Voyage charterparty

Under this particular agreement, the owner of the ship agrees to lease the cargo to the charterer for a particular voyage. The cost paid for such lease includes costs like fuel, loading and unloading of the cargo and etc. The vessel owner supplies the charterer with the vessel and sometimes the crew for a voyage to a designated port. However, there is a specific time limit under this kind of contract. The time mentioned in the lease contract includes the time needed for loading and unloading of the cargo, exceeding which may need the charterer to remunerate the owner in terms of compensation charges. Also, the charterer remains responsible for any incidental charges. Being a voyage bound trip with availability of crew, voyage charterparty becomes one of the most famous charterparties.

Time charterparty

This charterparty refers to lease of a vessel by the owner to a charterer for a specified period of time. The owner only offers his vessel at a predetermined rate. The charterer agrees to bear all the expenses incurred on running of the vessel in return of availability of vessel for that time.

Lump sum charterparty

In this particular type of charterparty, the owner agrees to lease his vessel to the charterer for a specified cargo to be shipped to a specified port.

Contract of Affreightment

This type of charterparty particularly suits to bulk cargoes that often need more than one voyage for complete shipment. Under this contract, the owner offers to carry the mentioned cargo at a price decided at rate of per tonnage or per voyage. This type of contract is especially found in industrial cargoes like that of coal, stones, building material, metallurgical materials etc.

Dock charterparty

This type of contract is made on the basis of the port or dock where the vessel is received by the charterer upon leasing or the owner while returning. The exchange happens in areas which are essentially suited to the size of vessel and are called commercial area of the port.

Chartering is an activity within the shipping industry. In some cases a charterer may own cargo and employ a shipbroker to find a ship to deliver the cargo for a certain price, called freight rate.

A charterer may also be a party without a cargo who takes a vessel on charter for a specified period from the owner and then trades the ship to carry cargoes at a profit above the hire rate, or even makes a profit in a rising market by re-letting the ship out to other charterers.

3. Standard forms of time charterparties. Charterparties are invariably made in writing and in the majority of cases on the bases of standard forms in use. There is a large number of standard charterparty forms. But mostly worldwide spread is the typical used Standard forms.

The official Standard forms of the charterparties have come into being because in former days, the different provisions in the charterparties, have frequently given rise for a lot of arguments. Several international groups of Ship Owners have tried to get round these difficulties by issuing uniform charterparties for specific types of goods and routes. These groups such as BIMCO have examined a number of existing charterparties and after approval, recommended them to their members (or as a worldwide service).

Recommended charterparties offer numerous advantages:

• they are used commonly;

• they are suited for several traffics and are everywhere available;

• their wording is nearly watertight and hey are generally accepted by the courts;

• they are without any doubt fair to both parties.

Also the use of Standard forms of the charterparties is usually made compulsory by the P&I Associations to restrict the chance of disagreement, resulting from different interpretations of unclear clauses to minimum.

Below, the list of the main recommended time charterparties is given, with their code - name and the organization which publishes them.

TIME FORMS

Dry cargo

Uniform Time-charter	1939 (Revised 2001)	BALTIME 1939	BIMCO
Uniform Time-charter for Container Vessels	1990	BOXTIME	BIMCO
Uniform Time-charter	1968	LINERTIME	BIMCO
General Time-charter	1999	GENTIME	BIMCO
New York Produce Exchange T/C	1993	NYPE 93	ASBA
New York Produce Exchange T/C	1981	ASBATIME	ASBA
Uniform Time-charterparty for Offshore Service Vessels	1989	SUPPLYTIME 89	BIMCO
Uniform Time-charterparty for Offshore Service Vessels	2005	SUPPLYTIME 2005	BIMCO

Tanker

Chemicals in Bulk	1984	BIMCHEM-TIME	Intertanko
Tanker Time C/P	1980	INTERTANK-TIME	Int. Ass. of Independent Tanker Owners, Oslo
Time C/P	1984	SHELLTIME	Shell Int. Petroleum, London
BPTIME 3 Time C/P	2001	BPTIME3	BP Shipping Ltd.

Among the standard forms of time charterparty, only two are most commonly used dry cargo time-charters: The Baltic and International Maritime Conference Uniform Time Char­ter (The Baltime) and the New York Produce Exchange Time Charter i the NYPE).

