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Charter Parties: The Complete Guide – Types & Agreements

August 21, 2023

Looking for a comprehensive guide to charter parties? Our page covers all types and agreements, distinguishing us from the competition.

Charter Parties The Complete Guide

Charter parties , the legal contracts for chartering vessels, are the backbone of international shipping. They define the rights and obligations of shipowners and charterers, ensuring smooth operations on voyages. Whether it’s a time charter or a voyage charter, these agreements play a crucial role in facilitating global trade for carriers.

A charter party is not just any document; it serves a specific purpose in the context of chartering. Its clauses, articles, and provisions outline the terms that govern the relationship between parties involved in maritime commerce, typically in a contract. Shipowners carefully craft these agreements, known as charterparties, to protect their interests while meeting the needs of charterers who engage their services as carriers.

Understanding charter parties is essential for anyone venturing into international shipping. From specifying the duration of the charter period to determining responsibilities during loading and unloading, every detail matters in chartering. So let’s dive into this intricate world of maritime contracts and explore how they shape our interconnected global economy, specifically in relation to carrier and specific cargo.

Types of Charter Parties

Time charters.

A ship chartering, or time charter, involves leasing a vessel from a ship owner for a specific period. This type of charter party allows the charterer, or carrier, to have exclusive use and control over the vessel during the agreed-upon timeframe. It provides flexibility as the charterer can determine the ports of call and cargo carried.

Voyage charters

Voyage charters in ship chartering involve hiring a vessel for a single journey. Unlike time charters, which focus on an extended period, voyage charters are specific to one trip. The charterer pays the ship owner for transporting goods from one port to another without long-term possession or control over the carrier.

Bareboat charters

Bareboat charters involve ship chartering by leasing a vessel without crew or provisions. In this type of arrangement, the charterer assumes complete responsibility for operating and maintaining the ship during the agreed charter party duration. The shipowner transfers possession and control to the charterer, who becomes the carrier responsible for all aspects of navigation, crewing, and provisioning.

These main types of charter parties, including time charters, voyage charters, and bareboat charters, offer different options depending on the specific needs and requirements of the charterparty, carrier, ship owner, or shipowner. Time charters provide flexibility and extended use, voyage charters focus on individual trips, while bareboat charters grant full control to the lessee. By understanding these various types, individuals and businesses can choose which option best suits their particular circumstances.

Charter Party Agreements

Charter party agreements, also known as charterparty agreements, are legally binding documents that are negotiated between shipowners and charterers. These agreements specify important terms such as freight rates, laytime, demurrage, and more. Here’s a brief overview of charterparty agreements and how they form an essential part of container shipping.

• Charter party agreements, also known as charterparty agreements, are contracts that outline the terms and conditions of the chartering arrangement for container ships. They are typically negotiated between the shipowner, who owns the vessel, and the charterer, who will be using the container ship for a specific period or voyage.
• Charter party agreements include various provisions that define important aspects for ship owners. This includes details about freight rates (the cost of hiring the vessel), laytime (the allowed time for loading and unloading cargo), demurrage (additional fees if there is a delay in cargo operations), and other relevant terms.
• Legally binding documents: Once both ship owners agree to the terms outlined in a charter party agreement, it becomes a legally binding document. This means that both ship owners are obligated to fulfill their respective responsibilities as stated in the agreement.

Charter party agreements play a crucial role in the shipping industry by providing clarity and protection for all parties involved. They ensure that both shipowners and charterers understand their rights and obligations throughout the duration of the charter. Whether it’s a slot charter (a partial space booking) or a demise charter (complete transfer of vessel control), these agreements establish clear guidelines for smooth operations.

The Importance of Charter Parties in International Trade

Charter parties play a vital role in facilitating global trade, ensuring the efficient transportation of goods by sea. These agreements establish clear responsibilities and liabilities for both shipowners and charterers, promoting smooth operations and minimizing disputes. Let’s explore why charter parties are crucial in international trade.

• Facilitate global trade by providing vessel availability : Charter parties enable shipowners to make their vessels available for hire, allowing them to meet the demand for transporting goods across borders. This availability ensures that businesses can access reliable shipping services to move their products worldwide.
• Ensure efficient transportation of goods by sea: By defining the terms and conditions of carriage, charter parties help streamline the logistics process for ship owners. They specify loading and unloading procedures, delivery timelines, and any additional requirements for cargo handling. This clarity promotes efficiency and helps avoid delays or misunderstandings during transit, benefiting both shipowners and the overall shipping industry.
• Establish clear responsibilities and liabilities: Charter parties outline the obligations of both shipowners and charterers, ensuring accountability throughout the voyage. They determine who is responsible for vessel maintenance, crew expenses, insurance coverage, and compliance with maritime regulations. Clearly defined responsibilities minimize uncertainties and protect all parties involved.

Charter Parties and Bills of Lading

A bill of lading issued under charter party terms serves as a crucial document for shipowners in the shipping industry. It provides evidence of cargo receipt and condition, making it essential for transferability and financing.

• Under voyage charters or bareboat charters, a bill of lading is often issued to acknowledge the receipt of specific cargo by the shipowner or charterer.
• This document is essential for shipowners and charterers in the shipping industry as it serves as proof that the cargo has been loaded onto the ship and is in good condition. It is particularly important for both bareboat charter and voyage charter party agreements during the specified charter period.
• Charter parties facilitate the agreement between the shipowner (or bareboat charterer) and the charterer, outlining their respective rights and responsibilities.
• The bill of lading acts as a contract between the carrier (shipowner) and the shipper (charterer), ensuring that both parties fulfill their obligations.
• For freight forwarders, having a bill of lading issued under charter party terms allows them to confidently arrange transportation for their clients’ cargo with the ship owner’s assurance.
• The bill of lading also enables financing options for shippers who may need to use it as collateral or provide proof of ownership for obtaining loans during a bareboat charter, slot charter, or voyage charter party within the charter period.
• In addition to its importance in commercial transactions, bills of lading issued under charter parties serve as critical documents for ship owners’ insurance claims related to damaged or lost cargo.

Charter parties and bills of lading are integral components within the shipping industry. They ensure smooth operations, protect stakeholders’ interests, and provide necessary documentation for various purposes.

Ship Speed and Fuel Consumption in Time Charter

Ship speed plays a crucial role in determining fuel consumption within time charter agreements. The rate at which a vessel travels directly impacts the amount of fuel it consumes during its journey. Here are some key points to consider:

• Slow steaming: Slowing down the ship’s speed can significantly reduce fuel costs. By adopting this practice, charter parties can achieve substantial savings. However, it is important to note that slow steaming also extends the duration of the voyage.
• Cost versus time: When deciding on ship speed, charter parties must strike a balance between cost reduction and voyage duration. While slower speeds may result in lower fuel consumption, they can lead to longer transit times, affecting overall efficiency and profitability.
• Fuel efficiency considerations: In time charter agreements, fuel efficiency is a critical factor that influences financial outcomes. Parties involved must carefully evaluate the impact of ship speed on fuel consumption to ensure optimal profitability.

By considering these factors, charter parties can make informed decisions regarding ship speed and its effect on fuel consumption within time charter agreements. Achieving the right balance between cost reduction and voyage duration is essential for maximizing profitability while maintaining operational efficiency.

Understanding Laytime and Total Laytime

Laytime, a crucial aspect of charter parties for ship owners, refers to the time allowed for loading/unloading cargo. It determines the financial implications for both ship owners and other parties involved. Exceeding the laytime incurs demurrage charges, resulting in additional costs for ship owners.

Key points to understand about laytime and total laytime:

• Laytime : Laytime is the agreed-upon period during which the charterer has the right to load or unload cargo. It is typically expressed in days, hours, or even minutes. The clock starts ticking once the vessel arrives at the designated port or berth.
• Demurrage : When laytime is exceeded due to delays caused by either party, demurrage charges come into play. Demurrage refers to the money the charterer paid to compensate for the extra time taken beyond the agreed-upon laytime. This ensures that shipowners are compensated for any lost time and potential revenue.
• Financial Implications : Understanding laytime is essential because it directly impacts both parties’ financial interests. For shipowners, shorter laytimes result in quicker turnaround times and increased efficiency. On the other hand, charterers aim to maximize their use of laytime while avoiding demurrage costs.

By comprehending these concepts related to laytime and total laytime, ship owners and other parties involved in charter parties can effectively manage their operations while minimizing potential financial risks.

Remember: Promptly completing loading or unloading operations within the agreed-upon timeframe helps avoid unnecessary expenses and contributes to smoother logistics processes for all stakeholders involved in the ship charter, slot charter, voyage charter party, and charter party chain.

Safe Port Requirements in Voyage and Time Charters

Voyage charters require the charterer to transport cargo from one port to another by ship. In these agreements, it is crucial for the charterer to ensure that the chosen ports for cargo operations meet certain safety requirements. Similarly, time charters impose an obligation on the charterer to nominate safe ports throughout the duration of the agreement.

The selection of a safe port is crucial for ships due to the potential risks involved. Safety concerns encompass navigational hazards, ship security measures, and infrastructure conditions. By considering these factors, charter parties can mitigate dangers and ensure smooth ship operations.

Here are some key points regarding safe port requirements for ships in both voyage and time charters.

• Charterers must carefully evaluate the safety aspects of each port before initiating cargo operations on their ship.
• When entering a voyage charter party, it is essential to consider navigational hazards such as shallow waters, narrow channels, or unpredictable weather conditions that may be encountered during the ship’s journey.
• Security measures at ports are crucial in safeguarding cargo, whether on a ship or on land, from theft or any other criminal activities.
• The responsibility to nominate safe ship ports lies with the charterer throughout the duration of the contract.
• It is essential for charterers to stay updated on any changes in safety conditions at nominated ports to ensure their ships’ safety.
• Regular communication between all parties involved in the ship ensures that any safety concerns related to the ship are promptly addressed.

Key Takeaways on Charter Parties

Charter parties are critical legal instruments in the maritime industry. They establish rights, obligations, and liabilities between parties involved in international shipping. Here are some key aspects to consider:

• Lesson: Charter parties serve as a vital framework that ensures smooth operations within the maritime sector.
• Aspects: These agreements cover various aspects, including vessel specifications, cargo details, and the duration of the charter.
• News: Staying informed about recent developments and changes in charter party regulations is crucial for all parties involved.
• Details: The terms and conditions outlined in charter parties provide specific details regarding payment terms, insurance requirements, and dispute resolution mechanisms.
• Act: Charter parties act as binding contracts that protect the interests of both shipowners and charterers.
• Fortior: By clearly defining responsibilities and obligations, these agreements fortify relationships between shipowners, charterers, and other stakeholders.

Charter parties play an instrumental role in facilitating international trade by ensuring the efficient transportation of goods across borders. As these agreements govern vital aspects of maritime operations, it is essential for all parties to familiarize themselves with their provisions. Understanding the intricacies of charter parties can help mitigate potential disputes while fostering mutually beneficial relationships within the global shipping community.

