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Shipping Management > Voyage Charter > Flashcards

Voyage Charter Flashcards

1
Q

what is voyage chartering

A

A voyage charter focuses on the transportation of a specific cargo on a single voyage between designated ports.

carriage for a specific cargo from A to B

about the transport of a specific cargo from A to B

during a voyage charter period, the ship is under full control of the shipowner the shipowner undertakes the responsibility to **provide a specific vessel **
at the charterer’s disposal for
the carriage of an agreed type and amount of cargo at the time and between the port request by charterer

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2
Q
  1. who bears the costs incurred to the ship
  2. and what costs are included
A
  1. shipowner
  2. include capital cost, crew wages, soters, provisions, insurance, bunkers, canal tolls, harbour dues, etc.
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3
Q

relationships under a voyage charter involves two parties

charterer & carrier

A

carrier: promise to transport a specified cargo from point A to point B by ship in return for remuneration
charterer: deliver the cargo to the ship and pay the agreed amount of compensation (freight)

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4
Q

in the voyage charter party

when a particular ship is named to perform the contract

A

the duties of the owner will be tied to the named ship
shipowner cannot choose to perform the charter party with a different ships

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5
Q

what happend if the named ship is damaged or detained at a port of discharge

A

the shipowner will be under no duty to complete the voyage with another ship

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6
Q

what is “vessel to be named” clause

if include this clause,what should the contract include about the vessel

A

permit the owner to nominate the vessel as a later stage

the charter party should set out **clear requirements regarding the type of ship **to be employed
clear specifications regarding size, type of loading, and/or discharging requriement etc.

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7
Q

how would the charter party descripe the ship

A
  1. identify the ship name
  2. or set out description for the vessel
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8
Q

what is “substitution clause”

A

the named particular ship in the charter party as “substitute”

charterer cannot force shipowner to substitute

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9
Q

when would lose the substitution right

A

if the named ship is declared a total loss

as long as shipowner hs not exercised his options to substitute before the loss, the charter party’s fate is tiedd to the vessel

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10
Q

what is Gencon

who developed it

A

a standard voyage charter party form

Baltic and International Maritime Conference (BIMCO)

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11
Q

what is the size of the ship

A

description of size in the charter party denotes the ship’s capacity to transport cargo

not the whole of a ship’s **deadweight capcity **is avaialble for cargo

some capacity has to be used for bunkers, fresh water, sotres, etc..

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12
Q

what would happen if the ship’s capacity is not the same as that designated in the charter party

A
  1. claim for breach of contract and claim damages
  2. if cause material breach / great difficulties for the charter - give charterer the right to cancel the charter party
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13
Q

seaworthiness / cargoworthiness

what would happen if the ship is not seaworthy when arrives at the loading port

A
  1. charterer will have right to refuse to load until the defects are corrected
  2. charterer may be able to cancel the charter party (if the cancellation date arrives before the defects have been remedied)

charter could claim for damages

decisive factor:
depends on whether unseaworthy or not
not depend on shipowner or his representatives negligent

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14
Q

part chartering

what is part chartering

A

here are a few charter parties at the same time for the same ship but different parts/slots

chartering under a charterparty for less than en entire ship or less than a full cargo

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15
Q

what is “due dispatch”

A

Due dispatch” = the owner must perform the voyage with due dispatch (NMC § 339)
* The choice of route should be reasonable
* The speed should be reasonable
* No deviation (regulated differently in different standard forms)
* Re-routeing – good seamanship, demands of public authorities
***

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16
Q

time factor

what is laytime

A

Laytime is time allowed to a vessel for loading and discharge of cargo

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17
Q

when does laytime start to commence

no need to memorize Gencon Clause 6 laytime (C)

what should consider when commence laytime

A

notice of readiness

  • Importance of the moment when the laytime starts to run
  • Importance of what does not count as laytime/demurrage
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18
Q

when could start the commencement of laytime? ***
NMC 332

A

three conditions:
1. the ship has arrived
2. the ship is ready to receive cargo (seaworthiness)
3. the notice of readiness is given

all three conditions need to be fulfilled to commence the laytime

NMC 333 first paragraph

check laytime commecement from the charter party (contract) first

if there is no clear answer at the contract
then we will go to the applicable law -> Norwegian maritime code

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19
Q

how to satisfy the conditions of “ships arrived”

A

depends on if it’s berth charter or port charter

if berth charter, then the ship must arrive the specificed berth -> then consider as arrive

if port charter and no available berth, arrive within the port and wait at the customary area -> consider as arrive

20
Q

Gencon Clause 6 laytime commencement
6(c) second paragraph
1. who bears the risk of unavailable berth when vessel arrive?
2. when could NoR be given and what is the pre-condition to give if designated berth unavailable and waiting at the port
3. when will laytime start to commence

A

the charter bear the risk of congestion (when a vessel arrived and berth is unavailable)

NoR can be given when the ship arrives at the loading/discharging port, even if the ship has to wait outside the port
- precondition: the ship must be ready to load

laytime commences in the ordinary manner, but such that the time used to move from the waiiting place to the berth does not count

21
Q

how to satisfy the conditions of “ready to receive cargo”

