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Charterparties

Charterparties

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Charterparties

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  1. Charterparties Professor Erik Røsæg erik.rosag@jus.uio.no www.folk.uio.no/erikro

  2. Charterparties and Bills of Lading • A simple drawing • Issue of tramp bill of lading • NMC §§ 338 and 382, cfr ND 1961.325 Vestkyst I; ND 1979.364 NV Jobst Oldenddorf • NMC § 295 • Conditions under a tramp bill of lading • NMC § 292 • NMC § 61 nr. 3 • NMC § 299 • NMC § 310 • Mandatory rules • NMC § 322 • NMC § 325 • NMC § 253

  3. Different types of Charterparties • Time charterparties • Voyage charterparties • Bareboat charterparties • Contracts of affreightment • Quantity contracts

  4. Charterparty forms • Different ”brands” • Charterers’ forms, owners’ forms, and ”agreed documents” • Different types of cargo and different trades

  5. Dry bulk and oil

  6. Risk of delay in voyage charterparties • Delivery of the vessel - LayCan • Voyage time • Waiting in and off port

  7. Delivery of the vessel - LayCan • ETA, time of delivery and laydays • “Conditions,” “warranties” and • “intermediate terms” • NMC. § 348(1) • Shellvoy 5 cl 11, Gencon 94 cl 9 • NMC. § 348(2): Gap-filling right of interrogation?

  8. Voyage time • Main rules: • No compensation for extra time used, NMC. § 321 • Charterer must accept not unreasonable delays, NMC. § 339 • New World Scale • Waiting for orders, paperwork, etc • NMC. § 356 • Shellvoy 5 cl 10 • NMC. §§ 347 and 351 (compensation) • NMC. § 349 (canceling)

  9. Waiting in and off port • Laytime is extra time at berth/in port/off port that is included in the freight • Notice • Calculation of laytime • If less time is used: • Bonus • Average laytime, etc • If more time is used: • When can the vessel sail? • Canceling of the charterparty • Remuneration • Rights of the Bill of Lading holder

  10. Notice • When is the vessel ready (“arrived ship”)? • At berth/in port/off port • NMC. §§ 332 and 333 • Ready to receive cargo, NMC. §§ 332 and 327, • Shellvoy 5 Part IA and cl 2 and 16 et seq. • Notice must be tendered • NMC. § 332 • Advance notice, NMC. § 332(2) • Shellvoy 5 cl 13

  11. Calculation of laytime • Length of laytime, NMC. § 331, • Shellvoy 5 Part I letter I • When does laytime commence? • NMC. § 332(4) • Exceptions, NMC. §§ 331(4) and 333 • Shellvoy 5 cl 9(2), 12 and 14

  12. If laytime is not fully used • Bonus (“despatch”) • Common/reversible/average laytime NMC. § 331(3)

  13. Remuneration (compensation) and “demurrage” • Demurrage,NMC. § 335(1) • “Once on demurrage” …, NMC. 334(2) • Amount of compensation, NMC. § 335, • Shellvoy 5 Part I letter J and cl 15 • Additional compensation, NMC. § 356

  14. The limit? • When the ship can sail - cancellation • NMC. §§ 330 and 334? • Charterparty clauses • NMC § 335 • NMC. § 355 • English law: “Frustration” • Cancellation with cargo on board

  15. Charterers’ breach - overview Withdrawal/rejection

  16. Rights of Bill of Lading holder (receiver) • Duty to third party,NMC. §§ 269 and 292 • Evidentiary effect of Bill of Lading, NMC. § 299 • Laytime n port of loading,NMC. § 331(3)

  17. Time charterparties • Description and delivery of the vessel • Charterparty period • Voyage related and non voyage related expenses • When should the taximeter be turned off ? (“off hire”)

  18. Description and delivery of the vessel • Description • NMC. §§ 372 • Baltime: Preamble • Delivery • NMC. §§ 373-5 • Baltime cl 1 • Remedies for breach • NMC. §§ 376-7 • Baltime cl 13

  19. Charterparty period • NMC. §§ 388-9 • Baltime cl 7

  20. Voyage related and non voyage related expenses • NMC. §§ 378 et seq. • Baltime cl 3 et seq.

  21. When should the taximeter be turned off? (“off hire”) • NMC. §§ 321 and 392 • Baltime cl 11(A) • 24 hour rule • “thereby” • “unable to perform the service immediately required” • ND 1983.309 NV Arica