A sinking door functions as a long-term lease of the ship, with the charterer being fully responsible. In the case of time and voyage charters, the shipowner continues to operate the ship, but in port the charterer assumes responsibility for loading and unloading the ship within the agreed time of call. If the charterer exceeds the authorized stopover time, demurrage is due.  A bunker clause states that the charterer accepts and pays all fuel oil in the ship`s bunkers in the port of delivery and vice versa (owner) pays all heating oil in the ship`s bunkers in the port of re-delivery at the current price in the respective ports. It is customary to agree on a certain minimum and maximum quantity in the bunkers when the ship is redelivered. Since the EO bunker test case, vessel operators have had to ensure that the conditions for delivery of the bunker are appropriate. If you would like clarification on your rights and obligations as a charterer or shipowner, IMG can help. The charter of time is a complex undertaking. Shipowners give time charterers substantial control over the commercial operation of the vessel in exchange for regular payment of rent. Although this agreement suggests that shipowners have transferred much of the potential operational risk to charterers and that charterers can do more or less whatever they want with the ship, such a first impression on the part of the time charterer is both misleading and dangerous.
When a bill of lading is issued to a charterer by the shipowner, the question arises as to which document is dominant.   If a shipper returns a bill of lading to a carrier (perhaps as pledge), the carrier will only hold it as a pledge. A bareboat charter is the simplest type of charterparty agreement. In the context of a bareboat charter (aka “shipwreck charter”), the charterer effectively becomes the owner of the ship for all operational and commercial purposes and is therefore responsible for the navigation, operation, repair, maintenance, insurance and crew of the ship. A charterer can also be a cargo-free party that charters a ship from the owner for a period of time and then exchanges the ship to carry cargo at a profit higher than the rental price, or even makes a profit in a rising market by subletting the ship to other charterers. There are three main types of charter parties: time, voyage and shipwreck and another: Despite a semblance of simplicity, bareboat charters are complex agreements and many problems can arise during their use. Owners and charterers should seek sound legal advice before drafting or amending a bareboat charter. Time charter agreements, i.e. agreements for the chartering of a ship equipped for a certain period of time, under which the respective voyages are to be determined subsequently by the charterer. There are four main methods for chartering a tramp vessel: voyage charter, time charter, bareboat chartering and the “lump sum” contract. The travel charter is the most common. In this method, a ship is chartered for a single voyage between certain ports with a specific cargo at a negotiated freight rate.
In time chartering, the charterer shall lease the vessel for a certain period of time, for a specific round trip or occasionally for a specified one-way journey, the rental rate being expressed in as much load capacity per tonne per month. While in the case of a travel charter, the owner bears all the costs of the trip (subject to the agreement on loading and unloading costs), in the case of time chartering, the charterer bears the cost of bunkers and used supplies. Travel charters are the most commonly used charter party agreement. In the context of a voyage charter, a shipowner and a charterer conclude a contract in which the ship transports goods between two points. The voyage may be a single voyage or multiple voyages, provided that the charterer has absolutely no operational control over the vessel while it is in service. Delays in loading and unloading cargo, as well as delays during the maritime transport of a voyage, are usually the responsibility of the shipowner. Many charterers prefer this allocation of risk. With a travel charter, the itinerary is agreed in advance and the charterer has little leeway to intervene in the program. On the other hand, temporal chartering is almost a happy medium between a sinking charter and a voyage charter, because the charterer decides on the voyages and ports and orders the shipowner`s crew to comply with them.
This can lead to compensation problems: while the shipowner in a voyage charter assumes responsibility for the ship, in a time charter, the shipowner may need to be compensated for losses or liabilities directly caused by the charterer. The coverage of a charterer`s liability insurance may vary depending on the type of charter party and additional inclusions or exclusions agreed upon prior to the conclusion of the insurance. In some cases, a charterer may own cargo and hire a shipping broker to find a ship to deliver the cargo at a specific price, called a freight price. Freight rates can be calculated on a certain route (e.B. for iron ore between Brazil and China), expressed in points globally (in the case of tankers) or alternatively as a total sum – usually in US dollars – per day for the agreed duration of the charter. To the best of the Knowledge of the Partners to the Partnership, the Charter Parties hold or reasonably expect that government licences will be required in the ordinary course of business under the terms of the Charter Agreements. In a charterparty, a pending berth clause is inserted, i.e. a provision according to which the days of mooring begin to count as soon as the ship has arrived at the port of loading or unloading, “whether docked or not”. It protects the interests of shipowners against delays resulting from the fact that ships have to wait for a berth.
Depending on the type of vessel and the type of charter, a standard contract form called Charter Party is usually used to record the exact rate, duration and conditions agreed between the shipowner and the charterer. The Charter Party is the document that is reviewed and interpreted by a court in the event of a dispute, but in practice, most disputes are submitted to arbitration. The most important clauses of each charter party include those that determine the number of days of loading or unloading and those that determine who must bear the associated costs. See also The Bill of Lading, The Bill of Lading. An ice clause is inserted into a bill of lading or charterparty when a ship is proceeding to one or more ports that may be closed to ice navigation upon the ship`s arrival or after the ship`s arrival. The charterer is a contract for the carriage of goods in the event of the employment of a tramp. This means that the Charter Party clearly and unambiguously sets out the rights and obligations of the Shipowner and the Charterers and that any subsequent dispute between them will be resolved before an agreed court or tribunal with reference to the agreed terms as enshrined in the Charter Party. .