CHARTER PARTIES

Worked-out Gencon

ANALYSIS OF THE PRINTED CLAUSES

Clause 1

The term "about" has been replaced by "not before", which means that the ship will not be accepted as ready to load before 22 November 1983. In that case, and to save a maximum of fuel, the master will have to regulate the speed of the ship so that he does not arrive in the port of loading before that date, Note that in box 12 a "cancelling date" is given on 25 November 1983. The lay/can is therefore 22/25 November 1983.
"… or so near thereto as she may safely get…" was crossed out twice which means that the charterer guarantees that the ship will lie safely (and always afloat) in Viano do Castello and in Bayonne. Since the ship has to call to these two ports and at no other ones, both the master and the ship Owner must nevertheless check if those ports are perfectly accessible for the loaded ship (See also paragraph The Port of Loading and of Discharge).
The ship must load a minimum of 1,200 metric tons of feldspar with a stowage factor of 30 cubic feet. 5% more or less in charterers' option means that the charterer will have satisfied to his obligation if he has loaded between 1140 and 1260 tons. According to the crossed out text in box 12 we can conclude that it concerns here a complete cargo and not a part cargo. Since the ship can load 1650 metric ton and that the stowage factor of feldspar is less than 40 cubic feet, there is absolutely no problem to take that cargo on board.
Charterers to provide all mats and/or wood for dunnage and any separation required was crossed out because for a full cargo of bulk such stowage material is not necessary.
Other elements in clause 1 such as: name and address of the broker, of the Owner and of the charterer, the name of the ship, etc. is self-evident. For the freight, see Clause 4 - Payment or Freight.

In box 3 it is obvious that Goelan Shipping acts as Disponent Owner, so that they are not the real Owners of the ship. Goelan Shipping have themselves hired the ship from the real Owners in time charter (See also Paragraph The Baltime Charter Party).

Clause 2 - Owners’ Responsibility Clause

In clause 2 "… (unless stowage performed by shippers/Charterers or their stevedores or servants)…" has been crossed out because in the implementation of this charter party negotiable bills of lading have been issued which are governed by the Rules of The Hague or the Rules of the Hague-Visby, which are of public order. According to Article III, paragraph 2 of the Rules of the Hague-Visby the carrier is obliged to take care for the proper and careful loading, handling, stowing, carrying, keeping, caring and discharging of the goods transported by him. Despite the fact that the goods are loaded f.i.o.t. (see box 13 and printed clause 5 b), and therefore at the expense of the Charterer, the master and the Owner remain nevertheless responsible for the proper loading, stowing and trimming of the goods.

If the Charterer (or the shipper) refuses to load the goods in accordance with the master's instructions, he can make a protest, possibly via his P & I club or via the President of the Court of Commerce.

Clause 3 - Deviation Clause

Unchanged.

Clause 4 - Payment of Freight

The freight amounts to Dfl. 30, - per metric ton intaken weight f.i.o.t. (box 13). This is in the advantage of the Owner because with bulk cargoes, often less is discharged than loaded especially if grabs are used to discharge (cf. draft).

The freight is payable in the port of discharge within three days after delivery of the goods in good condition to the receivers and on producing the freight invoice to the Charterer (box 14). The name of the beneficiary and of his bank and account number are indicated in clause 32.

Clause 5 - Loading/Discharging Costs

Loading, stowing, trimming and discharging of the goods is entirely at the cost and responsibility of the Charterer or of his representative (the shipper). See however the comment at clause 2 concerning the responsibility of the carrier.

Part II of printed clause 5 b is not applicable since the ship is gearless (see clause 18 - Gearless single-decker).

Clause 6 - Laytime

Paragraphs a and b of clause 6 were crossed out entirely because for the laytime, reference is made to clause 19 (box 16 c). The total laytime for loading and discharging is 72 consecutive hours, weather permitting, Saturdays, Sunday and holidays excluded, without risks and costs for the ship.

Regarding the "notice of readiness" the times were changed to 2 hours p.m. and 8 hours a.m. In box 17 the name and the address of the shipper are not indicated. The name and address of the shipper, can be found on the bill of lading. The master will tender his "notice or readiness" to the agent who will accept it in the shipper's name. According to additional clause 20 the holds must be ready to load before the "notice of readiness" is handed over. The shippers will check the freadiness through a surveyor as soon as the ship has arrived.

