Charterparty
Compiled by Dr. Arun Kasi
Last Updated 4th May 2021
DOUGLAS SEA STATE SCALE and WMO CODE TABLE 3700
(SEA STATE/WAVE HEIGHT MEASUREMENT)
Douglas Sea State (as adopted by the International Meteorological Organisation in 1929)
| WMO Code Table 3700 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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BEAUFORT SCALE (WIND MEAUREMENT)
Beaufort Scale (as presently adopted by the UK Met Office – specs for observation added) | ||||||||
Scale | Mean Wind Speed | Limits of wind speed | Wind descriptive terms / specs for observation on board ship in open sea | Probable wave height | Probable maximum wave height | Sea State | ||
Knots | ms-1 | Knots | ms-1 | in metres | in metres | |||
0 | 0 | 0 | <1 | <1 | Calm (Sea like a mirror) | – | – | 0 |
1 | 2 | 1 | 1-3 | 1-2 | Light air (Ripples with the appearance of scales are formed, but without foam crests) | 0.1 | 0.1 | 1 |
2 | 5 | 3 | 4-6 | 2-3 | Light breeze (Small wavelets, still short but more pronounced; crests have a glassy appearance and do not break) | 0.2 | 0.3 | 2 |
3 | 9 | 5 | 7-10 | 4-5 | Gentle breeze (Large wavelets; crests begin to break; foam of glassy appearance; perhaps scattered white horses) | 0.6 | 1.0 | 3 |
4 | 13 | 7 | 11-16 | 6-8 | Moderate breeze (Small waves, becoming longer; fairly frequent white horses) | 1.0 | 1.5 | 3-4 |
5 | 19 | 10 | 17-21 | 9-11 | Fresh breeze (Moderate waves, taking a more pronounced long form; many white horses are formed [chance of some spray]) | 2.0 | 2.5 | 4 |
6 | 24 | 12 | 22-27 | 11-14 | Strong breeze (Large waves begin to form; the white foam crests are more extensive everywhere (probably some spray]) | 3.0 | 4.0 | 5 |
7 | 30 | 15 | 28-33 | 14-17 | Near gale (Sea heaps up and white foam from breaking waves begins to be blown in streaks along the direction of the wind) | 4.0 | 5.5 | 5-6 |
8 | 37 | 19 | 34-40 | 17-21 | Gale (Moderately high waves of greater length; edges of crests begin to break into the spindrift; the foam is blown in well-marked streaks along the direction of the wind) | 5.5 | 7.5 | 6-7 |
9 | 44 | 23 | 41-47 | 21-24 | Strong gale (High waves; dense streaks of foam along the direction of the wind; crests of waves begin to topple, tumble and roll over; spray may affect visibility) | 7.0 | 10.0 | 7 |
10 | 52 | 27 | 48-55 | 25-28 | Storm (Very high waves with long overhanging crests; the resulting foam, in great patches, is blown in dense white streaks along the direction of the wind; on the whole, the surface of the sea takes a white appearance; the tumbling of the sea becomes heavy and shock-like; visibility affected) | 9.0 | 12.5 | 8 |
11 | 60 | 31 | 56-63 | 29-32 | Violent storm (Exceptionally high waves (small and medium-sized ships might be for a time lost to view behind the waves); the sea is completely covered with long white patches of foam flying along the direction of the wind; everywhere the edges of the wave crests are blown into front; visibility affected) | 11.5 | 16.0 | 8 |
12 | – |
| 64+ | 33+ | Hurricane (The air is filled with foam and spray; sea completely white with driving spray; visibility very seriously affected) | 14+ | – | 9 |
By Dr. Arun Kasi
Last Updated 13th August 2021
Charterparty
CHARTERPARTY
There are principally three types of charters. First, bareboat charter (also called demise charter). Second, time charter. Third, voyage charter. Charters are also classified in different ways, like a trip charter (which is often a time charter for a trip) or a slot charter which is a charter for a part of a ship only on a voyage. A bareboat charter is also often employed as a means of financing, i.e. the financier will be the registered owner and the true operator will be named as the bareboat charterer – this is like hire-purchase.
