freight Rate (e.g., USD per tonne, or Worldscale rate) 7. Demurrage/Despatch Rates (e.g., USD/day on demurrage, half despatch) 8. Loading/Discharge Rates (e.g., MT/day, or in accordance with port norms) 9. Charterparty Form (e.g., ASBATANKVOY, SHELLVOY 5) 10. Special Clauses (e.g., STS, heating, inerting, additional insurance if needed) 11. Brokerage Commission 12. Firm Validity Deadline (how long the firm offer remains open)

Answer 2

1. Flexibility for Different Quantities * Worldscale freight automatically adjusts for the actual quantity loaded. * No need to renegotiate freight if slightly more or less cargo is loaded within tolerance. * In contrast, lumpsum freight is fixed regardless of quantity, which can penalize Owners if full cargo isn't loaded. 2. Market Transparency * Worldscale rates are standardized and widely published, reflecting prevailing market conditions. * Charterers and Owners can easily benchmark and negotiate fairly. * Lumpsum or per-tonne rates can be less transparent, harder to compare to market levels. 3. Automatic Adjustment for Port Costs and Bunkers (with WSHTC) * WSHTC (Worldscale Hire Terms Confirmed) includes automatic adjustments for bunker prices and port costs based on published assumptions. * Protects both parties from extreme swings in operational costs. * Lumpsum/per-tonne rates leave Owners fully exposed to cost increases (bunkers, port dues). 4. Operational Simplicity for Complex Voyages * For voyages involving optional ports, long ballasts, or changes in routes, Worldscale-based freight easily adapts using different flat rates. * Lumpsum freight does not adapt if port rotations change — which can create disputes or losses. 5. Reduced Disputes * Standard Worldscale terms are widely understood, reducing ambiguity about who bears which costs and risks. * Lumpsum arrangements can lead to more disagreements if costs rise unexpectedly. Using a Worldscale or WSHTC freight structure provides flexibility for actual cargo loaded, transparency against market levels, automatic adjustments for bunker and port costs, operational simplicity for complex voyages, and reduces the risk of disputes compared to fixed lumpsum or per-tonne freight rates.

Answer 3

**Final Offer from the Charterer** A final offer from the Charterer normally comes after negotiations over the firm offer. It contains the Charterer's last and final proposed terms — freight rate, demurrage, laycan, cargo size, etc. It is essentially their acceptance of the Owner’s previous counter, or their last counter before acceptance. Subjects may be attached — like: * "Subject internal approval" * "Subject receiver's approval" * "Subject management consent" In essence: “if you accept these terms, I am willing to fix subject to these final conditions being lifted.” *Final offer from Charterers usually means: we want to fix if our subjects are lifted. No fixture is fully binding until the subjects are lifted.* **Final Offer from the Owner (or Owner’s Broker)** A final offer from the Owner is their final reply to Charterer's counteroffer. It presents the Owner’s last commercial terms they are willing to fix on (e.g., confirming laycan, freight, cargo size). Subjects may also be attached, commonly: * "Subject stem confirmation" (stem = cargo quantity allocated) * "Subject owners' board approval" Owner’s final offer also sets a firm deadline ("firm until [time]") by which Charterers must respond. Final offer from Owners typically locks in the commercial details unless valid subjects are not lifted. **Subjects** ("subs") are conditions precedent — things that must happen before a contract is binding. Subjects are added explicitly at the final offer stage — they must be clearly stated with the final offer or acceptance. Until subjects are lifted, there is no binding fixture. Once all subjects are lifted ("subs lifted"), the charter becomes fully binding and enforceable. *A final offer from either Charterer or Owner presents their last position, often subject to final approvals. The addition of subjects protects the offering party until they are ready to fully commit. No binding fixture exists until all subjects are lifted.*

