S.U.N.Y. Maritime College
Graduate Program
Course 8450 - Charter Parties I
Professor Jeffrey A. Weiss
This course provides a detailed examination of time and demise charter parties.
Course 8460 covers voyage charters and contracts of affreightment.
Topics
1. What is a charter party?
2. Introduction to the time charter
3. Introduction to the demise charter
4. Introduction to the voyage charter
5. Fundamental differences between a charter party, a bill of lading and other
contracts of carriage/affreightment
6. Introduction to standard time charter party (c/p) pro formas - dry and wet
7. Dispute resolution basics / the C/P arbitration clause
8. The role of A.S.B.A.; the S.M.A.; the L.M.A.A.; BIMCO
9. Running costs and voyage costs and allocation under the time
and demise charter.
10. The commencement of hire
11. The payment of hire
12. Deductions from hire/setoffs
13. Partial final arbitration awards for unpaid hire / escrow agreements
14. Non payment of hire / withdrawal of the vessel
15. Consequences of withdrawal, damages, wrongful withdrawal.
16. Basic principles of off hire
17. Off hire clauses / comparisons
18. Off hire events
19. Off hire case studies
20. Principles of laycan
21. Delivery issues / delivery terms
22. Charter party duration
23. Underlap and overlap
24. Consequences of underlap, overlap and improper redelivery
25. Redelivery issues / terms.
26. Case Studies – c/p duration
27. Time charter party warranties – the basics
28. The warranty of seaworthiness
29. The role of classification societies
30. The description of the vessel
31. Speed and consumption warranties
32. C/P warranties - case studies
33. Maritime liens – general principles
34. Maritime liens (on the vessel)
35. Maritime liens (on the cargo)
36. Liens on freights, sub- freights and sub- hire.
37. Foreclosure and of priority of liens
38. Prohibition of Liens Clause
39. Introduction to the Bill of Lading (B/L)
40. The B/L (issued under the charter party)
41. Signing the B/L “as presented”
42. Time charterer’s issuance of B/L
43. Charter party protective clauses
44. B/L under the charter and the Owner’s right to indemnity
45. Cargo responsibilities under the c/p
46. Cargo claims primer / the Hague Rules / Visby / COGSA
47. Cargo claims primer – Hamburg Rules.
48. The Interclub Agreement
49. Interclub Agreement / modification of the c/p / “And
Responsibility”
50. Interclub Agreement / other issues / time bar/ ex gratia
settlements.
51. Time c/p trading limits / IWL
52. Time c/p trading warranties / cargo exclusions.
53. Sublets and assignments
54. Salvage and GA
55. Time c/p war clauses
56. Bunkers and related issues
57. Maritime security under the c/p / ISPS
58. Safe port / safe berth basics (and time c/p ice clauses)
59. Miscellaneous time c/p clauses.
60. Charterer’s liability insurance.
61. Demise charter party principles and consequences
62. The charter party market and freight indices
63. Introduction to shipbrokerage
64. Contract law as applied to charter parties
65. Negotiating the charter party
66. Subjects (stem, receivers, open, details, etc.)
67. The recap and c/p preparation
68. Post fixture work
69. Broker’s commissions
70. The law of agency as applied to ship brokers
71. Practical shipbrokerage problems
72. E and O
73. Ethics in Trading / ASBA Code of Ethics
74. The Baltic Exchange
75. “Our Word Our Bond”
_____________________
Reading Assignments – to be discussed in class.
Attendence:
Your attendance is absolutely required. If you cannot attend class - or if you
cannot arrive at the scheduled time – please drop this class now.
• Please bring charter parties to each class meeting.
• Please bring documents / handouts to each class meeting.
• Please attend each class and arrive on time and prepared.
Academic Policy:
• Please carefully review the College’s academic policy / academic rules and
regulations found on the College’s web site.
• You must take the exam(s) when scheduled.
Charter Party Lexicon
Please become thoroughly familiar with each of the terms and acronyms listed
below. We will discuss most (but not all) of them in class. You should consult a
good shipping and / or chartering dictionary. These are available on reserve in
the library. You can also check my web site – several glossaries are posted.
However, much more thorough explanations can be found in the College’s library
and you should consult these resources.
_________________________________________________
About (for e.g. “about 6 months”)
About (for e.g. “about 25,000 metric tons of grain”)
A.B.S.
Accept / Except (A/E)
Address commission
Air draft
All told
Always afloat
APS
ARA
A.S.B.A.
A.S.B.A. Code of Ethics
ASBATIME 1981
ATDNSHINC
Average accidents to vessel or cargo
Back to back charter
Backtrading
Bale cubic
Ballast bonus
Baltic Exchange
Baltime
Barecon
Barrel
Beaufort Scale
Beam
Bill of lading (straight, order, clean, dirty)
BIMCO
Break bulk
Broker’s authority
Broker’s breach of warranty of authority
Broker’s channels
Bunkers on delivery
Bunkers on redelivery
B.V.
Cash (Masters) advances
C and F sale
Charterers market
CHOPT
Classification Society
Clause Paramount
COGSA
Commission (brokerage)
Competitive broker
Constants
Conwartime Clauses
Cubic cargo
Deadweight
Default of men
Deficiency of men
Disponent owner
Displacement
DLOSP
DOP
Down to marks
Double bottoms
Draft
Drydocking
Due despatch
DWAT
DWCC
Ejusdem generis
E and O Insurance
Fiduciary
F D and D Insurance
Firm offer
Firm order
First class charterer
First open water
Fixture
Flag of convenience
FOB sale
FONASBA
Freeboard
Freight collect B/L
Full reach and burden
Fumigations
FWAD
FWDD
General average
GMT
Grab discharge
Grace period (anti technicality) clause
Grain cubic
Gross registered tonnage
Grounding
Hague Rules (Hague Visby Rules)
Head owner
Hire
Hire “in advance”
Hull and machinery insurance
HSS
IGS
IFO
ILOHC
IMO
IWL
Inherent vice
Interclub Agreement
ITF
ITF clause
Jason Clause
Knot
Laycan
Letter of Indemnity (LOI)
Light displacement
LOA
LBP
Long tom
Maritime lien
Mate’s receipt
MDO
MGO
Metric ton
Min / max
Mutual exceptions clause
NAABSA
Nautical mile
Net registered tonnage
NYPE 46
NYPE 93
OBO
Off hire
Off hire survey
On hire survey
“Our Word - Our Bond’
Owners market
Overlap
Panama Canal Tonnage
Partial final award (arbitration)
Pilotages
Plimsoll Mark
Port (husbanding) agent
Prepaid freight B/L
Prior hire
Prohibition of Lien Clause
Prompt Ship
Protective Clauses
P and I Club
P and I Club letter of undertaking
Protective Agents
Principal / agent relationship
Recap (telex, fax or email)
Redelivery
Redelivery bonus
Redelivery in like good order
Registered owner
Redelivery notice
Requisition
R.I.N.A
Safe port / berth
Seaworthiness
Self-trimming bulker
Short ton
S.M.A.
S and P broker
Stowage factor
Spot vessel
Stability
strapping
SSW
Stem
Stevedore standby time
Supercargo
Sub - charter
Subject details
Subject open (or unfixed)
Subject stem
Subject receivers
Suez Canal Tonnage
Summer loadline zone
SWAD
Tacking
tanktop
TBN
TEU
TIP
TPI
TTL
Tramp vessel
Tween deck
Undisclosed principal
UKAH
USAC
USNH
Ullage
Underlap
VLCC
Whatsoever
Wing tanks
Winter North Atlantic Zone
Withdrawal
WOG
WWR
York Antwerp Rules