Agenda

TOPIC 1: INTRODUCTION

• Ship Chartering – what does it mean?
• The 2 main strategies of Chartering
• The meanings of the different types of charters – voyage, time, bareboat, contracts of affreightment
• Tanker trades
• Key vessel parameters of consideration

TOPIC 2: VOYAGE CHARTERS – KEY CLAUSES FOR DRAFTING EXAMINED

In this section some of the key clauses that are vital from the contractual drafting perspective are presented and discussed – issues such as the specific vessel characteristics; voyage time, the issue of deviation clauses; ‘Dead Freight’, Demurrage and Laytime, FM and the arbitral clause and many more. Case Study and exercise

TOPIC 3: TIME CHARTERS – KEY CLAUSES FOR DRAFTING EXAMINED

In this section some of the key clauses that are vital from the contractual drafting perspective are presented and discussed – issues such as usage of ‘standard form’ charters; the ‘Freight Rate’, vessel characteristics, speed and bunkering (fuel consumption/refuelling issues), period of charter, the ‘off-hire’ clause, liability for cargo damage, the ‘Division of Responsibility’, etc. Case Study and exercise

TOPIC 4: BAREBOAT CHARTERS

• What makes a bareboat charter different from other forms?
• All operational and managerial functions controlled by charterer (except capital costs)
• Bareboat charters and purchase options – a form of ‘financial leasing’
• Other reasons for Bareboat charters – not wanting to make additional investment (therefore risk) – additional tonnage required for a specific period of time
• Important clauses – vessel description and characteristics, the ‘hire’ period, delivery and redelivery of vessel ‘hire’ amount, payment, ship maintenance, Insurance

TOPIC 5: CONTRACTS OF AFFREIGHTMENT (CONTRACT CHARTERS)

• A ‘hybrid charter’ combination of elements of both time and voyage charters – AKA ‘volume contract’
• Co-operation the key
• Normally medium to long term
• Specific quantities of cargo at agreed dates within an agreed time period
• Advantages of a CoA

TOPIC 6: BILLS OF LADING – MAJOR TERMS AND CONDITIONS

In this section the key terms and conditions associated with the Bill of Lading are examined and why they are important from a drafting perspective – issues such as The ‘Clause Paramount’; Responsibility for Carriage; ‘Voyage Clause’; ‘Container Clause’, The ‘Transhipment Clause’; Dangerous goods; ‘Freight Clause, Lien, General Average Clause, ‘Both to blame’ collision clause, the New Jason Clause; etc. are discussed

TOPIC 7: RISK ALLOCATION IN CHARTER PARTIES

• The 2 ‘Broad Categories’ of maritime risk – loss or damage to ship or cargo, risk associated with delay
• Class exercise – the ‘Doric Pride’ case
• The ‘Global Santosh’ case

TOPIC 8: SOME FURTHER CONTRACTUAL ISSUES

• Drydocking and repairs
• Fuelling
• Coverage of port charges
• Pilotage and tugs
• Force Majeure provisions
• Class exercise

TOPIC 9: TRANSPORTATION AND LOADING

• Adverse weather provisions
• Compatibility between vessel and infrastructure
• SIGTTO/SIGTTO Paper no.5
• Port Liability Agreements
• The NOR
• WIPON
• Berthing assignments

TOPIC 10: CONTRACT SETTLEMENT (INVOICING AND PAYMENT)

• The Buyer’s and Seller’s Heads of Agreement
• Payment terms
• Late payment and suspension
• Dealing with payment disputes
• The importance of the Dispute Resolution Clause