4. Definition of a ship. According to the United Nations Convention on Conditions for Registration of Ships - "Ship" means any self-propelled sea-going vessel used in international seaborne trade for the transport of goods, passengers, or both with the exception of vessels of less than 500 gross registered tons

According to the clause 15 of the Merchant Shipping Code of Ukraine, when used in this Code, the "vessel" ("ship") means a self-propelled or non-propelled craft or object used for:

carriage of cargoes (goods), luggage and mail, for fishing and other sea trade, exploration and extraction of minerals and raw materials, salvage of people and vessels in distress at sea, towing other craft and floating objects, performing hydro technical works or raising ships and/or property sunk at sea;

performance of special state duties (guarding fishing grounds and zones, sanitary and quarantine services, sea pollution control, etc;

scientific, educational and cultural purposes;

sports activities;

other purposes.

When used in this Code, the "Fishing Vessel" means any merchant vessel (craft) used for fishing and other sea trades. Fishing equipment (gear) shall be considered an integnal part of the fishing vessel Marine casualties involving damage to fishing gear incurred by other vessels shall be deemed as collision o vessels at sea.

When used in this Code, the "Nuclear Powered Vessel" mean any vessel propelled by nuclear propulsion plant.

You must know that commonly we refer to a ship as "she ". But why a ship is a "she "

Perhaps some owners think of their vessels as ladies. Thus I have looked for an explanation for this centuries-old tradition of referring to a ship as a "she ".

A ship is called a "she " because there is always a great deal of bustle around her, there is usually a gang of men about her, she has a waist and sometimes strays.

It takes a lot of paint to keeping her good-looking and it is not the initial expense that breaches you, it is that of keeping her all decked out.

It takes an experienced man to handle her correctly and without a man at the helm she is absolutely uncontrollable.

She shows her topsides, hides her bottom and when coming into port, always heads straight for the buoys.

Ship or vessel –There is no difference between this two meanings accept that when we say warship and merchant vessel (A merchant vessel is a ship that transports cargo and passengers during peace time)

Water craft - the same as vessel and ship

Merchant shipping - it means activities connected with the use of vessel for: the sea trades, for economic, scientific and cultural purposes

Ships are difficult to classify, mainly because there are so many criteria to base classification on.

One classification is based on propulsion; (with ships categorised as a sailing ship, a steamship, or a motorship. Sailing ships are propelled solely by means of sails. Steamships are propelled by steam engines. Motorships use internal combustion engines; they include ships propelled by a combination of sail and internal combustion.).

Other can also be classified by other criteria such as:

The number of hulls: monohull, catamaran, trimaran.

The shape, size and function, giving categories such as dinghy, keelboat and icebreaker.

The hull material: steel, aluminum, wood, fiberglass and plastic.

The type of propulsion system used, giving human-propelled (e.g., historical triremes), mechanical and sails.

But mainly we try to categorize ships and boats is based on their use. This system includes military ships, commercial vessels, fishing boats, pleasure craft and competitive boats.

Commercial vessels

Merchant ships may be divided into several categories, according to their purpose and/or size: Dry cargo ships - dry cargo ships today are mainly bulk carriers and container ships. A bulk carrier is ocean-going vessel used to transport bulk cargo items such as iron ore, bauxite, coal, cement, grain and similar cargo. Bulk carriers can be recognized by large box-like hatches on deck, designed to slide outboard or fold fore-and-aft to enable access for loading or discharging cargo.

Container ships are cargo ships that carry all of their load in truck-size containers, in a technique called containerization.

Tankers - a tanker is a ship designed to transport liquids in bulk. Tankers for the transport of fluids, such as crude oil, petroleum products, liquefied petroleum gas, liquefied natural gas and chemicals, also vegetable oils, wine and other food - the tanker sector comprises one third of the world tonnage.

Specialized ships - Specialized ships, e.g. for heavy lift goods or refrigerated cargo (Reefer ships), roll-on/roll-off cargo (RoRo) ships for vehicles and wheeled machinery.

Coasters - Coasters, smaller ships for any category of cargo which are normally not on ocean-crossing routes, but in coastwise trades. Coasters are shallow-hulled ships used for trade between locations on the same island or continent.

