A group of shipowners may agree to offer their ships to an organisation formed by the members of the group for the organisation (the "consortium") to operate. "Shipping pools" are one form of consortia, generally operating in the tramp shipping, bulk trades. In liner trades, liner conferences fulfil much the same function except that each member company operates its ship independent of a centralised control organisation. In chartering practice, the administrative organisation of a consortium or shipping pool can charter ships in or out as necessary to carry out its cargo commitments or earn … [Read more...]

A charterparty may stipulate the vessel will be consigned to owners' agents or charterers' agents for inward or outward business. If charterers are entitled to appoint agents at the port of loading or discharge the owner must use the services of the charterers' agent and pay for those services. … [Read more...]

Normally this means the sending or transmitting of goods from one place to another. It also covers the handing over or delivery of an object to a person's care.In shipping terminology, the exporter or sender of goods is called a "consignor" and the person to whom the goods are sent is called a "consignee". A bill of lading under which goods are shipped or sent generally contains the name of the "consignee". In chartering practice, "consignment" is related to the handing over of a ship into the care of an agent, and a Consignment Clause may specify the details. … [Read more...]

Originally, contracts for the carriage of goods by sea, such as voyage charters and time charters, were termed "contracts of affreightment". Some textbooks still call charters by this term.Charters are for one named ship carrying out one or more voyages or let on hire or leased out for a period. When a contract comes into existence usually to carry a large volume of cargo over a period of time between named ports or regions, the named ship may be unable to carry the cargo over the necessary number of consecutive voyages. If the ship could carry out consecutive voyages it would most … [Read more...]

This is a rather vague expression usually intended to convey that there are no invidious or unusual terms in the charterparty. If no other deductions are made from the freight, other than the customary brokerage and commission, or if no alterations have been made in the standard charterparties detrimental to the shipowners the term "clean charter" is used. … [Read more...]

This process for entering into a contract for the hire of a ship begins with the negotiations (perhaps through chartering brokers and owner's shipbrokers) and ends with the agreement and signing of the appropriate documents or charterparties. … [Read more...]

Depending on the type of charter (voyage or time or demise) the owner and the Charterer pay for different expenses. The Charterer pays little apart from freight, deadfreight, demurrage and general average contributions in a voyage charter. At the other extreme, he pays almost all costs, except perhaps registration fees and tonnage taxes in a bareboat or demise charter. … [Read more...]

The contract to carry goods by sea or to hire or lease or use a ship. "To charter" means to enter into the contract. The contract can be for a period of time ("time charter" or "bareboat charter") or for one or more voyages ("voyage charter"). … [Read more...]

It is customary to insert a special clause in voyage charterparties, where the charterers' liability ceases as soon as the cargo is shipped and the advance of freight, deadfreight and demurrage in loading (if any) are paid, the owners have a lien on the cargo for freight, deadfreight, demurrage and general average contributions.The clause is sometimes called a "Cesser and Lien Clause". … [Read more...]

If a ship is delivered on time charter, a certificate of delivery will have to be drawn up and signed by the master and owners' and charterers' representatives, showing:Date and hour of Quantity of bunkers on board at time of delivery Quantity of water forConversely, if a vessel is redelivered, a "Certificate of redelivery" is similarly produced.As a rule, the quantities of bunkers on board delivery and redelivery will be settled as per the appropriate clause in the charterparty. … [Read more...]