Chapter One Introduction of Chartering Shipping

Section 1 Types&Characteristics of Charters

1 Distinction between chartering and other ways of operating ships

1.1 Liner shipping

1.2 Tramp shipping

2 Comparison of types of charterparties

2.1 Voyage charter

2.2 Time charter

2.3 Demise charter

2.4 Other charters

Section 2 Shipbrokers&Charter Market

1 Function of shipbroker

2 Types of shipbroker

3 To be a competent broker

4 Rights and obligations

4.1 Right to commission

4.2 Main legal duties

4.3 Broker's status under Chinese law

5 Charter market

5.1 Main charter markets

5.2 Market indices

5.3 Market report

Section 3 Chartering Practice

1 Inquiry

2 Offer

3 Counter-offer

4 Firm offer

5 Acceptance

6 Recap versus charterparty

6.1 Recap with"subject to"clause

6.2 Where there is conflict between recap ＆ charterparty

6.3 Where there is no formal document but only negotiations

Section 4 Laws Governing Charterparties

1 Characteristic of the legal regime governing charterparties

1.1 Compulsory legal regime versus autonomy of parties

1.2 Special requirements under Chinese law

2 Conclusion of charterparties

2.1 Form of contract

2.2 Parties to the contract

3 Validity of charterparties

3.1 English law

3.2 Chinese law

4 Termination of charterparty

4.1 By execution

4.2 By mutual agreement

4.3 By breach

4.4 By frustration or force najeure

Chapter Two Voyage Charterparty

Section 1 Introductory Clauses

1 Discription of the vessel

1.1 Vessel's name

1.2 Vessel's tonnage

1.3 Vessel's class

1.4 Flag and nationality

1.5 Year of built

1.6 Condition of the vessel and its gear

2 The voyage

2.1 Present position of ship

2.2 ETA

2.3 Relationship between ETA＆LAYCAN

3 Ports of loading and discharging

3.1 The charterer's obligation to nominate ports or places

3.2 Warranties of safety

3.3 Owner's right to require a valid nomination

3.4 "Or so near thereto as she may safely get"

4 Preliminary voyage

4.1 To proceed to the loading port with reasonable despatch

4.2 Interpellation clause

Section 2 Cargo&Freight Clauses

1 Cargo clauses

1.1 Description of cargo

1.2 Amount of cargo

2 Freight clauses

2.1 Freight rate versus lump sum freight

2.2 Dead freight and damages

2.3 Conditions to pay the freight

2.4 Does freight include the cost of loading and discharging?

2.5 Freight claim versus cargo claim

Section 3 Loading and Discharging Clauses

1 Cost of loading and discharging

1.1 Who shall bear the cost of loading and discharging?

1.2 Distinction between cost and risk

2 Laytime

2.1 Calculation of laytime

2.2 Commencement of laytime

2.3 Suspension of laytime

2.4 Completion of laytime

3 Demurrage and despatch money

3.1 Demurrage

3.2 Despatch money

Section 4 Other Clauses

1 Cesser and lien clause

1.1 Purpose

1.2 Co-extensive rule

2 Bill of Lading clause

3 Incorporation clause

3.1 Elements to determine whether charterparty terms are incorporated into a bill of lading

3.2 Standard charterparty clauses in conflict with the Chinese law

4 Law and arbitration clause

4.1 Arbitration versus litigation

4.2 Validity of an arbitration agreement

4.3 Validity of the arbitration clause incorporated into a bill of lading

5 Strike Clause

5.1 What is a strike?

5.2 Options available

5.3 Extension of the coverage to after-strike delay

6 Tanker voyage charterparties

6.1 Description of vessel

6.2 Warranty

6.3 Freight

Chapter Three Time Charterparty

Section 1 Description of Vessel

1 Cargo capacity,speed and fuel consumption

2 "About"/"on average"/"in good weather condition"

3 An undertaking applicable at the date of delivery

4 Seaworthiness

5 Remedies and defences

5.1 Remedies

5.2 Measure of damages

5.3 Defences

Section 2 Hire Clauses

1 Period of hire

1.1 The precision of the time limit

1.2 Delivery

1.3 Redelivery

2 Payment of hire

2.1 Payment in cash

2.2 Payment without deduction

2.3 Remedies of owners

3 Off-hire clause

3.1 What is off-hire clause?

3.2 Elements triggering off-hire

3.3 Off-hire cancellation provision

3.4 Suspension of hire versus off-hire rate

Section 3 Other Clauses

1 Identification of carrier

2 Employment and indemnity clause

2.1 Shipowner's implied right of indemnity

2.2 Causation

2.3 Orders regarding employment or navigation

3 Inter-club agreement

4 Safe port

5 Trading limits

6 Charterer's liability for oil pollution damage

6.1 Charterer's direct liability

6.2 Charterer's liability by way of recourse

Appendix

References