Obligation of Charterers

Article 679-687

Article 679 As a rule, the charterer of an entire vessel may subcharter the whole or part
thereof.

Obligation: The captain is not allowed to refuse to receive on board the cargo
delivered by the second charterers.

 provided:
 the conditions of the first charter are not changed
 the price agreed upon is paid in full

Article 680 1. When the charterer bind himself to ship full cargo, and he does not complete
the same,

Obligation of the charterer:

To pay the freightage of the amount he fails to load.

NFA vs CA GR 96453

Under the law, the cargo not loaded is considered as deadfreight. It is the
amount paid by or recoverable from a charterer of a ship for the portion of the
ship's capacity the latter contracted but failed to comply. explicit and succinct is
the law that the liability for deadfreight is on the charterer.

2. When the captain did not take other freight to complete the load of the vessel,

Obligation of the captain:

To pay the difference to first charterer, should there be any.

Article 681 In case, the charterer should ship uncontracted cargo without the knowledge of
the person from whom the vessel was chartered or of the captain and should
thereby give rise to losses, by reason of confiscation, embargo, detention or
other causes

Obligation of the charterer:

To indemnify all those injured through his fault

Article 682 In case, the shipped merchandise is for the purpose of illicit commerce and was
taken on board with the knowledge of the person from whom the vessel was
chartered or of the captain

Obligation of the charterer:

To indemnify the other shippers for all the losses they incurred jointly with the
owner of the merchandise.

In case the vessel was damaged, the person from whom the vessel was
chartered or the captain cannot demand indemnity from the charterer.
Article 683 In case of repair of the hull, machinery and equipment of the vessel

Obligation: To wait until the vessel is repaired.

 Shipper is permitted to unload the vessel at their own expense.

 If the cargo subject to deterioration, the shippers or the court, or the
consul, or the competent authority in a foreign land should order the
merchandise to be unloaded,
o the expenses of unloading and reloading shall be for the
account of the shipper

Article 684 If the charterer should wish to unload his merchandise before arriving at the port
of destination without the occurrence of force majeure

Obligation:

The charter is obliged to pay the:

 freightage
 expenses of the arrival
 losses and damages caused to other shippers, should there be any

Article 685 In charters for transportation of general freight,

Any of the shippers may unload the merchandise before the beginning of
voyage, provided:

 to pay one-half (1/2) of the freightage

 expenses of stowing and re-stowing the cargo
 damages caused to other shippers

Article 686 After the vessel has been unloaded and the cargo was placed at the disposal of
the consignee

Obligation of consignee:

To pay the captain the following:

 freightage
 other expenses
 primage (customary payment to the captain for his care and trouble)

Article 687 In case of damage to merchandise on the account of its own inherent defect or
fortuitous event

Obligation of charterer and shipper:

Not to abandon the merchandise

Abandonment shall be proper when the cargo consist of liquids and should they
have leaked out, there remaining containers not more than one-quarter of their
contents