Answer 4

Anticipated weather conditions for a voyage from Jebel Ali (10th October) to Thames Oilport: **Persian Gulf (Jebel Ali departure):** * Still hot (air temperatures around 30–35°C). * Calm seas generally expected, but visibility may be reduced due to haze or dust storms (Shamal winds can occur but are less common by October). **Arabian Sea and Gulf of Aden transit:** * End of the southwest monsoon season — seas still slightly rough early October but calming. * Risk of residual swells and occasional thunderstorms. **Red Sea / Suez Canal:** * Hot and dry, with generally calm seas. * Dust storms possible (especially around the Suez area). **Mediterranean Sea:** * Transition to autumn conditions — cooler temperatures. * Increased risk of strong winds (especially Mistral winds in western Mediterranean) and rougher seas. * Possible thunderstorms. **English Channel and Thames Estuary (Arrival):** * Typical autumn weather — cool, windy, frequent low-pressure systems. * Likely rough seas, strong westerly winds, rain, and reduced visibility (especially fog in early mornings). Exam style summary: Loading from Jebel Ali in October, the vessel can expect hot, dry conditions with occasional haze or dust storms in the Persian Gulf, followed by slight to moderate seas and possible residual swells after the southwest monsoon in the Arabian Sea. Transiting the Red Sea and Suez Canal, weather should remain generally calm and dry, but dust storms are possible near Suez. Crossing the Mediterranean, the vessel may encounter cooler temperatures, thunderstorms, and strong winds, with rougher seas developing as autumn systems move in. Approaching the Thames, typical autumn weather can be expected, including cool temperatures, strong westerly winds, rain, and reduced visibility.

Answer 5

**Freight**: The main source of income is the agreed freight, payable for carrying the cargo from the load port to the discharge port. **Demurrage**: If the vessel is delayed beyond allowed laytime at loading or discharge ports, the owner earns demurrage at a daily rate. **Despatch** (less common for owners): If loading or discharging is completed faster than the allowed laytime, despatch (half the demurrage rate unless agreed otherwise) is typically payable by the owner to the charterer — *thus not an income but a potential deduction.*

Answer 6

**Freight Payment**: * Usually payable upon completion of loading and before release of bills of lading, unless otherwise agreed. * Can also be structured as payable within a set number of days after signing/completion of loading. **Demurrage Payment**: * Owner must present a written demurrage claim with full supporting documentation, typically within 90 days (or as specified). * Payment terms for demurrage are usually agreed separately, often within 30 days of claim submission. **Additional Costs** (if specified): If there are extra agreed costs (e.g., heating cargo), these would also be invoiced according to the terms set out in the charter.

Answer 7

*Owners' offer noted. We counter as follows:* **Quantity**: 70,000 metric tonnes clean petroleum product, 10% more or less in Charterer's option. **Loadport**: 1 safe port MEG (exact port to be nominated). **Disport**: 1 safe port Japan (Charterer's option to nominate). **Laycan**: 20–25 May. **Freight**: WS 190 basis 70,000mt (Flat Rate 2025). **Charterparty**: Asbatankvoy form *with Charterer's standard amendments.* **Demurrage**: USD 30,000 per day pro rata. **Freight payment**: 100% within 7 banking days after signing/release of bills of lading. **Heating**: No heating required. **ETC**: Freight address commission 2.5% payable by Owners. *Subject to usual subjects including management approval, to be lifted within 24 hours.*