Passenger ships - A passenger ship is a ship whose primary function is to carry passengers. The category does not include cargo vessels which have accommodations for limited numbers of passengers. The type does however include many classes of ships which are designed to transport substantial numbers of passengers as well as freight. Indeed, until recently virtually all ocean liners were able to transport mail, package freight and express and other cargo in addition to passenger luggage and were equipped with cargo holds and derricks, kingposts, or other cargo-handling gear for that purpose. Modern cruiseferries have car decks for lorries as well as the passenger's cars. Only in more recent ocean liners and in virtually all cruise ships has this cargo capacity been suppressed. Cruise ships - A cruise ship or a cruise liner is a passenger ship used for pleasure voyages, where the voyage itself and the ship's amenities are considered an essential part of the experience. Ferries - A ferry is a form of transportation, usually a boat or ship, but also other forms, carrying (or ferrying) passengers and sometimes their vehicles. Ferries are also used to transport freight (in lorries and sometimes unpowered freight containers) and even railroad cars.

5. Ship's crew. According to the clause 49 of the Merchant Shipping Code of Ukraine, the crew of a vessel shall consist of the Master, other officers and crew (members).

The officers of a vessel other than the Master, shall include: Master's mates, engineers, electrical engineers, radio officers, ship's doctor and boatswain. The shipowner may include other marine specialists in the complement of officers.

Ship's crew consists of persons performing their duties on board and not included in the complement of officers.

A ship's crew can generally be divided into four main categories: the deck department, the engineering department, the steward's department and other.

Deck department:

Captain/Master. The captain or master is the ship's highest responsible officer, acting on behalf of the ship's owner. The captain is legally responsible for the day-to-day affairs of the ship as he is in command. It is his responsibility to ensure that all the departments under him perform legally to the requirements of the ship's owner. The Captain represents the owner and hence is called "Master";

Chief officer/chief mate. The chief officer/first mate (often called the chief mate) is the head of the deck department on a merchant vessel, second-in-command after the ship's master. The chief mate's primary responsibilities are the vessel's cargo operations, its stability and supervising the deck crew. The mate is responsible for the safety and security of the ship, as well as the welfare of the crew on board;

Second officer/second mate. The second officer (or second mate) of a merchant vessel is usually in charge of navigation and is the next licensed position above third officer and below chief officer as third-in-command. The second mate typically stands the 12-4 navigation watch;

Third officer/third mate. The third officer (or third mate) of a merchant vessel is primarily charged the safety of the ship and crew. The third mate is the next license position on board the vessel, being fourth-in-command after the captain, first/chief mate and second mate;

Deck Cadet. A Deck cadet is an officer under training in much the same way as the military context. Cadets receive training in firefighting, first aid and survival techniques. Deck Cadets train in the fields of navigation, shiphandling and cargo handling as well as maritime law. A cadet reports to the Chief Officer;

Boatswain. A boatswain, is in charge of the deck crew;

Able seaman. In the modern merchant marine, an able seaman (AB) is a member of the deck department and must possess a merchant mariner's document;

Ordinary seaman, an ordinary seaman or OS is an entry-level position in a ship's deck department. An OS performs a variety of duties concerned with the operation and upkeep of deck department areas and equipment.

Engineering department: Chief engineer; Second engineer/first assistant engineer; Third engineer/second assistant engineer; Fourth engineer/third assistant engineer; Engineering cadet

Steward's department: Chief steward; Chief cook

All ranks on the ship is certified with issuance of diplomas or qualification certificates after successful pass of exams with the state qualification commission.

Persons having respective documents confirming their qualification necessary for fulfilment of their duties on the vessel issued according to the established procedure are allowed to occupy the positions in the command staff.

Crew members of a vessel registered in the State Vessel Registry' of Ukraine or the Vessel Register of Ukraine may be citizens of any state. The vessel captain may be only a citizen of Ukraine.

The ship owner shall provide in accordance with the rules approved by the central executive authority in transport and the central executive authority in fishing industry which are based on a international conventions:

4)safe working conditions and regime on the vessel;

5)health protection for the crew members and furnishing the vessel with all the necessary means and equipment for the purpose;

6)food and water supply in the sufficient amount and of proper quality;

7)proper vessel space.

The minimum norms provided by owners of merchant vessels may not be lower than the levels established by international treaties in which Ukraine is a party.

Nowadays an international convention that almost fully regulate all aspects of a maritime labour is a Maritime Labour Convention 2006 (MLC 2006)

6. Ship registration. A sovereign nation has the authority to regulate all vessels that fly its flag on the high seas. The state of flag is empowered to enact legislation controlling domestic merchant ships that sail the high seas.

