Shipping business, Gencon, maritime industry, charterparty contract, shipping industry, vessel, shipowner, clauses, interests of shipowners, operational costs, cargo, contractual relationship
Theophilus et al. (2018) explain that ship chartering is fundamentally an agreement that involves the charterer renting a vessel from a shipowner. According to the authors, the agreement typically involves an agreed amount of money representing the reward offered to the shipowner for the use of their vessel. Charter parties are essentially contracts that stipulate specific terms, including the time that the charterer will use the vessel. It is also worthwhile to observe that the contracts constitute specific conditions that have to be met to execute that contract. If either of the parties does not meet one or more conditions, the other party has the right to terminate that contract or claim damages. This paper examines the clauses of the 1994 Gencon Charter to illustrate whether it was designed to protect the interests of shipowners or charterers, as well as to analyse the laytime-related clauses and offer appropriate recommendations.
[...] Secondly, the charterparty states that the laytime begins 13.00 hours after a notice of readiness is provided before 12.00 hours (Clause 6c). One of the clauses directly related to laytime and demurrage is the general strike clause (16). Clause 16c states that "neither the Charterers nor the Owners shall be responsible for the consequences of any strikes or lock-outs preventing or affecting the actual loading or discharging of the cargo". Further, this clause provides directions on the actions that should follow when a strike occurs during loading and discharging. [...]
[...] Bibliography Aspragkathou, D. (2007) `Review of the Gencon charter clauses for the commencement of laytime: analysis of the "time lost in waiting for a berth to count as laytime or time on demurrage" clause'. Available at: https://papers.ssrn.com/abstract=1041761 (Accessed: 7 September 2023). Gencon 1994 Uniform General Charter. Jacques, L. (2023) A recent Arbitration Award considered the Gencon General Strike Clause and whether laytime ran during the period of a strike?, LA Marine. Available at: https://www.lesteraldridge.com/blog/marine/a-recent-arbitration-award-considered-the-gencon-general-strike-clause-and-whether-laytime-ran-during-the-period-of-a-strike/print/. Plomaritou, E. [...]
[...] Charter parties are essentially contracts that stipulate specific terms, including the time that the charterer will use the vessel. It is also worthwhile to observe that the contracts constitute specific conditions that have to be met to execute that contract. If either of the parties does not meet one or more conditions, the other party has the right to terminate that contract or claim damages. This paper examines the clauses of the 1994 Gencon Charter to illustrate whether it was designed to protect the interests of shipowners or charterers, as well as to analyse the laytime-related clauses and offer appropriate recommendations. [...]
[...] Amendments to the Laytime Clauses The charterparty expressly dictates how laytime should be calculated. For instance, it states that if the reason that a notice of readiness cannot be issued is that there is no berth available at the moment of the arrival, then the ship's laytime will commence as it waits for a berth to load or discharge. However, clause indicates that the time taken to move from the place of waiting to the berth shall not count as laytime. [...]
[...] It is worth observing that the Gencon charterparty was adopted in 1994. Since this period, the maritime sector has witnessed a lot of changes, including increasing awareness about greenhouse gas emissions and other environmental concerns. For instance, various jurisdictions have enforced distinct regulations on the discharge of wastewater, and such protocols may affect the process of loading or discharging. Therefore, it is recommended that a new clause should be added under laytime-related concerns to account for environmental issues relating to the cargo and the vessel. [...]
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