Answer 8

**Lower Freight Rate** (e.g., WS 190): They are trying to negotiate a *better price* for the transportation of the cargo, improving their voyage economics. A lower WS rate reduces their overall shipping cost, important when margins on the cargo itself are tight. **Laycan** (e.g., 20–25 May): *Narrowing the laycan* (compared to what owners may have initially offered) gives the charterer better control over vessel arrival timing. It protects the charterer's supply chain (e.g., refinery operations) and reduces the risk of delays or "late readiness" by the vessel. **Quantity** (e.g., 70,000mt +/- 10% CHOPT): *Including "1% Charterer's Option* gives the charterer flexibility to optimize cargo volume based on last-minute supply/demand, storage availability, or cargo blending. **Load and Disport Details**: By keeping load and discharge ports "1 safe port" with option to nominate later, the charterer retains operational flexibility. It also helps them react to changes in refinery or market needs without renegotiating the contract. **Demurrage Rate** (e.g., USD 30,000/day): A lower demurrage rate than the owner might want protects the charterer if there are port delays. Lower demurrage exposure is important in congested load or discharge regions (e.g., Japan). Freight **Payment Terms** (e.g., 7 days after bills signed): Delaying freight payment (instead of paying immediately) improves the charterer's cash flow. It lets them sell or use the cargo and generate revenue before paying freight. **Charterparty Form** (Asbatankvoy with charterer's standard clauses): Charterers often want to *amend* the standard CP to include clauses that protect their interests (e.g., clauses on cargo handling, time bar for claims, indemnities). "Standard amendments" mean they are pushing for terms they know favor them based on past experience. **Subjects** (e.g., "usual subjects, lifted in 24 hours"): Subjects allow the charterer to exit the negotiation without liability if their internal approval (management, trading desk, risk team) isn't given. 24 hours to lift subjects keeps the deal moving quickly but still gives them a safety net. Address **Commission** (e.g., 2.5%): Standard in the industry; it compensates charterers (or their broker) and is deducted from freight. Including it upfront ensures no confusion later.

Answer 9

Accept/Except is a common way brokers or negotiators indicate they agree to most of an offer except for specific points they want to change. "Accept/Except" wording example: * "Owners accept except laycan 19–24 May and freight WS 192.5." *Owners agree to everything the charterer proposed, **except** they propose different dates (laycan) and freight rate.* * It keeps negotiations efficient: no need to restate every agreed term. * It shows clearly where the outstanding points of negotiation are.

Answer 10

* A fixture is agreed through a series of negotiated exchanges between owners and charterers (often via brokers). * Each side will make an initial offer, followed by counter offers where they either accept, amend, or reject individual terms. * During negotiations, terms can be agreed point by point ("accept/except"). * Once all terms are agreed and subjects (e.g., management approval) are lifted, the fixture becomes binding. * The parties then issue a fixture recap confirming all agreed details. * From that point onward, both sides are contractually committed to perform the charter.

Answer 11

**Reduced Idle Time**: Fixing consecutive voyages ensures the vessel has continuous work, minimizing waiting days between cargoes (which cost the owner money without earning income). **Revenue Stabilit**y: Consecutive employment gives the owner more predictable cash flow and income planning. **Operational Efficiency**: Planning consecutive voyages allows better management of crew schedules, bunkering, maintenance, and provisions. **Market Positioning**: Fixing ahead ensures the vessel stays in desirable trading areas (important if freight rates vary sharply by region).

Answer 12

**Handysize / Handymax** * Consecutive employment reduces high operating costs relative to voyage returns (smaller parcel sizes mean margins are tighter). * Keeps the vessel moving without expensive ballast legs between cargoes. **MR Tankers** * Frequent short voyages for clean petroleum products (CPP), e.g., gasoline, jet fuel. * Consecutive cargoes minimize the need for time-consuming and costly tank cleaning (clean-to-dirty or dirty-to-clean switches). * Maintains vessel utilization efficiently. **LR1 / LR2 Tankers** * Typically used for long-haul clean or dirty products, such as naphtha from MEG to Asia or diesel from US Gulf to Europe. * Consecutive employment locks in multi-month forward business. * Reduces risk of costly ballast legs in volatile market conditions. **Aframax Tankers** * Trades regionally (e.g., North Sea, Mediterranean, US Gulf dirty trades). * Consecutive employment avoids exposure to spot market downturns. * Secures repeat business with refiners, oil companies, and traders. **Suezmax / VLCC** * Operate in long-haul crude oil markets. * Consecutive employment, particularly through Contracts of Affreightment (COAs), ensures steady cash flow. * Minimizes risks of expensive and lengthy ballast voyages due to vessel size and repositioning challenges.

