Additonal points on Time Charter

– Charterers agree to hire a named vessel for a specified period of

time subject to agreed conditions. The period may be one voyage
(trip charter) or up to several years (period charter)
– wners are responsible for V/l’s running expenses i.e. manning,
repairs, stores crews wages, hull and machinery insurance. They
operate the vessel technically but not commercially
– Charterers responsible for the commercial employment of the
vessel, bunkers, insurance, port/canal dues, Pilotage, towage, all
loading / discharging expense
– Log books and stationary provided by charter so that they can
monitor the vessel’s performance
– Charterer can fly their own house flag and can paint their own
colours on the funnel
– Charterer appoints the agent
– The C/P contains a description of the ship, including its speed and
fuel consumption
– In case the ship is unable to maintain the mentioned speed or
bunker consumption as per C/P as a result of heavy weather or
other cause, it should be substantiated by entries in the log book

Employment of the vessel

– It is usually agreed that charterer may employ vessel only in

‘lawful trades’ carrying ‘lawful merchandise’ using only ‘safe
ports or berths’ and sometimes ‘safe anchorages’ where vessel
will lie always safely afloat
– There may be restrictions on the vessel not to call certain ports in
certain countries
– There may be restrictions on carrying certain cargoes

Delivery

– May be ‘spot’ (immediate) or between ‘lay days. If not presented

on the last lay day, the charterer can cancel the charter
– Owners must deliver the vessel to charterers at the agreed place in
‘a fit condition for the voyage contemplated’
 – Delivery may be at a named geographic location or at a stated
event ‘on drop of pilot off madras’
– A ‘on –hire’ survey is conducted by owners/charterers jointly.
– A delivery certificate is issued to confirm the date and time of
handling over and quantity of bunkers on board (ROB)
– “OFF- HIRE” CLAUSE: this gives the circumstances in which the
payment of hire ceases during time lost to the charterer. E.g. m/c
breakdown, repairs, dry dock, crews strikes or other reasons
beyond owners control. Normally this comes into effect after the
vessel has been unavailable to the charterer for a stated period of
time e.g. 24 hrs
– A dry docking clause makes the ship available to the owner
without cargo after a stated period of notice. During the
D/docking the ship is off-hire
– If deviating for owner’s purpose e.g. landing sick seaman, repairs,
d/docking the vessel is off hire from the moment of the deviation
until she is ready to resume service in a position as favourable to
the charterers as before. A deduction from hire is calculated on the
basis of fuel used
– But if the deviation is for charterers purpose e.g. weather
condition, the vessel will remain on-hire

Redelivery
– Charterers are expected to redeliver the vessel in the same good
order as when delivered to the charterer, fair wear and tear
excepted. In case this is not so the charterer is liable for the cost of
repairs
– An “Off-Hire” survey is conducted to determine the damages if
any caused to the vessel’s holds structure etc and the bunkers
ROB is determined. A redelivery certificate is issued
Overtime

– The crew overtime in connection with the cargo is usually on

account of the charters.
B/L

– The master is usually required to sign B/L as presented to him by

the charter or the C/P may give the charter the right to sign them
on his behalf

Salvage

– Salvage reward is distributed between owners and charterers

equally after deducting the master’s and crew’s proportion and all
legal and other expenses including hire paid under this charter for
the time lost in salvage
–
Indemnity clause

– “The master shall be under the orders and direction of all charterer
as regards employment of the ship agency or other arrangements
and the charterer hereby agrees to indemnity the owners for the
consequences or liabilities that may arise from the master or
officers signing B/L or other document. “…the master is still
responsible to the owner for the safe navigation of the ship and
safe stowage and carriage of cargo”. This clause also gives the
charterers the right to change any of the ship’s officer or engineer
including the master of the ship

Safe port
A port must be safe in following respects:
– There must be a sage access to the port free from any permanent
obstruction (damage by ice)
– The ship can lie safely afloat at all states of the tide, unless in
ports where it is customary and safe to load or discharge aground-
special arrangement
– Adequate facilities for trade including a sage shore for landing
of good, ware houses etc
– Politically safe i.e. free from any embargo or war
– Ships should be able to return from the port without cutting her
masts
Safe port
– A safe port is a port which for the specified time period a v/l can
reach, enter, remain at the depart from without being subjected to
any danger which cannot be avoided by good navigation and
seamanship, abnormal occurrences are excluded
Safe birth
– The berth must be safe in all the same respects as a safe port

“Off –Hire” Clause

– This gives the circumstances in which payment of hire ceases
during time lost to the charterers
– It usually provides that in the event of time being lost in certain
specified circumstances which prevent the vessel from working
for more than 24 hrs., payment of hire shall cease until she is
again efficient to resume service
Deviation clause
– It states precisely for what purpose the vessel has liberty in deviate
– A typical form of wording is “with liberty to sail without pilots, to
call at any port or ports on the way for fuel, supplies or any
reasonable purpose, to low and being towed and assist vessels in
distress, all as part of the contract voyage”
Ice clause
– It states that the vessel is not to be ordered to nor bound to enter
any ice-bound lace or any place where lights, buoys etc are or
likely to be withdrawn by reason of ice on the vessel’s arrival or
where there is risk that due to ice, the vessel will not be able to
reach or get out of the place/port after loading / discharging
– The vessel is not obliged to force ice
– If on account of ice the master considers it dangerous to remain in
the port for fear of the vessel being damaged, he has liberty to sail
to a convenient open place and await the charterers instructions
– This varies depending on the nature of the trade and generally
gives the master the option to keep his vessel away from ice
bound ports