According to clause 21 both in the port of loading and of discharge the time after 5 hours p.m. on a Friday or on a day preceding a holiday, until Monday 08 00 hours or 08 00 hours of the next working day, not to count as laytime unless during that time, work has been effectively done or the ship is already on demurrage.

If the ship starts loading or discharging before 14 00 hours or before 08 00 depending on the hour on which the notice of readiness was tendered, then that time will not count as laytime. "Time actually used before commencement or laytime shall count" has indeed been crossed out. Waiting for a berth will count as laytime.

Click on Statement of Facts in Viano do Castello and on Statement of Facts in Bayonne to see the history of the laytime.

Port of Loading

Since the “notice of readiness” was accepted on Wednesday 23 November 1983 at 09.30 hours, the laytime only started at 14.00 hours.

Loading went on till 20.00 hours on the same day, so that the laytime only counted for 6 hours. The ship only left Viano do Castello on the next day at 15.15 hours because she had to wait for a favorable tide.

Port of discharge

The ship arrived at Bayonne on Saturday 26 November 1983 and tendered the “notice of readiness” at 09.45 hours. It could only be accepted on the next day, i.e. on Monday 28 November 1983 at 09.00 hours so that the laytime could only start at 14.00 hours. The ship discharged until 11.00 hours on the following day, Tuesday 29 November 1983 and since the time was expressed in “running hours”, the night hours also counted so that the total laytime amounted to 21 hours.

The total laytime in the port of loading and discharge was equal to 6 + 21 = 27 hours. Since the allowed time amounted to 72 hours, the Owner could not make any claim for demurrage.

Clause 7 - Demurrage

In this clause, “Ten running days ... and ... payable day by day, to be allowed Merchants altogether ..” was deleted.

If the ship would be for more than 10 days in demurrage, then it would remain in demurrage. In clause 8 “Lien Clause” we see that the Owner has no right on damages for detention in case the laytime would be abnormally long. We saw already before that if the Owner can prove that he suffered a loss through a too long demurrage he can ask for damages to the Court.

Under this charter party, demurrage can not be paid “day by day” , since the laytime has to be considered as a whole which is only possible in the port of discharge.

When the demurrage (and the freight – see box 14) must be paid after the ship has been discharged, the Owner has no recourse on the goods and he can not apply Clause 8 – the “Lien Clause”. Since the Charterer remains responsible for the payment of the freight, the deadfreight and the demurrage, the Owner will address himself to the Court. In practice, the Owner will address himself to his P & I Club, who will give him the necessary legal assistance.

In box 18 we clearly see that there is no “despatch”. Despatch is nowadays rarely applied.

The daily amount that the Owner should receive for demurrage should, in principle, be a little higher than the hire that he would receive for his ship under a time charter.

Clause 8 – Lien Clause

See Clause 7.

Clause 9 – Bills of Lading<

Three original bills of lading have been issued in implementation of this charter party (click here).

The elements which appear on the bill of lading and which, for now, are important, are:

the name of the shipper;
the name of the cargo broker with below his name “as ship’s agents only;”
the reference to the charter party dated Antwerp 1983-11-15 with the additional information “Freight as per agreement” thus according to the amount indicated in box 13 of the charter party;
The conditions of carriage (click here)

These conditions of carriage, together with the relevant clauses (General Paramount Clause, General Average, New Jason Clause and Both-to-Blame Collision Clause) are commented in detail under the paragraph Bill of Lading.

Clause 10 – Canceling Clause

See Clause 1.

Clause 11 – General Average

Next to Clause 11 “General Average, “and arbitration” has been added and both have to be settled in London (see also Clause 23).

Clause 12 – Indemnity

Unchanged.

Clause 13 – Agency

As is customary under voyage charter agreements, the Charterers appoint the brokers, the stowers or the agents. The names and addresses of the agents are given in clause 33.

Clause 14 – Brokerage

The brokerage, which amounts to 5%, is always paid by the Owner. It has to be paid to the shipbroker, who will pay the other intervening brokers.

Clause 15 – General Strike Clause

Unchanged.

Clause 16 – War Risks (“Voywar 1950”)

Unchanged.

Clause 17 – General Ice Clause

Unchanged.

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