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UNIT TWELVE CHARTER PARTIES (I) A charter party is a document of contract by which a shipowner agrees to lease, and the charterer agrees to hire, a vessel or all the cargo space, or a part of it, on terms and conditions forth in the charter party. If permitted to do so by the terms of charter party, the may enter into subcontracts with other shippers. The main types of charter parties are Bareboat Charter Party (sometimes called a Demise Charter). Time Charter Party and Voyage Charter Party. If
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  1 UNIT TWELVE CHARTER PARTIES (I) A charter party is a document of contract by which a shipowneragrees to lease, and the charterer agrees to hire, a vessel or all the cargospace, or a part of it, on terms and conditions forth in the charter party. If  permitted to do so by the terms of charter party, the may enter into subcontracts with other shippers. The main types of charter parties are Bareboat Charter Party(sometimes called a Demise Charter). Time Charter Party and Voyage Char ter Party.If your vessel is chartered it is of the utmost importance that youread the charter party carefully, especially the added clauses, until it isthoroughly understood. It is advisable to have the officers read it as amatter of information and instruction and it will do no harm to discuss it with them, especially with the chief officer. The important clauses should be check  - marked for quick reference. If any refer to dates of the notification of ETA to consignee orcharterer's agent, make a note of the day the message is to be sent and be sure to send it.  2 Bareboat Charter Party. By this type of charter, the shipownerleases his entire vessel and the charterer has the responsibility of operating it as though it were his own vessel. As the implies, thebare vessel is chartered. The shipowner has, for the period covered bythe charter party, lost control of his vessel. The charterer pays allexpenses: fuel, stores, provisions, harbour dues, pilotage, etc. andemploys and pays the crew. There may, however, be a clause in thecharter party that the master and the chief engineer must be approved bythe shipowner. The charterer is responsible for the upkeep, preservationand safety of the vessel. Before delivery to the charterer the vessel is surve yed by representatives of both parties and the same is done onredelivery. The charter party will stipulate that the must beredelivered in the same good order and condition as when delivered,ordinary wear and tear excepted. On redelivery the owner 's representatives, usually the port captain and port engineer, may check the logbooks for information pertaining to groundings, striking objects and collisions. Fuel oil in the vessel on delivery is paid for by the charterer - at the current price at the port at that time, and on redelivery, the shipowner pays for the fuel in the vessel at the current price in the port at the time.  3 Voyage Charter Party . This is a charter party for the carriage of a full cargo, not for a period of time, but at a stipulated rate per ton, forone voyage only, between named ports to be named on arrival in a givenarea. It is a frequently used charter party of which there are manyvarieties, and most commodities and trades have a particular type to suittheir purposes. Shippers of large quantities of bulk cargo such asphosphate, coal, grain, etc., have charter parties with special titles suchas Fosfo , Americanized Welch Coal Charter Party , Baltimore Grain Charter Party , etc. In a voyage charter party the charterer assumes no responsibilityfor the operation of the vessel but generally pays stevedoring expenses in and out. A statement to that effect will be included in the charter party. The master is particularly concerned with voyage charter parties because of the laytime, dispatch and demurrage clauses and the necessity of tendering the Notice of Readiness to load or discharge. In this type of charter the charterer contracts to provide a cargo at given rate per day.The charter is generally for bulk cargo, stipulated in tons or cubic feet, for all or part of the carrying capacity of the vessel.  4 LaydaysDemurrage . When the vessel on a voyage chart is in port, theexpenses of the shipowner continue. At the same time loading ordischarging is controlled by the charterer, who if not held to a definitenumber of days to complete this work, can make the stay in port longand expensive for the shipowner. For this reason, the charter party willspecify a definite number of days for loading or discharging cargo; or it may specify a certain number of tons per day to be loaded or discharged. The days are called laydays (or laytime) and are stipulated in thecharter party as working days, weather working days, running days and excepted days. If the charterer loads or discharges his cargo in less time than thenumber of laydays allowed, he earns dispatch money at much a dayor part of a day saved. If he takes longer to load or than thenumber of laydays allowed, he must pay demurrage at so much a day.Both dispatch and demurrage may be the cause of much disagreementand argument in which the vessel's logbook can play an important part.. An equally important clause is the demurrage clausewhich states that if the charterer does not complete loading ordischarging in the laydays allowed by the charter party, he must pay forthe delay at the stipulated sum per day. Unless otherwise provided in thecharter party, demurrage starts from the time loading dischargingshould have been completed. All days are counted, whether or not cargois worked, including Sundays, holidays and days not worked due to badweather or other reasons. Once a vessel is on demurrage, it runs consecutively unless otherwise provided in the charter party.
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