time charter f

8/14/2019 Time Charter F

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Time CharterTime Charter

Malcolm MaclachlanMalcolm Maclachlan


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Time charterTime charter

Agreement between shipowner and chartererAgreement between shipowner and chartererwhereby shipowner agrees towhereby shipowner agrees to letlet and chartererand chartereragrees toagrees to hirehire aa named vesselnamed vessel forfor agreedag

reed

durationduration in return for an agreed sum ofin return for an agreed sum ofhirehire.. Charterer is responsible for all voyageCharterer is responsible for all voyageexpensesexpenses

(bunkers; canal dues; cargo-handling; berth(bunkers; canal dues; cargo-handling; berthdues; light dues; pilotage; harbour towage; line-dues; light dues; pilotage; harbour towage; line-handling).handling).

Similar to hire of a chauffeur-driven car.Similar to hire of a chauffeur-driven car. Charterer hopes to make profit from ship.Charterer hopes to make profit from ship.


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Shipowners obligationsShipowners obligations

1.1. Bring ship to agreedBring ship to agreed delivery port ordelivery

port orplace

place by agreed time on Cancelling Date.by agreed time on Cancelling Date.

2.2. Provide master and crew. Master to beProvide master and crew. Master to be

under charterers orders as regardsunder charterers orders as regardsemployment matters (i.e. cargo, etc.).employment matters (i.e. cargo, etc.).

3.3. Pay all vessel operating expensesPay all vessel operating expenses

(running costs).(running costs).

4.4. Perform voyages, load/dischargePerform voyages, load/dischargecargoes, etc. as required by charterer.cargoes, etc. as required by charterer.


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Charterers obligationsCharterers obligations

Pay monthly or half-monthlyPay monthly or half-monthly hirehire (or(orcharterhire) into bank a/c as per C/P.charterhire) into bank a/c as per C/P.

Employ vessel within agreed geographical limitsEmploy vessel within agreed geographical limitsfor agreed purposes, carrying lawful cargoes.for agreed purposes, carrying lawful cargoes.

Issue B/Ls, etc. to shippers if appropriate.Issue B/Ls, etc. to shippers if appropriate. Provide bunkers as required and pay all voyageProvide bunkers as required and pay all voyage

expenses.expenses.

Re-deliver vessel at agreed port/place onRe-deliver vessel at agreed port/place on

expiration of charter in same good order as whenexpiration of charter in same good order as whendelivered, fair wear and tear excepted.delivered, fair wear and tear excepted.

Compensate shipowner for any damage causedCompensate shipowner for any damage causedby charterers cargo or other operations.by charterers cargo or other operations.


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MasterMaster

To prosecute all voyages with the utmostTo prosecute all voyages with the utmostdespatch.despatch.

To render all customary assistance withTo render all customary assistance withships crew and equipment.ships crew and equipment.

To be under the orders and directions ofTo be under the orders and directions ofthe charterers as regardsthe charterers as regards employmentemp

loyment..

(Means following charterers routeing(Means following charterers routeinginstructions, unless an encountered hazardinstructions, unless an encountered hazard

necessitates a deviation.)necessitates a deviation.)


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The vesselThe vessel

To meet charterers specifications re-To meet charterers specifications re-type, length, draught, speed,type, length, draught, speed,

consumption, etc.consumption, etc. Goes off-hire (payment of hire isGoes off-hire (payment of hire is

suspended) if not available tosuspended) if not available to

charterer, as specified in C/P.charterer, as specified in C/P.


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Period of hirePeriod of hire

As agreed. May be for one voyage (tripAs agreed. May be for one voyage (tripT/C) to several months or 20 yearsT/C) to several months or 20 years

(period T/C).(period T/C). Optional margin? E.g. One month more orOptional margin? E.g. One month more orless at charterers option.less at charterers option.

Disputes common re- legitimate orDisputes common re- legitimate orillegitimate final voyage. Was thereillegitimate final voyage. Was therereasonable expectation that ship could bereasonable expectation that ship could be

redelivered by redelivery date?redelivered by redelivery date?


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TradeTrade

For agreed lawful purposes only.For agreed lawful purposes only.

Any owners restrictions? Any prohibitedAny owners restrictions? Any prohibited

cargoes, e.g. DGs, livestock, fishmeal,cargoes, e.g. DGs, livestock, fishmeal,scrap?)scrap?)

Any political restrictions? (Israel? Cuba?)Any political restrictions? (Israel? Cuba?)

Industrial restrictions? (Scandinavia,Industrial restrictions? (Scandinavia,

Australasia?) (ITF strongholds.)Australasia?) (ITF strongholds.) Otherwise often Worldwide within InstituteOtherwise often Worldwide within Institute

Warranty Limits or Within IWL.Warranty Limits or Within IWL.


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Delivery of vesselDelivery of vessel

Vessel to be delivered by owner to charterer atVessel to be delivered by owner to charterer atspecified port/place, e.g. DOSP Hong Kong;specified port/place, e.g. DOSP Hong Kong;passing Skaw; passing Cape Passero.passing Skaw; passing Cape Passero.

On specified date/range of dates.On specified date/range of dates. On-hire survey required?On-hire survey required?

Check of general condition.Check of general condition.

Existing damage/defects noted (charterer doesntExisting damage/defects noted (charterer doesnt

want to pay for existing damage).want to pay for existing damage). Check of bunkers ROB quantity; charterer buysCheck of bunkers ROB quantity; charterer buys

from owner.from owner.


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Hire (charterhire)Hire (charterhire)

Paid monthly or half-monthly in advancePaid monthly or half-monthly in advanceto owner.to owner.

US dollars or other agreed currency.US dollars or other agreed currency. Into specified bank account by agreedInto specified bank account by agreed

date.date.

Charterer may suspend in agreed cases.Charterer may suspend in agreed cases. Disputes over late payment.Disputes over late payment.


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Suspension of hireSuspension of hire

Standard clause: hire paymentStandard clause: hire paymentsuspended 24 hrs after shipsuspended 24 hrs after ship

unavailable due to breakdown,unavailable due to breakdown,shortage of crew, drydocking, etc.shortage of crew, drydocking, etc.

Rider clause may modify standardRider clause may modify standard

clause (e.g. in ro-ro: hire suspendedclause (e.g. in ro-ro: hire suspended30 mins after breakdown of ramp or30 mins after breakdown of ramp or

lift).lift).


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RedeliveryRedelivery

Vessel to be delivered by chartererVessel to be delivered by chartererto owner at specified port/place onto owner at specified port/place on

specified date.specified date. Off-hire survey?Off-hire survey?

Damage caused by charterers ops?Damage caused by charterers ops?

Bunkers ROB quantity; shipownerBunkers ROB quantity; shipownerbuys from charterer.buys from charterer.

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