Professional Documents
Culture Documents
Agenda
Part 1. Introduction, Nomenclature, Major shipping companies
Part 2. Charter - Voyage, time and
others
Part 3. Deck maintenance Part 4. Engine room and maintenance Part 5. Communication system and others
Chartering
Chartering is an activity by which, a charterer (who will normally be the owner of the cargo) will get into an agreement with shipowner or shipbroker for transporting the cargo at certain price known as Freight rate.
Chartering
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 by re-letting the ship out to other charterers.
Chartering
Freight rates are prices at which cargo is moved from one point to other. Freight rates may be on - Per-ton basis over a certain route or - Per-day basis for the duration of charter. - Nature of Cargo being shipped (Value of goods, Perishable etc.,)
Chartering
Freight rates for Bulk Carriers and Tankers would be on tonnage basis. Freight rates for Containers would be on volume basis. Both Tonnage and Volume data would be used to arrive at Freight rates.
Chartering
Depending on the type of ship and the type of charter, normally a standard contract form called a charter party is used to record the exact rate, duration and terms agreed between the shipowner and the charterer.
Types of Charters
Voyage Charter Time Charter Bareboat Charter Demise Charter
Voyage Charter
Voyage Charter Charterer pays per ton basis. Vessel costs like fuel costs, navigation costs, salary of crew will be paid by Owner Vessels can ply between two ports or can touch many ports. Initial Start Port and Final Destination Port will form end points for Voyage Charter. A Voyage Charter may contain sub-voyage charters.
Time Charter
Charterer pays for fixed time period. Vessel owner will take care of Fuel costs, Navigations costs, salary of crew. Cargo Management Company would decide upon ports, routes etc.,
BareBoat Charter
Charterer hires vessel for entire period. Charterer pays for all expenses. It is indirect way of acquiring vessel at the end of charter period
Demise Charter
Charterer takes full control of Financial and Legal responsibility
Charterparty
The agreement between Shipowner and Charterer is normally termed as Charter party where all clauses would be detailed out.
Running Costs
Running costs investment Capital Interests Depreciations Running Costs - Operating costs Manning Costs Stores Costs Repairs and Maintenance Costs Insurance Administration costs
Variable Costs
Vessel's voyage costs Fuel Port voyage costs Ports and Light dues Tugs and Pilotage Costs Canal dues (Suez, Panama etc.,) Agency fees Costs linked to the arrival and sailing of the ship. Cargo handling costs Cost for Stowing of Cargo Claims
Cost Comparison
Expenses Heading Depreciation interest on Capital finance charges Insurance on Hull/Machinery Voyage Charter Time Charter BareBoat Charter Owner Owner Owner Owner Owner Owner or Charterer
Survey Classification
Maintenance and Repair General Costs Stock, Supply Crew Crew Wages Lub.Oil Fresh Water Fuel Oil Harbor dues Loading charges Discharging charges Stowage Charges Cleaning of Holds Damage to Cargo
Owner
Owner Owner Owner Owner Owner Owner Owner Owner Owner or Charterer Owner or Charterer Owner or Charterer Owner or Charterer Owner or Charterer
Owner
Owner Owner Owner Owner Owner Owner or Charterer Charterer Charterer Charterer Charterer Charterer Charterer Owner or Charterer
Owner or Charterer
Charterer Charterer Charterer Charterer Charterer Charterer Charterer Charterer Charterer Charterer Charterer Charterer Charterer
Bill of Lading
Charterer takes full control of Financial and Legal responsibility A bill of lading (referred to as a BOL,or B/L) is a document issued by a carrier to the consignee. Bill of Lading is a document which acknowledges that specified goods or cargo have been received on board. Bill of Lading will also specify Port of Destination. Carrier is normally a ship's master or a company's shipping department. Consignee is the party to which the cargo has been scheduled to be despatched.
Bill of Lading
It is a receipt signed by the carrier confirming whether goods matching the contract description have been received in good condition (a bill will be described as clean if the goods have been received on board in apparent good condition and stowed ready for transport) It is also a document of transfer, being freely transferable but not a negotiable instrument in the legal sense. Like a cheque, it may be endorsed affecting ownership of the goods actually being carried. It is separate from any contract for the sale of the goods to be carried, however it binds the carrier to its terms, irrespectively of who the actual holder of the B/L, and owner of the goods, may be at a specific moment.