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Why?
And for this reason, we must understand when and where our
loyalties lies.
Not anymore.
In this blog, we will discuss about the terms charterer and
charter party agreement.
It is all business.
And like in all kind of business, there are at least two parties
involved, one of which provide a service or product to the other
for a price.
With respect to carrying the cargo onboard the ships, these two
parties are,
1) Ship owner who has the ship and provide the space on the
ship to carry the cargo.
If the shipper has chartered the entire ship then shipper will
also be the charterer.
In most of the cases, charterer is a kind of middle man
between shipper(s) and shipowners
This is particularly the case if there are more than one
shippers.
Alone none of the shipper would want to hire the entire vessel
of 50000 tons capacity for their 5000 tons of cargo.
The charterer’s job is to find a vessel for the cargoes they have
from different shippers and maximazing the space on ship they
plan to hire.
Charterers may not be the only person involved in filling the
gap between shipowner and shipper.
The charterer may even have brokers for different purpose. For
example charterer may have a broker to find a cargo for the
ship they want to hire and they may have another broker to
find a ship for the cargo they have in hand.
If the broker was used, who need to pay the brokerage fee and
how much
For this reason, many a times even for a voyage in 2019, you
may find the mention of charter party dated in 2016 or even
before. In the bill of lading issued even in 2019 , it may read
something like,
Under the voyage charter, the ship is hired from the ship owner
for one voyage.
The best analogy to the term voyage charter is that with hiring
an Uber for a ride from one place to the other, sometimes with
multiple stops in between.
So when we hire an Uber, we hire just the cab. The cab driver
is still under the instructions of Uber.
Similarly, under the voyage charter, the charterer has hired the
ship’s cargo space. But the Master and crew still remains under
the disposal and instructions of ship owner and ship managers.
When we hire a cab for a ride, we just pay the hire (pre-agreed
or by the meter). We do not pay for or are not concerned about
the fuel costs or the amount of fuel consumed.
Similarly, under the voyage charter, charterer is not concerned
about the fuel consumption. The fuel costs are for the ship
owners.
In the first and third stage, it is only the ship owner that need
to perform. For example. ship owner is required to adjust the
speed of the ship to arrive at the loading port within the agreed
dates (Laycan).
And in the third stage, the ship owner is required to instruct
the vessel to maintain the charter party speed.
However it is the second and fourth stage where most of the
disputes take place.
In case of delays, each one can accuse the other for delays.
But if the charterer uses less time than laydays then ship
owner need to pay the charterer for the time saved.
This statement would also show the final amount due and to
whom it is due. Means if the final amount is demurrage or
despatch and how much.
Since one of the condition for the laytime to start is for the
master to send the notice of readiness, it makes it so much of
an important aspect.
Statement of Facts
The vessel and the master of the ship are the owner’s
representative at the action site (loading port or discharging
port).
any delays from shore side or from ship’s side and reason of
delay
Master and ship staff may not see the actual charter party
agreement between the charterer and the ship owner.
And it is for their own benefit too.
But when the ship is fixed for the voyage charter, master will
receive “Voyage instructions” from the charterer through the
ship owner’s commercial team.
Master must not miss the points in the voyage orders that
requires his actions.
Conclusion
First, when is the laycan for the vessel. This is period in which
vessel must arrive at the load port.