Charterparties

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Charterparties

• Professor Erik Røsæg
• erik.rosag_at_jus.uio.no
• www.folk.uio.no/erikro

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Charterparties and Bills of Lading

• A simple drawing
• Issue of tramp bill of lading
• NMC 338 and 382, cfr ND 1961.325 Vestkyst I
  ND 1979.364 NV Jobst Oldenddorf
• NMC 295
• Conditions under a tramp bill of lading
• NMC 292
• NMC 61 nr. 3
• NMC 299
• NMC 310
• Mandatory rules
• NMC 322
• NMC 325
• NMC 253

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Different types of Charterparties

• Time charterparties
• Voyage charterparties
• Bareboat charterparties
• Contracts of affreightment
• Quantity contracts

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Charterparty forms

• Different brands
• Charterers forms, owners forms, and agreed
  documents
• Different types of cargo and different trades

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Dry bulk and oil
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Risk of delay in voyage charterparties

• Delivery of the vessel - LayCan
• Voyage time
• Waiting in and off port

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Delivery of the vessel - LayCan

• ETA, time of delivery and laydays
• Conditions, warranties and
• intermediate terms
• NMC. 348(1)
• Shellvoy 5 cl 11, Gencon 94 cl 9
• NMC. 348(2) Gap-filling right of interrogation?

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Voyage time

• Main rules
• No compensation for extra time used, NMC. 321
• Charterer must accept not unreasonable delays,
  NMC. 339
• New World Scale
• Waiting for orders, paperwork, etc
• NMC. 356
• Shellvoy 5 cl 10
• NMC. 347 and 351 (compensation)
• NMC. 349 (canceling)

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Waiting in and off port

• Laytime is extra time at berth/in port/off port
  that is included in the freight
• Notice
• Calculation of laytime
• If less time is used
• Bonus
• Average laytime, etc
• If more time is used
• When can the vessel sail?
• Canceling of the charterparty
• Remuneration
• Rights of the Bill of Lading holder

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Notice

• When is the vessel ready (arrived ship)?
• At berth/in port/off port
• NMC. 332 and 333
• Ready to receive cargo, NMC. 332 and 327,
• Shellvoy 5 Part IA and cl 2 and 16 et seq.
• Notice must be tendered
• NMC. 332
• Advance notice, NMC. 332(2)
• Shellvoy 5 cl 13

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Calculation of laytime

• Length of laytime, NMC. 331,
• Shellvoy 5 Part I letter I
• When does laytime commence?
• NMC. 332(4)
• Exceptions, NMC. 331(4) and 333
• Shellvoy 5 cl 9(2), 12 and 14

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If laytime is not fully used

• Bonus (despatch)
• Common/reversible/average laytime NMC. 331(3)

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Remuneration (compensation) and demurrage

• Demurrage,NMC. 335(1)
• Once on demurrage , NMC. 334(2)
• Amount of compensation, NMC. 335,
• Shellvoy 5 Part I letter J and cl 15
• Additional compensation, NMC. 356

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The limit?

• When the ship can sail - cancellation
• NMC. 330 and 334?
• Charterparty clauses
• NMC 335
• NMC. 355
• English law Frustration
• Cancellation with cargo on board

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Charterers breach - overview
Before loading After loading Delay
Cancel-lation 353 354 355
Compen-sation 352 354 355 and 356
Withdrawal/rejection
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Rights of Bill of Lading holder (receiver)

• Duty to third party,NMC. 269 and 292
• Evidentiary effect of Bill of Lading, NMC. 299
• Laytime n port of loading,NMC. 331(3)

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Time charterparties

• Description and delivery of the vessel
• Charterparty period
• Voyage related and non voyage related expenses
• When should the taximeter be turned off ? (off
  hire)

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Description and delivery of the vessel

• Description
• NMC. 372
• Baltime Preamble
• Delivery
• NMC. 373-5
• Baltime cl 1
• Remedies for breach
• NMC. 376-7
• Baltime cl 13

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Charterparty period

• NMC. 388-9
• Baltime cl 7

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Voyage related and non voyage related expenses

• NMC. 378 et seq.
• Baltime cl 3 et seq.

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When should the taximeter be turned off? (off
hire)

• NMC. 321 and 392
• Baltime cl 11(A)
• 24 hour rule
• thereby
• unable to perform the service immediately
  required
• ND 1983.309 NV Arica