CHARTRINGCHARTERINGCHARTERING 101By Akash Pise MICS

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Contents

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Charter Party Forms

Subjects

Commissions and Brokerage

PDAs and FDAs

Stowage Factor

Relet and Rider Clause

Time charter equivalent

Additional terms

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Charter Party Forms

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A charterparty (sometimes charter-party) is a maritime contract between a shipowner and a "charterer" for the hire of either a ship for the carriage of passengers or cargo, or a yacht for pleasure purposes. Charter party is a contract of carriage of goods in the case of employment of a tramp.

It means that the charter party will clearly and unambiguously set out the rights and responsibilities of the ship owner and the charterers and any subsequent dispute between them will be settled in the court of law or any agreed forum with reference to the agreed terms and conditions as embodied in the charter party.

Dry Cargo Charterparty Form Gencom ( Voyage Charter)

NYPE 93 ( Time Charter)

Tanker Charterparty Form Asba Tank Voyage ( Voyage Charter)

Shell Time 4 ( Time Charter)

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Subjects

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“Details” – subject to details This subject indicates that whilst the main terms of the fixture have been agreed

(including freight, lay-days, load and discharge ports etc.) there are details pending that also have to be agreed before the contract is complete. In practical terms it means that the full wording of the “standard contract” used must be checked, if necessary altered and agreed by the two parties. Under English law the contract is not binding until details have been agreed.

“Stem” – subject to enough merchandise This subject is used so that the charterer can confirm that the proposed cargo is

still available for shipment, loading berth is available on the proposed dates and that the vessel is acceptable to shippers.

“Receivers” – subject to receivers approval This subject is used so that the charterers can confirm that the cargo and the

proposed vessel are acceptable to the receivers.

“Owner’s / Manager’s Approval” This subject is used by both charterers and owners, indicating that final approval

is needed by a senior member of owner’s/charterers management, presumably because negotiations have been concluded by junior personnel without sufficient authority. It is also widely used by owners who wish to check the background of the charterers before committing themselves in the contract.

Charterers are also known to be using this subject when they wish to check the vessel’s records of performance

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