20210818 - Charterparty - DMT - to all.pptx

Charterparty

1. CHARTER PARY Presented by Do Minh Tu _______________________________________ 25 August 2021 www.anhisa.com

2. TABLE OF CONTENT Section A – OVERVIEW Section B – TIME CHARTER Section C – VOYAGE CHARTER Section D – BAREBOAT CHARTER www.anhisa.com [email protected]

3. REFERENCES 1. Shipping L aw- Simon Baughen (fourth edition). 2. Maritime Law – Sweet & Maxwell (second edition). 3. Vietnam Maritime Code 2015. www.anhisa.com [email protected]

4. Section A - Overview Introduction The types of charter www.anhisa.com [email protected]

5. Introduction All shipowners would like to make profit from their ships as much as possible. One means of achieving this aim is to charter the ship under a charterparty. Whereas a charterparty is the contract between a shipowner and a charterer. In this presentation, we shall consider the general nature of charterparties and matters common to all types of charterparty. www.anhisa.com [email protected]

6. 2. Three types of charter Voyage charters Time charters Bareboat charters www.anhisa.com [email protected]

7. Section B – Voyage charterparties 1- Concept of voyage charterparty 2- Payment of voyage charterparty – The Freight 3- Laytime and Demurrage 4- Samples of Voyage Charterparties www.anhisa.com [email protected]

8. 1- Concept of voyage charterparty Under a voyage charterparty, the contract is for a voyage and the charterer pays freight. (Maritime Law, chapter 4 p 118) The voyage charterparty is a contract for the carriage of a mentioned amount and type of cargo, whereas the carrying vessel and the port of destination and departure are all agreed together with the contract price called freight. It is the most common charterparties ( https://web.archive.org/web/20110714034807/http://www.maritimeknowhow.com/English/Know-How/Chartering/types_of_contracts_of_affreightment/voyage_charter.html ) www.anhisa.com [email protected]

9. 2. Payment of voyage charterparty – The Freight The primary payment obligation under a voyage charter is freight. Freight is a fixed price for a particular voyage carrying a particular cargo or cargoes. It includes the shipowner’s operating costs, such as crew wages, the fuel consumed on the voyage and the shipowner’s profit margin. It can be calculated either on a lump-sum basis, for example, £200,000, or by reference to the quantity loaded or discharged, for example, £20 per ton. ( Chp 10, P. 225, Shipping Law). www.anhisa.com [email protected]

10. 3. Laytime and demurrage One important duty of charterer is to ensure the reasonable usage period of the ship within a reasonable time. Usually, such obligation involves loading and discharging the cargo at that berth or port within a reasonable time. The term ‘reasonable time’ is replaced by a set period of ‘laytime’. If loading or discharge takes longer than the permitted laytime, the charterer will generally be made liable for ‘demurrage’. This is a pre-agreed daily rate of liquidated damages. To encourage charterers to complete loading and discharge as soon as possible, many charters contain a ‘dispatch’ clause under which charterers become entitled to payment by the shipowner in the event that they finish these operations before the expiry of their allotted laytime. Payment is usually at half the daily rate of demurrage. (P. 236 shipping law) www.anhisa.com [email protected]

11. 3.1 The notice of readiness and Calculation of Laytime Normally, laytime will run continuously from the time the notice of readiness expires. (P. 170 – Maritime Law) Examples: Clause 6.c of Gencon 1994 of BIMCO QUOTE Laytime for loading and discharging shall commence at 13.00 hours, if notice of readiness is given up to and including 12.00 hours, and at 06.00 hours next working day if notice given during office hours after 12.00 hours. UNQUOTE www.anhisa.com [email protected]

12. 3.2 Demurrage Once the laytime has expired the charterer would be liable for the liquidated damages at an agreed rate called demurrage. The phrase “once on demurrage always on demurrage” means that once the vessel is on demurrage, all laytime exceptions and excepted perils no longer applies. For example, if Sundays and public holidays are not regarded as used laytime in the charter party, they are not included in the laytime calculations until the vessel is on demurrage. Once the vessel is on demurrage, demurrage will continue to apply even on Sundays and public holidays.e counts for demurrage (P 171 Maritime law) www.anhisa.com [email protected]

13. 4. Samples of Voyage Charterparties Exxonvoy for tanker ( https://shippingforum.files.wordpress.com/2012/08/exxonvoy-84.pdf ) 2. Beepeevoy for tanker ( https://vdocuments.site/bp-voy-3.html ) 3. Gencon for general cargoes. ( https://www.bimco.org/contracts-and-clauses/bimco-contracts/gencon-1994 ) (P 200- Shipping Law) www.anhisa.com [email protected]

14. Section C – Time Charterparties 1- Concept of Time Charterparty 2- Payment of Time Charterparty – Hire 3- The delivery 4- The redelivery 5- The off-hire 6 - The withdrawal 7 – Samples of Time Charterparties www.anhisa.com [email protected]

15. 1. Concept of Time Charterparty In contrast to a voyage charter, a time charter is defined not by a geographical voyage, but by a period of time, for example, six months. Payment is by means of ‘hire’, calculated daily, but usually payable in advance. Hire will start to run when the vessel is ‘delivered’ and will cease when she is ‘redelivered’, the charter specifying where and when these operations are to take place. Fuel consumed during the charter period will be paid for separately by the charterers. (Shipping law- P201_ www.anhisa.com [email protected]

16. 2- Payment of Time Charterparty – Hire The time charterer is obligated to pay hire for every minute that the ship is at the charterer’s disposal from her delivery until redelivery. The hire is usually stipulated at a daily rate and payable in advance. The shipowner will need to maintain the ship seaworthiness, insurance (both P&I and H&M), maintenance and crew wages. (p 156 – Maritime Law) www.anhisa.com [email protected]

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