All the ships in the Ukraine merchant fleet are registered in the our country and completely staffed by Ukrainian citizens. Because of the higher labor costs associated with employing Ukrainian personnel, many ships are registered in other countries to avoid this labor requirement.

Ships can be owned by either one person or co-owners. Because of the enormous cost of merchant vessels, the majority are held by more than one owner. A bill of sale is the ordinary evidence of title to and ownership of, a vessel. Between co-owners, the right to control and use the vessel is generally reserved for the majority interest. In the event that co-owners absolutely cannot come to an agreement on how to use the vessel, one or more of them may obtain a court decree for sale of it. In general, however, a part owner shares in the profits and expenses from use of the ship in proportion to her interest.

Ship registration is the process by which a ship is documented and given nationality of the country that the ship has been documented to. The nationality allows a ship to travel internationally as it is proof of ownership of the vessel.

International law requires that every merchant ship be registered in a country, called its flag state. Ship registration is similar to a person receiving a passport. A ship is bound to the law of its flag state. It is usual to say that the ship sails under the flag of the country of registration.

A ship's flag state exercises regulatory control over the vessel and is required to inspect it regularly, certify the ship's equipment and crew and issue safety and pollution prevention documents. The organization which actually registers the ship is known as its registry. Registries may be governmental or private agencies.

A registry that is open only to ships of its own nation is known as a traditional or national registry. Registries that are open to foreign-owned ships are known as open registries and some of these are classified as flags of convenience.

Vessel registration is required for all vessels wanting to travel internationally and cross international borders. Registration is not necessary for vessels that travel in local waters, however some registries provide nationality to such vessels as well. Registration provides the ability to determine which country's laws govern the operation of a ship and the behavior of the crew.

Convention that regulate all aspects of international law in a ship registration is a United Nations Convention on Conditions for Registration of Ships Geneva, 7 February 1986.

In legislative system of Ukraine the aspect of a ship registration is regulated by a clause 26 of the Merchant Shipping Code of Ukraine, where is said that Ukrainian vessels over which a technical survey is exercised by Classification Societies, shall be entered in the State Registry of Vessels of Ukraine.

Ukrainian vessels that are not subject to inclusion in said Registry, shall be registered in the State Book of Vessels of Ukraine.

A vessel chartered on bareboat contract (Clause 203 of this Code) may, on request of the Charterer, be temporarily, but for a period not exceeding the contract term, entered into the State Registry of Vessels or the State Book of Vessels of Ukraine, provided vessels have not been on the date of chartering entered into another state's Registry of Vessels and the corresponding entry in another state's Registry has been suspended and the shipowner issued an appropriate certificate.

If a foreign state's legislation provides for entering a vessel in several Registers, this rule may be disregarded.

Also, in accordance with Ukrainian legislation, a vessel can be registered in the State Vessel Registry of Ukraine or in the Vessel Register of Ukraine only in one sea port of Ukraine.

The vessel port of registration may be changed at the owner’s discretion. Registration of a vessel in the State Vessel Registry of Ukraine is certified with a patent of navigation under the State flag of Ukraine (certificate of navigation) and registration in the Vessel Register of Ukraine - with a vessel's certificate.

From the moment of registration of a vessel in the State Vessel Registry of Ukraine or in the Vessel Register of Ukraine all previously made entries as to the vessel in vessel registries of foreign states shall not be recognized by Ukraine.

In the same way Ukraine shall not recognize inclusion of a vessel to a vessel registry of a foreign state if the vessel hasn't been excluded from the State Vessel Registry of Ukraine or the Vessel Register of Ukraine according to the established procedure.

A vessel shall be excluded from the State Vessel Registry of Ukraine or the Vessel Register of Ukraine in case of:

1)the vessel being declared unfit for further operation and repairs;

2)the vessel losing the right to sail under the State flag of Ukraine;

3)the vessel destruction or going missing.

7. Vessel's Documents. Or we can call it documents and certificates required by the law (domestic and international).

The Facilitation Committee, at its thirty-eighth session (8 to 12 April 2013), the Marine Environment Protection Committee, at its sixty-fifth session (13 to 17 May 2013) and the Maritime Safety Committee, at its ninety-second session (12 to 21 June 2013), approved the List of certificates and documents required to be carried on board ships.

This work was carried out in accordance with formalities required of shipowners by public authorities on the arrival, stay and departure of ships. It was reiterated that these provisions should not be read as precluding a requirement for the presentation for inspection by the appropriate authorities of certificates and other documents carried by the ship pertaining to its registry, measurement, safety, manning, classification and other related matters.

