general dry cargo time charter party (bhpbtime) working copy · bimco assumes no responsibility for...

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BHPBTime CHARTER PARTY of 18

Delete words in italics where appropriate Jan 2003 Edition

This document is a computer generated BHPBTime Charter Party form printed by authority of BIMCO. Any insertion or deletion to the form must be clearly visible. In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply. BIMCO assumes no responsibility for any loss, damage or expense as a result of discrepancies between the original BIMCO approved document and this computer generated document.

GENERAL DRY CARGO TIME CHARTER PARTY (BHPBTIME)

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THIS CHARTER PARTY, made and concluded in ______ 1

this ______ day of ______ 19 ______ 2

Between _____________ 3

________________ 4

as Owner / Disponent Owner / Time charter of the Vessel described below 5

and _____________

6

________________

7

______ 8

as Charterer.

9

Description of Vessel - see Appendix A

10

Name __________________ Flag _____ Deadweight ____

11

1. Duration

12

The Owner agrees to let and the Charterer agrees to hire the Vessel from the time of delivery for a *period 13

of / *Time charter Trip via safe port(s) in or out of Geographical Rotation, with one or more laden legs 14

______ 15

______ 16

______ within below mentioned trading limits

*Delete as applicable

17

2. Delivery

18

The Vessel shall be placed at the disposal of the Charterer at 19

______ 20

______ 21

______ The Vessel on her delivery 22

shall be ready to receive cargo with cleanfreshwater washed and dried cargo carrying compartments and tight, 23

staunch, strong and in every way fitted for ordinary cargo service, having water ballast and with sufficient 24

power to operate all cargo-handling gear simultaneously. (See also Clause 45) 25

The Owner shall give the Charterer days notice of expected date of delivery, and 5/2/days notice of 26

of actual date of delivery. Owner to advise Charterer immediately of any changes to the Vessel’s estimated 27

time of delivery. 28

3. On-Off Hire Survey 29

It is agreed that an independent surveyor nominated by the Owner and accepted by the Charterer will carry 30

out a joint on-hire survey to be held in Owner’s time and at Owner’s expense at port of delivery, unless 31

mutually agreed for same to be held at first load port, and that an independent surveyor nominated by Charterer 32

and accepted by the Owner will carry out a joint off-hire survey to be held in Charterer’s time and at Charterer’s 33

expense at port of redelivery. Surveys are to ascertain the general condition of the vessel, (which to include 34

holds, hatch covers, cargo handling gear, gangways, hold ladders and crane access ladders) and also bunker 35

quantities on board.

36

4. Dangerous Cargo / Cargo Exclusions

37

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(a) The Vessel shall be employed in carrying lawful merchandise excluding any goods of a dangerous, 38

injurious, flammable or corrosive nature unlesss carried in accordance with the requirements or 39

recommendations of the competent authorities of the country of the Vessel’s registry and of ports of 40

shipment and discharge and of any intermediate countries or ports through whose waters the Vessel must 41

pass. Without prejudice to the generality of the foregoing, in addition the following are specifically 42

excluded: livestock of any description, arms, ammunition, explosives, nuclear and radioactive materials, 43

______ 44

______ 45

______ 46

______ 47

______ 48

______ 49

______ 50

______ 51

______ 52

______ 53

(b) If IMO-classified cargo is agreed to be carried, the amount of such cargo shall be limited to 54

______ tons and the Charterer shall provide the Master with any evidence he may 55

reasonably require to show that the cargo is packaged, labelled, loaded and stowed in accordance with IMO 56

regulations, failing which the Master is entitled to refuse such cargo or, if already loaded, to unload it at 57

the Charterer’s risk and expense.

58

5. Trading Limits 59

The Vessel shall be employed in such lawful trades between safe ports and safe places 60

within ______ 61

______ excluding 62

______ 63

______ 64

(Charterer has the liberty to breach IWL) as the Charterer shall direct.

65

6. Owner to Provide

66

The Owner shall provide and pay for the insurance of the Vessel, except as otherwise provided, and for 67

all provisions, cabin, deck, engine-room and other necessary stores, including boiler water; lubricating oils and 68

fuel for Galley use; shall pay for wages, consular shipping and discharging fees of the crew and charges for port 69

services pertaining to the crew (including voluntary and compulsory garbage disposal) shall maintain the 70

Vessel’s class and keep her in a thoroughly efficient state in hull, machinery and equipment (including 71

Sufficient mooring lines) for and during the service, and have a full complement of officers and crew.

72

7. Charterer to Provide

73

The Charterer, while the Vessel is on hire, shall provide and pay for all the bunkers except as otherwise 74

agreed; shall pay for port charges (including compulsory watchmen), cargo watchmen and all communication 75

expenses pertaining to the Charterer’s business at cost, pilotages, towages, agencies, commissions, consular 76

charges (except those pertaining to individual crew members or flag of the Vessel), and all other usual expenses 77

except those stated in Clause 6, but when the Vessel puts into a port for causes for which the Vessel is 78

responsible (other than by stress of weather), then all such charges incurred shall be paid by the Owner. 79

Fumigations ordered because of illness of the crew shall be for the Owner’s account. Fumigations ordered 80

because of cargoes carried or ports visited while the Vessel is employed under this Charter Party shall be for the 81

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Charterer’s account. All other fumigations shall be for the Charterer’s account after the Vessel has been on 82

charter for a continuous period of six months or more. 83

The Charterer shall provide and pay for necessary dunnage and also any extra fittings requisite for a 84

special trade or unusual cargo, but the Owner shall allow them the use of any dunnage already aboard 85

the Vessel. Prior to redelivery the Charterer shall remove their fittings at their cost and in their time. 86

8. Performance of Voyages

87

(a) The Master shall perform the voyages with due despatch, and shall render all customary assistance 88

with the Vessel’s crew. The Master shall be conversant with the English language and (although 89

appointed by the Owner) shall be under the orders and directions of the Charterer as regards 90

employment and agency; and the Charterer shall perform all cargo handling, including but not limited to 91

loading, stowing, trimming, lashing, securing, dunnaging, unlashing, discharging, and tallying, at their risk 92

and expense, under the supervision of the Master. 93

(b) If the Charterer shall have reasonable cause to be dissatisfied with the conduct of the Master or 94

officers, the Owner shall, on receiving particulars of the complaint, investigate the same, and if 95

necessary, make a change in the appointments. 96

9. Bunkers 97

(a) The Charterer on delivery, and the Owner on redelivery, shall take over and pay for all fuel and 98

diesel oil remaining on board the Vessel as hereunder. The Vessel shall be delivered with: 99

______ long*/metric* tons of fuel oil at the price of ______ per ton; 100

______ tons of diesel oil at the price of per ton. The vessel shall 101

be redelivered with: ______ tons of fuel oil at the price of ______ per ton; 102

______ tons of diesel oil at the price of ______ per ton. 103

* Same tons apply throughout this clause. 104

(b) The Charterer shall supply bunkers of a quality suitable for burning in the Vessel’s engines and 105

auxiliaries and which conform to the specification(s) as set out in Appendix A, addition “unless unavailable, in

which case Charterers have the option to supply RMF 25”.