A charterparty is a charter agreement. Often cases arise from time and voyage charterparties, which will be the focus of this write-up. Some of the principal differences between a time charter and a voyage charter are these. In a time charter, the charterer pays hire usually on daily basis for the time it uses the vessel. The charterer bears the cost of bunkers and port charges. The owners bear the cost of the crew. The terms of the charterparty are not usually incorporated into the bills of lading. In a voyage charter, the charterer pays freight for the voyage. The owner bears the cost of the bunkers (and likely port charges) and the crew. The terms of the charterparty are usually incorporated into the bills of lading, which bills are called charterparty bills of lading.
The most popular standard forms used for charterparties are NYPE (referring to the 1946 version) and SHELLTIME 4 (for tankers). These forms are usually extensively modified and numerous rider clauses are added to suit each agreement.
It is also quite common to find a clause paramount importing the Hague-Visby Rules (or some other Rules) for regulating the rights and liabilities between the parties pertaining to carriage of goods by sea, eg. NYPE form. Similarly, it is common to find Inter-Club Agreement (ICA) incorporated to apportion liability for cargo claims.
There are some matters that are common to both these charters, while others are peculiar to either one of them. Some of them are the issuance of notice of readiness/delivery, cancelling date, duty to commence approach voyage timely and duty to prosecute the approach voyage with reasonable despatch.
VOYAGE CHARTERPARY
In the case of a voyage charter, the shipowner must give notice of readiness (NOR) once the ship has arrived. In a port charter, the charterer will give the NOR upon arriving at the port if a berth is not immediately available for the ship to proceed. In a berth charter, the NOR will be given upon arrival at the berth. Having said this, there are various qualifications that will usually be attached to port or berth charter, which will allow the ship to give the NOR even before arriving at the port or berth. Some examples of such qualifications as ‘whether in port or not’ (wipon) and ‘whether in berth or not’ (wibon). The significance of the NOR is that once it is given, if rightly given, the laytime starts to count. Laytime is the time given to the charterer to load and discharge. It may be given separately for loading and for discharge, or it can be given as total laytime for loading and discharge. When it is given as separate laytime, it is quite common to allow a dispatch, i.e. a reward to the charterer usually at the half rate of demurrage, for utilising less time than allowed in each operation.
Laytime will usually be subject to qualifications like weather working day and exceptions like in the case of strikes. If the laytime is exceeded, then a demurrage must be paid, i.e. contractually agreed compensation for detention. Demurrage and dispatch are areas of common dispute and arbitration between parties. Indeed they can be said to be the top dispute-area in charterparties.
If no laytime is agreed upon, then loading and discharge must be done within a reasonable time. If no demurrage is agreed upon, then the shipowner will be entitled to detention for any excessive holding of the ship.
TIME CHARTERPARTY
In the case of a time charterparty, the charterer orders the ship regarding employment, while navigational decisions remain with the master. The orders that the charterer gives includes orders as to ports to call, cargo to load, and bills of lading. Usually, there will be warranties like safe port warranty and safe berth warranty, which requires any port/berth ordered by the charterer to call must be safe. Another important warranty is as to the speed-consumption capability of the vessel. If the vessel is less capable than that warranted, the shipowner may face a performance claim by the charterer. The charterer may deduct from hire his claim sum by way of equitable set-off, although the charterer may in such a case run the risk of the owner withdrawing the vessel with a view to entering into a without prejudice agreement at a higher rate of hire. If the deduction was excessive, there is a risk that the charterer may be found to be in breach with the consequence the owner was right to withdraw the vessel. Any withdrawal by the owner must be followed by strict compliance with the contractual pre-conditions for withdrawal such as anti-technicality notice requirements.
If the vessel is not capable of providing the service, such as by reason of an accident, the vessel will go off-hire.
Redelivery will usually be stated as a window period within which the vessel must be redelivered. Early or late delivery may have legal consequences and put the charterer to pay damages to the shipowner.
This is a brief write-up only. More information can be found from the relevant postings available at https://arunkasico.com/presentation-slides and https://arunkasico.com/bulletin.
