overview

Key Learning Objectives

• Understand world trade and the place of shipping within it
• Examine the purpose and function of charterparties
• Learn the various types of charterparties
• The inter-relationship between charterparties and related contracts, including the contract for the sale of goods.
• Appreciate the legal incidents applicable to each charterparty
• Understand issues commonly raised by voyage and time charters
• Appreciate various specific clauses and risk aspects of charterparties
• Address the complex legal issues arising from claims under contract
• The focus will be on seeking to identify how to add value in different situations utilising charter party terms

About the Course

The ultimate reason for charterparties and shipping is to transport goods.

The value of bulk commodities to buyers is determined by their total cost at the destination. This is derived by the cost of the commodity at the load port PLUS the cost of shipping the goods to the discharge port. Total shipping costs are made up of the base freight rate PLUS additional costs which can often be ‘hidden’ in the contract, including for demurrage, hold preparation, bunker surcharges, delays due to poor steaming speeds. Additionally contracts for sale of goods often allow for the price to be determined by the prevailing price on the day bills of lading are issued or some other timing mechanism related to loading of the goods into the vessel. Issues related to risk in the goods and title to the goods can also vary based on charter party or related contract terms. Selecting the appropriate charter party form and clauses can have a significant bearing on the total profitability of a contract for sale of goods, by reducing risk of unbudgeted demurrage costs, pricing negatives due to delays in arrival or too early arrival of the vessel, damage to cargo due to unsuitable requirements regarding conditions of carriage specified in the contract etc.

Chartering law and practice is very dynamic and fast moving, having to respond immediately to changing economic and political circumstances. Therefore, it is important for those working with charterparties to be on top of the tricky legal and commercial issues and be educated on the relevant principles and cases that apply.

To gain a successful edge as an owner, charterer, shipper, receiver or trader one must understand the underlying rationale behind different types of charter parties, case law, the reason why the law and practice appears to be moving in a particular direction and how it is likely to respond to changing circumstances and industry stresses. This course, with particular reference to relevant decisions by Australian Courts, will better help practitioners understand the implications if case disputes are resolved before local courts as well as if resolved elsewhere.

Who Will Benefit

• Bulk commodity traders (both liquid and dry)
• Personnel in maritime and international trade sectors
• Legal practitioners
• Government trade and shipping department personnel