Real-world Challenges with Charter Party Disputes

Legal professionals play a crucial role in resolving charter party disputes, which can be complex and challenging. These disputes often arise from breaches of the terms outlined in the charter party agreement. Arbitration is frequently employed as an alternative to court proceedings to settle such disagreements.

The involvement of legal professionals is essential due to the intricate nature of charter party disputes . Breaches of contract terms can lead to various issues, including financial costs, risks, and responsibilities for both parties involved. Here are some examples that highlight the complexities faced in this industry:

• Maintenance Responsibility: Disagreements may arise.
• Demise Charter Issues: A demise charter involves transferring full control and possession of a vessel to another party. However, conflicts may occur regarding the condition or performance of the vessel during this arrangement.
• Country-Specific Practices: Different countries have their own regulations and practices concerning charter parties, leading to potential clashes between international parties.

Arbitration is commonly utilized to settle these disputes outside of traditional court processes. This alternative dispute resolution practice offers several advantages:

• Confidentiality: Arbitration provides a more private setting compared to court hearings.
• Expertise: Parties involved can select arbitrators with specialized maritime law knowledge or specific aspects of their cases.
• Flexibility: The arbitration process allows for tailor-made procedures that suit the unique circumstances of each dispute.

At ANHISA, we have established ourselves as trusted lawyers and counsels for shipowners and charterers involved in charter party disputes. Our extensive experience in practical cases has allowed us to successfully advise and resolve complex situations, such as indemnification requests by shipowners due to early termination breaches.

We understand the importance of finding amicable solutions that benefit all parties involved. However, when negotiations fail, our team at ANHISA is well-equipped to guide shipowners through the arbitration process, ensuring their claims are properly represented.

Our expertise goes beyond shipping knowledge; we possess the technical know-how and strategic insights required to meet our clients’ expectations. With a strong foundation in shipping practice and a track record of working with international and local clients, we are committed to providing efficient, reliable, and personalized service for all your charter party disputes.

If you require assistance in resolving any charter party dispute, do not hesitate to reach out to us for a consultation. We are here to help.

Contact us via:

• Mr. Dang Viet Anh
• Email: [email protected]
• T: +84 28 5416 5873
• M: +84 983 467070

Q1: How can ANHISA assist with charter party disputes?

At ANHISA, we offer comprehensive legal counsel and guidance throughout the process of resolving charter party disputes. From negotiation strategies to arbitration representation, we ensure that our clients’ interests are protected.

Q2: What sets ANHISA apart from other law firms?

ANHISA’s unique advantage lies in our deep-rooted expertise in shipping practice combined with years of experience working with international and local clients. Our team possesses the technical knowledge and insights necessary to navigate complex charter party disputes effectively.

Q3: Can ANHISA help with both voyage and time charter disputes?

Yes, our expertise covers both voyage and time charter disputes. Regardless of the type of charter party involved, we have the knowledge and experience to provide tailored solutions for our clients.

Q4: How long does resolving a charter party dispute typically take?

The duration of resolving a charter party dispute can vary depending on the case’s complexity and the parties’ willingness to reach a settlement. At ANHISA, we strive to expedite the process while ensuring thorough representation for our clients.

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Charter Party Agreements

Img is one of the only law firms in the pacific northwest that focuses on both the transactional side and the litigation side of charter party agreements..

Different charter parties impose different obligations, exclusions, and limitations between each entity. For this reason, both shipowners and charterers should consider seeking sound and practical legal advice before drafting, amending or complementing any time charter, voyage charter, or bareboat charter party. During a contentious charter party dispute, shipowners and charterers should be especially aware of their legal exposures and contractual liabilities.

With experience in bareboat, time and voyage charters, contracts of affreightment and slot charters, dry bulk and containerized cargoes, oil, gas and products, IMG regularly acts on behalf of the region’s largest shipowners and charterers. Indeed, our expertise in transactional and contentious charter party matters gives us an invaluable perspective – we can foresee the problems that might arise and take steps to avoid them. Need help understanding your legal rights in a charter party contract? IMG can help.

or call   (206) 707-8338 to speak to a legal expert.

Bareboat Charters – What you need to know

Strapped for capital but want to expand your fishing fleet?  Bareboat charters can be a great financial alternative, provided you understand your liability.  

Frequent Charters We Advise Upon

Time Charters

Time chartering is a complex business. The shipowners give the time charterers substantial control over the commercial operation of the vessel in exchange for the regular payment of hire. While this arrangement suggests that the shipowners have transferred much of the potential operational risk to the charterers and that the charterers can do more or less what they like with the ship, such an initial impression on behalf of the time charterer is both deceptive and dangerous.

If you would like clarification of your rights and liabilities as either a time charterer or a shipowner, IMG can help.

Voyage Charters

Voyage charters are the most commonly used charter party agreement. Under a voyage charter, a ship owner and a charterer enter into a contract whereby the vessel will carry cargo between two points. The voyage can be a single trip or multiple trips, provided that the charterer has absolutely no operational control over the vessel while it is being operated. Any delays during the loading and unloading of the cargo, as well as any delays during the seagoing part of a voyage, generally fall onto the vessel owner. Many charterers prefer this allocation of risk.

Bareboat Charters

A bareboat charter is the simplest type of charter party agreement. Under a bareboat charter (a.k.a. “demise charter”), the charterer effectively becomes the owner of the vessel for all operational and trading purposes, and thus, is responsible for the navigation, operation, repair, maintenance, insurance, and crew of the vessel.

Despite an appearance of simplicity, bareboat charters are complex agreements, and numerous problems can arise during their use. Owners and charterers should seek sound legal advice before drafting or amending a bareboat charter.

What to Expect From Your Legal Team

• We provide practical, commercial and results-driven advice on a discreet and confidential basis.
• All assignments will have a nominated lead partner who will be your dedicated point of contact.
• We will work to your agenda, timescales and budgets to achieve the best outcome.
• We would expect to be your trusted adviser during the process and our industry knowledge and reputation will facilitate a direct and open dialogue between all stakeholders.

A Layman’s Guide to Laytime, Charter party Agreement and Voyage Charter

The word “Charterer” is probably as old as the word “Ship” itself.

Do you keep hearing this word so regularly?

Well, who doesn’t?

From seafarer’s point of view, it is so much important to understand these terms.

From commercial point of view, it is the moral responsibility of the seafarers to ensure that the ship owner profits from the ship operation.

And for this reason, we must understand when and where our loyalties lies.

But sometimes it becomes difficult to get a hang of all of it.

Not anymore.

In this blog, we will discuss about the terms charterer and charter party agreement.

Concept of Charter party agreement

It is all business.

And like in all kind of business, there are at least two parties involved, one of which provide a service or product to the other for a price.

With respect to carrying the cargo onboard the ships, these two parties are,

1) Ship owner who has the ship and provide the space on the ship to carry the cargo.

2) Shipper who has the cargo and wants a ship to transport the cargo

Then where does the term charterer fits into this?

Charterer is the party that has chartered (think of simple word “hired”) the ship.

If the shipper has chartered the entire ship then shipper will also be the charterer.

In most of the cases, charterer is a kind of middle man between shipper(s) and shipowners

This is particularly the case if there are more than one shipper.

For example, if the vessel is to load 50000 tons of cargo, there could be 10 shipper, say each of them with 5000 tons of cargo.

Alone none of the shippers would want to hire the entire vessel of 50000 tons capacity for their 5000 tons of cargo.

So they contact a charterer for transporting their cargo.

The charterer’s job is to find a vessel for the cargoes they have from different shippers and maximazing the space on ship they plan to hire.

Charterers may not be the only person involved in filling the gap between shipowner and shipper.

Sometime there are some other companies or persons who help shipper, charterer and shipowner to connect with each other for a fees.

They are called “Brokers”.

So the shipper’s broker is the person or company that help shipper find a charterer for a fees called brokerage.

And charterer’s broker is the person that help charterer find a ship to hire.

The charterer may even have brokers for different purpose. For example charterer may have a broker to find a cargo for the ship they want to hire and they may have another broker to find a ship for the cargo they have in hand.

Broker or no broker, the charterer and shipowner would agree on the terms and conditions which would form “ Charter party agreement “.

Charter party agreement is a detailed document which, apart from various clauses, has informations such as

• When and where the vessel is required to be
• the freight agreed
• If the broker was used, who need to pay the brokerage fee and how much

Even though shipowners is primarily dealing with the charterer, it does not mean that the shipowner would have no relation with the shipper.

Shipper and shipowner are connected by the “carriage of cargo at sea act”, also called COGSA .

And one of the main point of it is that shipowner is required to issue bill of lading to the shipper for the cargo loaded onboard.

And with that each of the shipper have entered into an agreement with the ship owner which is called “Contract of  carriage”.

While the “charter party agreement” is a formal agreement, the contract of carriage is governed by various laws and regulations such as Hague-Visby rule .

Charter party agreement supplement the contract of carriage.

Usually you would find a mention of the charter party agreement in the bill of lading. The wording in the bill of lading could be something like this.

This shipment is carried pursuant to charter party agreement between “ Charterer’s name ” and “ Carrier’s name ” and all the terms, clauses, conditions, liberties and exceptions whatsoever contained therein are incorporated into this bill of lading.

But do the shipowners and charterers do this exercise of negotiating the format of the charter party agreement each time they do the business together.

Absolutely not. Hell, it would take a lot of time.

Instead they use pre-defined forms. These forms are developed by Independent International stakeholders such as BIMCO and INTERTANKO and are widely used in the shipping business.

There are different forms for different trades.

For example there is form  SHELLVOY 6 for use in tanker trade and then there is form AMWELSH 93 for coal dry cargo chartering.

Also if a charterer and ship owner have done the business before, they use the same charter party agreement for the future shipments too.

For this reason, many a times even for a voyage in 2019, you may find the mention of charter party dated in 2016 or even before. In the bill of lading issued even in 2019 , it may read something like,

The shipment is carried pursuant to charter party agreement between “ Charterer’s name ” and “ Carrier’s name ” dated 01 January 2016…..

Now that we understand the concept of chartering, let us understand the different ways in which the ships can be chartered.

Voyage Charter, Time charter, Demise charter

There are different ways in which a charterer can charter (Hire) the vessel.

Charterer can charter the vessel for one voyage (Voyage charter), for a particular time period (time charter) or they can hire and run the vessel as if they are the owner of the vessel (Demise or bareboat charter).

In each type of charter, charterers and shipowners have different area of responsibilities.

Each type of charter is a subject in itself. So in this blog we will explore the voyage charter.

Voyage Charter

It should be clear from the name.

Under the voyage charter, the ship is hired from the ship owner for one voyage.

One voyage could consists of multiple load ports and multiple discharge port.

The best analogy to the term voyage charter is that with hiring an Uber for a ride from one place to the other, sometimes with multiple stops in between.

So when we hire an Uber, we hire just the cab. The cab driver is still under the instructions of Uber.

Similarly, under the voyage charter, the charterer has hired the ship’s cargo space. But the Master and crew still remains under the disposal and instructions of ship owner and  ship managers.