Adjunct Prof. Dr. Arun Kasi
LLB (Hons), LLM, PhD, CLP, Bar-at-Law, FCIArb (London)
Compiled by Arun Kasi
Last Updated 4th May 2021
DOUGLAS SEA STATE SCALE and WMO CODE TABLE 3700
(SEA STATE/WAVE HEIGHT MEASUREMENT)
Douglas Sea State (as adopted by the International Meteorological Organisation in 1929)
| WMO Code Table 3700 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
BEAUFORT SCALE (WIND MEAUREMENT)
Beaufort Scale (as presently adopted by the UK Met Office – specs for observation added) | ||||||||
Scale | Mean Wind Speed | Limits of wind speed | Wind descriptive terms / specs for observation on board ship in open sea | Probable wave height | Probable maximum wave height | Sea State | ||
Knots | ms-1 | Knots | ms-1 | in metres | in metres | |||
0 | 0 | 0 | <1 | <1 | Calm (Sea like a mirror) | - | - | 0 |
1 | 2 | 1 | 1-3 | 1-2 | Light air (Ripples with the appearance of scales are formed, but without foam crests) | 0.1 | 0.1 | 1 |
2 | 5 | 3 | 4-6 | 2-3 | Light breeze (Small wavelets, still short but more pronounced; crests have a glassy appearance and do not break) | 0.2 | 0.3 | 2 |
3 | 9 | 5 | 7-10 | 4-5 | Gentle breeze (Large wavelets; crests begin to break; foam of glassy appearance; perhaps scattered white horses) | 0.6 | 1.0 | 3 |
4 | 13 | 7 | 11-16 | 6-8 | Moderate breeze (Small waves, becoming longer; fairly frequent white horses) | 1.0 | 1.5 | 3-4 |
5 | 19 | 10 | 17-21 | 9-11 | Fresh breeze (Moderate waves, taking a more pronounced long form; many white horses are formed [chance of some spray]) | 2.0 | 2.5 | 4 |
6 | 24 | 12 | 22-27 | 11-14 | Strong breeze (Large waves begin to form; the white foam crests are more extensive everywhere (probably some spray]) | 3.0 | 4.0 | 5 |
7 | 30 | 15 | 28-33 | 14-17 | Near gale (Sea heaps up and white foam from breaking waves begins to be blown in streaks along the direction of the wind) | 4.0 | 5.5 | 5-6 |
8 | 37 | 19 | 34-40 | 17-21 | Gale (Moderately high waves of greater length; edges of crests begin to break into the spindrift; the foam is blown in well-marked streaks along the direction of the wind) | 5.5 | 7.5 | 6-7 |
9 | 44 | 23 | 41-47 | 21-24 | Strong gale (High waves; dense streaks of foam along the direction of the wind; crests of waves begin to topple, tumble and roll over; spray may affect visibility) | 7.0 | 10.0 | 7 |
10 | 52 | 27 | 48-55 | 25-28 | Storm (Very high waves with long overhanging crests; the resulting foam, in great patches, is blown in dense white streaks along the direction of the wind; on the whole, the surface of the sea takes a white appearance; the tumbling of the sea becomes heavy and shock-like; visibility affected) | 9.0 | 12.5 | 8 |
11 | 60 | 31 | 56-63 | 29-32 | Violent storm (Exceptionally high waves (small and medium-sized ships might be for a time lost to view behind the waves); the sea is completely covered with long white patches of foam flying along the direction of the wind; everywhere the edges of the wave crests are blown into front; visibility affected) | 11.5 | 16.0 | 8 |
12 | - |
| 64+ | 33+ | Hurricane (The air is filled with foam and spray; sea completely white with driving spray; visibility very seriously affected) | 14+ | - | 9 |
Adjunct Prof. Dr. Arun Kasi
LLB (Hons), LLM, PhD, CLP, Bar-at-Law, FCIArb (London)
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Disclaimer: While every effort has been taken to ensure the accuracy of the information freely provided online as of the date they were uploaded, no liability is accepted in the event of any inaccuracy. Readers are to independently ensure both their accuracy and currency. © Dr. Arun Kasi, 2020. All rights reserved