106

The Owner reserves their right to make a claim against the Charterer for any damage to the main engines 107

or the auxiliaries caused by the use of fuels not complying with the agreed specification(s) provided such claim 108

is presented within 15 days of receiving the bunkers. Additionally, if bunker fuels supplied do not conform 109

with the mutually agreed specification(s) the Owner shall not be held responsible for any reduction in the 110

Vessel’s speed performance and/or increased bunker consumption, nor for any time lost and any other 111

consequences. 112

10. Rate of Hire/Redelivery Areas and Notices

113

The Charterer shall pay for the use and hire of the said Vessel at the rate of $ ______ 114

U.S. currency, daily, (including overtime of Master, Officers and Crew), commencing on and from the day of 115

her delivery, as aforesaid, and at the same rate for any part of a day; hire shall continue until the hour of the 116

day of her redelivery in like good order and condition, ordinary wear and tear excepted, to the Owners (unless 117

Vessel lost) at ______ 118

______ 119

______ 120

______ unless otherwise mutually agreed. 121

The Charterer shall give the Owner not less than 10/5/2/1 days notice of the Vessel’s 122

expected date and probable port of redelivery. 123

For the purpose of hire calculations, the times of delivery, redelivery or termination of charter shall be 124

adjusted to GMT. 125

11. Hire Payment 126

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(a) Payment 127

Payment of Hire shall be made so as to be received by the Owner or their designated payee in 128

______, viz ______ 129

______ 130

______ 131

______ in 132

______ currency, or in United States Currency, in funds available to the 133

Owner on the due date, 15 days in advance, and for the last 15 days or part of same the approximate 134

amount of hire, and should same not cover the actual time, hire shall be paid for the estimated balance. 135

Failing the punctual and regular payment of the hire, or on any fundamental breach whatsoever of this Charter 136

Party, the Owner shall (subject to (b) below)be at liberty to withdraw the Vessel from the service of the 137

Charterer without prejudice to any claims they (the Owners) may otherwise have on the Charterer. See Clause 61

for Banking Details.

138

At any time after the expiry of the grace period provided in Sub-clause 11 (b) hereunder and while the 139

hire is outstanding, the Owner shall, without prejudice to the liberty to withdraw, be entitled to withhold 140

the performance of any and all of their obligations hereunder and shall have no responsibility whatsoever 141

for any consequences thereof, in respect of which the Charterer hereby indemnify the Owner, and hire 142

shall continue to accrue and any extra expenses resulting from such withholding shall be for the 143

Charterer’s account. 144

(b) Grace Period 145

Where there is failure to make punctual and regular payment of hire due to oversight, negligence, errors 146

or omissions on the part of the Charterer or their bankers, the Charterer shall be given by the Owner 147

5 clear banking days (as recognized at the agreed place of payment) written notice to rectify the 148

failure, and when so rectified within those 5 days following the Owner’s notice, the payment shall 149

stand as regular and punctual. However if it is demonstrated that the funds have been remitted in accordance 150

with Owner’s instructions and are in the care of Owner’s corresponding New York bank then that shall be 151

accepted as regular and punctual payment 152

Failure by the Charterer to pay the hire within 5 days of their receiving the Owner’s notice as 153

provided herein, shall entitle the Owners to withdraw as set forth in Sub-clause 11 (a) above. 154

(c) Cash Advances 155

Cash for the Vessel’s ordinary disbursements at any port may be advanced by the Charterer, as required 156

by the Owner, subject to 2 1/2 percent commission and such advances shall be deducted from the hire. 157

The Charterer, however, shall in no way be responsible for the application of such advances. 158

12. Berths 159

The Vessel shall be loaded and discharged in any safe dock or at any safe berth or safe place that 160

Charterer or their agents may direct, provided the Vessel can safely lie, always afloat at any time of tide 161

except at such places where it is customary for similar size vessels to safely lie aground. 162

13. Spaces Available 163

(a) The whole reach of the Vessel’s holds, decks, and other cargo spaces (not more than she can 164

reasonably and safely stow and carry), also accommodations for supercargo, if carried, shall be at the 165

Charterer’s disposal, reserving only proper and sufficient space for the Vessel’s officers, crew, tackle, 166

apparel, furniture, provisions, stores and fuel. 167

(b) In the event of deck cargo being carried, the Owner is to be and is hereby indenmified by the 168

Charterer for any loss and/or damage and/or liability of whatsoever nature caused to the Vessel as a 169

result of the carriage of deck cargo and which would not have arisen had deck cargo not been loaded. 170

14. Supercargo and Meals 171

The Charterer is entitled to appoint a supercargo, who shall accompany the Vessel at the Charterer’s 172

risk and see that voyages are performed with due despatch. He is to be furnished with free accommodation and 173

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same fare as provided for the Master’s table, the Charterer paying at the rate of ______ per day. 174

See Clause 58. 175

15. Sailing Orders and Logs 176

The Charterer shall furnish the Master from time to time with all requisite instructions and sailing 177

directions, in writing, in the English language, and the Master shall keep full and correct deck and engine 178

logs of the voyage or voyages, which are to be patent to the Charterer or their agents, and furnish the 179

Charterer, their agents or supercargo, when required, with a true copy of such deck and engine logs, 180

showing the course of the Vessel, distance run and the consumption of bunkers. Any log extracts 181

required by the Charterer shall be in the English language. 182

16. Delivery/Cancelling 183

If required by the Charterer, time shall not commence before ______ and should the 184