According to the List of certificates and documents required to be carried on board ships all ships to which the referenced convention applies must have:

1. International Tonnage Certificate (1969); An International Tonnage Certificate (1969);International Load Line Certificate; International Load Line Exemption Certificate; Coating Technical File; Construction drawings; Ship Construction File; Stability information; Damage control plans and booklets; Minimum safe manning document; Fire safety training manual; Fire control plan/booklet; Onboard training and drills record; Fire safety operational booklet; Maintenance plans; Training manual; Nautical charts and nautical publications; International Code of Signals and a copy of Volume III of IAMSAR Manual; Records of navigational activities; Manoeuvring booklet; Material Safety Data Sheets (MSDS); AIS test report; Certificates for masters, officers or ratings; Records of hours of rest; International Oil Pollution Prevention Certificate; Oil Record Book; Shipboard Oil Pollution Emergency Plan; International Sewage Pollution Prevention Certificate; Garbage Management Plan; Voyage data recorder system – certificate of compliance; Cargo Securing Manual; Document of Compliance; Safety Management Certificate; International Ship Security Certificate (ISSC) or Interim International Ship Security Certificate; Ship Security Plan and associated records; Continuous Synopsis Record (CSR); International Anti-fouling System Certificate; Declaration on Anti-fouling System; International Air Pollution Prevention Certificate; International Energy Efficiency Certificate; Ozone-depleting Substances Record Book; Fuel Oil Changeover Procedure and Logbook (record of fuel changeover); Manufacturer's Operating Manual for Incinerators; Bunker Delivery Note and Representative Sample; Ship Energy Efficiency Management Plan (SEEMP); EEDI Technical File; Technical File; Record Book of Engine Parameters; Exemption Certificate1; LRIT conformance test report; Noise Survey Report

2. In addition to the certificates listed in section 1 above, passenger ships shall carry: Passenger Ship Safety Certificate; Special Trade Passenger Ship Safety Certificate, Special Trade Passenger Ship Space Certificate; Search and rescue cooperation plan; List of operational limitations; Decision support system for masters;

3. In addition to the certificates listed in section 1 above, cargo ships shall carry: Cargo Ship Safety Construction Certificate; Cargo Ship Safety Equipment Certificate; Cargo Ship Safety Radio Certificate; Cargo Ship Safety Certificate; Document of authorization for the carriage of grain and grain loading manual; Certificate of insurance or other financial security in respect of civil liability for oil pollution damage; Certificate of insurance or other financial security in respect of civil liability for bunker oil pollution damage; Certificate of insurance or other financial security in respect of civil liability for oil pollution damage; Enhanced survey report file; Record of oil discharge monitoring and control system for the last ballast voyage; Oil Discharge Monitoring and Control (ODMC) Operational Manual; Cargo Information; Ship Structure Access Manual; Bulk Carrier Booklet; Crude Oil Washing Operation and Equipment Manual (COW Manual); Condition Assessment Scheme (CAS) Statement of Compliance, CAS Final Report and Review Record; Subdivision and stability information; STS Operation Plan and Records of STS Operations; VOC Management Plan

4. In addition to the certificates listed in sections 1 and 3 above, where appropriate, any ship carrying noxious liquid chemical substances in bulk shall carry: International Pollution Prevention Certificate for the Carriage of Noxious Liquid Substances in Bulk (NLS Certificate); Cargo record book; Procedures and Arrangements Manual (P & A Manual); Shipboard Marine Pollution Emergency Plan for Noxious Liquid Substances

5. In addition to the certificates listed in sections 1 and 3 above, where applicable, any chemical tanker shall carry: Certificate of Fitness for the Carriage of Dangerous Chemicals in Bulk; International Certificate of Fitness for the Carriage of Dangerous Chemicals in Bulk

6. In addition to the certificates listed in sections 1 and 3 above, where applicable, any gas carrier shall carry: Certificate of Fitness for the Carriage of Liquefied Gases in Bulk; International Certificate of Fitness for the Carriage of Liquefied Gases in Bulk

7. In addition to the certificates listed in sections 1 and 2 or 3 above, where applicable, any high-speed craft shall carry: High-Speed Craft Safety Certificate; Permit to Operate High-Speed Craft