Answer 13

**Voyage Type:** Round trip (laden + ballast). **Standard Vessel**: 75,000 dwt for clean products (MR/LR1 routes). 280,000 dwt for crude (VLCC routes). **Speed**: 14.5 knots laden. 15.0 knots ballast. **Bunker Consumption**: 55 tonnes/day at sea laden. 50 tonnes/day at sea ballast. 5 tonnes/day in port. **Port Times**: 24 hours for loading. 24 hours for discharging. +4 hours for bunkering if needed. **Bunker Prices**: Standardized average published annually (e.g., based on Fujairah, Rotterdam, Houston). **Daily Hire Rate** (2025): USD 13,500 per day. **Cost Components**: Bunkers + Port Charges + Canal Dues (if any) + Hire. **Final Step**: Total cost ÷ Cargo quantity (tonnes) = USD per tonne flat rate (WS100). **Purpose**: To allow equalized daily earnings across all voyages and simplify freight negotiations.

Answer 14

The Worldscale Association publishes annually a set of flat rates for the tanker market, representing the theoretical cost per tonne of cargo to complete a standard voyage between a specific load port and discharge port. WS100 refers to the base rate at which a shipowner would cover all costs and achieve a modest profit under standardized assumptions. WS100 is calculated based on a round voyage, meaning the vessel sails laden from the load port to the discharge port, then returns in ballast (empty) to the original load region, or another major loading area nearby. All calculations assume a full round-trip, not a one-way voyage. To ensure uniformity, a hypothetical standard vessel is used. For 2025, the assumptions typically are: **Size**: 75,000 metric tonnes deadweight (for clean products) or 280,000 dwt (for VLCC-sized crude voyages). **Service Speed**: * 14.5 knots laden (cargo on board). * 15.0 knots in ballast (returning empty). **Bunker Consumption**: * 55 tonnes per day at sea laden. * 50 tonnes per day at sea ballast. * 5 tonnes per day in port (while loading/discharging). Bunker prices are standardized for each year’s calculation, based on a weighted average of major bunkering ports (e.g., Fujairah, Rotterdam, Houston). The specific prices are published with the Worldscale schedule. Port times are also standardized: **Loading**: 24 hours. **Discharging**: 24 hours. **Port bunkering time**: 4 hours per bunkering operation, if needed. If the voyage includes a canal transit (e.g., Suez or Panama), standard canal dues are included based on the notional vessel’s dimensions and flag (usually Liberian flag for Worldscale calculations). **Daily hire rate assumption**: A fixed daily hire rate of USD 13,500/day (2025 schedule) is used. This ensures that across all possible voyages, the vessel earns the same base daily income under WS100, regardless of voyage length or difficulty. Step-by-step process: 1 - Estimate total voyage time: * Calculate laden and ballast legs separately based on distances and speeds. * Add fixed port times and any delays (e.g., bunkering, canal transit). 2 - Estimate total costs: * Bunker costs: Based on fuel consumption at sea and in port, multiplied by standard bunker prices. * Port charges: Loading and discharging port costs plus agency fees. * Canal dues: If applicable. * Daily hire costs: Daily hire rate multiplied by the total voyage time. 3 - Add all costs together: (Bunker + port + canal + hire) = total voyage cost. 4 - Divide total cost by cargo quantity: Produces a USD per tonne flat rate. This per-tonne figure becomes the WS100 flat rate published by Worldscale. **In practical chartering use**: Charterers and owners negotiate the final freight as a percentage of WS100. For example, WS140 means the owner will receive 140% of the WS100 rate for that voyage. The system allows for easy, standardized freight rate comparison across very different voyages and regions. **Conclusion**: WS100 is not simply a market freight rate but a carefully calculated benchmark based on standardized ship performance, voyage assumptions, and costs, designed to ensure an equalized earnings structure (USD 13,500/day in 2025) across all trade routes. This structure provides a universal reference point for negotiations, making tanker freight markets more efficient and transparent.