Vessel not be ready for delivery on or before ______ but not later than 1600 hours, 185

the Charterer shall have the option of cancelling this Charter Party. “Charterer shall have a further option to 186

cancel this Charter Party should there be any material misrepresentation made by Owner in respect of the 187

Vessel’s particulars, the Vessel’s suitability to perform the voyage or the Vessel’s position and/or itinerary. 188

Acceptance of delivery by Charterer shall not constitute any waiver of Owner’s obligations under the terms of 189

this Charter Party.” 190

Extension of Cancelling 191

If the Owner warrants that, despite the exercise of due diligence by them, the Vessel will not be ready 192

for delivery by the cancelling date, and provided the Owner is able to state with reasonable certainty 193

the vessel is expected to be ready for delivery , they may, at the earliest seven days before the Vessel is 194

expected to sail for the port or place of delivery, require the Charterer to declare whether or not they will 195

cancel the Charter Party. Should the Charterer elect not to cancel, or should they fail to reply within two 196

days or by the cancelling date, whichever shall first occur, then the seventh day after the expected date 197

of readiness for delivery as notified by the Owner shall replace the original cancelling date. Should the 198

Vessel be further delayed, the Owner shall be entitled to require further one declaration on the Charterer 199

in accordance with this Clause.

200

17 Off Hire 201

In the event of loss of time from deficiency and/or default and/or strike of officers or crew, or deficiency 202

of stores, fire, breakdown of, or damages to hull, machinery or equipment, grounding, detention by the 203

arrest of the Vessel, (unless such arrest is caused by events for which the Charterer, their servants, 204

agents or subsontractors are responsible), or detention by average accidents to the Vessel or cargo (unless 205

resulting from inherent vice, quality or defect of the cargo), drydocking for the purpose of examination or 206

painting bottom, or by any other cause preventing the full working of the Vessel, the payment of 207

hire and overtime, if any, shall cease for the time thereby lost. Should the Vessel deviate or put back 208

during a voyage, contrary to the orders or directions of the Charterer, for any reason other than accident 209

to the cargo or where permitted in Clause 22 hereunder, the hire is to be suspended from the time 210

of her deviating or putting back until she is again in the same or equidistant position from the destination 211

and the voyage resumed therefrom. All bunkers used by the Vessel while off hire shall be for the Owner’s 212

account. In the event of the Vessel being driven into port or to anchorage through stress of weather, 213

trading to shallow harbors or to rivers or ports with bars, any detention of the Vessel and/or expenses 214

resulting from such detention shall be for the Charterer’s account. If upon the voyage the speed be 215

reduced by defect in, or breakdown of, any part of her hull, machinery or equipment, the time so lost, and 216

the cost of any extra bunkers consumed in consequence thereof, and all extra proven expenses may be 217

deducted from the hire. See also Clause 60. 218

18. Sublet 219

Unless otherwise agreed, the Charterer shall have the liberty to sublet the Vessel for all or any part of 220

the time covered by this Charter Party, but the Charterer remains responsible for the fulfilment of this 221

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Charter Party.

222

19. Drydocking 223

The Vessel was last drydocked ______ 224

Except in case of emergency no drydocking shall take place during the currency of this Charter 225

Party. 226

20. Total Loss 227

Should the Vessel be lost, money paid in advance and not earned (reckoning from the date of loss or 228

being last heard of) shall be returned to the Charterer at once. 229

21. Exceptions 230

The act of God, enemies, fire, restraint of princes, rulers and people, and all dangers and accidents of the 231

seas, rivers, machinery, boilers, and navigation, and errors of navigation throughout this Charter, always 232

mutually excepted. 233

22. Liberties

234

The Vessel shall have the liberty to sail with or without pilots, (except where compulsory pilotages is required) to 235

tow and to be towed, to assist vessels in distress, and to deviate for the purpose of saving life and property. 236

23. Liens 237

The Owner shall have a lien upon all cargoes and all sub-freights and/or sub-hire for any amounts due 238

under this Charter Party, including general average contributions, and the Charterer shall have a lien on 239

the Vessel for all monies paid in advance and not earned, and any overpaid hire or excess deposit to be 240

returned at once.

241

The Charterer will not directly or indirectly suffer, nor permit to be continued, any lien or encumbrance, 242

which might have priority over the title and interest of the Owner in the Vessel. The Charterer 243

undertake that during the period of this Charter Party, they will not procure any supplies or necessaries 244

or services, including any port expenses and bunkers, on the credit of the Owner or in the Owner’s time. 245

24. Salvage 246

All derelicts and salvage shall be for the Owner’s and the Charterer’s equal benefit after deducting 247

Owner’s and Charterer’s expenses and crew’s proportion. 248

25. General Average 249

General average shall be adjusted according to York-Antwerp Rules 1994 or any subsequent modification 250

thereof, in London according to English Law and Practice.

251

The Charterer shall procure that all Bills of Lading issued during the currency of the Charter Party will 252

contain a provision to the effect that general average shall be adjusted according to York-Antwerp Rules 253

1994 or any subsequent modification thereof and will include the “New Jason Clause” as per Clause 30.

254

Time charter hire shall not contribute to general average. 255

26. Navigation 256

Nothing herein stated is to be construed as a demise of the Vessel to the Time Charterer. The Owner 257

shall remain responsible for the navigation of the Vessel, acts of pilots and tug boats, insurance, crew, 258

and all other matters, same as when trading for their own account. 259

27. Cargo Claims 260

Cargo claims as between the Owner and the Charterer shall be settled in accordance with the Inter-Club 261

New York Produce Exchange Agreement of 1996, or any subsequent modification or replacement thereof. 262

28. Cargo Gear and Lights 263

The Owner shall give, free of expense to Charterer, full use of the Vessel’s lighting on deck and in the 264

cargo compartments, which shall be adequate for cargo operations. 265

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The Charterer shall have the use of any cargo gear on board the Vessel and the liberty to use ship’s crew. If 266

required by Charterer, the Vessel shall work night and day and all cargo handling gear shall be at the 267

Charterer’s disposal during loading and discharging. All cargo handling gear including derricks, cranes, winches 268

and grabs, if fitted, shall be kept in good working order and the Vessel shall provide sufficient power to drive 269

them, free of expense to Charterer. In the event of a deficiency for any period affecting any of these or any 270

other equipment, including but not limited to the Vessel’s hatchcovers and the Vessel’s ability to ballast and 271

deballast as required for the loading and discharging operations, hire shall be suspended or reduced prorata to 272

the number of hatches affected depending on the deficiency. All expenses including but not limited to cost of 273

standby of trucks, labour and mechanical equipment or removal of the Vessel from the berth to be for Owner 274

account. 275

In the event of cargo handling gear deficiency, Charterer have the right to continue working the Vessel by 276

using shore equipment, in which event the Vessel shall remain on hire. However, Owner shall reimburse 277