When we hire a cab for a ride, we just pay the hire (pre-agreed or by the meter). We do not pay for or are not concerned about the fuel costs or the amount of fuel consumed.

Similarly, under the voyage charter, charterer is not concerned about the fuel consumption. The fuel costs are for the ship owners.

And when we hire an Uber, we do not pay for maintenance of the cab.

Similarly, under the voyage charter it is the ship owner who pays for the maintenance of the ship.

Whenever we have any doubt about anything under voyage charter, just think of this analogy of hiring the cab.

Most likely you will get the answer.

Laytime, Demurrage and despatch

Lord Diplock during one of the leading cases on Laytime described the voyage charter party comprising of four stages .

• Stage 1 is the loading voyage: The voyage from wherever the ship is to the loading port specified in the voyage charter party
• Stage 2 is the Loading operation: The loading of the cargo at the port of loading
• Stage 3 is the carrying voyage: The voyage from load port to the discharge port specified in the voyage charter party.
• Stage 4 is the discharging operation: The discharging of the cargo from the ship to the port of discharging as specified in the voyage charter party.

In the first and third stage, it is only the ship owner that need to perform. For example. ship owner is required to adjust the speed of the ship to arrive at the loading port within the agreed dates (Laycan).

And in the third stage, the ship owner is required to instruct the vessel to maintain the charter party speed.

However it is the second and fourth stage where most of the disputes take place.

Because in these two stages it is mutual reponsibility of the two parties to ensure that cargo loading and discharging is done without any delays.

In case of delays, each one can accuse the other for delays.

It is definately not commercially profiting for the shipowner if the voyage is extended beyond their expectations.

For example, what if the loading of the cargo took 15 days in comparison to just 2 days that shipowner had expected?

Or what if the ship could not berth at load port or discharge port for many days because of other ships ahead in line up?

Too many uncertainties.

But ship owner’s freight (and profits) cannot depend upon so many uncertainties.

So the shipowner and charterers agree on the factors like allowed number of days for loading and discharging.

In chartering terms this is called “Laydays” or “Laytime”.

The laydays is mentioned in the voyage charter party agreement between ship owner and charterer.

It could be mentioned as number of days and hours or as tons per hours or per day.

If the charterer uses more time for loading and discharging than the allowed laydays as per charter party agreement, then charterer is supposed to pay for extra time used.

The chartering term for this additional payment is “Demurrage”.

So we can say that if charterer uses more time for loading/discharging than laydays, they need to pay demurrage to the ship owner.

But if the charterer uses less time than laydays then ship owner need to pay the charterer for the time saved.

The chartering term for this is “despatch”.

Usually the agreed amount of despatch is about half of the agreed amount for demurrage.

Finally at the end of the voyage, a statement is made to shows the time saved and/or extra time taken at different ports.

Below is the simplified version of the laytime summary calculated at the end of the voyage.

This statement would also show the final amount due and to whom it is due. Means if the final amount is demurrage or despatch and how much.

Notice of readiness and statement of facts

For calculation of laytime, it is important to know when the laytime counting and calculation would start.

This information is also provided in the charter party agreement.

In most of the cases, the laytime would commence to start when the vessel has arrived at the port. In chartering term, this is called “ Arrived Ship “.

Legally, a ship is considered as an ‘Arrived Ship” only when

• Ship has arrived at the port of loading or discharging (port voyage charter) or at the designated berth (Berth Voyage charter).
• Ship is ready in all respects to commence loading (or discharging) or the cargo, and
• Master has sent the notice of readiness to the all parties concerned

The charter party agreement contains the information if the voyage charter is a port voyage charter or a berth voyage charter.

Irrespective if it is port or berth voyage charter, from the ship’s point of view it is important that the master of the vessel send the notice of readiness.

Notice of readiness need to  state that the vessel has arrived and she is ready in all respect to commence loading (or discharging ) of the cargo.

The laytime would start to commence at this time or sometimes few hours later if specifically mentioned in the charter party agreement.

Since one of the condition for the laytime to start is for the master to send the notice of readiness, it makes it so much of an important aspect.

Statement of Facts

The vessel and the master of the ship are the owner’s representative at the action site (loading port or discharging port).

Ship Owner would know only know the information that we provide them. They would use this information for calculation of any demurrage due to the charterers.

But for the correct demurrage calculation, the information we provide must be correct and we must not miss any important information such as any delays.

That make the statement of facts (commonly called SOF) an important document.

At the least, statement of facts must include

• any delays from shore side or from ship’s side and reason of delay
• any delays because of weather conditions
• Timings for the movement of the ship (such as times for anchoring, anchor aweigh, pilot onboard, NOR Tendered etc)
• Timings related to cargo operations (Commenced cargo operation and completed cargo operation

Master’s actions during voyage charter

Master and ship staff may not see the actual charter party agreement between the charterer and the ship owner.

And it is for their own benefit too.

Because there would be so many things in that which we seafarers are not concerned about.

But when the  ship is fixed for the voyage charter, master will receive “Voyage instructions” from the charterer through the ship owner’s commercial team.

The voyage instructions contains the information from the charter party agreement that requires master’s attenstion and subsequent actions.

Master must not miss the points in the voyage orders that requires his actions.

One of the way to do it is to highlight the text of the voyage instructions that require his attention for easy follow up.

Once Master reads the voyage instructions, he may come across insufficient information that need more information or clarification.

Like this one in one of the voyage orders.

Clarification must be sought from the ship operator for any of such information in the voyage orders.

After all it just takes a simple email to get everything in place.

And once everything is clear and in place, it is just about following that.

There are may be only a handful of shipowners that do not rely on the charterer to find the cargo for their vessel.

Having the vessel on charter is so common.

And vessel can be chartered in different ways. Vessel can be on a voyage charter, time charter or demise/bareboat charter.

With respect to voyage charter, master and ship staff must understand few thing

First, when is the laycan for the vessel. This is period in which vessel must arrive at the load port.

If master thinks that vessel may not be able to make it to the loadport in laycan period, the commercial operator must be informed who can then try to extend the laycan.

Second, when the notice of readiness need to be tendered.

If the voyage charter is a port charter, NOR can only be tendered when vessel is at least within the port limits. Usually in this case NOR is tendered when pilot boards the vessel.

If the voyage charter is berth charter, the NOR can only be tendered when the vessel is alongside the designated berth.

Wrong tendering of NOR can make the Notice of readiness null and void and shipowner may loose tons of money.

Lastly, the ship staff need to be make sure that a correct record of statement of facts is kept. This is the document that is used for laytime calculations .

If the charterer uses more time than agreed for loading or discharging the cargo, the ship owner is supposed to get a pre-agreed compensation called demurrage.

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About Capt Rajeev Jassal

Capt. Rajeev Jassal has sailed for over 24 years mainly on crude oil, product and chemical tankers. He holds MBA in shipping & Logistics degree from London. He has done extensive research on quantitatively measuring Safety culture onboard and safety climate ashore which he believes is the most important element for safer shipping.

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70 comments.

How i wish that our exam books were written so precisely yet so easy to understand .Thanx for all the pain you take .No amount of words would do justice to match the level of you efforts.

Thanks Alok...The readers liking it make all the hardwork worthwhile...

its amazing how you describe anything sir

what if the vessel is about to tender NOR and shipper cancels the order. what would be the penalty

Great article to understand the business with ease as an ASM candidate

Many thanks for writing such articles with such an ease of understanding sir...

Glad you liked it Sukhchain...

Another good read. Thank you for taking time to write articles. All Seafarers must understand the commercial aspects of ships. All the best and I cant wait to read the next one.

Glad you liked it Marlon...

what if the ship could not berth at load port or discharge port for many days because of other ships ahead in line up?Too many uncertainties.But ship owner’s freight (and profits) cannot depend upon so many uncertainties.So the shipowner and charterers agree on the factors like allowed number of days for loading and discharging.In chartering terms this is called “Laydays” or “Laytime” ??? Laydays refer to the time when a ship must present itself to the charter.If the vessel arrives after the laydays ,than contract can be cancelled. -Laycan. Laytime is the amount of time allowed (in hours and days)in a voyage charter for the loading and unloading of cargo.

Thanks for your input Zibi...

Laydays or "Laycan "I think is the correct term not Laytime. :)

Thanks for such simplified explanations. Sir could you please tell the few famous ship brokers names in india and worldwide.

Interocean is one of them...

Thank Captain for simple & detailed explanation. Information is really worthy .

Glad you found it useful Sajjad...

Thanks Capt. Rajeev for this good information in simple way.

Glad you liked it Dharmdeep...

Very well written capt., pls continue the good work

Thanks Capt Pereira...

This is a scholarly article Great job Captain!

Glad you liked it Tunde...

Good job, Capt. Jassal! These mandatory intricacies of ship's business & chartering are excellently presented. Organized and laid out as you have, this blog subject does a great service to anyone who longs to learn more about it & be more familiar with the clauses, details & positions (which is probably everyone, right?) -- including this marine cargo surveyor!

Glad you liked it Capt Edward...

Many thanks

Thanks Rafik...

sir plz explain magnetic compass

I will do that in a different blog...

Once again thank you very much.

Thanks Raju...

Informative Awaiting next one regarding time charterers

Will write on Time chartering too...

many thanks for this jobs cap

How easy way for explain this matter ,really very good job captain I appreciate your good effort waiting more and more

Thanks Ahmed...

sir waiting for your blog on purging and gas freeing cargo tanks

Very nicely explained and written good effort

Very nice explanation capt,

Generally the CP agreement is never sent to ship..and hence for tendering NOR what criteria(LOCATION) shall be followed as Master will not be aware if the C/P is voyage or Port C/P .These days Master tender NOR on arrival and then they keep re tendering every 24 hrs or at important events like POB, or All Fast.What is the logic behind following this and how we can ensure the NOR tendering doesn't becomes null and void. really APPRECIATE YOUR GREAT EFFORTS

if the vessel arrived at the agreed laycan and gave a valid NOR tendered and waited for almost 5 days before berthing, then while berthing the vessel had an accident and the owner requsted a new laycan, the question here is, does cancelling the old laycan result in canceling the demurrage fees caused by it?

When a vessel suffers breakdown typically NOR becomes invalid as the vessel was not in all respects ready to load her cargo.

U don't see such priceless articles often.. Good work cap. Let's make the world a better place to sail????????

To the writer of this blog- what made you write this? IT IS FANTASTIC. Well done. Also your MBA, was it the distant learning one from Middlesex?

On the Laytime Summary calculation, wouldn't it be correct to say that on the loading it was lost 0d-12h-24 min instead of 1d-00-24m?

Captain sahab, if I ever get a chance, I'll surely shake hand and say thank you, for all your efforts in simplifying the topics

can you advise for the following : in case a vessel is on Voyage Charter, and during loading or discharging alongside berth, there is a rainy period, so the daytime for this period should be NOT TO COUNT, correct??? cause there is the terms "weather permitting".

Great article sir......waiting for more.....

Hi. How does the shipbroker locate a suitable ship to transport the cargo?

