CHARTER PARTIES

Worked-out Gencon

ANALYSIS OF THE ADDITIONAL CLAUSES

Clause 18 – Description of Vessel

In accordance with Clause 5, paragraph b, last part, the Charterer needs to know that the ship is gearless. For loading bulk cargoes, the ship must also be a singledecker and preferably be steel floored, so that working with grabs will be much easier. The number of holds/hatches enables the Charterer to order the number of gangs/cranes. If the ship had gone lost, then the Owner has to put another ship at the disposal of the Charterer (if he agrees of course).

The crew and the management of the ship are often criterions of confidence on which some Charterers attach great importance because they are sometimes reluctant with some foreign flags (and certainly some flags of convenience).

The construction year may be of importance in case of extra insurance on the cargo:

“Extra insurance due to vessel’s age and flag to be for Charterer’/Receivers’ account.”

Sometimes the following clause is used:

“Extra insurance, if any, owing to vessel’s age and/or flag, to be for Owners’ account.”

Clause 19

See comment made by Clause 6 – “Laytime”.

Clause 20

Se comment made by Clause 6 – “Laytime”.

Clause 21

See comment made by Clause 6 – “Laytime”.

Clause 22

In certain circumstances the Charterer (or the Owner) wishes to load the ship as soon as possible so that, outside the normal working hours, work is often done as overtime. It is of course the party (Charterer/Shipper/Receiver or Owner) who requested the work, that will have to pay the overtime of the stevedores and other departments (e.g. customs authorities). Overtime in a port is usually very expensive so that the Owner must be certain that this extra expenditure is justified and will be recuperated in the next port. Overtime is justified if e.g. the ship, on Friday afternoon, only has to load/discharge a few tens of tons of cargo and does this in overtime rather than on next Monday. This way, the ship can make his ballast voyage to the next port during the week-end and be ready to discharge/load on Monday morning. In most small ports it is not customary to work at night and during week-ends so that the master must do all he can to sail during week-ends and to load/discharge during weekdays. For some shipping services such as container services where generally work is done night and day, this rule does not apply.

In voyage chartering, overtime made by officers and crew is always for the account of the Owner.

Clause 23

This clause is self-explanatory.

However, time used for damage repair does not count as laytime. “Stevedores’ damage” is not a abstract concept, especially when bulk cargoes are loaded/discharged with heavy grabs fitted with long teeth. Forklift trucks can also cause considerable damage, especially to pipelines, electrical cables, cargo battens, etc. The master must, consequently, inspect his ship regularly and notify possible damage immediately to the stevedores.

Clause 25

The "Paramount Clause", the "New Jason Clause", the "Both-to-Blame Collision Clause" the "P & I Bunker Clause" and the "Chamber of Shipping War Risks Clauses 1 and 2" are mainly applicable on bills of lading and are commented in detail in the paragraph Bills of Lading. Since bills of lading are often used in conjunction with charter parties, it is normal that the clauses which apply to bills of lading also apply to the charter party.

Click on "Paramount Clause", the "New Jason Clause" and the "Both-to-Blame Collision Clause", for the text of these clauses. By way of documentation, we give hereunder the text of the "P & I Bunker Deviation Clause, 1948" and of the "Chamber of Shipping War Risks Clauses 1 and 2".

P. & I. Bunker Deviation Clause, 1948

"The vessel in addition to all other liberties shall have liberty as part of the contract voyage and at any stage thereof to proceed to any port or ports whatsoever whether such ports are on or off the direct and/or customary route or routes to the ports of loading or discharge named in this Charter and there take oil bunkers in any quantity in the discretion of Owners even to the full capacity of fuel tanks, deep tanks, and any other compartment in which oil can be carried whether such amount is or is not required for the chartered voyage".

Chamber of Shipping War Risks Clauses 1 and 2

"1. No Bills of Lading to be signed for any blockaded port and if the port of discharge be declared blockaded after Bills of Lading have been signed, or if the port to which the ship has been ordered to discharge either on signing Bills of Lading or thereafter be one to which the ship is or shall be prohibited from going by the Government of the Nation under whose flag the ship sails or by any other Government the Owner shall discharge the cargo at any other port covered by this Charter Party as ordered by Charterers (provided such other port is not a blockaded or prohibited port as above mentioned) and shall be entitled to freight as if the ship had discharged at the port or ports of discharge to which she was originally ordered.

2. The ship shall have liberty to comply with any orders or directions as to departure, arrival, routes, ports of call, stoppages, destination, delivery or otherwise howsoever given by the Government of the Nation under whose flag the vessel sails or any department thereof, or any person acting or purporting to act with the authority of such Government or any department thereof, or by any committee or person having, under the terms of the War Risks Insurance on the ship, the right to give such orders or directions and if by reason of and compliance with any such orders or directions any thing is done or is not done, the same shall not be deemed a deviation, and delivery in accordance with such orders or directions shall be fulfilment of the Contract voyage and the freight shall be payable accordingly".

The “Chamber of Shipping War Risks Clauses 1 and 2” must be seen as an addition to the “War Risks Clause” of the GENCON Charter Party and not as a replacement of it.

Clause 26

This clause is a very usual in tramping, since almost every voyage the ship has another loading and discharging port and therefore also another port agent. Since the port agent must advance most of the harbour disbursements and that he does not wish to take the risk that the ship Owner (who he finally does not know) will not refund him (or perhaps months later after much discussions and threats), a clause has been added to the charter party which obliges the ship Owner to advance a substantial amount of money before the ship arrives or departs of the harbour, otherwise the Charterer (who appointed the agent) has the right to deduct the harbour disbursements of the freight. (See also paragraph Breakdown of Disbursements.)

Clause 28

Opening and closing of the hatches is usually done by the crew and on Owners’ expense and the time used for same, does not count as laytime. On modern ships equipped with modern hydraulic or similar hatch panels, this problem is non existent.

Clause 29

This clause is completely in agreement with the principle that under a voyage or time charter agreement, the Owner always remains responsible for the “management of the ship” so that this point is of no concern to the Charterer.

Clause 30

This clause is entirely in conformity with the requirements of the "International Convention for the Prevention of Pollution from Ships, 1973, as modified by the Protocol of 1978 relating thereto and referred to as MARPOL 73/78", which entered into force on the 2 October 1983.

In pursuance of appendix I of Marpol 73/78, all oil tankers with a gross tonnage of 150 tons and more, and all other ships with gross tonnage of 400 ton and a more, must have an International Oil Pollution Prevention Certificate or I.O.P.P. - certificate on board, attesting that the ship answers in every respect to the requirements of Appendix I of Marpol 73/78 answers ship. (See also State Port Control.)

Clause 31

This is a local rule which is not always well known by the Owner or the operator. If this is the case, the Owner must, before fixing the charter agreement, ask his broker for the correct meaning of this clause.