Charterer (by deduction from Hire) for all extra costs incurred and properly substantiated , which arise as a 278

consequence of using shore equipment. Furthermore, any time lost due to inefficiencies in working the Vessel 279

with shore equipment shall be deducted from the hire on a prorata basis. 280

Without prejudice to Clause 17, if the vessel is moved off the berth due to a deficiency in the cargo handling 281

gear, the Vessel shall remain off-hire until the deficiency has been remedied and the Vessel is in the same 282

position, as if there had been no deficiency originally. Furthermore, the Vessel shall be off-hire for any time lost 283

by reason of berth congestion or the like that would not have been lost but for the deficiency of the cargo 284

handling gear. 285

29. Bills of Lading

286

(a) The Master shall sign the Bills of Lading or Waybills for cargo as presented in conformity with mate’s 287

or tally clerk’s receipts. However, the Charterer or their Agent may sign Bills of Lading or Waybills on behalf of 288

the Master, always in conformity with mate’s or tally clerk’s receipts. 289

(b) All Bills of Lading or Waybills shall be without prejudice to this Charter Party and the Charterer shall 290

indemnify the Owner against all consequences or liabilities which may arise from any inconsistency 291

between this Charter Party and any Bills of Lading or Waybills signed by the Charterer or by the Master 292

at their request. 293

(c) Bills of Lading covering deck cargo shall be claused: “Shipped on deck at Shippers’ risk, and 294

responsibility.” 295

30. Protective Clauses

296

This Charter Party is subject to the following clauses all of which are also to be included in all Bills of Lading 297

or Waybills issued hereunder: 298

(a) CLAUSE PARAMOUNT 299

“This Bill of Lading shall have effect subject to the provisions of the Carriage of Goods by Sea Act of the United 300

States, the Hague Rules, the Hague-Visby Rules or the Hamburg Rules, as compulsorily applicable, or such other

similar

301

similar national legislation as may apply by virtue of origin or destination of the Bills of Lading, which 302

shall be deemed to be incorporated herein and nothing herein contained shall be deemed a surrender by the carrier 303

of any of its rights or immunities or an increase of any of its responsibilities or liabilities under said applicable 304

Act. If any term of this Bill of Lading be repugnant to said applicable Act to any extent, such term shall be void to 305

that extent, but no further.” And 306

(b) BOTH-TO-BLAME COLLISION CLAUSE 307

“If the ship comes into collision with another ship as a result of the negligence of the other ship and any 308

act, neglect or default of the master, mariner, pilot or the servants of the carrier in the navigation or in 309

the management of the ship, the owners of the goods carried hereunder will indemnify the carrier against 310

all loss or liability to the other or non-carrying ship or her owners insofar as such loss or liability represents 311

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loss of, or damage to, or any claim whatsoever of the owners of said goods, paid or payable by the other 312

or non-carrying ship or her owners to the owners of said goods and set off, recouped or recovered by the 313

other or non-carrying ship or her owners as part of their claim against the carrying ship or carrier.

314

The foregoing provisions shall also apply where the owners, operators or those in charge of any ships or 315

objects other than, or in addition to, the colliding ships or objects are at fault in respect to a collision or 316

contact.” 317

and 318

(c) NEW JASON CLAUSE 319

“In the event of accident, danger, damage or disaster before or after the commencement of the voyage 320

resulting from any cause whatsoever, whether due to negligence or not, for which, or for the 321

consequences of which, the carrier is not responsible, by statute, contract, or otherwise, the goods, 322

shippers, consignees, or owners of the goods shall contribute with the carrier in general average to the 323

payment of any sacrifices, losses, or expenses of a general average nature that may be made or incurred, 324

and shall pay salvage and special charges incurred in respect of the goods. 325

If a salving ship is owned or operated by the carrier, salvage shall be paid for as fully as if salving ship 326

or ships belonged to strangers. Such deposit as the carrier or his agents may deem sufficient to cover 327

the estimated contribution of the goods and any salvage and special charges thereon shall, if required, 328

be made by the goods, shippers, consignees or owners of the goods to the carrier before delivery.

329

and 330

(d) U.S. TRADE - DRUG CLAUSE 331

“In pursuance of the provisions of the U.S. Anti Drug Act 1986 or any re-enactment thereof, the 332

Charterer warrants to exercise the highest degree of care and diligence in preventing unmanifested 333

narcotic drugs and marijuana to be loaded or concealed on board the Vessel. 334

Non-compliance with the provisions of this clause shall amount to breach of warranty for consequences 335

of which the Charterer shall be liable and shall hold the Owner, the Master and the crew of the Vessel 336

harmless and shall keep them indemnified against all claims whatsoever which may arise and be made 337

against them individually or jointly. Furthermore, all time lost and all expenses incurred, including fines, 338

as a result of the Charterer’s breach of the provisions of this clause shall be for the Charterer’s account 339

and the Vessel shall remain on hire. 340

Should the Vessel be arrested as a result of the Charterer’s non-compliance with the provisions of this 341

clause, the Charterer shall at their expense take all reasonable steps to secure that within a reasonable 342

time the Vessel is released and at their expense put up the bails to secure release of the Vessel. 343

The Owner shall remain responsible for all time lost and all expenses incurred, including fines, in the 344

event that unmanifested narcotic drugs and marijuana are found in the possession or effects of the 345

Vessel’s personnel. See also Clause 43 346

and 347

(e) WAR CLAUSES - the Bimco standard war risks clause for Time chartering, 1993 (codename: Conwartime 348

1993 as published by Bimco) shall be deemed to be fully incorporated in and shall form part of this Charter 349

Party. 350

31. War Cancellation 351

In the event of the outbreak of war (whether there be a declaration of war or not) between any two or 352

more of the following countries: ______ 353

______ 354

______ 355

______ 356

either the Owner or the Charterer may cancel this Charter Party. Whereupon, the Charterer shall 357

redeliver the Vessel to the Owner in accordance with Clause 10; if she has cargo on board, after 358