Good day! You have mentioned different stages of voyage charter. May I ask what are the different stages of Time Charter and Bareboat Charter? Thank you in advance.

Nice blog...pleasure to read

I love your write up. Please, keep exposing our mind to the rudiments of shipping business.

Sir, in voyage charter party at what time and place charter party agreement will start? After ship arriving on laycan days or after giving notice of readiness? And notice readiness when we can give? Is there any specific time only we can give NOR?

I have a question, How to calculate the freight for a Multiport voyage. for example, there is a Cargo loaded from the country (C) and need to discharge its half portion in other countries multiple ports (A) & (B). For single port discharge, the cost is 8$ in port A and in Port B 11$, but the agent says he could fulfill this in 10$ for both ports. Now my question is how is he calculating the freight 10$ for Multiple port ?

Thank you sir for this great effort helping a lot for phase2 law preparation

Hi Sir! I am so pleased to have found your blog, it is absolutely helpful. if it is not too much to ask, do you have a quote sample for time and voyage charter? and the stardard terms and conditions? sorry if I am asking too much. thank you

Excellent blog about chartering service. This blog cleared my doubt about chartering service for ship

could you please advise that how long a shipowner should wait cargo to load on board (if cargo not ready) and no any specific clause written on voyage cp

Hi, Capt Jassal, I find every write up on any marine subject is excellent and easy to understand for students. I highly appreciate the contents of your blog. Regards Capt MK Srivastava , Ex-DPA, The SCI Ltd.

Wonderfully explained

While the blockchains themselves are secure, the applications running on the blockchain may not be. These applications interact with the blockchain through smart contracts, but just like any other software, bugs in the code can lead to security vulnerabilities. For this, we need to involve the auditors who conduct security audits on the smart contract. Smart Contract Audit helps you find hidden exploits and eventually reduce the risk and provide you an extra layer of security. Bug-free code is nice to have in other types of software, in blockchain applications, it is essential.

Dear Capt Rajeev Jassal, with interest i have seen your blog however the title struck me a bit - A Layman's Guide to Laytime - this sounds very familiar, if not accurate, with the dissertation i wrote for the ICS, Institute of Charterers Shipbrokers London, who hold copyright on this. Kindly amend the title of your blog to avoid confusion in the industry as to whom the readers take their information from. With best regards, Erwin de Zwarte, FICS

sir will you pls write on paramount clause , new jasson clause , cesser clause and both to blame collision clause

Such a great explanation! Thank you so much!

This article is a big help for those individuals that are trying to expound their knowledge in shipping. I much appreciated because at present i am taking my master's degree in ship management. Thank you...

Wow, so clearly written that I didn't have to read it twice to understand! Why don't our text books/ Oral notes be like this?! Thank you so much Capt. Jassal.

It’s a great and useful piece of info. I’m happy that you just shared this useful info with us. Please stay informed like this. Thank you for sharing. Here’s another informative content on Common Law Separation Agreement , may find more details here.

thanks alot of info keren bgt

Sir u r the best , undoubtedly . The confidence which i gain every time when ever I read your blog is just unspeakable and it sharpens my knowledge every single time. A teacher like you is what this shipping industry needs and I am glad to find the perfect one . Every time when ever I am in doubt I refer to your blogs and it works miracle .....thanks a ton to you sir .....simply great.

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Voyage Charter : Definition & Full Guide

• By MascotMaritime
• April 22, 2022
• 3 mins read

Table of Contents

What is a voyage charter.

Voyage charter definition : The voyage charter is a contract (voyage charter party) between the shipowner and the charterer wherein the shipowner agrees to transport a given quantity of a shipment, using a pre-nominated vessel for a single voyage from a nominated port (say X) to a nominated port (say Y), within a given time period.

Who is a voyage charterer? What is the freight & voyage charter party? 

The person who charters the vessel is called the voyage charterer , the payment is called freight & the contract is called the voyage charter party. The freight rate is calculated as $/tonne of shipment. 

What is the most significant part of a voyage charter party?

The most significant parts are the description of the voyage, size & capacity of the vessel, cargo, the allocation of duties and costs in connection with loading and discharging, the specification of the freight, and the payment of the freight, the laytime rules, the allocation of the liability for the cargo and the allocation of other costs and risks.

Depending on the circumstances, other questions and clauses can be very important in the negotiations between the owners and the charterers.

In this type of charter, the vessel must be in the position that the owner specified when the charter was concluded & the vessel must, without undue delay, be directed to the port of loading.

At the port of loading, the charterer must deliver the agreed cargo. 

The cargo must not be dangerous cargo unless otherwise agreed. The cargo must be brought alongside the ship at the loading port & must be collected from the ship side at the port of discharge.

Mainly with the bulk cargoes, the charterer often undertakes to pay to load and discharge & often clauses of f.i.o or f.o.b are met. Very often parties agree on f.i.o.s or f.i.o.s.t terms.

In voyage charter, the discharge port need not be nominated in the charter party & in such cases, the charterer must have the right later to direct the vessel within a certain range to a specific port of discharge.

In a voyage charter where the charterer carries out loading &(or) discharging, it is generally agreed that the charterer will have a certain period of time at his disposal for loading & discharging of the vessel & it is called laytime .

If the charterer fails to load and(or) discharge the cargo from the vessel within the laytime, then he has to pay compensation for the extra time used called demurrage . Once in demurrage always in demurrage.

In other cases, if the charterer loads &(or) discharges the cargo from the vessel more quickly than the agreed laytime time, then he is entitled to claim compensation (only if agreed earlier) called despatch money.

In voyage charter, unless lumpsum freight is paid, the owner may claim freight compensation if less cargo is delivered, or cargo is delivered in such a way that ship’s capacity cannot be utilized due to broken stowage . This freight compensation is called deadfreight .

Voyage charter party agreement example:

Click here to see the example of a voyage charter party (NORGRAIN 73).

What are the factors which influence the freight rate in a voyage charter market?

In the voyage charter market, rates are influenced by cargo the charterer must deliver the agreed cargo size, commodity, port dues, and canal transit fees, as well as delivery and redelivery regions.

In general, a larger cargo size is quoted at a lower rate per tonne than a smaller cargo size. Routes with costly ports or canals generally command higher rates than routes with low port dues and no canals to transit.

Voyages with a load port within a region that includes ports where vessels usually discharge cargo or a discharge port within a region with ports where vessels load cargo also are generally quoted at lower rates because such voyages generally increase vessel utilization by reducing the unloaded portion (or ballast leg) that is included in the calculation of the return charter to a loading area.

What are the costs paid by the shipowner & charterer in a voyage charter?

In a voyage charter, the shipowner retains the operational control of the vessel and pays all the operating costs (crew, fuel, freshwater, lubes, port charges, extra insurances, taxes, etc.), with the possible exclusion of the loading/unloading expenses. 

The charterer’s costs are usually costs & charges relating to the cargo.

What are the types of voyage charter?

It can be of the following types:

• Immediate  –  which is carried out within weeks of the contract agreement and the agreed freight rate is called the spot rate.
• Forward –  which is scheduled & fulfilled at the agreed time in the future, for example in say three months.
• Consecutive – which refers to several same consecutive voyages.

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Charter Parties

A charter party is a highly standardized written document that provides the contractual arrangements for one party (the charterer) to hire the carrying capacity of a vessel, either in whole or in part, owned by another party. Generally, charter parties are subject to the rules and requirements of contract law. Charter party forms are used worldwide, and many of them have been drafted to take into consideration the specific needs of particular trades. Other charter parties are more general in form and are not adapted to a specific trade.

There are three basic types of charter parties: a voyage charter, a time charter, and a demise charter.

Under a voyage charter, the owner of the vessel agrees to carry cargo from one port to another on a particular voyage or voyages. The vessel is manned and navigated by the owner�s crew. A voyage charter may be used as a contract of affreightment�that is, for the shipper�s purpose of sending its goods from the port of origin to a port of destination. To the extent that a voyage charterer obtains only the carrying capacity of a particular vessel, the charterer is not responsible for maintenance, repairs to the vessel, or injuries to third parties arising from the crew�s operational negligence. A voyage charterer usually is not liable for expenses such as bunkers (fuel).

A time charter is a contract for the use of the carrying capacity of a particular vessel for a specified period of time (months, years, or a period of time between specified dates). As with a voyage charter, the vessel owner under a time charter is responsible for the navigation and management of the vessel, subject to conditions set out in the charter party. The vessel�s carrying capacity is leased to the charterer for the time period fixed by the charter party, allowing for unlimited voyages within the charter period. Therefore, the vessel is under the

charterer�s orders as to ports of call, cargo carried, and other matters related to the charterer�s business. The master and crew remain employees of the owner and are subject to the owner�s orders with regard to the navigation and management of the vessel. Because a time charterer obtains only the carrying capacity of a particular vessel, the charterer is not responsible for maintenance, repairs to the vessel, or injuries to third parties arising from the crew�s operational negligence. Time charterers usually are responsible for expenses of operating the vessel.

In a demise charter, the charterer not only leases the carrying capacity of the vessel but, unlike a time or voyage charter, also obtains a degree of control over the management and navigation of the vessel. As such, the charterer becomes, in effect, the owner of the vessel pro hac vice for the duration of the charter. The test for whether a charter party is a demise charter is whether the owner has turned over to the charterer �the possession, command, and navigation� of the vessel during the period it is in effect. When a vessel with a preexisting master and crew is under a demise charter, the master and crew may remain on the vessel and operate the vessel for the charterer as a provision of such agreement. The master and crew are subject to the orders of the charterer and its agents, and they are considered its employees. Under a demise charter, an owner may also turn over the vessel to the charterer without a master and crew. A demise charter of this type is also referred to as a bareboat charter.

Under a demise charter, the legal relationship between the owner and the charterer is significantly different from that created by a time or voyage charter. Because a demise charter transfers the possession and control of the vessel to the charterer, one who takes a vessel on demise is responsible for maintenance, repairs, or damages caused to third parties by the crew�s negligent navigation of the vessel. Thus, the owner who has demised its vessel will generally not be liable in personam for the fault or negligence of the crew�the charterer will be

primarily liable. Demise charterers usually are responsible for the vessel�s operating expenses. In addition to these three types of charter parties, a number of variations have been created to accommodate containerisation and the changing nature of the shipping industry.

The Contract

Most charter party transactions use standardized printed forms. Some of the clauses contain blank spaces that require the parties to supply information. Typically the parties must specify the names of the owner and of the charterer and the amount of payment, referred to as �hire� or �charter hire.� Obviously, a voyage charter must specify the voyage to be undertaken, and a time charter must specify the length of time. In addition, a time charter requires information about the physical characteristics of the vessel and any restrictions on the use of

the vessel. The charter form also sets out standard terms and conditions that apply under the contract. Charter parties typically are negotiated contracts and, in contrast to transport pursuant to bills of lading, are often marked up�that is, provisions are added, deleted, or modified. These changes reflect the market and the relative financial strength of the owner and the charterer.