8. In addition to the certificates listed in sections 1 and 2 or 3 above, where applicable, any ship carrying dangerous goods shall carry: Document of compliance with the special requirements for ships carrying dangerous goods

9. In addition to the certificates listed in sections 1 and 2 or 3 above, where applicable, any ship carrying dangerous goods in packaged form shall carry: Dangerous goods manifest or stowage plan

10. In addition to the certificates listed in sections 1 and 2 or 3 above, where applicable, any ship carrying INF cargo shall carry: International Certificate of Fitness for the Carriage of INF Cargo

11. In addition to the certificates listed in sections 1 and 2 or 3 above, where applicable, any Nuclear Ship shall carry: A Nuclear Cargo Ship Safety Certificate or Nuclear Passenger Ship Safety Certificate, in place of the Cargo Ship Safety Certificate or Passenger Ship Safety Certificate, as appropriate.

Other certificates and documents which are not mandatory.

Special purpose ships: Special Purpose Ship Safety Certificate.

Offshore support vessels: Offshore Supply Vessel Document of Compliance; Certificate of Fitness for Offshore Support Vessels.

Diving systems: Diving System Safety Certificate.

Passenger submersible craft: Safety Compliance Certificate for Passenger Submersible Craft.

Dynamically supported craft: Dynamically Supported Craft Construction and Equipment Certificate.

Mobile offshore drilling units: Mobile Offshore Drilling Unit Safety Certificate.

Wing-In-Ground (WIG) Craft: Wing–in–ground Craft Safety Certificate; Permit to Operate WIG Craft.

Noise levels: Noise Survey Report.

All certificates to be carried on board must be valid and drawn up in the form corresponding to the model where required by the relevant international convention or instrument.

The legislative system of Ukraine regulate that question in the clause 35 of the Merchant Shipping Code of Ukraine, where is said that vessel shall have the following principal documents:

Certificate of the right to fly the State Flag of Ukraine (Vessel's Patent); Certificate of ownership; Certificate of seaworthiness; Certificate of measurement (for vessels subject to survey by a Classification Society); Certificate of minimal crew number; Crewlist; List of passengers on board; Engine-room Log (for vessels with power installation); Sanitary Log; Vessel's Sanitary Certificate (for vessels carrying more than 12 passengers); License for the right to operate vessel's wireless station, Radio traffic Log and other documents required by Radio Exchange Regulations; Loadline Certificate, if the vessel is used for the purposes provided for by items 1,3 of Part 1 of Clause 15 of this Code; Log for registering measures and actions for preventing sea pollution.

The crewlist, passengers list, vessel's Log, radio and engine-room Logs shall be maintained following the forms and procedures established by the Ministry of Transport of Ukraine and for fishing vessels - by the Ministry of Fisheries and Fishing of Ukraine.

The Sanitary Log shall be maintained following the forms and procedures established by the Ministry of Transport of Ukraine, on agreement with the Ministry of Health Care of Ukraine.

Vessels registered in the State Book of Vessels of Ukraine, instead of the documents listed in the 1-st and 2-nd paragraphs of Part 1 of this Clause, shall have the Vessel's Certificate.

Vessels sailing outside Ukrainian territorial waters, shall have in addition the documents provided for by the treaties to which Ukraine is a party.

Also according to clause 36 of the Merchant Shipping Code of Ukraine, there is some exemptions in vessel documents: the vessel engaged in a special state service as well as sports vessel may not have the Certificate of measurement. However, the gross tonnage of the vessel engaged in a special state service may be estimated using a simplified method, an appropriate certificate is to be issued in substantiation thereof.

The vessel sailing in port or coastal waters only may have no engine-room and sanitary logs except otherwise stated by the rules of maintaining these logs.

8. Description of a vessel. As the time charterer is in control the commercial operation of the vessel and is obliged to pay hire at fixed rate throughout the charter period, the profit margin he derives from the enterprise will be largely dependent on the characteristics and performance of the chartered ship. Accordingly, standard time charter form include in the preamble a detailed description of the vessel covering its matters as its name and flag, ownership, class, gross and net register: tonnage, cargo capacity, speed and fuel consumption.

The success of the adventure may depend on the accuracy of these particulars, since risk of efficient vessel performance will fall largely on the charterer. It is therefore in his interest to secure as detailed description as possible and, in cases of doubt inspect the vessel by a qualified staff. In the majority of cases, however, the reputation of the ship-owner may be a more reliable guide.