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discharge thereof at destination, or, if debarred under this Clause from reaching or entering it, at a near 359

open and safe port as directed by the Owner; or, if she has no cargo on board, at the port at which she 360

then is; or, if at sea, at a near open and safe port as directed by the Owner. In all cases hire shall 361

continue to be paid in accordance with Clause 11 and except as aforesaid all other provisions of this 362

Charter Party shall apply until redelivery. 363

32. Ice 364

The Vessel shall not be required to enter or remain in any icebound port or area, nor any port or area 365

where lights or lightships have been or are about to be withdrawn by reason of ice, nor where there is 366

risk that in the ordinary course of things the Vessel will not be able on account of ice to safely enter and 367

remain in the port or area or to get out after having completed loading or discharging. Subject to the 368

Owner’s prior approval the Vessel is to follow ice-breakers when reasonably required with regard to her 369

size, construction and ice class. 370

33. Requisition 371

Should the Vessel be requisitioned by the government of the Vessel’s flag during the period of this Charter 372

Party, the Vessel shall be deemed to be off hire during the period of such requisition, and any hire paid 373

by the said government in respect of such requisition period shall be retained by the Owner. The period 374

during which the Vessel is on requisition to the said government shall count as part of the period provided 375

for in this Charter Party. 376

In this event Charterer shall have the option of cancelling this Charter Party and no consequential claim may 377

be made by either party. 378

34. Stevedore Damage 379

Notwithstanding the provisions of Clause 8 and 10 above, all claims for damage allegedly caused by 380

the stevedore shall be settled directly between Owner and stevedore at loading and discharging ports. 381

Neither Charterer nor shipper nor receiver shall be responsible for the acts and default of the stevedore. 382

However Charterer shall render every assistance to Owner if Owner elects to pursue a claim or any legal 383

proceedings against the stevedore in respect of damage caused to the Vessel by the stevedore. Owner or 384

Master shall give written notice to stevedore of damage claimed not later than twenty-four (24) hours after 385

the occurrence. 386

35. Cleaning of Holds 387

The Charterer shall provide and pay extra for sweeping and/or washing and/or cleaning of holds between 388

voyages and/or between cargoes provided such work can be undertaken by the crew and is permitted by 389

local regulations, at the rate of US$400 per hold and US$200 extra per hold when dunnage removal/storage is 390

agreed. In connection with any such operation, the Owner shall not be responsible if the Vessel’s holds are not 391

accepted or passed by the port or any other authority. The Charterer shall have the option to re-deliver 392

the Vessel with unclean/unswept holds against a lumpsum payment of US$ ______ in lieu of cleaning dunnage 393

and lashing removal. 394

36. Taxes 395

Charterer to pay all local, State, National taxes and/or dues assessed on the Vessel or the Owner 396

resulting from the Charterer’s orders herein, whether assessed during or after the currency of this Charter 397

Party including any taxes and/or dues on cargo and/or freights and/or sub-freights (excluding 398

taxes levied by the country of the flag of the Vessel or the Owner). 399

37. Charterer’s Colors 400

The Charterer shall have the privilege of flying their own house flag and painting the Vessel with their 401

own markings. The Vessel shall be repainted in the Owner’s colors before termination of the Charter 402

Party. Cost and time of painting, maintaining and repainting those changes effected by the Charterer 403

shall be for Charter’s account. 404

38. Laid Up Returns 405

The Charterer shall have the benefit of any return insurance premium receivable by the Owner from their 406

underwriters as and when received from underwriters by reason of the Vessel being in port for a minimum 407

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period of 30 days if on full hire for this period or pro rata for the time actually on hire. 408

39. Documentation 409

The Owner shall carry on board and make available for inspection as and when required by Charterer and/or 410

authorities any documentation relating to the Vessel that may be required to permit the Vessel to trade within 411

the agreed trade limits, including, but not limited to certificates of financial responsibility for oil pollution, 412

P & I cover, valid international tonnage certificate, Suez and Panama tonnage certificates, valid certificate 413

of registry and certificates relating to the strength and/or serviceability of the Vessel’s gear. (See Clause 46) 414

40. Stowaways 415

(a) (i) The Charterer warrant to exercise due care and diligence in preventing stowaways in gaining 416

access to the Vessel by means of secreting away in the goods and/or containers shipped by the 417

Charterer. 418

(ii) If, despite the exercise of due care and diligence by the Charterer, stowaways have gained 419

access to the Vessel by means of secreting away in the goods and/or containers shipped by the 420

Charterer, this shall amount to breach of charter for the consequences of which the Charterer 421

shall be liable and shall hold the Owner harmless and shall keep them indemnified against all 422

claims whatsoever which may arise and be made against them. Furthermore, all time lost and all 423

expenses whatsoever and howsoever incurred, including fines, shall be for the Charterer’s account 424

and the Vessel shall remain on hire. 425

(iii) Should the Vessel be arrested as a result of the Charterer’s breach of charter according to 426

sub-clause (a)(ii) above, the Charterer shall take all reasonable steps to secure that, within a 427

reasonable time, the Vessel is released and at their expense put up bail to secure release of the 428

Vessel. 429

(b) (i) If, despite the exercise of due care and diligence by the Owner, stowaways have gained 430

access to the Vessel by means other than secreting away in the goods and/or containers shipped 431

by the Charterer, all time lost and all expenses whatsoever and howsoever incurred, including 432

fines, shall be for the Owner’s account and the Vessel shall be off hire. 433

(ii) Should the Vessel be arrested as a result of stowaways having gained access to the Vessel 434

by means other than secreting away in the goods and/or containers shipped by the Charterer, 435

the Owner shall take all reasonable steps to secure that, within a reasonable time, the Vessel 436

is released and at their expense put up bail to secure release of the Vessel. 437

41. Smuggling 438

In the event of smuggling by the Master, Officers and/or crew, the Owner shall bear the cost of any 439

fines, taxes, or imposts levied and the Vessel shall be off hire for any time lost as a result thereof. 440

42. Arbitration 441

(a) Any dispute arising out of this Charter Party or any Bill of Lading 442

issued hereunder shall be referred to arbitration in London in accordance with the Arbitration Acts 1996 and 443

any statutory modification or re-enactment in force. English law shall apply. Upon receipt of the nomination in 444

writing of the claimant’s arbitrator, the party receiving the nomination shall appoint its arbitrator within 445

fourteen days, failing which the dispute shall be determined by the single arbitrator. If both parties each 446

appoint an arbitrator and those arbitrators do not agree, they shall appoint an umpire whose decision shall be final

and

447

final and binding. If the amount in dispute is less than US$50,000 the reference shall be to a sole arbitrator and 448

the arbitration shall be conducted in accordance with the LMAA Small Claims Procedure. 449