Typical Areas of Dispute

Freedom of contract is the touchstone to the resolution of charter party disputes between owner and charterer. The rules applicable to charter party disputes derive from the terms of the charter party itself and generally do not implicate public policy concerns. These are contracts between businesspersons, negotiated at arm�s length, often through intermediaries (i.e., brokers who are experts in the field). It is often assumed that the contracting parties are sophisticated and that considerations of consumer protection are absent. Confirmation of this view is the fact that key terms, such as rate of charter hire and length of charter term, are often subject to hard bargaining. This does not mean that the parties negotiate from equal positions of strength. Like other areas of commercial transactions, supply and demand may strengthen an owner�s hand when vessels are in short supply or may put charterers in a better position when there is a surplus of tonnage available in the charter market. The advantages that inhere in these circumstances are not the equivalent of overreaching.

Most terms used in standard charter parties are terms of art that have well-established and well-understood meaning within the industry. Old-fashioned as some may seem, the terms (including those described below) ought to be interpreted and applied in litigation as they are understood in the industry.

Misrepresentation

The term �misrepresentation� includes not only fraud or intentional misrepresentation but also any situation where a vessel does not conform to factual representations as stated by the owner in the charter party. Courts today take a pragmatic approach, and resolution of a dispute may hinge both on the materiality of the representation or undertaking and whether the charterer seeks damages or termination of the contract.

Size and Speed�A breach of an express warranty as to size and speed may entitle a charterer to recover damages.164 At the election of the charterer, the breach of such an express warranty may provide a basis for rescission. Rescission of the charter party is available only under circumstances where the breach is material or where it is discovered before the vessel has been accepted by the charterer.  

Seaworthiness�In general, a shipowner has a duty to ensure that his or her vessel is seaworthy and capable of transporting the cargo for which it has been chartered.166 A charter party that describes the vessel as �with hull, machinery, and equipment in a thoroughly efficient state� or �that on delivery the ship be tight, staunch, strong and in every way fitted for the service� gives rise to a warranty of seaworthiness. In the absence of an express and unambiguous stipulation or a controlling statute to the contrary, a warranty of seaworthiness will be implied by law.

The parties may stipulate that there is no warranty of seaworthiness, but such agreements are not favored168 and will be enforced only if they �clearly communicate that a particular risk falls on the [charterer].�

Breach of the warranty of seaworthiness does not by itself confer upon the charterer the right to repudiate. Repudiation by a charterer is permissible only where the breach of the owner�s undertaking of seaworthiness is so substantial as to defeat or frustrate the commercial purpose of the charter.170 This view is consistent with the modern approach that the undertaking of seaworthiness is to be treated like any other contractual undertaking. Thus, an insubstantial breach that does not defeat the object of the contract will not justify repudiation unless expressly made a condition precedent to a party�s performance of its obligations.

Likewise, the terms of the charter party must be examined carefully because the parties may have agreed to a lesser undertaking with respect to seaworthiness. For example, an owner may have expressly undertaken only to exercise �due diligence� to provide a seaworthy vessel.

Temporary Interference with Charterer�s Use of the Vessel

Charter parties commonly provide for contingencies, short of frustration, that result from the inability of the charterer to use the ship as intended. This may occur in the case of a mechanical malfunction or illness of the crew or some other factor that renders a vessel temporarily unusable. A common provision in charter parties is an �off hire� or �breakdown� clause. Under an off hire clause, a charterer�s duty to pay hire ceases in the event that it is deprived of the use of the vessel, either in whole or in part, as a result of some deficiency of the vessel, its equipment, or the crew. There are many variations in the wording of an off hire clause, and sometimes there are disputes as to the applicability of the particular clause in question.

Sometimes the inability to use a vessel is unrelated to the physical condition of the vessel itself or its crew, such as where a strike by longshoremen or government intervention prevents a vessel from sailing or from loading or discharging cargo. Other clauses in the charter party may determine who bears the risk of such events. Under a �mutual exceptions� clause, for example, if a party is prevented from fulfilling its obligations because of the occurrence of a circumstance enumerated in the mutual exceptions clause, such non-performance is not considered to be a breach of the charter party contract. �Restraint of princes� (an embargo) is usually one of the circumstances enumerated in a standard mutual exceptions clause. Thus, the action of a government that prevents an owner from fulfilling its obligation to the charterer�for example, by placing the vessel in quarantine�will excuse the non-performance of the owner. Other circumstances commonly excepted are acts of God or of public enemies.

Safe Port and Safe Berth Provisions

In time and voyage charters there are express or implied obligations that the charterer will not require the vessel to call at an unsafe port or enter an unsafe berth to load, discharge, or take on bunkers. Time and voyage charter parties usually contain a provision referred to as a �safe port/safe berth� clause that purports to place on the charterer the risks to the vessel posed by the particular ports at which the vessel will call and the berths where the vessel will lie. It is not clear whether this clause in a charter party obliges the charterer to �warrant�

the safety of ports and berths entered. A safe berth clause does not impose strict liability upon a voyage charterer, and the charterer is not liable for damages arising from an unsafe berth where the charterer has exercised due diligence in the selection of the berth. Where a time charter party includes a safe port/berth clause, the charterer warrants the safety of the berth it selects. In any event, under a safe port/berth clause the master of a vessel may refuse to proceed to an unsafe port/berth nominated by the charterer without placing the owner in breach of the charter.

Notwithstanding a safe port/berth provision, negligence on the part of the master may relieve a charterer of its liability to the extent that such negligence permits the fact finder to conclude either that the port was safe because the peril could have been avoided by prudent seamanship or that, in the case of an unsafe port, the master�s conduct was an intervening, superseding cause of the resulting damages. Obviously, not every risk taken by a master will be considered a superseding cause. If the casualty results from the combined negligence of the charterer and the vessel�s master or other agent of the owner, damages are to be apportioned according to the respective fault of the parties.

Demurrage and Detention

In a time charter, the charterer has the vessel�s carrying capacity at its disposal for a specified period of time. As such, it makes no difference to the owner whether the charterer makes efficient use of the time chartered vessel. By contrast, in voyage charters, the time during which the voyage charterer may use the vessel is measured by the length of time it takes to complete the voyage. Obviously, it is to the owner�s advantage to have the voyage completed as quickly as possible: The sooner an owner has the vessel at his disposal, the sooner he can use it for his own purposes or charter it to another person. Consequently, a frequent issue in voyage charter party disputes is the shipowner�s claim for �demurrage.�

Voyage charter parties provide a time frame for loading and unloading the vessel. Under such a provision, the charterer is allowed �laytime��a specified period (hours or days) during which it can perform its loading and unloading operations without incurring charges in excess of the agreed rate of charter hire. These clauses vary greatly. If a charterer takes longer to load or discharge cargo than is provided in the charter party (i.e., it exceeds its laytime), it will be charged an additional amount called �demurrage.� Thus, demurrage refers to the sum that a charterer agrees to pay for detaining the chartered vessel for that period of time that exceeds the laytime. It should be noted that where a charterer completes loading or unloading in a period of time less than that specified as laytime, the charterer has conferred a benefit on the owner and may be entitled to financial allowance referred to as �dispatch.�

A typical demurrage clause in a charter party specifies the amount of demurrage that must be paid and the maximum amount of time allowed for demurrage. In this respect, demurrage should be distinguished from detention. Whereas demurrage is a contractual charge imposed on the charterer for exceeding laytime, detention is a legal remedy, in the form of damages, available to the shipowner after the period during which demurrage has expired.180 Nonetheless, detention is recoverable only where the owner can demonstrate that it has sustained damages, such as an opportunity cost.

A charter party may include a clause permitting the owner to withdraw the vessel where hire payments are not made in accordance with the requirements set out in the written agreement. A shipowner may insist on strict compliance with these requirements; and where these requirements are not complied with, courts are likely to uphold the owner�s right to withdraw its vessel. Owners may not withdraw a vessel while cargo is on board.

Subcharters

The right of a charterer to sublet or subcharter a vessel depends on the wording of the charter party. Charter parties often expressly authorize a charterer to subcharter the vessel and usually specify that a subcharter arrangement does not relieve the principal charterer of its obligations to the owner under the head or primary charter party. The owner is not in privity of contract with subcharterers who may not rely on the terms either expressed or implied in the head charter

party. The head charter party may, in order to protect the owner�s right to hire, contain a provision giving the owner a lien on subfreights whereby the owner steps into the shoes of the charterer with respect to freight due the charterer from cargo interests.

Liability of the Owner for Damage or Loss of Goods

Charter parties, per se, are excluded from the terms of the Carriage of Goods by Sea Act (COGSA). Any disputes between the owner and charterer must be resolved according to the terms of the charter party.   Courts generally apply the rule of freedom of contract in the interpretation and enforcement of charter parties. This approach enables the parties to bargain freely and to include in the contract any stipulation allowed by law. As such, the parties are free to incorporate the terms of COGSA by reference into the charter party, and they frequently do. Thus, various provisions of COGSA often become terms of a charter party through contractual stipulation. The parties are, of course, free to modify, or even exclude, COGSA provisions in the contract. Such modifications are permissible as long as COGSA does not apply by operation of law.  

Even where a carrying vessel is under charter, however, there are circumstances in which COGSA is applicable as a matter of law. This occurs where the owner has issued a bill of lading to the charterer, who in turn has transferred the bill of lading to a third party, such as a consignee. These situations are discussed in the following section.

Arbitration Clauses

Most charter parties contain a clause whereby the parties agree to resolve by arbitration disputes that arise under the charter party. These provisions are enforceable and, under certain circumstances, may bind others, such as a consignee.

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First draft gas tanker voyage charter party takes steps forward

Above image is used for illustration purposes only

A joint project from BIMCO and the Association of Ship Brokers & Agents (ASBA) to develop a standard gas tanker voyage charter party took a big step forward at a subcommittee meeting on 5-6 September. The target of the project is to develop a standard form for the chartering of tankers for LPG, anhydrous ammonia and chemical gases based on the tanker charter party, ASBATANKVOY.

The committee met in London and a first draft of the new charter is expected to be ready for wider consultation and review by the two associations’ Documentary Committees before the end of 2019.

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One of the issues which needed careful consideration is whether the new charter party should remain as close as possible to the original ASBATANKVOY charter party, with logical amendments for the gas tanker trade or whether commonly used rider clauses should also be contained as an important part of the new form.

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Now, while still under discussions, the subcommittee is choosing the new form, which will be codenamed ASBAGASVOY, to stay short and for commonly used rider clauses to be included in another document including suggested additional clauses.

While there is a number of clauses which users typically include when amending ASBATANKVOY for their gas tanker business, we are mindful of the familiarity with ASBATANKVOY and the need not to have too long a form

mentioned Stephen Harper, Head of Legal, Shipping at BW Group and BIMCO co-chair of the subcommittee, adding:

In addition, it has also been discussed whether it is possible to develop a short presentation clause in the charter party that will apply to both LPG and petrochemical gases, or whether the significant varieties in presentation, especially regarding petrochemicals, call for two separate charter parties.