Answer 15

* Reversible laytime means the allowed laytime at the load port and discharge port can be combined and used flexibly. * It allows surplus time at one end (e.g., quick loading) to be carried over and used to cover delays at the other end (e.g., slow discharging). * Instead of treating loading and discharging laytime separately, they are treated as one total "pool" of time. **Key Concept**: Laytime is reversible when both loading and discharging times are pooled together. **Key Phrases for Exam Use** *"Reversible laytime allows surplus time saved at one port to be used at another, treating loading and discharging times as a single pool." *"It benefits charterers by reducing the risk of demurrage where operational speeds differ between ports." *"Without reversibility, time savings at load cannot offset overruns at discharge."

Answer 16

**Flexibility** Faster loading can compensate for slower discharging, and vice versa. **Reduced Risk of Demurrage** Owners and charterers can avoid demurrage if total laytime across both ports is still within the combined allowance. **Efficient Operations** Encourages efficiency at both load and discharge ports because time is used more strategically. **Commercial Advantage** Charterers often push for reversible laytime to give themselves more margin, especially when discharge ports are unpredictable. **Key Phrases for Exam Use** *"Reversible laytime allows surplus time saved at one port to be used at another, treating loading and discharging times as a single pool." *"It benefits charterers by reducing the risk of demurrage where operational speeds differ between ports." *"Without reversibility, time savings at load cannot offset overruns at discharge."

Answer 17

1. Shifting between berths (unless vessel already on demurrage) | If shifting is ordered by the port authority or is outside the ship’s control. 2. Bad weather (preventing cargo work) | Time when cargo operations are stopped due to weather is excluded. 3. Public holidays | Official port holidays when work normally stops are excepted (unless work continues). 4. Delays caused by shore authorities | Customs, immigration, health inspections, or quarantine delays not caused by the ship. 5. Pilot or tug delays (if outside owner's control) | Waiting for compulsory port services can stop laytime running if beyond the owner's fault.

Answer 18

**Strikes or lockouts at the port** | If they prevent cargo operations, and if the charterparty specifies (e.g., “strikes excepted” clauses). **Lack of cargo availability** | If the charterer's cargo isn't ready for loading or receiving discharge. (Owner can't be penalized.) **Mechanical failure of shore equipment** | If the port’s loading arms, cranes, or pipelines break down — owner's time isn't used up. **Delay caused by cargo contamination or sampling disputes** | In tankers, sampling and lab analysis delays may be excepted depending on CP terms. **Free pratique or quarantine delays** | If authorities delay giving free pratique (permission to operate), time can be excepted. * Some of these (like strikes, shore gear breakdown) depend on exact charterparty wording. * Not all exceptions are automatic unless written into the CP — always mention "subject to charterparty terms" in your answer!

