1. APPLICATION

This document applies to Masters and Senior Officers on-board fully managed vessels.

2. PURPOSE

The purpose of this document is to specify guidelines for vessels on charter.

3. RESPONSIBILITIES

3.1 Master

• Follow voyage and loading instructions from charterer
• Inform the Vessel Manager if any deviation from standard terms

3.2 Bunkers

Charterer’s arrange for surveyor to find the quantities of bunkers at time of delivery and redelivery.

4. TIME CHARTER

• Charterers instruct on the port of call and cargo to carry
• Charterers pay for bunkers, port charges, pilotage, canal dues etc.
• Owner pays for maintenance of the vessel and crewing related expenses
• Charterer’s pay a fixed amount monthly for overtime and communication expenses
• Each charter party has a commercial code name provided in fixture details
• Fixture details message will include special conditions and clauses

4.1 Deadfreight

Cargo quantity supplied by shippers is less than voyage orders

Master must:

• Inform charterers immediately
• Follow charterer’s revised load orders in writing
  • Wait for cargo from shippers or
  • Complete loading with available quantity. On behalf of charterers lodge protest to shippers about the quantity short loaded.

Note:
Vessel has the right to claim dead freight for the difference.

• Inform charterers on the dead freight tonnage claimed in the departure report.
• Master to issue Note of Protest and Calculation of Deadfreight to representative from installation.
• Copies of the protest and the calculation must be mailed to all parties.

If the representative refuses to sign or receive the receipt of the protest:

• Protest to send to the shipper or charterer before departure so as to supply the required additional cargo
• Make entry in the logbook that the representative refused to sign
• An independent surveyor can be called to verify the calculation
• Master must copy the Vessel Manager the initial voyage orders and any changes thereto

4.2 Sub charter / Sub letting

Master:

• Verify all instructions from the new charterers are within the governing Charter Party agreement

5. VOYAGE CHARTER

• Hiring of a vessel for a voyage between a load port and a discharge port
• Time spent more than agreed laytime, charterers are charged demurrage

5.1 Freight earning

5.1.1 World Scale terms

• Freight calculated on the basis of cargo intake or minimum quantity guaranteed by charterers
• Any combination of load/discharge ports worldwide have a special "flat rate" per ton cargo scale points as agreed
• Owners normally get freight for cargo loaded more than fixed
• Master to calculate maximum cargo intake considering the draft restrictions in load/discharge port, weather zones en-route, bunker consumption and bunker stem

5.1.2 Lump sum basis

• Vessel to lift the cargo as per fixture details
• No additional freight for more cargo loaded
• Owner’s pay all operating expenses out of the freight, e.g. port charges, cost of bunkers, agency fees etc
• Loss of time due to weather is for owner's account
• Owner’s issue voyage orders

5.2 Bunkers - voyage charter

• Owners provide intended bunkering programme
• Master - Review bunkering programme, ensure vessel is able to perform the voyage in question safely
• Bunker stem placed by Owner’s and advice suppliers, agents and vessel

5.3 Notice of readiness

• Master – Issue “Notice of Readiness” (NOR) as per Charter Party agreement
• Notice of Readiness informs charterer -
  • Vessels arrives load/discharge port limits
  • Ready to load or discharge cargo
  • Time and location enter in log book
  • If arrive before layday starts, NOR to tender, unless otherwise instructed by charterer
  • Read clauses about notices, laytime and demurrage in each Charter Party
  • Follow correct communication procedure

5.4 Laytime

• Amount of time allowed in a voyage charter for loading and discharging of cargo
• Laytime commences 6 hours after Notice of Readiness is given or when all fast whichever is first
• Charter Party to consult for calculation of laytime
• Laytime runs until the cargo hose(s) disconnected
• If time to complete paper work is more than 3 hours, laytime will continue until relevant documents are onboard

The following does not count as laytime:

• Sailing time from anchorage to first berth (all fast/moored)
• Bunkering and possible steaming prior/after loading and discharging, (unless using waiting time)
• Time used for deballasting, unless same carried out concurrent with cargo operations
• Stoppages ordered by ship for technical reasons
• Periods not counting as laytime to be stated in the statement of facts

5.5 Departure notice

The time and the calculation of laytime/demurrage to include in the departure notice. Vessel/agent to send the statement of facts immediately.

5.6 Demurrage

Charterer pay owner on failure to load or discharge the ship within the time agreed (Laytime).

5.7 Notification

Master to notify charterers, shipper, receiver and Vessel Manager upon completion of laytime that the vessel is on demurrage.

Example:

Without prejudice to owners claim for demurrage. "This serves to notify you that according to my calculation the laytime of (72) hours stipulated in the Charter Party has been used as of (date hour), wherefore the vessel is now operating on demurrage."

