Voyage Charter

5/20/15 16:15

I. Definition and features of tramp vessel

1. Definition
- Tramp vessel carries the goods among 2 or many oceans ports depend on
the demand of the cargo owner. The carriage is based on a transport
contract.
2. Features
- Tramp vessel sail only when there is a sufficient quantity of cargo on
board; they do not operate on a fixed sailing schedule.
- These vessels generally carry cargo in bulk, such as coal, grain, timber,
sugar, ore, fertilizer, cement clinker, copra, bauxite and phosphates
- Tramp vessels speed is relatively slower than liners one
- Carriage, freight, loading and discharging expense conditions are clearly
prescribed in the contract of carriage
II. Voyage Charter Party
1. Definition
- The charter party is the written agreement between the ship owner and the
charterer and is in fact the enactment (or charter) of their negotiations that
contains the agreed terms and conditions.
2. Standard forms
- Recommended charter parties offer numerous advantages:
they are used commonly;
they are suited for several traffics and are everywhere available;
their wordings is nearly watertight and they are generally accepted
by the courts;
they are without any doubt fair to both parties.
- Uniform standard forms: GENCON, NUVOY, SCANCON
- Specific standard forms: NORGRAIN, CEMENCO, CUBARSUGAR,
RUSSWOOD, EXONVOY, MOBILVOY, SHELLVOY
3. Content of voyage charter party
3.1. Introduction
the name and the address of the contracting parties
the name and a short description of the ship

the
the
the
the
the

position of the ship

date the ship expected to load
loading and charging ports or places
cargo
freight

3.2. Vessel clause

name of the ship: Ship named Hope and/or substitute sister ship
age of the vessel
flag
type of ship
speed of the ship
classification society and the class
length and breadth
draft
3.3. Expected ready to load
- The date on which the ship must be ready to start loading must be
indicated in the contract.
On Nov 25, 2009, the named ship must be ready to start loading at
the loading port
On about Nov 25, 2009, the named ship must be ready to start
loading at the loading port
=> Anyway, the ship owner (or the operator) must keep the charterer
(or his broker) informed (via tel, fax, telex, email) of the arrival the ship in
the first (or only) port of loading. (Notice of arrival- NOA)
- Canceling date: the latest date on which the vessel must be ready to load
at the port.
3.4. Cargo
- Name of cargo:
Clearly states the name of cargo
And/or: 1000 MT rice and/or maize
And/or any lawful goods
- Packing: types of packing, marks and numbers
- Quantity:

X metric tons
About X metric tons:
o 5% more or less in Owners option (moloo)
o 5% more or less in charterers option (molco)
o 5% more or less in Masters option (molmo) -> most common

3.5. Port of loading, port of discharge

A fixed berth, e.g.: berth 2 at Haiphong port
A fixed port: one safe port La Havre
A fixed area : one safe port/ one safe berth Australia/one good/safe
port Northern range
A port or an area to be indicated later: US gulf for order
Several ports: berth 1 at Fort the France and one safe berth at port
of Spain
=> Anyway, the loading and discharging ports in the charter party must be
safe ones in terms of both of nautical and political features.
There is no nautical and political obstacles to reach the port/berth
with a loaded ship
at all times of the tide always afloat
Not always afloat but safely aground (NAABSA)
Note: or so near thereto as she may safely get and lie always afloat
3.6. Freight and charge
- Freight in the ordinary mercantile sense, is the reward payable to the
carrier for the carriage and arrival of the goods in a merchantable condition,
ready to be delivered to the merchant.
- Freight rate: the freight per unit of cargo
- Freight unit: weight (heavy goods), volume/ measurement (light goods)
- Quantity:
On taken quantity
Delivery quantity
- Time to pay:
In advance: Freight Prepaid/ Freight payable at Loading port
Freight to Collect:
o Freight payable on commencement of discharge
o Freight payable concurrent with discharge