Søren Wolmar, chairman of ASBA’s Documentary Committee and ASBA co-chair of the subcommittee, said on the occasion:

We are aiming at developing a presentation clause which will cater for the different ways of presenting a gas tanker. Given the variety in presentation, we may limit the charter party to only including short descriptions for LPG, petrochemicals and other products, in the interest of keeping the form short, while having more detailed provisions in the document containing suggested additional clauses

The subcommittee aims to finalise the first draft at its next meeting on 4 November. After that it plans to consult some owners, charterers and brokers in the gas tanker industry to get their initial feedback.

Finally, BIMCO’s Documentary Committee meets on 5 December in Copenhagen and will receive a draft version of ASBAGASVOY for review.

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The Comprehensive Guide to Moscow Nightlife

• Posted on April 14, 2018 July 26, 2018
• by Kings of Russia
• 8 minute read

Moscow’s nightlife scene is thriving, and arguably one of the best the world has to offer – top-notch Russian women, coupled with a never-ending list of venues, Moscow has a little bit of something for everyone’s taste. Moscow nightlife is not for the faint of heart – and if you’re coming, you better be ready to go Friday and Saturday night into the early morning.

This comprehensive guide to Moscow nightlife will run you through the nuts and bolts of all you need to know about Moscow’s nightclubs and give you a solid blueprint to operate with during your time in Moscow.

What you need to know before hitting Moscow nightclubs

Prices in moscow nightlife.

Before you head out and start gaming all the sexy Moscow girls , we have to talk money first. Bring plenty because in Moscow you can never bring a big enough bankroll. Remember, you’re the man so making a fuzz of not paying a drink here or there will not go down well.

Luckily most Moscow clubs don’t do cover fees. Some electro clubs will charge 15-20$, depending on their lineup. There’s the odd club with a minimum spend of 20-30$, which you’ll drop on drinks easily. By and large, you can scope out the venues for free, which is a big plus.

Bottle service is a great deal in Moscow. At top-tier clubs, it starts at 1,000$. That’ll go a long way with premium vodka at 250$, especially if you have three or four guys chipping in. Not to mention that it’s a massive status boost for getting girls, especially at high-end clubs.

Without bottle service, you should estimate a budget of 100-150$ per night. That is if you drink a lot and hit the top clubs with the hottest girls. Scale down for less alcohol and more basic places.

Dress code & Face control

Door policy in Moscow is called “face control” and it’s always the guy behind the two gorillas that gives the green light if you’re in or out.

In Moscow nightlife there’s only one rule when it comes to dress codes:

You can never be underdressed.

People dress A LOT sharper than, say, in the US and that goes for both sexes. For high-end clubs, you definitely want to roll with a sharp blazer and a pocket square, not to mention dress shoes in tip-top condition. Those are the minimum requirements to level the playing field vis a vis with other sharply dressed guys that have a lot more money than you do. Unless you plan to hit explicit electro or underground clubs, which have their own dress code, you are always on the money with that style.

Getting in a Moscow club isn’t as hard as it seems: dress sharp, speak English at the door and look like you’re in the mood to spend all that money that you supposedly have (even if you don’t). That will open almost any door in Moscow’s nightlife for you.

Types of Moscow Nightclubs

In Moscow there are four types of clubs with the accompanying female clientele:

High-end clubs:

These are often crossovers between restaurants and clubs with lots of tables and very little space to dance. Heavy accent on bottle service most of the time but you can work the room from the bar as well. The hottest and most expensive girls in Moscow go there. Bring deep pockets and lots of self-confidence and you have a shot at swooping them.

Regular Mid-level clubs:

They probably resemble more what you’re used to in a nightclub: big dancefloors, stages and more space to roam around. Bottle service will make you stand out more but you can also do well without. You can find all types of girls but most will be in the 6-8 range. Your targets should always be the girls drinking and ideally in pairs. It’s impossible not to swoop if your game is at least half-decent.

Basic clubs/dive bars:

Usually spots with very cheap booze and lax face control. If you’re dressed too sharp and speak no Russian, you might attract the wrong type of attention so be vigilant. If you know the local scene you can swoop 6s and 7s almost at will. Usually students and girls from the suburbs.

Electro/underground clubs:

Home of the hipsters and creatives. Parties there don’t mean meeting girls and getting drunk but doing pills and spacing out to the music. Lots of attractive hipster girls if that is your niche. That is its own scene with a different dress code as well.

What time to go out in Moscow

Moscow nightlife starts late. Don’t show up at bars and preparty spots before 11pm because you’ll feel fairly alone. Peak time is between 1am and 3am. That is also the time of Moscow nightlife’s biggest nuisance: concerts by artists you won’t know and who only distract your girls from drinking and being gamed. From 4am to 6am the regular clubs are emptying out but plenty of people, women included, still hit up one of the many afterparty clubs. Those last till well past 10am.

As far as days go: Fridays and Saturdays are peak days. Thursday is an OK day, all other days are fairly weak and you have to know the right venues.

The Ultimate Moscow Nightclub List

Short disclaimer: I didn’t add basic and electro clubs since you’re coming for the girls, not for the music. This list will give you more options than you’ll be able to handle on a weekend.

Preparty – start here at 11PM

Classic restaurant club with lots of tables and a smallish bar and dancefloor. Come here between 11pm and 12am when the concert is over and they start with the actual party. Even early in the night tons of sexy women here, who lean slightly older (25 and up).

The second floor of the Ugolek restaurant is an extra bar with dim lights and house music tunes. Very small and cozy with a slight hipster vibe but generally draws plenty of attractive women too. A bit slower vibe than Valenok.

Very cool, spread-out venue that has a modern library theme. Not always full with people but when it is, it’s brimming with top-tier women. Slow vibe here and better for grabbing contacts and moving on.

High-end: err on the side of being too early rather than too late because of face control.

Secret Room

Probably the top venue at the moment in Moscow . Very small but wildly popular club, which is crammed with tables but always packed. They do parties on Thursdays and Sundays as well. This club has a hip-hop/high-end theme, meaning most girls are gold diggers, IG models, and tattooed hip hop chicks. Very unfavorable logistics because there is almost no room no move inside the club but the party vibe makes it worth it. Strict face control.

Close to Secret Room and with a much more favorable and spacious three-part layout. This place attracts very hot women but also lots of ball busters and fakes that will leave you blue-balled. Come early because after 4am it starts getting empty fast. Electronic music.

A slightly kitsch restaurant club that plays Russian pop and is full of gold diggers, semi-pros, and men from the Caucasus republics. Thursday is the strongest night but that dynamic might be changing since Secret Room opened its doors. You can swoop here but it will be a struggle.

Mid-level: your sweet spot in terms of ease and attractiveness of girls for an average budget.

Started going downwards in 2018 due to lax face control and this might get even worse with the World Cup. In terms of layout one of the best Moscow nightclubs because it’s very big and bottle service gives you a good edge here. Still attracts lots of cute girls with loose morals but plenty of provincial girls (and guys) as well. Swooping is fairly easy here.

I haven’t been at this place in over a year, ever since it started becoming ground zero for drunken teenagers. Similar clientele to Icon but less chic, younger and drunker. Decent mainstream music that attracts plenty of tourists. Girls are easy here as well.

Sort of a Coyote Ugly (the real one in Moscow sucks) with party music and lots of drunken people licking each others’ faces. Very entertaining with the right amount of alcohol and very easy to pull in there. Don’t think about staying sober in here, you’ll hate it.

Artel Bessonitsa/Shakti Terrace

Electronic music club that is sort of a high-end place with an underground clientele and located between the teenager clubs Icon and Gipsy. Very good music but a bit all over the place with their vibe and their branding. You can swoop almost any type of girl here from high-heeled beauty to coked-up hipsters, provided they’re not too sober.

Afterparty: if by 5AM  you haven’t pulled, it’s time to move here.

Best afterparty spot in terms of trying to get girls. Pretty much no one is sober in there and savage gorilla game goes a long way. Lots of very hot and slutty-looking girls but it can be hard to tell apart who is looking for dick and who is just on drugs but not interested. If by 9-10am you haven’t pulled, it is probably better to surrender.

The hipster alternative for afterparties, where even more drugs are in play. Plenty of attractive girls there but you have to know how to work this type of club. A nicer atmosphere and better music but if you’re desperate to pull, you’ll probably go to Miks.

Weekday jokers: if you’re on the hunt for some sexy Russian girls during the week, here are two tips to make your life easier.

Chesterfield

Ladies night on Wednesdays means this place gets pretty packed with smashed teenagers and 6s and 7s. Don’t pull out the three-piece suit in here because it’s a “simpler” crowd. Definitely your best shot on Wednesdays.

If you haven’t pulled at Chesterfield, you can throw a Hail Mary and hit up Garage’s Black Music Wednesdays. Fills up really late but there are some cute Black Music groupies in here. Very small club. Thursday through Saturday they do afterparties and you have an excellent shot and swooping girls that are probably high.

Shishas Sferum

This is pretty much your only shot on Mondays and Tuesdays because they offer free or almost free drinks for women. A fairly low-class club where you should watch your drinks. As always the case in Moscow, there will be cute girls here on any day of the week but it’s nowhere near as good as on the weekend.

In a nutshell, that is all you need to know about where to meet Moscow girls in nightlife. There are tons of options, and it all depends on what best fits your style, based on the type of girls that you’re looking for.

Related Topics

• moscow girls
• moscow nightlife

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What is Charterparty?

International Ship Chartering was introduced by the Phoenicians, when traders chartered ships for the Mediterranean and European market. In Ancient Rome, there was a ship chartering market of sorts dealing in Egyptian grain prices on arrival at Ostia.

In other words, chartering ships is not a new concept. The important difference compared to today is that, until the late 19th century, some shipmasters often had full authority to fix cargoes and maximize earnings for the shipowners in return for a profit-share agreement.

Unusually, the shipmasters owned the ships. However, the shipmaster would conduct his negotiations in person in whatever port his ship was moored, draw up a contract with a trader, and tore the contract in half, one half for the trader, one for the shipmaster. This is the origin of the term “ Charter Party ” an anglicized version of the Latin word “ Carta Partita” , meaning  a document (Carta), which has been divided or split (Partita) . One of the halves was placed on board the ship and the other half was kept by the trader. When the ship arrived at her destination, the receiver of the cargo produced the shipper’s half of the document, thus proving that he was the legitimate owner of the goods

The tremendous growth of world trade in the 19th and 20th centuries led to faster steamships, followed by ships powered by fuel and diesel. Ships were on longer voyages away from their homeports and the shipmasters were no longer able to make their negotiations. So the shipowners employed shipbrokers to find the next cargoes and negotiate the Charter Party terms.

Charterparty  is a  contract  that incorporates the use of a ship for a  specific period  (Time Charter), or for a  quantity of cargo  to be carried from one port to another (Voyage Charter). Generally, Charter Party is a  written document  based upon one of the various  Standard Forms  devised for specific trades.