5.8 Examples of demurrage calculation

• Examples based on Asbatank Voy 2 Charter Party
  • Notice of Readiness to tender on arrival customary anchorage
  • Laytime starts to count 6 (six) hours after Notice of Readiness is tendered or when the vessel is all fast at berth/mooring, whichever occurs first.

Table 5.8-1: Example Laytime Madras

NOR	16.11 11:12
Hoses disconnected	20.11 16:05	4d 4h 53m
Less:
6 hours grace		6h 00m
Shifting to berth	17.11 1940 - 2245	3h 05m
Deballasting	17.11 2245 - 18.11 0515	6h 30m
Time used Madras		3d 13h 18m

Table 5.8-2: Example Laytime Corpus Christi

NOR	28.12 19:40
Hoses disconnected	02.01 04:30	4d 8h 50m
Less:
6 hours grace		6h 00m
Shifting to berth	31.12 0620-1045	4h 25m
Time used Corpus Christi		3d 22h 25m
Total Laytime used		7d 11h 43m
Laytime allowed		3d 0h 00m
Demurrage		4d 11h 43m

6. CARGO QUANTITY AND DEAD FREIGHT

6.1 Advice on cargo quantity

Cargo quantity agreed between charterers and owners as per following examples:

• "Full cargo 31,000 MT 5% moloo" (more or less in owners option):
  • Owner guarantees vessel can load minimum 29450 MT.
  • Vessel may demand up to 32,550 MT.
  • Deadfreight -
    • Due to draft restriction is for charterer's account.
    • Due to limited cubic capacity is for owner's account.
• "Part cargo 28,000 MT 5% moloo basis departure draft loading port 34 feet saltwater."
  • Owner guarantees vessel can load minimum 26,600 MT.
  • Vessel may demand cargo up to 34 feet draft saltwater.
  • Deadfreight -
    • Loss of cargo capacity to maintain draft up to 34 feet is for charterer's account.
    • Due to limited cubic capacity is for owner's account.
• "Minimum 30,000 MT - charterer's option to complete to full cargo".
  • Owner guarantees vessel is able to load minimum 30,000 MT.
  • Charterer guarantees to supply at least this quantity.
  • Deadfreight based on 30,000 MT –
    • Draft restriction resulting in loss of deadweight is for charterer's account.
• "Min/Max 30,000 MT"
  • To load about 30,000 MT.
  • Owner guarantees that vessel can load 30,000 MT.
  • Charterer guarantees to supply the same quantity.
  • Deadfreight based on 30,000 MT, loss of deadweight is for charterer's account.
• MT 5 pct moloo cpp undarker 2.5 npa max 2 grds wnns min. S.G 0.74 at loaded temperature."
  • If S.G is less than 0.74 then can claim deadfreight for cargo short-loaded provided vessel is loaded to maximum cubic capacity.
  • Vessel to send calculation/statement comparing vessel's figures and B/L figures.

6.2 Cargo Capacity - Advice to loading port

Freight is calculated on basis of the maximum tonnage within the limits of the fixture. Following notice to be sent to the agent in loadport:

• "Vessel's Cargo Capacity:......... Metric tons equal to ......... long tons or cubic metres basis sg .......... at ......... degrees Celsius; estimated draft departure loadport ......... feet.........inches salt/freshwater estimated draft arrival discharge port ....... feet.........inches salt/freshwater"

7. STAY IN PORT

7.1 Prior to loading

7.1.1 Load port arrival

• The commencement of laytime requires tendering of Notice of Readiness
• NOR to tender as soon as vessel is in the right position, preferably when pilot on-board

7.1.2 Waiting at anchorage (if applicable)

• Anchor preferably with least deviation from the direct line to berth
• If deviation – actual time to use for NOR

7.1.3 Notice time

• Mostly first 6 hours after tendering NOR is time for preparations on Charterer’s account
• Laytime will begin if all fast in berth within 6 hrs
• SHELLVOY 4 and BEEPEEVOY 2 "83" are different from the other Charter parties

7.1.4 Shifting from anchorage to berth

• Shifting starts with departure from anchorage and ends when "all fast" in berth FWE
• Shifting is on Owner’s account
• Time of departing anchorage is actual departure time and not pilot on board time
• All fast is the time of FWE and not when gangway is down which is a different matter
• Time of departing anchorage and time of all fast to include in messages to owners
• After leaving anchorage if slow down or interrupt the voyage because if an unexpected delay to inform owner. Owners will charge the time lost against charterers

7.1.5 Pre-loading time

• Shore/ship planning of cargo operation
• Connecting of ballast/cargo hoses
• Tank inspection when applicable.
• If such activities are done during clearance formalities, Master to mention it as "cargo preparation/work being effected without interruptions"

7.1.6 Deballasting

• Charterers allow deballasting concurrently with loading
• If done before it is on Owner’s account

