Chartering is nothing but an engagement of a fleet for transportation of goods or passenger traffic. A charterer hires a vessel for a period, say, 3 months or one year. Bareboat charter is where a ship owner places his vessel at the disposal of the charterer for loading a full / part cargo.
Chartering is nothing but an engagement of a fleet for transportation of goods or passenger traffic. A charterer hires a vessel for a period, say, 3 months or one year. Bareboat charter is where a ship owner places his vessel at the disposal of the charterer for loading a full / part cargo.
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Chartering is nothing but an engagement of a fleet for transportation of goods or passenger traffic. A charterer hires a vessel for a period, say, 3 months or one year. Bareboat charter is where a ship owner places his vessel at the disposal of the charterer for loading a full / part cargo.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online from Scribd
engagement of a fleet for transportation of goods or passenger traffic. Way back in the 17th century, ship's captains met merchants in coffee houses/pubs of those days bargaining and haggling for cargoes. London being the hub of all shipping activities including chartering. definition Chartering, is bringing together an owner of a vessel, which he seeks to let on hire or for which he seeks an employment and an owner of goods, a merchant-shipper or a charterer who needs a ship for carriage of goods by sea, into a contractual relation and commitment, setting forth their respective duties and obligations as terms and conditions under which they remain legally bound with legal consequences. cp The instrument or document of the contract is called a "Charter-Party" and a "Charter party" is defined as a CONTRACT OF AFFREIGHTMENT. Thus, there must be a contract and there must also be an affreightment. CHARTERING MODE Voyage Charter Time Charter Bareboat Charter Voyage Charter In a voyage charter a ship owner places his vessel at the disposal of the charterer for loading a full/part cargo as agreed from a port or two for discharge at one or two ports, as named or nominated in the Charter Party. It can be for one single voyage or a series of voyages - consecutive voyages. owner gets freight per weight tonne of cargo actually loaded on board the vessel. Generally freight is paid on "right & true delivery". Time charter Where a charterer hires a vessel for a period, say, 3 months or one year, the vessel is said to be on time- charter. The owner gets an agreed "Hire" per day or per dead weight tonne (DWT) per month on her summer loadline. This hire is payable in advance. time-charterer The vessel will be required to be delivered and redelivered at agreed places. Subject to satisfactory "On hire" survey a delivery certificate will be signed in token of the vessel having been placed at the disposal of the time-charterer. The charter hire will commence to count thereafter. On expiry of the time-charter period, the vessel will be again subject to "Off Hire" survey and a "Re-delivery" certificate will have to be signed by the parties whereby the vessel will revert to her original owners. "On hire" and "Off-hire" surveys help establish that the condition of the vessel at the time of delivery and re- delivery is practically unchanged and remains the same barring ordinary wear and tear. On time chartered vessel, the charterer will have to bear the cost of bunkers, port disbursements including agency commission and brokerage, stevedoring-loading-discharging,
dunnage,
cleaning holds or in lieu of payable to
owners as agreed. For the owner's account will be officer's/crew wages, stores and provisions, ship maintenance depreciation etc. BAREBOAT CHARTER Bareboat charter, as also known as demits charter or charter by demise vessel offered just "Bare" and charterer must take the vessel in full control, The charterer virtually becomes the defacto owner and manages and controls the vessel. vessel surveyed on delivery and re-delivery. The owner collects from the charterer a certain rate per DWT ton on summer loadline capacity per calendar month, in advance. The charterer has to meet all the costs and charges. Owner has practically nil expenses and is not the carrier. The details of charter party 1. Ship and the contracting parties 2.Description of cargo 3 terms of cargo lay date lay time cancelling date Loading port Discharge port Demurrage despatch Payment of loading and discharge expenses Details continued Statement of facts. Deadfreight Safe port Notice of readiness Arrived ship dates The charter party will stipulate a reporting date and a cancelling date, which is known as lay days - within which the vessel must arrive at the port of loading. In both cases, where a vessel arrives before the reporting date or after the cancelling date, the charterer is not obliged to accept her. on mutual consultation laydays can be revised. LAYDAYS Laydays are calculated by dividing the total quantity loaded or discharged by the rate of loading or discharging as stated in the Charter Party agreement. Laydays represent free period allowed to commence and complete loading or discharge by a vessel. A day is a day of 24 consecutive hours. LAYTIME Laytime is the time allowed to the charterer by the ship owner for loading and discharging cargo at the loading and discharging ports. For any extra time taken by the charterers, demurrage has to be paid to the ship owner. if these operations are completed before the expiry of the time allowed then the ship owner pay despatch to the charterers. The rate of despatch is generally half the rate of demurrage. LAYTIME The periods which are excluded from the computation of laytime are generally holidays (SHEX), bad weather periods and periods of strikes or lockouts. COULD BE (SHINC) There is also an accepted principle for computation of demurrage - once on demurrage always on demurrage. In other words, once a vessel is on demurrage then all periods thereafter are counted other than the stoppages attributable to the ship. Notice of Readiness Master's advice to the effect that his vessel has arrived at the port limits at such time and date and is ready in all respects to commence loading or discharging is known as "Notice of Readiness". The master of the vessel will have to tender a "Notice of Readiness" to the charterer/shipper/receiver as the case may be, both at the load-port for loading and discharge port for unloading. NOR Master must serve Notice of Readiness on the Charterers/ Agents/Receivers, subject to the following pre requisites:- Vessel must have arrived within the port limits. Vessel must have been entered through the Customs. Vessel must be in free Pratique . Vessel must be actually ready in all respects to commence loading/or discharge. Notice of Readiness can be tendered during official working hours only.
Cargo Handling and Stowage: A Guide for Loading, Handling, Stowage, Securing, and Transportation of Different Types of Cargoes, Except Liquid Cargoes and Gas