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Tanker Time Charters agreement

The Contract between one party who has control of a ship and another party who
wishes to make use of the ship is known as a Charterparty.

Tanker time charter party forms a similar format regardless of who has drafted them.
They contain similar provisions which can be summarised as follows:

1. Specic information such as, parties to the contract, where and when the vessel
will be delivered, rates of hire, general permitted cargoes, general trading range
2. Commercial provisions such as, notices to be given for delivery and redelivery,
when and how hire is to be paid, how bunkers will be accounted on delivery and
redelivery, permitted bunker grades etc.
3. Owners rights and obligations
4. Charterers rights and obligations (including speed and performance warranted
by the Owner and the Charterers rights should they not be met)
5. Special provisions such as, war risk clauses, ice clauses, general average, law
and arbitration, clause paramount etc.

As the vessel could be engaged on time charter for many months or even years, it is
extremely important that the Master and Ocers are fully aware of the terms included
and the obligations of the Owner and ship towards the Charterers. If for any reason the
Master becomes aware that the vessel can not meet any of the terms of the C/P the
management oce and/or commercial operator should be contacted immediately.

Tankers tank atmospheres

Many Terminals, including the UK, Norway, various European ports, Venezuela and
several others operated by Oil Majors have strict H2S and/or Mercaptan restrictions. It
is extremely important that you are always aware of the tank atmospheres of your
vessel and also if there are any restrictions at your next or future ports.

If in doubt about any Terminal or port requirements then the commercial operator
and/or management oce should be contacted immediately for guidance.
Tankers pumping warranties

On modern Tankers, there should be very few circumstances where the vessel can not
comfortably comply with the C/P pumping requirements. There are however several
scenarios where Charterers are able to deduct laytime for alleged poor pumping and for
further guidance see Attached Documents. It is extremely important that the C/P
pumping requirements are well understood onboard.

Tankers cargo measurement

It is obviously important that cargo measurements taken onboard are carried our as
accurately as possible. Some recommendations are:

1. Make sure that the vessel has a full set of working MMCs onboard and that they
are calibrated properly at all times.
2. Compare the accuracy of each MMC against each other. For example test their
temperature probes in the same bucket of water.
3. Use the same MMC throughout a voyage for measuring. i.e. the same equipment
at load and discharge port.
4. If you send any units ashore for calibration, make sure that replacement units
have calibration certicates and compare readings to your other equipment.
5. Do not make home-made repairs to MMCs. This will in all likelihood put them
out of calibration.
6. Make sure that calibration stickers are on the MMCs and that certicates are
available where possible.

In the event of cargo discrepancies and potential claims, be sure that the equipment in
use for measuring (as well as the calculations) is beyond reproach by any third party.

Tankers commingling or blending cargo

From time to time your vessel may be asked to commingle cargo on the request of the
Charterers. This can sometimes be a risky proposition and usually it comes down to a
commercial decision on whether the Owners want to assist the Charterers or not, how
reputable the Charterer is and whether the end Receivers are aware of the operation.
The P&I Clubs provide some useful guidance on this.

Tankers cargo retention and ROB clauses

Some tanker voyage Charterparties include a clause which allows charterers to deduct
from freight with respect to cargo remaining onboard on completion of discharge. Many
charterers include clauses amongst their standard rider clauses.

It is therefore extremely important that the vessel discharges ALL the cargo to the best
of her capabilities and that the paperwork is carefully completed in order to protect the
Owner. For further guidance see Attached Documents.
Our additional pages contain somewhat larger lists of resources where you can nd
useful informations

1. Dry Cargo Charterparties

There are numerous various forms, but to give a taste of dry cargo time charters,
two types that are commonly used are: - New York Produce Exchange (NYPE 93)
Baltic and International Marine Council (BALTIME 1939 (amended 2001)....

2. Tanker Time Charters

Specic information such as, parties to the contract, where and when the vessel
will be delivered, rates of hire, general permitted cargoes, general trading range
etc. ....

3. Documentation & notices

When a vessel is on Time Charter, bunkers and the majority of port services and
costs, etc., are to the account of Time Charterers. However, should Time
Charterers default on payment, then these charges may fall on Owners and there
will then be a serious risk of the vessel being arrested for debts incurred by the
Time Charterer. ....

4. Function of bill of lading

The Bill of Lading is one of the most important documents that the Master will
sign and therefore strict controls on how it is issued are required. Although the
B/L is usually drafted by the Shipper and presented to the Master for signature, it
is an Owners document. One of its three functions is to act as a receipt for the
cargo, so therefore the Master must make sure that the quantity and description
of the goods is accurate as he will be expected to deliver the same to the

5. Seaworthiness for cargo ship, international navigational condition & procedure

for Insurance claim

Insurance premiums amount to a very large proportion of the ships running

costs. Whilst the owner insures his ship against certain risks and may present a
claim which will recuperate at least part of his losses, the eect of submitting
many claims will have the eect of increasing the insurance premiums for the
next year. It is therefore in everyones interest to ensure that risks are not taken,
that the ship operates safely and that accidents and incidents are avoided....

6. Masters obligation to follow charterers routeing advise - The Hill Harmony case

The Hill Harmony case involved a vessel on time charter trading trans-Pacic.
The Charterers had engaged a weather routing service and the Master was
advised to take the shortest northern great circle route, however he deemed it
safer to take a more southerly rumb line route. The Charterers were eventually
able to prove that the great circle route had been suitable for safe navigation and
that the extra steaming time was for the Owners account....

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