( b) The arbitrators, umpire and mediator shall be commercial persons normally engaged in the shipping 450

industry. Any claim must be made in writing and the claimant’s arbitrator nominated within twelve months of 451

the final discharge of the cargo under this Charter party, failing which any such claim shall be deemed to be 452

waived and absolutely barred. 453

43. Safety including Drug and Alcohol 454

Subject to Clause 67, Owner shall have on board the Vessel an effective occupational health and safety policy 455

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with the object that due care and attention is given by crew members to safe working practices in all operations 456

pertaining to the Vessel. The Owner shall have a policy regarding drug and alcohol abuse on board with the 457

object no crew member will navigate a ship or operate its on-board equipment whilst impaired by drugs or 458

alcohol. The policy will also have the objective of strictly prohibiting the possession, use, transport and 459

distribution of illicit or non-prescribed drugs by crew members. The Owner shall exercise due diligence 460

throughout the period of the Charter Party to ensure that such policies are complied with. 461

44. ITF 462

Owner guarantee that the present terms and conditions of employment of the crew comply with an ITF 463

Agreement of a bona fide Trade Union Agreement that is acceptable to the ITF and their representatives and 464

will remain so for the duration of this Charter Party. 465

In the event of loss of time and/or extra expenses incurred due to boycott of the Vessel (whether actual or 466

threatened) and/or dispute with labour because of Vessel’s flag or nationality of Owner, Master, Officers or 467

crew, or the terms and conditions under which the Master, Officers or crew are employed, then Vessel shall be 468

placed off hire and any expenses directly attributable thereto including but not limited to standby of trucks, 469

labour and mechanical equipment or removal of Vessel from berth, shall be for Owner’s account. 470

An ITF approved certificate to be available upon arrival at first port. 471

45. Hold Cleanliness 472

Vessel shall present at all load ports on first voyage with cargo carrying compartments clean, dry, free of rust

and/or scale

473

and/or any contaminants and/or residual cargo (which shall include a gas free certificate if the Vessel is a 474

combination carrier) to the satisfaction of the port warden and/or grain surveyor and/or such other recognised 475

local authority or surveyor as local regulations or shippers may require and/or nominate to receive any relevant 476

cargo, including but not limited to steel, mineral sands, grain, fertilisers, ores and coal. If on presentation for 477

loading at any or all of the loading port(s) the Vessel should fail to pass hold cleanliness survey then all 478

expenses for cleaning and or fumigating including but not limited to cost of standby of trucks, labour and 479

mechanical equipment or removal of Vessel from berth to be for Owner’s account. Vessel shall be placed 480

offhire until survey has been passed and the Vessel’s cargo carrying compartments are ready in all respects to 481

load and Vessel is in the same position, as if the Vessel had not originally been rejected to load. Furthermore, 482

the Vessel shall be off-hire for any time lost by reason of berth congestion or the like that would not have been 483

lost but for the failure to pass hold cleanliness survey. 484

Vessel throughout the term of this Charter Party is to be maintained in a suitable condition for the carriage of 485

grain or other cargoes requiring similar high standards of cleanliness. Failure to pass cleanliness surveys shall 486

not be an Owner’s liability where such failure results from Charterer’s cargo residue. 487

46. Regulations 488

The Vessel shall comply with all International and local Laws and Regulations at any port of call under this

Charter Party, including all

489

Environmental Regulations and Commonwealth of Australia Navigation (Orders) Regulations in particular but 490

not limited to Marine Orders part 32, (Cargo Handling Equipment) which govern the Vessel’s hold and crane 491

ladders as well as ship’s cargo handling equipment, and Marine Order Part 23 (Equipment - Miscellaneous and 492

Safety Measures) which govern gangways and lighting. The Vessel shall also comply with the requirements set 493

out in the amendment to the Code of Safe Practice for Solid Bulk Cargoes (B.C. Code) dated 1996 for the 494

Carriage of Bulk Coal by Sea. This is covered by Marine Notice 11/96 (or later revision/amendment) issued by 495

the Australian Maritime Safety Authority (AMSA). Owner’s warrant that the vessel complies with current 496

regulations at all ports of call regarding the prevention of Asian Gypsy Moth infestation. The Vessel shall be 497

placed off-hire during any period(s) when any relevant authority declares the Vessel to be in non compliance with 498

any of the foregoing and any expenses directly attributable thereto including but not limited to standby of trucks, 499

labour and mechanical equipment or removal of the Vessel from the berth to be for Owner’s account. Without 500

prejudice to clause 17, if the Vessel is moved off the berth due to non-compliance, with any Laws or Regulations 501

at any port of call under this Charter Party, the Vessel shall remain off-hire until the relevant Laws or 502

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Regulations have been complied with and the Vessel is in the same position, as if there had been compliance 503

originally. 504

Furthermore, the vessel shall be off-hire for any time lost by reason of berth congestion or the like that would 505

not have been lost but for the non-compliance. 506

47. ISM Compliance 507

From the date of coming into force of the International Safety Management (ISM) Code in relation to the Vessel 508

and thereafter during the currency of this Charter Party, the Owner shall procure that both the vessel and 509

“the Compay” (as defined by the ISM Code) shall comply with the requirements of the ISM Code. Upon 510

request the Owner shall provide a copy of the relevant Document of Compliance (DOC) and Safety 511

Management Certificate (SMC) to the Charterer. 512

Except as otherwise provided in this Charter Party, loss, damage, expense or delay caused by failure on the 513

part of the Owner or “the Company” to comply with the ISM Code shall be for the Owner’s account. 514

48. Hold/Gear Warranty 515

Owner warrants that Vessel has free and unobstructed holds and is suitable for grab discharge. If the Vessel is 516

geared Owner further warrants that the gear as described is certified with proper markings on the blocks and 517

that each cargo crane is capable of lifting cargo/equipment with a maximum weight under the hook, as stated 518

in Appendix A. 519

49. Cargo Surveys 520

If required by Charterer a joint cargo pre-shipment and/or an outturn survey shall be carried out by 521

independent surveyors agreed between Owners and Charterers with the Surveyors’ fees to be shared equally. 522

