CHARTER PARTIES

Time Charter Party

The Physical Condition of the Vessel

Clause 7, Re-delivery of the BALTIME prescribes the following:

"The vessel shall be re-delivered on the expiration of the Charter in the same good order as when delivered to the Charterers (fair wear and tear excepted....".

Clause 5, Bunkers of the BALTIME also prescribes:

"The Charterers at the port of delivery and the Owners at the port of re-delivery shall take over and pay for all fuel oil remaining in the vessel's bunkers.....".

(See also Clause 6, Bunkers and Clause 4, Re-delivery of the GENTIME.)

Since the ship has to be re-delivered to the Owner in the same physical condition (re construction and spare parts of the vessel), thus in the same condition as she was delivered (wear and tear excepted), a contradictory inspection will be made when the ship is handed over. This inspection will be made by two experts (or surveyors) one by order of the Owner and one by order of the Charterer. The report which they draw-up is called “On-charter survey” or “On-hire survey”. The report which they draw-up at the re-delivery of the vessel is called “Off-charter survey” or “Off-hire survey”. The experts signs the report for the Owner and for the Charterer: “On behalf of the Owner/Charterer”.

See hereunder a model of an On-hire Survey Report.

The report gives all specifications concerning the general condition of the vessel and the possible damage which was assessed, together with the stevedore’s report regarding possible damage which has been assessed by the master (see also GENTIME, Clause 16, par. (b), Stevedore Damage). The report can also be completed with a “Fuel oil” and or “Fresh water” report. The report also indicated the quantity of fuel remaining on board and sometimes it gives the conditions for taking over this fuel.

ON-HIRE SURVEY REPORT

I, Capt. ..., Master Mariner Surveyor (at the Commerce Court of ...), went on board of the

m.s. "......................."

at the request of Messrs. ........, shipbrokers at ...., and on behalf of Messrs........, Time Charterers, for the purpose of noting her physical condition and to check surplus bunkers at the time of the vessel going "on hire", whilst she was afloat at berth nr ......, in the port of .....

................2006

Proceeded to the vessel and noted as follows:

NE in Lloyd's Register: .....

Call sign : .....

Description of the ship:

Documents

Classification survey : .....

issued : .....

valid : .....

Load-line re-assignment

issued : .....

valid : .....

(Other certificates viz.: of seaworthiness, cargo gear, deratting, dry docking):

Cargo capacities

Compartment Grain cu.ft Bale cu.ft

....... ....... .......

Cargo gear

Derricks: ........

Winches: ........

The survey was done in conjunction with :

...................

representing the Owners

General Conditions

(re weatherdeck, hatches, tweendecks, lower holds etc.)

Details of Damage Noted.

...................

Bunkers

At 16.30 hours on the .....1990 the following bunkers were sounded in conjunction with the Chief Engineer, Mr ............., and found to be on board:

..... litres

------------

..... litres ...... M.T.

S.G. 0,875

This survey was made under reserves as to any hidden, concealed or undiscovered damage or defects in the holds, stowage spaces, loading gear or such other hull structures extant at the time of the survey.

The undersigned declares, that at 20.15 hours on the ...... 1990, the cargo holds were swept clean, and the vessel ready to load and in every way fitted for ordinary cargo service and in apparent good order, fair wear and tear excepted.

THE SURVEY WAS DONE WITHOUT PREJUDICE

Model of On-charter survey

A similar report can be drawn-up at a “Off-charter survey”.

The physical condition of the ship is usually done on sight. The surveyors give a general appreciation of the vessel and particularly regarding the condition of the hull, the weather deck, the bulwark, the hatch comings, the hatch sealings with a possible hose test, the condition of the holds (lower holds and tweendecks) and in particular, the ladders, the cargo battens, the floor ceilings, the testing of the bilges, the loading gear, etc. In principle, the surveyors will only inspect what could possibly be damaged by the Charterer. Possible defects will be described in detail. Large rust spots will also be noted. With relation to the engines, the “Fuel Report” or “Bunker Delivery Note” and eventually the “Fresh Water Report” will be checked.

The surveyors will also check all the vessel’s certificates and in particular note their date of delivery and of expiration. Afterwards, on the basis of the vessel’s documents, all specifications regarding the vessel such as the tonnage, the capacity, et al, will be entered in the report. They will also take the draft of the vessel, together with the weights that remain on board (especially fresh water and ballast) in order to determine, with some degree of precision, how much fuel still remains on board. However, the correct quantity of fuel remaining on board will be determined by means of the sounding which were entered in the engine log book (preferably under the supervision of the surveyors) so that the draft will mainly serve as a good control.

Note

Regarding the remaining fuel on board, it is advised to segregate it in one or several tanks so that new fuel which will be embarked by the Charterer will not be mixed with the old fuel. Mixing fuels of different qualities may lead to chemical reactions, resulting in asphalt or a certain deposit in the fuel.

The draft will also be a good indication of the vessel’s constant.

At the “off-hire”, the Charterer must pay for possible damage to the vessel. Therefore, in case of stevedoring damage, the master must inform the Charterer immediately (via the agent) so that the Charterer can file a claim on the stevedore.

Wit regard to the fuel consumption, it is important to specify the correct time and place of delivery and of re-delivery of the vessel; also with regard to when the Charterer has to pay (or not to pay) the hire and when the “on-hire/off-hire survey” has to take place. In every charter agreement, this is clearly specified, e.g. “….. afloat at berth in Liverpool”, “At A1 Pilot Station”, “….. in Demey Locks at Ostend”.

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