Answer 19

Laytime is the period allowed to the charterer for loading and discharging without penalty. However, certain periods are traditionally excepted from laytime either by custom, standard charterparty clauses, or specific agreement. The following ten periods are usually excepted: 1 - Shifting between berths: Time taken for the vessel to shift berth within the port, if ordered by port authorities or caused by congestion, is excepted unless the vessel is already on demurrage. 2 - Bad weather: Time lost due to adverse weather conditions that prevent cargo operations (e.g., heavy rain, high winds) is usually excepted, provided cargo handling is genuinely stopped. 3 - Public holidays: Time lost during official public holidays, when no cargo work is performed, is traditionally excepted unless expressly stated otherwise in the charterparty. 4 - Shore authority delays: Delays caused by customs, immigration, health inspections, or other administrative bodies, where not due to the ship's fault, are excluded from laytime. 5 - Pilot and tug delays: If pilots or tugs are unavailable and their services are compulsory for berthing/unberthing, time lost is generally excepted, assuming the owner has exercised due diligence. 6 - Strikes or lockouts: If port workers are on strike or locked out, preventing cargo work, time can be excepted if the charterparty includes appropriate strike clauses (e.g., “Strikes Excepted” clause). 7 - Cargo not ready: If the cargo to be loaded or discharged is not ready when the vessel is ready, time lost due to cargo unavailability may be excluded from laytime, subject to charterparty wording. 8 - Mechanical failure of shore equipment: If the loading arms, cranes, pipelines, or other shore equipment required for cargo operations fail, and the ship is ready, the resulting delay is often excepted from laytime. 9 - Cargo contamination or sampling disputes: Particularly in tanker trades, delays due to sampling, lab analysis, or contamination issues that are beyond the owner's control may be excepted under specific charterparty provisions. 10 - Free pratique or quarantine delays: Time lost awaiting free pratique (clearance to operate in port) or caused by quarantine inspections is usually excepted where delays are due to port authorities and not shipborne causes. In all cases, whether time is excepted depends on the precise wording of the charterparty. Some exceptions, like bad weather and holidays, are widely recognized, while others, such as strikes and mechanical failures, require specific clauses. It is important that owners protect their position by negotiating charterparty terms carefully to ensure they do not lose laytime unfairly for events beyond their control.

Answer 20

* Lifting subjects means confirming that all conditions attached to an offer or counter-offer have been satisfied, and the parties are now firmly committed to the charterparty. * In shipping negotiations, an owner’s or charterer’s offer may be made "subject to" certain approvals (such as management approval, internal vetting, or final confirmation). * While subjects remain, neither side is legally bound. * Once the subjects are lifted, the agreement becomes binding and the fixture is final. **Key points to include in an exam**: * Subjects = conditions that must be satisfied before the contract becomes binding. * Lifting subjects = removing those conditions. * After subjects are lifted → the fixture recap is issued and both sides must perform. * Lifting subjects means confirming that all conditions to a charterparty have been met, making the agreement firm and binding

Answer 21

* A fixture is agreed through a series of negotiated exchanges between owners and charterers, usually with brokers assisting to relay and clarify terms between the parties. * Each side will make an initial offer, followed by counter offers where they either accept, amend, or reject individual terms. * During negotiations, terms can be agreed point by point using "accept/except" to highlight any remaining points of dispute. * Once all terms are agreed and subjects (e.g., management approval) are lifted, the fixture becomes binding. * The parties then issue a fixture recap confirming all agreed details, setting out the final contract terms. * From that point onward, both sides are contractually committed to perform the charter. * Lifting subjects means confirming that all conditions attached to an offer or counter-offer have been satisfied, and the parties are now firmly committed to the charterparty. * In shipping negotiations, an owner’s or charterer’s offer may be made "subject to" conditions such as management approval, internal vetting, or final confirmation. * While subjects remain, neither side is legally bound. * Once the subjects are lifted, the agreement becomes binding and the fixture is final. * The time allowed for lifting subjects is usually limited (e.g., 24 hours) to ensure certainty and prompt finalization.

