CHARTER PARTIES

Time Charter Party

Laying up the Vessel

In the sometimes very capricious freight markets, it can be more advantageous to the Time Charterer to lay up the ship. This is very frequent with VLCC’s and ULCC’s, when the freights received do not balance against the hire and the variable operating costs.

Laying up - At the written request of the Charterers, the Owners shall at any time provide an estimate of any economies which may be possible in the event of laying-up the Vessel. The Charterers shall then have the right to order the laying-up of the Vessel at any time and for any period of time at a safe berth or safe place in their option, and in the event of such laying-up the Owners shall promptly take reasonable steps to effect all the economies in operating costs. The laying-up port or place and laid-up arrangements shall be subject to approval by the Owners' insurers. Laying-up preparation and reactivation cost, and all expenses incurred shall be for the Charterers' account. The Charterers shall give sufficient notice of their intention in this respect to enable the Owners to make necessary arrangements for decommissioning and recommissioning. The Owners must give prompt credit to the Charterers for all economies achieved. (GENTIME, Clause 15, Charterers’ Requirements, Par. L, Laying up.)

Under the chartering of ordinary cargo vessels (e.g. BALTIME and GENTIME) the “Laying up Clause” is only found in an additional clause.

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