Chartering Practice and Methods: Case Study Report

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Chartering Practice and Methods: Case Study Report

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Chartering, chartering practice, chartering methods, case study, voyage estimation, freight, cargo, carrier, laytime

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You are chartering the manager the following vessel. Run a voyage estimation for the following proposed employments and decide which is the most profitable proposal for your ship. Elaborate on reasons that could affect your choice beyond the direct number result.
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What express clause(s) should be prudently inserted in all charter parties to protect the carrier's interest against loss of freight?

Voyage Estimation
Questions on chartering terminology
Laytime Calculation

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[...] Bibliography Kiseleva, E.V., Stepanets, V.E., Pilyugin, A.G. and Valkova, S.S. (2022) `Hierarchical representation of decision-making in chartering a vessel on a voyage charter', IOP Conference Series: Earth and Environmental Science, 988(2), p Available at: https://doi.org/10.1088/1755-1315/988/2/022041. Schofield, J. (2021) Laytime and demurrage. 8th edn. London: Informa Law from Routledge. Available at: https://doi.org/10.4324/9781003198406. Tulane Maritime Law Journal (2001). [...]

[...] The charterer should also ensure that the vessel is capable of carrying the cargo to the discharge port. In addition, it is recommended that both parties insure the cargo in case of any damage or loss that occurs during the voyage (Kiseleva et al., 2022). Finally, they should consider the port (in both options 1 and that is able to handle the cargo and vessel. For instance, they may examine the number of hold decks, the time usually taken for a vessel to discharge and the availability of vessel cranes. [...]

[...] In most contracts, the parties will include a clause that requires the vessel to be returned in the same condition as it was delivered (Tulane Maritime Law Journal, 2001). As an alternative, the charterer can pay ILOHC to cover the cost of cleaning the holds, although this is limited to specific situations. Specifically, ILOHC can only be enforced in cases where debris was left in the vessel; if there are significant quantities of cargo that are left in the ship, the charterer may be forced to pay for the extra cleaning expenses. Who pays the brokerage commission? who pays address commission? what is the difference between the two? [...]

[...] The charterer is the party who will charge the address commission to the owner, and it typically ranges between 1.25 to 5 per cent. This amount is used to cover business expenses. On the other hand, the brokerage commission is typically 1.25 per cent of gross freight. In most cases, the owner will determine an estimate of the commissions to be paid and pay those commissions. What does 1.25% PUS mean? 1.25 per cent of gross freight What does WWWW stand for? Who proposes it? In what type of employment, Why? [...]

[...] According to this particular case, the initial draft survey does not count as laytime, and this occurred between 09:00 to 13:00 on 20/12. Therefore, laytime only started at 13:00 that same day. Since it has been provided in this charterparty that the laytime is 3 running days, the laytime ran until 23/12 at 13:00 hours. Any extra time beyond this period was beyond the specified time. Berthing and discharging continued until 26/12 at 00:00 hours. Therefore, the owner can claim demurrage for the 59 hours extra that it took the charterer to discharge the cargo. [...]

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