DRY CARGO CHARTERING

ICSGroup 2EXAMINATION SYLLABUS

AIM:

1) To ensure a thorough knowledge and understanding of Dry Cargo Chartering.

2) To develop relevantcommunication skills.

SHIPS

Types of ships employed in dry cargo trades including Capesize, Panamax and Handy Size bulk carriers, GeneralPurpose, Container, Ro/Ro, Ore/Bulk/Oil and Ore/Oil carriers. Basic dimensions, design and construction details including decks, holds, hatches, derricks, winches, cranes andspecialised cargo handling gear. Terminology of measurements including dimensions, tonnages, cubic capacities, TEUs. Content and information available from Capacity and General Arrangement plans.Compatibility of different ships for cargoes and trade routes.

CARGOES AND TRADE ROUTES

Commodities - their nature, characteristics, hazards and stowage requirements. Areas of production. Trade routes and seasonal variations including approximation of time and distance.Alternative routes and seasonal variations. Institute warranty limits.

FREIGHT MARKETS

Market Practitioners; Charterers, Shipowners, Operators. The structure of the market, major market centres. The role of the Broker. Methods of communications and market reporting. Factors affecting the market including natural catastrophes, environmental, aid programmes, political crises.Merchants’ trading terms (INCOTERMS) and the impact of documentary credits. Joint Ventures and shipping pools. The impact of e-commerce on market practice.

CONTRACTS

Standards forms of voyage and time charter parties and their suitability to different trades. Format and clauses common to all Charter Party forms. Voylay Rules 1993 and FONASBA Time Charter Interpretation Code 2000. Drafting additional clauses and addenda.Rights, responsibilities and liabilities of owners and charterers. Consecutive voyage contracts and Contracts of Affreightment.

BILLS OF LADING

The role of the bill of lading in charter parties. Relationship to mate’s receipts. The demand for clean bills of lading.Non production of original at discharge ports and practical solutions.Problems relating to bills of lading under time charters.

CHARTERING MARKET PRACTICE

Procedure of negotiations; offer and counter offer, essential details to be included in offers, "subjects" and "fully fixed".The role of the post fixture department. Legal, tactical and ethical requirements. Breach of warranty of authority (with and without negligence). Professional negligence and indemnity insurance. Defaulting principals.

FINANCIAL ELEMENTS OF CHARTER PARTIES

Freight and Hire calculations and payment methods including lump sum freight.Voyage Charters – deadfreight, demurrage, despatch, damages for detention and freight taxes.Time charter – late hire payment, payment for bunkers, associated clauses. Performance claims, off-hire events,delivery, final voyage and re-delivery. Ballast bonuses.Commissions and brokerage. The use of freight market derivatives.

LAYTIME

Importance of the clarity of notice of readiness clauses. Tendering valid NOR. Commencement of and interruptions tolaytime and excluded time.Interpretation of Statement of Facts and production of Laytime Statement, calculation of laytime used anddemurrage/despatch.Application of "Voylay Rules" with particular reference to Berth-v-Port charters and Weather Working.

CALCULATIONS

Voyage estimating - making the calculation.Comparing alternative voyages, comparing voyage with time charter, $/tonne with lump sum.Time Charter calculation of Ballast Bonus; comparison of $/day with DWT/month.

GENERAL

Resolution of Disputes; commercial courts, arbitration and Alternative Dispute Resolution (ADR). Role of theshipowners’ and intermediaries P&I associations.

NB: No exemption is permitted from this subject.