In unusual cases, shipowners and charterers may trust each other enough to work on a merely  verbal basis . Practically, all charter party forms undergo significant alteration during negotiations. A comprehensive examination of all charter party forms is impracticable but we are going to highlight the important parts of a charter party.

Ships can be chartered in two (2) basic ways:

• Time Charter : if a charterer wants to  hire  a ship for a period in which the charterer plans to operate the ship as if it were their property, the most suitable contract used will be a time charter
• Voyage Charter : if a charterer wants a  single shipment  of specific cargo, the contract will most certainly be a voyage charter. Ships that are covered under a time charter usually carry cargoes under sub-voyage charters

In the case of time-chartered ships, costs relating directly to the ship or the crew members are technically expenses of the  actual shipowner , not the time charterer.

Frequently, Voyage Charters relate to single cargoes, however, there are occasions that a ship may be chartered on  Consecutive Voyage Contracts  for a specified number of voyages or a  Contract of Affreightment (COA)  that could cover a fixed period or a fixed quantity of cargo rather than a specified number of voyages.

Due to the number of disputes that have arisen regarding misunderstandings about certain charter party common phrases, BIMCO (Baltic and International Maritime Council ) introduced  Voylay Rules , and FONASBA (Federation of National Associations of Ship Brokers and Agents) introduced  Time Charter Interpretation Code 2000 . These documents only apply if agreed to by both shipowners and charterers.

Which Charterparty?

Charterparty Bills of Lading incorporate charterparty terms to provide them with full terms and conditions. This ensures that the terms and conditions of carriage under both the bill of lading and the voyage charterparty are largely identical, so the carrier/owner does not face different potential liabilities under different contracts.

The wording of the Bill of Lading will determine which Charterparty Clauses are incorporated into the Bill of Lading . The more specific and clear the wording in the bill of lading is the less dispute there will be. The common areas of disputes are, as follows:

Which Charterparty?  If there is only one charterparty, between the shipowner and cargo owner/ charterer, then that must be the charterparty to incorporate. If there is more than one charterparty, a choice must be made. Only one charterparty’s terms can be incorporated into the bill of lading.

Where there is a chain of charterparties, it can be difficult to know which charterparty is incorporated into the bill of lading contract, if the bill of lading does not name the charterparty.

Under English law it is not necessary to name the charterparty in the bill of lading in order to incorporate its terms. The fact that parties to the bill of lading have shown an intention to incorporate the terms of some charterparty is enough.

The court has made rules, which show how the correct charterparty should be identified. The first step is to determine who is the carrier under the bill of lading . It would usually be the shipowner, though it may be a time charterer.

The next step is to ask under which charterparty is that carrier the owner? Usually, that charter-party will be incorporated, Pacific Molasses v Entre Rios (1976). It may be a time charterparty or a voyage charterparty. However, if that charterparty is a time charterparty and there is a voyage charterparty further down the chain, then the voyage charterparty will be incorporated instead .

It is the charterparty which is most appropriate to a particular voyage and the carriage of goods [as in Nanfri (1978)]. This is because a voyage charterparty is a contract of carriage and a time charterparty is a contract for the use and hire of a vessel.

A v oyage charterparty i s more likely to contain terms relevant to a bill of lading contract of carriage than a time charterparty is. However, if there is only a time charterparty then that will be the charterparty incorporated into the bill of lading. The holder of the bill of lading (quite often) and the bill of lading carrier (sometimes) may not have a copy of the charterparty referred to and incorporated into the bill of lading. However, the charterparty will still be incorporated into the bill of lading. However the parties to the bill of lading contract of carriage may not know its full terms .

Voyage Charterparty

Voyage Charterparty Forms exist in numerous versions as the shipping business attempts to keep them in line with evolving practices. But, despite this variety, there are some common topics in the Voyage Charter Party Forms:

Name and Description of the Ship:  Charter Party specifies the name of the ship and brief description of the ship such as Year of Build, Flag Country, Classification Society, Call Sign, Gross Tonnage (GT), Net Tonnage (NT), Summer Deadweight (DWT), Decks, Holds, Hatches, Grain Capacity, Bale Capacity, Length Overall (LOA), Gears and the Safe Working Load (SWL).

Loading and Discharging Location:  Charter Party specifies the loading and discharging location (port or berth) and the number of loading and discharging ports or berths. If two or more berth is specified, berth shifting expenses are usually included in the freight rate agreed. In coaster shipping, the charter party stipulates whether the ship should remain always afloat or whether a safely aground berth is allowed  NAABSA  (Not Always Afloat But Safely Aground).  Description and Amount of the Cargo  are provided under this title. 

Loading and Discharging Rates:  Charter Party stipulates loading and discharging rates in tonnes per day, on which time allowed is calculated.

Laydays and Cancelling Date (LAYCAN):  Charter Party stipulates the range of dates under which the ship must arrive and present itself ready for loading at the stipulated loading port. For example, Laycan 20/30 June. Usually, the first date is preceded by the words “laydays not to commence before 20 June” which means the charterers are  not obliged  to commence loading before that date, although shipowners and charterers may agree to do so during charter negotiations. The cancelling date (30 June) is the  latest  on which the ship is required to arrive  before midnight . Arrival after that time means the ship could be determined to be in  breach of the charter party  and the charterer then has the  option to cancel the charter party . If the ship’s late arrival could be determined to be  deliberate , that is, for the commercial advantage of the shipowner then the charterer may be  entitled to claim damages  for any loss incurred as a result of the undue delay. Charter Party Forms have a clause requiring the charterer to  declare  whether or not this option will be exercised as soon as it is clear that the ship has been delayed. Therefore, avoiding the ship having to navigate to the loading port and present itself, only to be informed it is canceled. The  Cancelling Date  is an  option to be declared  by the charterer and it is  not automatic . Furthermore, Charter Party Forms stipulate  NOR (Notice of Readiness)  which starts the time to count. 

Loading and Discharging Costs:  Charter Party stipulates whether it is the shipowner’s or the charterer’s expense for  cargo handling  at both the load and discharge ports. Special attention should be paid to whether or not the cost of any cranes or specialist services is for the account of the shipowner or the charterer.

Arrival Notices:  Charter Party stipulates that the shipmaster gives regular notices of the ship’s  Expected Time of Arrival (ETA)  at the load and discharge ports. Consequently, the charterer plans cargo loading or discharging facilities and arranges a suitable berth. Normally, ETA Notices are sent by the shipmaster to the port agent, whose duty it is to pass ETA Notices on to the charterer or charterer’s agent. Providing regular  ETA Notices  during the voyage should not be confused with giving the NOR (Notice of Readiness) which is tendered when the ship arrives at the port and the shipmaster declares that the ship is ready to commence cargo operations per the Charter Party. 

Hatch Covers:  Carter Party specifies for whose cost and time the opening and closing of cargo hatch covers will be.

Bill of Lading (B/L):  Charter Party stipulates who is entitled to sign the Bill of Lading (B/L) and under what reference the Bill of Lading (B/L) will be completed. Charter Party stipulates how the cargo loaded figures will be determined. When the Bill of Lading (B/L) is signed and stamped, the Bill of Lading (B/L) becomes a very vital and valuable document with a crucial role in trade. Bill of Lading (B/L) determines the  quantity  and  condition  of the cargo at the time of loading. Once the Bill of Lading (B/L) is signed and stamped, the statement is final except in rare legal situations. Bill of Lading’s (B/L) another major role is as a  Negotiable Document of Title . Therefore, a third party who may wish to buy the cargo has to be able to trust the quantity and description recorded in the Bill of Lading(B/L) because it is the only evidence the buyer has about the cargo. In theory, the shipmaster signs and stamps the Bill of Lading(B/L), in practice this duty is usually delegated to the agent. The agent should qualify the signature with a statement that he is signing for and on behalf of the shipmaster and shipowners of the ship. The cargo may only be delivered to the party who legitimately holds the Bill of Lading(B/L) and presents the Bill of Lading(B/L) to claim the cargo. Any deviation from this fundamental principle may only be implemented by the agent on explicit instructions from the principal.

Charterparty Abbreviations

APS (Arrival Pilot Station):  defines the point at which a ship may be delivered to a Time Charterer  on arrival .

CHOPT (Charterer’s Option):  when the charterer has an option under the charter party, for instance, for more than one berth load, or a margin on cargo intake.

DOP (Dropping Outward Pilot):  when redelivering at the end of a time charter, whereby the handover occurs after leaving from the final port. This expression ensures that the  Time Charterer pays all the costs associated with calling at the Final Port .

DLOSP (Dropping Last Outward Sea Pilot):  DOP (Dropping Outward Pilot) is modified to DLOSP (Dropping Last Outward Sea Pilot)   to avoid misunderstandings when more than one pilot is required to take the ship to sea, especially at ports where river pilots take the ship from the berth and hand over to sea pilots on passage.

DWCC (deadweight cargo capacity):  is the cargo intake tonnage the ship can get to its legal maximum draught (draft), taking into account bunkers, stores, provisions, constants.

ETA (Estimated Time of Arrival):  is   used when the ship is signifying its arrival at a port.

ETD/ETS (Estimated Time of Departure/Expected Time of Sailing):     is   used when the ship is signifying its departure from a port. 

FIO (Free In and Out):  defines that all cargo is to be loaded and discharged  free of all expense to the shipowner or carriers  but the ship will have to arrange and pay for any stowing of the cargo within the ship. In legal terms, the act of loading in  FIO (Free In and Out)  and  FOB (Free On Board)  refers to lifting as far as the ship’s rail. When the cargo has passed the ship’s rail, it becomes the ship’s  responsibility  and the goods are  shipped  so far as any Bill of Lading (B/L) is concerned. The opposite applies to the discharging operation. 

FIOS (Free In and Out Stowage):  defines that all cargo is to be loaded and stowed  free of all expense to the shipowner or carriers . Charterers also have to pay for stowing the cargo in the ship, comprising the entire operation even after passing the ship’s rail.

FIOT (Free In and Out Trimmed):  defines that all cargo is to be loaded and trimmed  free of all expense to the shipowner or carriers . FIOT (Free In and Out Trimmed) is used for bulk cargoes and indicates that charterers have to pay for trimming the cargo. Trimming is the task of leveling the pile of bulk cargo so that the bulk cargo does not remain in a cone shape.

LI (Liner In) or LO (Liner Out):  is the opposite of Free In or Free Out. The  shipowner pays  for loading or discharging the cargo. It has various combinations such as FILO (Free In, Liner Out) or LIFO (Liner In, Free Out).

Min/Max (Minimum/Maximum):  this expression is followed by many tonnes means that the cargo is a  fixed quantity  without any margin, plus or minus.

MOL (More or Less):  is used to indicate an option on cargo intake, usually stated in a percentage form. For example, 5% MOL.

MOLCO (More or Less Charterer’s Option):  is used to indicate an option on cargo intake is in Charterer’s Option, usually stated in a percentage form. For example, 10% MOLCO.

MOLOO (More or Less Owner’s Option):  is used to indicate an option on cargo intake is in Owner’s Option, usually stated in a percentage form. For example, 10% MOLOO. Usually, MOLOO is favored by shipowners because it allows for alterations in the amount of bunkers and stores on board.