50. P & I Club 523

Owner warrants that: 524

(i) the Vessel shall be entered with a Protection and Indemnity Club for full P&I cover and Charterer to have 525

the benefit of Owners P & I Club as far as the rules of same permit. 526

(ii) the Vessel’s hull and machinery shall be fully insured. 527

51. Delivery of Cargo without Production of Documents 528

If requested by Charterer, the Master shall release all or part of the cargo at the discharging port(s) 529

without presentation of original Bills of Lading. Prior to discharge Charterer shall provide Owner via 530

telex or fax with a Letter of Indemnity as per the Owner’s P & I Club form but without a bank guarantee. 531

Such Letter of Indemnity shall automatically become null and void upon presentation of the original Bill of 532

Lading to Owner or Master. 533

52. Change of Name 534

The Vessel shall not change Ownership, name, flag, class, technical and / or crew management during the 535

currency of this Charter Party without Charterer’s prior approval, which shall not be unreasonably withheld. 536

Charterer is to be given advance notice of any change of Master or Chief Officer. 537

53. Double Banking 538

Subject to the provision of sufficient fenders/protection to the Master’s satisfaction, Charterer shall have the 539

option to double bank the Vessel. Owner not to be responsible for loss or damage to cargo by reason of this 540

method of loading/discharging, save for any such loss or damage which arises by reason or consequence of 541

negligence or wilful misconduct on the part of the Owner, Master and/or Crew and/or the unseaworthiness of 542

the Vessel and/or deficiencies in the Vessel’s cargo gear. 543

54. Lighterage 544

Charterer shall have the option to load from barges and/or discharge into barges moored alongside the 545

Vessel. 546

55. Hatch Opening and Closing 547

Crew to open and close hatches as required by Charterer provided shore regulations permit at no cost to 548

Charterer. 549

56. Deductions from Hire 550

Charterer shall be at liberty to deduct estimated values of bunkers on redelivery from last hire payment(s). If 551

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during the currency of this Charter Party any expenditure is properly incurred by Charterer on behalf of 552

Owner, the Charterer shall have the right to reimburse themselves in respect of such expenditure by way of 553

deductions from hire. Such deductions are to be substantiated in due course with signed vouchers. 554

57. Owner’s Matters in Port 555

Charterers agents are available to perform the minor husbandry matters for Owners. These services are to be 556

provided at actual cost and no agency fee is applicable, but owners to settle with agents and to be ultimately 557

responsible for settling same. All other matters to be arranged exclusively by Owners and to be settled directly. 558

58. Cabling/Victualling 559

All cable/victualling/communication expenses undertaken on behalf of Charterer to be borne by Charterer at 560

a cost of US$1000 per 30 days or pro rata. 561

59. Oil Pollution and Financial Responsibility 562

(i) Owner agrees to indemnify Charterer and their servants and agents or any other party against all and any 563

liability for or arising out of oil pollution (whatever the basis of liability may be) by reason of any act or 564

omission of the Vessel, the Master or any servant or agent of Owners, provided that the incident giving rise to 565

such liability shall not have been caused by or contributed to by the party seeking to be indemnified under this 566

charter Party and provided that the facts and matters giving rise to such liability would not give rise to a 567

defence under Article 3, Section 2 of the International Convention on Civil Liability for Oil Pollution Damage 568

1969 if the Vessel were a ship carrying oil in bulk as cargo.Owner warrants that the Vessel is entered in a P&I 569

Association with cover for liabilities arising out of any liability as aforesaid. 570

(ii) During the period of this Charter Party Owner warrants that they shall comply with all financial 571

capability, responsibility, security or like laws, regulations and/or other requirements of whatsoever kind with 572

respect to oil or other pollution damage applicable to the Vessel entering, leaving, remaining at or passing 573

through any ports or places or waters in the performance of this Charter Party. Owner, at its sole risk and 574

expense shall make all arrangements by bond, insuance or otherwise and obtain all such certificates or other 575

documentary evidence and take all such action as may be necessary to satisfy such laws, regulations and/or 576

other requirements. Any expense or time lost to the Charterer due to any failure or omisssion to do the 577

foregoing shall be for Owner’s account. 578

(iii) Notwithstanding anything else contained herein, for US Financial Responsibility requirements, Owner 579

warrants that they will continue to have throughout the period of this Charter Party the standard oil pollution 580

insuance coverage available through Owner’s P&I Club (minimum US$500 million), expense for the coverage 581

to be for Owner’s account. 582

60. Weather Routing 583

Charterer may employ the services of an Independent Weather Bureau Reporting service such as Oceanroutes 584

to route monitor the Vessel and the Master is to comply with the reporting procedure. The Vessel shall be 585

capable at all times of performing at the agreed speed and consumption in the weather conditions as stated in 586

Appendix A and in the event that this is not the case then Charterer shall be compensated for 587

slow speed or over consumption and shall have the right to deduct this amount from hire. 588

Evidence of the weather conditions to be taken as reported daily on the noon position report to Charterer. In the 589

event of discrepancy between daily report from the Vessel and that provided by the Independent Weather 590

Bureau Report, the Independent Weather Bureau Reports are to be accepted as the basis upon which any speed 591

claim is to be made. 592

61. Banking Details 593

Beneficiary (Account name): ______

594

Account Number: ______

595

Beneficiary Bank: ______ Chips UID (US$ Payments only): ______

596

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Address: ______ Fedwire No: ______

597

Note: The following need only be completed where Beneficiary Bank is located outside country of currency: 598

Correspondent Bank in the USA of the Beneficiary Bank: ______ 599

Bank Name: ______ ABA No: ______

600

Clause 62 to 66 inclusive only apply if the Vessel is fixed for a period: ______ 601

62. Lashing/Unlashing 602

Lashing/Unlashing cargoes is to be performed by Vessel’s crew if same required by Charterer, provided same 603

allowed by port and or Labour Union regulations, weather and/or safety considerations and for which Charterer 604

is to compensate crew at an agreed rate. Lashing, relashing and unlashing to be done always at Charterer’s 605

time, expense and risk, save and except that at no time will the crew be deemed employees of the Charterer 606

and the Owner shall indemnify Charterer against claims by any crew member for injuries suffered during as as 607

a consequence of the lashing/unlashing of cargoes. 608

63. Charterer’s Equipment 609

Any Charterer’s equipment and/or stores placed on board to be retained by Master and same to be returned to 610