7.1.7 Segregated ballast

• Wait for commencement of loading prior to deballasting
• After berthing if cargo not ready do not deballast, laytime can get interrupted
• For segregated ballast avoid references to deballasting in the "official" Time Sheet unless installation insists

7.1.8 Ballast in cargo tanks

• Such vessels cannot avoid interruption in laytime for deballasting
• Vessel carrying minimum safe ballast interruption of laytime will be less no loss of earnings/extra expense as a result for owners
• If a vessel can deballast safely while loading it is advantageous

7.1.9 Time between de-ballasting & commencement of Loading

• Most significant will be tank inspection for vessels without segregated ballast
• "Lining up" is unavoidable and is not an interruption of laytime. Can be carried out with other charterers' activities such as tank inspection
• Any reference to lining up in time sheet to avoid

7.2 From Loading to sailing

• Loading - This is charterers' time, if no delay from vessel
• Time between Loading and Disconnecting of Hoses - for ullaging, sampling etc. is charterers' time
• Disconnecting of hoses - charterers' time. After disconnecting vessel is at Owner's disposal and end of laytime
• Time between Hoses Off and Sailing is Owner's time
• Cargo documents should be given within “reasonable time” (2 hrs) and additional time is charged as detention
• Master to provide time of receiving cargo documents in messages to owners
• If vessel leaves berth and awaits cargo documents at anchorage is "interruption" of the voyage. Time taken for signing cargo document to report
• Statement of Facts should cover all timings

7.3 Prior to discharge

7.4 Pre-discharging time

• Includes Shore/ship planning of cargo operation, connecting of cargo hoses, sampling, ullaging etc.
• If above activities done during clearance formalities mention it as "cargo preparation/work being effected without interruptions"

7.5 From discharging to sailing

7.5.1 Discharging

• Charterers' time if no delays from vessel.
• Maintain Pumping log and send to Owner.
• Time between completion of discharging and sailing is on owner account. Example – Waiting for Tide.
• Vessel to maintain warranty terms and plan discharge rate to avoid delays on owner’s account.
• Refer terms on COW, Booster pumps, ballasting, Line displacement, RPM, Volume, non-concurrent discharge etc.

7.5.2 Ballasting

• Avoid references to ballasting
• Ballasting while discharging is on Charterer’s account. Master to make remark on time sheet that ballasting did not interfere with discharging
• If needed Master to mention commencement of ballasting after disconnecting hoses

7.5.3 Time between discharging and disconnecting of hoses

• Charterer’s time for various activities like inspection for obtaining dry certificate etc.

7.5.4 Disconnecting of hoses

• When hoses disconnected, vessel is at Owner's disposal and laytime ends
• Time to be mentioned in the reports

8. OFF-HIRE

8.1 Off-hire clause

• An "Off-Hire Clause" means ship's Owner or Owner's Agents, may become liable for any deficiencies, or faults on the part of the vessel, its crew and/or equipment.
• Applicable to all kind of vessel, regardless of type or trade, i.e. tanker, bulker, dry cargo, etc. on Time Charter
• Vessels can incur penalties for both over-performing and under-performing
• The exact wording of all clauses, especially the Rider clauses to carefully examine and ensure vessels complies.
• Marine Manager to review C/P. Advise Master during pre-joining meetings of the terms of the C/P for the respective vessel.
• Marine Manager to maintain Off-Hire records and review claims.
• Marine Manager will report Off-Hire figures to Head of Business Unit every quarter.

8.2 Dry-docking

• When in Time Charter, Owners have the right to dry-dock the vessel at agreed intervals.
• Owner’s to notify the charterers on intention to dock the vessel.
• Charterers may nominate a port for delivery of the vessel for docking.
• Vessel will be off-hire from delivery to owner until redelivered in all aspects to charterers.
• This may vary as per C/P agreement.
• If owners want to carry out a periodical docking at a port of their own choice, the vessel will be off-hire from the time she is released until she is redelivered for loading in accordance with charterers' instructions.
• Common deviation point is agreed and paid by charterer’s (Shelltime 4).

8.3 On & off-hire / re-delivery surveys

• On-Hire survey carried out at the time of the vessel's delivery to charterers at the commencement of a Time Charter.
• Off-hire surveys are carried out prior to re-delivery of the vessel, from the charterers back to the Owners, on the last voyage.
• On/Off-hire surveys are usually held jointly by Owners and Charterers, by one independent surveyor, with the costs being shared equally.
• Master, as Owners' Representative, to ensure that remaining fuel and diesel oil are correct figures.

8.4 Off hire reporting

Master to report Off-hire accurately to vessel superintendent who will review and inform owners.