o Freight payable on completion of discharge

o Freight payable on actual and proper completion of discharge
3.7. Loading/Discharging expense
- Liner term/ Gross term/ berth terms
- Free In and Out (FIO): exempt the carrier from the loading and discharging
expenses, the charterer will bear these costs- FIOST
- FI: exempt the carrier from the loading cost, but he should bear the
discharging cost. The charterers liability is in contrast to the carriers one.
- FO
=> Those above terms and conditions about Loading/discharging expense
should accompanied by the freight rate in the charter party.
=> The most important things is during negotiation, the charterer should
choose the most suitable Loading/discharging expense condition so that:
he can avoid to pay double Loading/discharging expenses for the
carrier and the shipper
he can save foreign exchange
he may create favorable conditions for Loading/discharging the
cargo
3.8. Laydays/Laytime
- Is the time, which according to the charter party, is allowed for the loading
and discharging of the cargo (the allowed time)
- Manners:
according to a fixed number of days/hours which are necessary for
the loading and/or discharging operations
without a fixed number of days/hours (with customary dispatch,
customary quick dispatch, as fast as the vessel can receive, etc.)
according to a quantity to be loaded or discharged
- Unit expressions
Running days/consecutive days/days
Working days
Working days of 24 consecutive hours
Weather working days
Sundays and holidays

o 15 WWD, S.H. EX, U.U (Cargo to be loaded in 15 weather

working days of 24 consecutive hours, Sundays and holidays
excepted, unless used)
o 15 WWD, S.H. EX, E.U (Cargo to be loaded in 15 weather
working days of 24 consecutive hours, Sundays and holidays
excepted, even if used)
- The laytime starts from the moment that the NOR is tendered and
accepted by the charterer, unless the charter party stipulates differently.
- Before accepting the NOR, the cargo owner should check:
The ship must have arrived at her loading/discharging berth as
indicated in the charter party
The ship must in all respects be ready to load or discharge
the ship is in order with all formalities such as custom formalities,
quarantine formalities, etc.
- Note: W, W, W, W
WIPON: Whether in Port or not
WIBON: Whether in Berth or not
WIFON: Whether in Free Pratique or not
WICON: Whether in Custom Cleared or not
- GENCON standard form:
The laytime starts from 1p.m if the NOR is tendered in office hour
before 12a.m
The laytime starts from 6 a.m of the next day if the NOR is
tendered in office hour after 12a.m
Excluded time starts from 1p.m of Saturday or of the working day
before holiday to 7a.m of the next Monday or the day after the
holiday.
3.9. Demurrage/ Dispatch
- Demurrage
If the ship needs more time to load or discharge than foreseen by
the laydays, then the ship will be in days of demurrage. The
Charterer will have to pay for this a certain compensations to the
ship owner called demurrage.
Once on demurrage, always on demurrage
Demurrage rate = 2 X dispatch rate

Demurrage money = demurrage time X demurrage rate

Dispatch
Dispatch money is a compensation which the ship owner must pay
to the charterer when the ship is loaded and/or discharged more
rapidly than provided by the laydays that were foreseen.
Dispatch money for all time saved

Dispatch money for all working time saved

Dispatch = 1/2 X demurrage rate
Dispatch money = Dispatch time X Dispatch rate
Calculation of demurrage/ dispatch money
Mutually complement
Individually complement
Statement of facts
Time sheet:
Date and hour of arrival in the roads or in the port
Date and hour of arrival in the loading or discharging place
Date and hour on which the ship is ready in all respects to start
loading or discharging, as stated in the NOR
Date and hour on which the NOR was tendered
Date and hour on which the NOR is accepted by charterer, receiver
or his agent
Date and hour on which, according to the charter,, the laydays
started
Loading and discharging speed according to charter party
Statement of days, which could not be worked
Statement of the time allowed for loading and discharging
Date and hour on which the loading/discharging was terminated

3.10. Carrier/ship owners responsibility and exceptions

- Responsibilities:
To make the vessel in all respects seaworthy by due diligence
Secure that the vessel is properly manned, equipped, and supplied
Issue B/L after receiving the goods
Guide for loading and discharging the shipment
Liable for loss, damage or delay in delivery of the goods caused by
nautical fault

Control the vessel with proper speed, avoid deviation unless in case
of force majeure.
- Exceptions:
Act of God
Perils of the sea
Force majeure
Hostile activities

3.11. Arbitration and Law

- Arbitration is a kind of private court assigned by both parties in the
contract. They obey all of its rules spontaneously.
- All disputes arisen out of the charter party may be solved and addressed
only if there is an arbitration negotiation in advance or an arbitration clause
in the charter party.
- Requirements for An arbitration negotiation/clause:
Full and correct name of arbitration organizations
Procedural law/rule to deal with the matter
Place and Language for judging, number of arbitrators
- Sample of arbitration clause:
All disputes arising out of or in relation to this contract shall be
finally settled by the Vietnam International Arbitration Center at the
Vietnam Chamber of Commerce and Industry in accordance with its
Arbitration Rules
3.12. Both to Blame Collision
3.13. General Average and New Jason Clause