Charterer prior to redelivery of Vessel. 611

64. Extended Offhire 612

Should Vessel be off hire during the currency of this Charter Party for any reasons whatsoever, Charterer 613

has the option of adding such off hire period to the charter period stipulated in Clause 1 of this Charter Party. 614

The hire payable in respect of any such added hire period shall be as stipulated in Clause 10. Such option 615

should be declared by Charterer latest 45 days prior to vessel’s original earliest redelivery. 616

65. Layup 617

Charterer shall have the right to order the laying up of Vessel at any time and for any period of time at a safe 618

berth or place, and in the event of such laying up, Owner shall promptly take steps to effect all the 619

economics in operating costs including insurance which may be possible and give prompt credit to Charterer 620

in respect of all such economies. At the request of Charterer, Owner shall at any time provide an estimate of 621

the economies which would be possible in the event of the laying up of Vessel. The laying up port or place 622

shall be at Charterer’s option but shall always be safe. Should Charterer decide that for reasons of economy 623

officers and crew should be paid off then the cost of repatriation and later cost of rejoining including laying up 624

preparation and reactivating cost and any expenses related thereto, are to be for Charterer’s account. 625

Charterer to give sufficient notice of their intention in this respect to decommissioning and recommissioning. If 626

Vessel be laid up continuously in safe port/place/anchorage for more than 30 days as per this clause, 627

Charterer to accept reduction of speed and/or excess consumption otherwise Charterer to conduct 628

reactivation procedure including underwater cleaning/painting at their time and expenses. 629

66. Safety Clause for Period Timechartered Vessel’s 630

Owners acknowledge that Charterer have a policy that requires the highest standards of shipboard operations 631

and agree to cooperate with Charterers in ensuring that all due care and diligence is exercised in regard to: 632

The Safety of ship, crew and others working with the Vessel, The Environment, Cargo care and handling, Safe 633

and efficient Navigation, and General housekeeping and management of the Vessel. 634

In furtherance of Owner’s and Charterer’s above policies, Owner agree to carry out with the Charterer, joint 635

“Ship Appraisals” at mutually convenient times but at least semi-annually. The “Ship Appraisal” will be based 636

on a checklist (mutually) agreed and will have particular reference to the above. Any deficiencies noted will be 637

corrected by the Owner as soon as possible and in good faith. In addition, Owner agrees that any and all 638

incidents or potential incidents that involve: 639

a) the safety & health of crew and other persons involved with the ship, and 640

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b) damage or risk of damage to the environment in any manner, will be reported to the Charterer as soon 641

as possible after the event. It is agreed that such reporting to the Charterer will in no way constitute an 642

admission of liability. 643

It is agreed that nothing in this clause, the “Ship Appraisals”, or reporting of incidents thereof will change the 644

respective responsibilities and liabilities of the Charterer and Owner and all other terms and conditions of this 645

Charter Party will apply irrespective of any agreement or action taken pursuant to this clause. 646

67. Commissions 647

A commission of ______ percent is payable by the Vessel and the Owner to ______ 648

______ 649

on hire earned and paid under this Charter, and also upon any continuation or extension of this Charter.

650

68. Address Commission 651

An address commission of ______ percent is payble to ______ 652

______ on hire earned and paid under this Charter 653

Clauses ______ to ______, both inclusive, together with Appendix A as attached hereto, completed and signed BHP 654

Billition Vetting and any other requested questionnaires are fully incorporated into this Charter Party. 655

For Owner: ______ For Charterer: ______ 656

657

658

659

660

661

662

663

664

665

666

667

668

669

670

671

672

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673

APPENDIX “A” 674

675

676

677

Details of the Vessel: ______ 678

______ 679

Name: __________________ 680

Flag: Click here to enter text. 681

Year to Build: Click here to enter text. 682

Previous names: ______ 683

Class: Click here to enter text. 684

Type of Vessel: Click here to enter text. 685

Deadweight: Click here to enter text. 686

Summer Saltwater Draft: ______ 687

TPI/TPC: ______ / ______ 688

GT/GRT: Click here to enter text./ ______ 689

NT/NRT: Click here to enter text./ ______ 690

LOA: Click here to enter text. 691

Beam: ______ 692

Moulded Depth: ______ 693

Callsign/Telex/Fax/Immarisat numbers: Click here to enter text./ ______ 694

Number holds/Hatches: ______ 695

Vessel’s Ballast hold (sea/port): ______ 696

Airdraft (Distance from waterline to top of hatch coaming) in: ______ 697

Normal ballast condition: ______ 698

Fully laden condition: ______ 699

Hatch dimensions in main deck (and tween deck if applicable): ______ 700

Type of Hatchcovers: ______ 701

Number/Type and Make of cargo gear, if applicable: ______ 702

Capacity of gear under hook (in accordance with Clause 48): ______ 703

Is Vessel grab fitted, if so type and capacity: ______ 704

Mechanical Hold Ventilation (Y/N): ______ 705

Air changes per hour (if applicable): ______ 706

Owners P&I Club: ______ 707

Vessel’s Hull & Machinery insured Value: ______ 708

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Vessel is fitted with natural and/or synthetic fibre mooring ropes (essential for Queensland) 709

Normal operating speeds and consumptions in laden and ballast condition (operating in good weather

conditions

710

upto and including maximum force 4 on the Beaufort wind scale): ______ 711

Bunker/Freshwater Capacity: ______ 712

Bunker Specification: ______ 713

Constants: ______ 714

THE FOLLOWING APPLY TO HANDY SIZED VESSELS ONLY: ______ 715

Daily fuel consumption in port basis 24 hours working/idle 716

Flat tanktop dimensions (metres) 717

Tanktop strength (MT/SQM): ______ 718

Grain and Bale Capacities total and per hold (CBM) 719

THE FOLLOWING APPLY TO CAPESIZE/PANAMAX/OBOS/ORECARRIERS ONLY: ______ 720

Vessel is/is not suitable for Dunkirk East (Delete as applicable) 721

Vessel is/is not suitable for Redcar (Delete as applicable) 722

Daily fuel consumption in port: ______ 723

Grain capacities total and per hold (CBM) including Hatchcoamings: ______ 724

Vessel is/is not described as being self trimming (Delete as applicable) 725