NAABSA (Not Always Afloat But Safely Aground):  in coaster shipping, NAABSA term allows the ship to lay aground at low tide where the seafloor conditions are suitable for a ship.

NOR (Notice of Readiness):  is tendered by the ship, usually through the agent. NOR (Notice of Readiness) declares the time and date that the ship arrived in all respects  ready  to load or discharge the cargo. NOR (Notice of Readiness) determines the  commencement of laytime  per the charter party terms.

ROB (Remaining On Board):  is used to indicate any bunkers, cargo, or freshwater remaining on board the ship either on arrival or on departure.

SHEX (Sundays Holidays Excepted):  Laytime  not  to count during Sundays and Public Holidays.

SHINC (Sundays Holidays Included):  Laytime  counts  during Sundays and Public Holidays.

SSHEX (Saturdays Sundays Holidays Excepted):  Laytime  not  to count during Saturday, Sundays, and Public Holidays.

SSHINC (Saturdays Sundays Holidays Included):  Laytime  counts  during Saturdays, Sundays, and Public Holidays.

FHEX (Fridays Holidays Excepted):  Laytime  not  to count during Fridays, and Public Holidays in Islamic countries.

SWL (Safe Working Load):  specifies the capacity of the ship’s gears, cranes, and derricks to handle the certified lifting capacity. 

TIP (Taking Inward Pilot):  the location and time at which the pilot boarded the ship inbound to port and usually used for the  start of a Time Charter . The opposite of DOP (Dropping Outward Pilot), TIP (Taking Inward Pilot) ensures that the  costs  of entering the port are for the  Time Charterer’s account .

WCCON (Whether Customs Cleared Or Not):  defines that laytime will count regardless of whether customs authority to load or discharge has been granted.

WIBON (Whether In Berth Or Not):  defines that laytime will count whether in berth or not.

WIFPON (Whether In Free Pratique Or Not):  defines that laytime will count even if the ship has still been waiting to get Free Pratique from the Health Authorities. 

WIPON (Whether In Port Or Not):  defines that laytime will count whether in port or not when the ship waits outside the port at the customary anchorage area for a free berth.

WW (Weather Working):  is used where laytime only  counts  when weather permits cargo operations.

WWWW:  is a combination of WCCON, WIBON, WIFPON, and WIPON. WWWW indicates that laytime will begin to  count , subject to the NOR (Notice of Readiness) requirements, as soon as the ship arrives at an area outside the port normally considered to be the waiting area.

An agent will frequently be dealing with the buyers and sellers of cargo and will certainly encounter other sets of abbreviations. These are sales terms and as such, are not likely to appear in a charter party. They are, however of interest to the agent because, in the absence of information from the shipowner they will often indicate likely charter party terms. It is not unknown for sales terms and charter party terms to appear contradictory, in which case the agent must seek clarification from the shipowner principal at the earliest opportunity.

Most Common International Sales Terms (Incoterms)

CFR (Cost Freight):  the seller arranges for the goods to be sold on a delivered basis to the buyer and the costs of the seaborne transportation are included.

CIF (Cost Insurance Freight):  the seller arranges to sell the goods delivered but also includes the cost of insurance on the goods while in transit.

FAS (Free Alongside):  the cargo is free to be delivered alongside the ship. Free of all costs to the shipowner or carrier but costs thereafter, loading and stowing, are for the ship’s account.

FOB (Free On Board):  the cost of loading the cargo is for the account of the shipper and not that of the carrier or consignee.

Time Charterparty

In the time charter, there has to be a ship  handover (delivery)  from the shipowner to the  time charterer  who will then become the  disponent owner  at the commencement of the time charter. Likewise, at the end of the period of the time charter, there has to be a ship  handing back (redelivery)  from the time charterer to the shipowner.

In many time charter forms, there is a wording to the effect that the ship, at the end of the period, must be redelivered from the time charterer to the shipowner  “in like good order and condition, fair wear and tear excepted” . Hence, that the condition of the ship, together with many other things, has to be settled at the commencement of the time charter and its completion. Usually, surveyors perform these inspections, termed  “On-Hire Survey”  and  “Off-Hire Survey” . Customarily, two (2) agents are employed, one representing the shipowner and the other the charterer, at the starting and finishing of a Time Charter.

Ship Delivery

It is the responsibility of the  shipowner’s agent  to bring the ship to the point at which it is agreed with the time charterer that the  hire  will commence.  Time Charter Party  stipulates where and when the ship has to be delivered, which may be at a nominated port or a specific berth. The  On-Hire Survey  will then take place there. The actual time of ship  delivery  and  redelivery  may well be at a geographical point not connected to the shore such as  DOP (Dropping Outward Pilot)  and  TIP (Taking Inward Pilot) . A time charter party may stipulate delivery to be passing a strait or even passing a particular meridian of longitude in mid-ocean. Consequently, the ship’s  logbook  sets the time of delivery or redelivery. The shipowners and charterers will have agreed where the physical inspection of the ship for the On-Hire Survey or Off-Hire Survey   has to take place. Generally, some estimations such as bunker consumption have to be agreed upon between the shipmaster and the surveyor to cover the distance between the point of survey and the point of delivery or redelivery.

On-Hire Survey or Off-Hire Survey   checks:

• overall condition of the ship’s cranes
• apparent damages at holds, hatches, or decks before the commencement of the time charter
• ROB (Remaining On Board) bunkers, freshwater, and lubricants at the commencement of the time charter
• Class Certifications and Safety Certifications are valid and in good order
• The ship is properly manned per the ship’s certification

The time charterer either appoints a  surveyor  to represent its interests or agrees to enter a  joint survey , the result of which is agreed to be binding on either side. Any hold or hatch cover damage is recorded and either rectified by the shipowner before the time charter commences or it is agreed that this damage exists and will not be held against the time charterer at any future date. Any rectification required to be carried out to make the ship fit must be done  before the time charter commences . Any time used will be for the  shipowner’s account .

The shipowner’s agent coordinates and manages the formalities and the  on-hire survey . The  on-hire certificate   (delivery certificate)  is countersigned by the shipmaster and the time charterer or time charterer’s agent. The  on-hire certificate  shows the bunkers and freshwater ROB (Remaining On Board), exceptions, time, date, place that the hire commenced. Up to the point of delivering the ship to the time charterer the shipowner’s agent is responsible for all traditional agency activities and requirements of the crew members. Furthermore, all berth costs to that point are also for the shipowner’s account. Once the ship is  delivered ,   all further costs, including the appointment of a ship agent, transfer to the time charterer. The time charterer’s agent takes over the full agency responsibility of the ship in respect of all port costs, cargo handling, and navigation orders.

Ship Redelivery

At the end of a time charter period, the ship is redelivered from the time charterer to the shipowner. The time charterer’s agent is responsible for bringing the ship to the point agreed for  redelivery  and to make the ship available for the shipowner’s inspection. The time charterer’s agent coordinates and manages the formalities and the  off-hire survey . The  off-hire certificate (redelivery certificate)  is countersigned by the shipmaster and the time charterer or time charterer’s agent. If any damage has occurred during the ship’s period on time charter, it is the time charterer’s responsibility to rectify these defects before the ship is redelivered to the shipowner or to agree on reimbursement instead of actual repairs. Repair time and costs incurred are for the  time charterer’s account . The  off-hire certificate  shows the bunkers and freshwater ROB (Remaining On Board), any over-carried damage for later repair, exceptions, time, date, and place that the location of redelivery. It is the time charterer’s agent’s responsibility to coordinate and manage an  off-hire certificate (redelivery certificate) .

The shipowner’s agent is responsible for ensuring that the ship is delivered back from the time charterer (redelivered) to the shipowner  in a like condition to the commencement of hire . The shipowner’s agent is instructed to appoint an  off-hire surveyor  who should be given a copy of the on-hire survey listing any defects that were over-carried and cannot be determined as time charterer’s damage. Any further damage that is discovered should be advised by the shipowner’s agent to the time charterer for repair. ROB (Remaining On Board) bunkers and freshwater should be determined and only when the ship is in a handover condition should the agent  accept  the  redelivery certificate  presented by the time charterer. Once the ship is redelivered, the shipowner’s agent is then responsible for all costs and operational requirements of the ship.

Printed Charterparty Forms

Printed Charter Party Forms may undergo significant alteration during negotiations because these forms are quite out of date. For instance, the Chamber of Shipping Welsh Coal Charter 1896, the most regularly used coal charter party still contains clauses that are unchanged from 1896 or even earlier. The reason why both charterers and shipowners still use the old charter party forms is that so much of the printed wording has stood the  test  of time and charterers and shipowners prefer to stay with the version they  know  rather than adopt a new form. In the grain business, conservatism tends to explain why the Baltimore Form C, first produced in 1913 and amended in 1971, is used more than the Norgrain form, first produced in 1973 and amended in 1989.

GENCON Charter Party is a standard voyage charter party, the form used for trades where no specialist form exists, is preferred to the Multiform Charter Party, even though the GENCON Charter Party has had very few changed since 1922. This compares with the Multiform, which was issued in 1982 and revised in 1986. But, it is the Multiform Charter Party that will be used as the example simply because, being more modern, the printed wording reflects present circumstances more closely. 

Charterparty and Port Agent

There are many port directories available, however, all port directories have an unavoidable time lag between compilation and publication. Consequently, the only certain way for a shipowner to obtain the  latest information  about port conditions is to consult a reputable local agent. For instance, berthing is directly affected by the ship’s draught (draft) and the depth of water available. Likewise, the relationship between  safety and draught (draft)  also arises in the discharging clause of a charter party. Although the Multiform Charter Party form favorably envisages all cargoes to be fixed on a FIOS (Free In Out Stowage) basis, in the real world there are seldom when loading or discharging costs are for the ship’s account and a shipowner wants to know what these are before they can even perform a meaningful voyage estimate, a crucial preparatory to any chartering negotiations.

BIMCO (Baltic and International Maritime Council) publishes great info about  local taxes  throughout the world, but even this booklet cannot be as up-to-date as a local agent. During the chartering negotiations, a port agent may give important advice about local regulations for opening and closing of hatch covers, local labor unions, tallying, etc. 

The port agent must be able to give a reasonably precise estimate of the ship’s likely expenses including towage, pilotage, boatmen, linemen, and also the port charges such as tonnage dues, environment dues, canal dues, and berthing dues. The ship’s agent should send proforma port DA (Disbursement Account) as soon as possible during the chartering negotiations which affect the voyage estimations and charter party. In the shortsea (coaster shipping), the margin between a profitable voyage and a loss-making one can be fine. For instance, failing to inform that a tug will be required can turn a profit into a loss for the shipowner. The port agent should at this point agree on the fee they will be charging for their services. The shipowner can add these costs with their estimated operating costs and bunkers into a voyage estimation to determine the level of freight to obtain in the chartering negotiations.

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Chartering terms abbreviations, fob (free on board), ship registration.