So, under a time charter, the description of the vessel is of the utmost importance, both with regard to the physical condition as with regard to the operating possibilities (or operating limitations) of the vessel by the Charterer. The description of the vessel is more important under a time charter than under a voyage charter; hence, it will be more detailed and more precise.

1. The Name of the Vessel

The Owner must deliver the named ship and not another one.

2. The Flag of the Vessel

The flag of the vessel can be important, especially with regard to flags of convenience, excluded areas, declaration of war and the like.

3. The Class of the Vessel

The vessel must be delivered to the Charterer in a perfect seaworthy condition. The Owner must maintain her in a seaworthy condition during the entire chartering period. The Owner is and remains thus uninterruptedly responsible for the seaworthiness of his vessel. In every time charterparty, this condition is clearly specified. (See also: BALTIME, Clause 3, Owners’ Obligations and GENTIME, Clause 11, Owners’ Obligations.)

The documents which determine the vessel’s seaworthiness are:

- the Certificate of Seaworthiness delivered by the national Maritime

Inspectorate;

- the Classification Certificate delivered by the Classification Society.

In most countries the Certificate of Seaworthiness does not exist or is not recognized as such and the seaworthiness of the vessel has to be demonstrated by the International Certificates implemented by SOLAS such as the Passenger Ship Safety Certificate, the Cargo Ship Safety Construction Certificate, etc. and the Classification Certificates. (See also Ship’s Documents and Certificates and in particular the paragraphs Classification Certificates and Certificates Required by Law.)

If a ship has sustained damage in a foreign country, the consul of the flag State of the ship will withdraw the Class Certificate and the Certificate of Seaworthiness or possibly any SOLAS Certificate. The Consul will return the certificates to the master, only after the ship has been repaired and the Class Certificate duly endorsed by the class surveyor.

4. GT/NT

The GT and the NT are only important to the Charterer for the determination of the harbour dues.

Cubic Feet Grain/Bale Capacity Available for Cargo

With regard to the loading, the time charter agreement must indicate the deadweight and the volumetric capacity V.C. of the vessel.

The deadweight of the vessel is always given in relation to the summer freeboard (or summer deadweight - SDWT) inclusive of bunkers, lubricating oil (L.O.), fresh water (F.W.), stores and the ship’s constant. The tonnage is always preceded by the word “about” which is in the Owner’s advantage.

Example

BALTIME: “….. carrying about …..”

NYPE: "Deadweight ……. long/metric tons (cargo and bunkers, including fresh water and stores not exceeding …… long/metric tons) on a salt water draft of .... on summer freeboard".

The time charter agreement must also indicate the volumetric capacity (V.C.) of both the “grain space” and the “bale space” of the vessel. These volumetric capacities must correspond with the figure shown on the plans of the vessel ("... as per builder's plan .... cubic feet grain/bale capacity....").

Some charterparties do not mention anything with about the draft of the vessel. The maximum draft on the different load lines (Plimsoll Marks) can always be found on the deadweight scales and other documents.

5. Engine Power

The power of an engine is expressed in horsepower (hp) or in kilowatt (kW). 1 hp = ¾

kW.

The power of an engine can be expressed in different ways:

- In effective horsepower (ehp).

- In shaft horsepower (shp);

- In nominal horsepower nhp).

- In Indicated horsepower (ipk).

- In brake horsepower (bhp).

Time charterparties usually mention the indicated horsepower.

6. Speed capability in knots and fuel consumption

Since the Charterer pays the hire in units of time, the speed and fuel consumption are of paramount importance for the correct determination of the operation feasibilities of the vessel. The speed and fuel consumption indicated in the charterparty are usually in function of certain weather conditions ("...in good weather and smooth water...") and towards a given draft. Often two speeds are given: one for the vessel in ballast and one for the laden ship.

Generally, the speed and fuel consumption are preceded by the word “about” which should allow for a reasonable margin. A better description of the speed and fuel consumption, for instance, is “….. speed 15-16 knots and consumption 25-26 tons diesel oil”. In that case the vessel may not run less than 15 knots but must not run more than 16 knots and the fuel consumption may not be higher than 26 tons.

Review questions:

1. Explain the term "Shipping Law"

2. What does "charterparty" mean?

3. What types of charterparty do know?

4. Give a definition of a chartering.

5. Give a definition of a ship.

6. What principle of the ship classification do you know?

7. What does "Ship registration" mean?

8. Where does the description of a vessel covers?