Answer 22

**Introduction**: * In a **bareboat charter** (also called "demise charter"), the owner hands over full possession and control of the vessel to the charterer. * Because the charterer will operate the ship *as if they own it* (including crewing, insurance, management, and maintenance), **vetting the charterer** is critical before agreeing to a long-term deal. 1. **Financial Due Diligence** *Review charterer's financial records, annual reports, credit ratings, and funding sources.* Long-term fixture means owners are exposed to default risk; need to check charterer can meet hire payments. 2. **Reputation and Track Record Check** *Investigate charterer's operating history, any previous bareboat charters, management experience, incidents, and disputes.* Charterer's reputation affects ship condition and owner’s interests if vessel is redelivered damaged. 3. **Operational Capability Assessment** *Review charterer’s technical management capabilities — or check if they intend to outsource to a ship management company.* Charterer must maintain vessel class, certifications, safety standards. Poor management risks vessel value. 4. **Insurance Review** *Confirm charterer’s ability to arrange and maintain insurance (Hull & Machinery, P&I, War Risks, etc.) at appropriate levels.* Protection against total loss, third-party claims, pollution, etc. under bareboat charterer’s responsibility. 5. **Legal and Compliance Review** *Ensure the charterer complies with sanctions laws, flag requirements, and international maritime conventions.* Protects owner from reputational damage or vessel arrest due to charterer's illegal or non-compliant operations. 6. **Charterparty Terms Negotiation** *Ensure clear terms in the Bareboat Charter Party (e.g., BARECON 2001/2017 forms): maintenance obligations, insurance responsibilities, redelivery condition, default remedies.* Legal protection — clear obligations reduce disputes and financial exposure for owners. 7. **Security Requirements** *Depending on the risk level, owners may require security such as bank guarantees, performance bonds, parent company guarantees.* Extra protection if the charterer defaults or damages the ship. **Conclusion**: Before agreeing a long-term bareboat fixture, owners must carry out detailed financial, operational, reputational, and legal checks on the charterer. Security arrangements and careful drafting of the charterparty terms are critical to protect the owner's asset during the period of charterer's full control. **Key points**: * Financial due diligence * Operational and technical capability * Insurance arrangements * Compliance with laws * Importance of security (guarantees) * Well-drafted charter terms (using standard forms like BARECON)

Answer 23

"The Charter Period shall be for a time charter of twelve (12) months, plus or minus fifteen (15) days at Charterers' option, commencing upon the vessel being delivered to the Charterers at the agreed delivery port." (This gives Charterers slight flexibility on period length, which is very normal.)

Answer 24

"The Vessel shall be employed within International Navigating Limits as published by Lloyd’s, always afloat, always within safe port limits, and shall not be ordered to or required to enter any ice-bound ports or any ports where ice may obstruct the vessel unless Owners' prior consent is obtained. The vessel shall not be ordered into any area where there is a risk of war, hostilities, blockades, or sanctions, without Owners' consent, which shall not be unreasonably withheld subject to Charterers providing acceptable additional insurance cover at their expense." (This matches Shelltime 4 typical wording — limiting dangerous or ice navigation, war zones, sanctions risks.)

Answer 25

"The Vessel shall be employed only between safe ports, safe places, or safe berths where the Vessel can safely lie always afloat, and which she can reach and leave always safely and without risk of ice. The Charterers undertake that any port, berth, or anchorage to which the Vessel is ordered shall be safe for the Vessel at the time of the order and throughout the Vessel’s stay." (This is Shelltime 4 style — emphasizing Charterer's responsibility for ordering only safe ports.)

Answer 26

**Vessel Name** | Ship’s name, type (e.g., Aframax tanker). **Owners** | Name of registered owners or disponent owners. **Charterers** | Name of charterers. Period | Fixed period (+/- days option) — e.g., "12 months +/- 15 days at Charterers' option." **Delivery** | Place and approximate date of delivery (e.g., Fujairah, 1–5 June 2025). **Redelivery** | Place/Range and notice requirements (e.g., "Redelivery US Gulf/Caribs/Continent range"). **Trading Limits** | International Navigating Limits, no ice without consent, war zones only with additional insurance. **Hire Rate** | Rate of hire (e.g., USD 25,000/day) — state if gross or net of commissions. **Payment Terms** | In advance every 15 or 30 days, usually. **Bunkers** | Quantities/prices on delivery and redelivery; bunkers to be taken over and paid at current market prices. **Commissions** | Broker's address commission (e.g., 2.5% on hire earned). **Insurance** | Charterers to arrange and maintain H&M, P&I, War Risks, etc. as per Shelltime 4. **Safe Ports Clause** | Charterers guarantee always safe ports/places. **Shelltime 4 Terms** | Full terms Shelltime 4 CP, plus mutually agreed additional clauses. **Subjects (if any)** | Management/approval subjects and time allowed to lift (if not already lifted).