9. STATEMENT OF FACTS

All relevant activities to record in vessel’s log book, such as:

• Date and time of arrival at roads and in port (at berth)
• Date and time Notice of Readiness was tendered and accepted
• Date and time that loading or discharging commenced, number of gangs, and holds in which cargo work performed
• Dates and time of any interruption like bad weather, Stevedore meal time, breakdown of shore gear, breakdown of ship's gear, strike by stevedores, gang availability, cargo availability etc.
• Date and time of loading or discharging completed in each compartment
• Date and time of securing cargo
• Date and time of shore gear removal and stevedores disembarked
• Total cargo loaded or discharged per ship's and shore figures draft - fore and aft and amidships
• Date and time pilot boarded and vessel left berth
• Any other relevant and important information
• Bunkers and fresh water ROB on completion of loading or discharging

Master to check each item carefully on Statement of Fact prior signing.

Any discrepancies to be identified and corrected immediately with Master’s endorsement. Corrections to be verified by another officer. Cross blank space in Statement of fact.

10. LETTER OF PROTEST

10.1 Issuance

If any of the following conditions apply to protect Owner’s from any claims a Letter of protest to be issued

• Berthing delays
• Delay at the berth (e.g. delays due to waiting for customs or immigration clearance; waiting for pilot(s), tug(s); waiting for orders to start loading /discharging; waiting for another ship to finish, waiting for daylight; other)
• Slow loading or discharging rate
• Significant difference between the API or temperature shown on the cargo documents, and loading orders used to calculate the vessel’s cargo requirements and final figures
• Agreed cargo nomination was not supplied in full, or significant excess due to delay in shore stop
• Delay in departure due to Terminal requirements (waiting for the delivery of cargo documents)
• Difference between B/L and ship’s figure (if the difference is more than 0.1% of total quantity)
• In case of short supply of cargo against required quantity. Master is requested to prepare the Protest Letter for short loading or for dead freight claim (Refer OMD 9.3)
• Difficulty measuring ullages due to inclement weather/sea conditions
• Free water in ship’s tanks
• Any Restrictions imposed by discharge terminal
• Any restriction by terminal for crude oil washing at discharge terminal
• Unsafe port or berth
• If Free Pratique is not granted to the vessel within 6 hours of her arrival at port
• Any other LOP as per charterer’s and owner’s instruction

10.2 Receiving

• In the event that Master presented with a Notice of Protest concerning any subject, Master shall acknowledge receipt without comment and inform / send a copy of the document to the Owner / Commercial operator / Vessel Manager
• If insisted Master shall write “ Acknowledged lymphadenopathy for receipt only “ and then sign, date and add the time to the document, without any admission of liability
• Retain a copy of the receipt and inform / send a copy of both the Letter of Protest and the acknowledgement to the owner / commercial operator / Vessel Manager

11. STEVEDORE DAMAGE

The Stevedore damage clause(s) of the Charter Party may vary from one Charter party to another. It is a standard requirement that a written notice of the damage be issued immediately which shall include the following:

• Port and date of occurrence
• Time of occurrence
• Where damage occurred and indicate the affected part of the vessel
• Details of damage (extent of damage)
• Cause of damage, reasons for damage
• Who did the damage (name of Stevedore, winch or crane operator etc.)
• Witnesses at the time (Chief Officer, 2nd Officer, Supercargo, stevedore’s foreman etc.)
• To whom was the damage reported at the time
• Signature of Stevedores' foreman or other responsible person
• Any other necessary remarks
• Photographs, if any taken, of parts involved
• At times Stevedores responsible for the damages refuse to sign the damage Report accepting liability. In such cases, Master to obtain their signature with the remarks "acknowledge receipt only" or "for receipt only"
• If unable to get signature Master shall state underneath "Stevedores refused to sign" and place them on notice
• Stevedore Damage Report shall be addressed to the Stevedores who caused the damage and copies shall be sent to the following:
  • Time Charterers / Voyage Charterers / Shippers / Receivers / Stevedores.
  • Agents at the port where damage occurred and local P & I Representatives.
  • Vessel Manager
  • Supercargo on board (if any)
  • A copy must be retained on board in the relevant voyage file
• It is always advisable and preferable for all such damages to be repaired on the spot by the Stevedores concerned. Time and facilities available should be taken into consideration.

Note:
Irrespective of whether the damage is repaired or not Master to always issue the written Stevedore Damage Report when damage occurs.

• If damages are not immediately detected because the Stevedores had covered the damage with cargo Stevedores to be held responsible for such damage which may only become apparent during discharging. It happens while loading heavy cargo.
• Crew to be briefed prior cargo works to be observant in order to detect any damages if it occurs.
• If repair is to be done on completion of discharging. Estimated time for such repairs to be agreed with the charterers.

Note:
Any repairs may be deferred only if they do not affect your vessel's sea worthiness or cargo handling efficiency.

• If repairs not done time charterers to accept responsibility for these damages.

If in doubt contact the Vessel Manager for necessary instructions and as per instructions P & I representative to be contacted.