A

the ship is seaworthiness and cargoworthiness

22
Q

when could send the Notice of Readiness

A

notice can only be given once the ship satisfies the (1) and (2) conditions

the ship arrives
the ship is ready to receive cargo

23
Q

when will the laytime start to run after giving NoR

NMC 332 Commencement of laytime

A
  1. if the notice is given before 10:00, time commences from the end of the the mid-day break
  2. if notice is given later, but no later than 1 hour before the end of office hours, time counts in full during the morning of the next working day
24
Q

expression of length of the laytime

not need to memerize but need to be familiar with

A
  • Duration of laytime in days/hours e.g., five days, 72 (uninterrupted) hours
  • Loading rate e.g., 1000 tons per day
  • FAC (“fast as can”)
  • FACCOP (“fast as can custom of the port”)
  • Liner terms (based on the rate of loading by liner vessels in the relevant port, with an addition for time lost due to congestion)
25
Q

work in excepted periods / laytime commencement problem

Gencon clause 6
sundays and holidays excluded, unless used

A

if loading / discharging work is carried out during this period, the time (hours) actually used shall count, unless there are clear indications otherwise

26
Q

what is demurrage

A

compensation for failure to load or discharge the vessel within laytime.

loading/discharge exceeds the laytime, the ship goes on “demurrage” and the charterer must pay to the owner (the amount is usually fixed in the contract, a certain rate per day, even on Sunday/holidays)

27
Q

what’s the exceptions of “once on demurrage always on demurrage”

NMC 334

A

exceptions applies to time lost due to “hindrance on the part of the voyage carrier”,

or loss of time because the vessel has berthed at a place which is not customary and this is owing to circumstances the owner “could reasonably have taken into account at the time when the contract was conclued”

28
Q

what is “despatch”

A

opposite of demurrage,
i.e., the owner pays the charterer a certain amount of money for loading/discharging being completed before the laytime expired (the amount usually 1⁄2 of demurrage)

29
Q

port not equal to berth / place to load or discharge

Where is then loading/discharging to happen?

A

depends on whether we have “berth charter” or “port charter”

30
Q

what is “berth charter”

A

The charterer is responsible for ensuring that the **designated berth is available when the ship arrives. **
If the berth is unavailable, the charterer may be liable for any additional costs, demurrage, or delays incurred by the shipowner.

31
Q

what is “port charter”

A

agree to transport cargo between designated ports

32
Q

what is the difference between “berth charter” and “port charter” ***

A

In a berth charter, owners can only tender the NOR when the vessel has actually berthed.

In the case of a port charter when no berth is available, the vessel must normally have reached a position within the port where waiting ships usually lie.

33
Q

“near port” clause

in contract OR law?

A
  • “near port” clause (clause in the contract; freedom of contract!)
  • “proceed to XX or so near thereto as the vessel may safely get”
  • Used in cases of an unexpected event that could not have reasonably been foreseen at the time of the conclusion of the contract
34
Q

what is the condition to exercise “near port” clause

payment of freight?

A

unexpected event that cannot be resonably foressen at the time of the conclusion of contract
* this event cannot be of too short of duration and
* must happen in the designated port or close by**
* The owner is entitled to claim full freight upon completion of loading/discharge

35
Q

“substitute” port

in contract OR law?

A

“substitute” port of discharge
(this is not a clause in the contract)
(a possibility given by law or practice)

36
Q

when could exercise “substitute” port right

payment of freight?

A
  • The original port inaccessible or causes unreasonable delay
  • The owner has the right to discharge at another port but must take into consideration the interests of the charterer in choosing the substitute port
  • The owner gets **only a pro rata (part) freight **(unless a strike or war clause is invoked)
  • This is not a clause in the contract
  • It applies only with regard discharging
37
Q

freight and allocation of expenses

A
38
Q

what is FOB

A

free on board
seller shall deliver the goods onboard the ship designated by the buyer: risk of loss to the goods is transferred when the cargo passes the ship’s rail,
and finally the seller bears all costs in connection with the goods until such time

the transportation is arranged by the buyer, and he has to cover all epenses incurred from the point of time that the seller has fulfilled his delivery obligations

39
Q

what is “FIO” clause

A

free in and out
the shipowner is responsible for the cost of loading and unloading cargo from the vessel, but the time spent in the port is not included in the charter period.

40
Q

who bears the voyage expenses

for example what expenses

A

shipowner

include capital costs, maintenance expenses for the ship, salaries etc. for the crew and expenses connected with supplies of various sorts (eg. provisions, lubricating oil, paint)

the owner must bear the expenses connected with the particular voyage eg. losding/discharging expenses, port expenses, bunkers, etc.

41
Q

right of retention

NMC 345

A
42
Q

what are the two methods of calculating freight

A
  1. fixed as lump sum
  2. a certain amount per transported unit (eg. USD 18.50 per ton)
43
Q

when is the shipowner entitle with freight

A

whe the cargo arrives at the discharging port

44
Q

what’s the differnece between FOB and CIF

P480 Maritime Law

A

CIF requires the seller to cover the total cost of the goods, freight and insurance.

Whereas FOB only requires the seller to cover the cost of loading the goods onto the vessel; the buyer then pays to transport and insure the goods (as well as any other charges incurred once the goods are on board).

45
Q

what is the exception of shipowner still be able to claim the freight if cargo is completely lost when arrive

no memorize just check applicable NMC law

A

NMC 344

46
Q

what is bill of lading (need to finish)

A

Shipping Management (3 decks)

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