Chapter 2 - Charter Party 2

CHARTER PARTY
10 mins test
• 1. Does Vietnamese Government allow other
countries use Vietnamese flag as flag of
convenience?
• 2. Does Vietnamese Government allow our ship-
owners use flag of convenience?
• 3. Which terms of Incoterms 2010 are suitable
for sea transport/ multimodal transport?
• 4. When we do not need to get right of
transport?
CHARTER PARTY
1. Party A and Party B
• Shipowner/Carrier
• Charterer (exporter or importer).
Full name, address, telephone number, fax
number, website....of both sides
“ as agent” if the contractor is not the carrier
Party A and party B are 1 person? is that ok?
05/29/2021 Foreign Trade University 3

2. The vessel
• Very important as it is the main object of the

charter party (C/P)
• All details: name, year of birth, place of birth,
flag, NRT, GRT, purpose, class, hole, crane,
LOA, cargo capacity, engine, speed, oil,
horsepower, ...

Vessel
• M/V PACIFIC
• BUILT 1989, MULTI-PURPOSE TWEEN, DWT:16,579T ON 9.07
SSW,
LOA/BM:144.7/22.3MTR, PANAMA FLAG, CCS CLASS,
GT/NT: 10,451/5,740TON, 4HO/4HA, DERRICK 4X15T,
HATCH SIZE: HO 1. 12X10M, HO 2/3/4. 17.6X12.5M
GRAIN/BALE CAPACITY
HO 1. TW1259/1233CBM LW1757/1843CBM
HO 2. TW2130/2109CBM LW3702/3912CBM
HO 3. TW2142/2121CBM LW3125/3180CBM
HO 4. TW2197/2173CBM LW3788/4130CBM
GRAIN:20,793 CBM BALE:19,906 CBM
ADA WOG.
• Rich Queen II
• 105,572 DWT, Tanker, Built 2007
• Owners/Managers are Marubeni Corp., Built at Sumitomo
H.I., Double Hull, Panama Flagged, LR Classed, Length Overall
of 239.00 m., Length Between Perpendiculars of 229.00 m.,
Draught of 14.87 m., Beam of 42.03 m., 89.24 Tonnes per
Centimetre Immersion, Gross Tonnage of 56,172, Sulzer
Engine, Speed of 14.90 kts, Heavy Fuel Oil, Horsepower of
16,315B at ...
• Cargo Capacity of 115,572 cu.m., Segregated Ballast Tanks, 12
Tanks, 3 Pumps with a total Capacity of 7,500 cu.m
• IDENTIFICATION: Aframax Tanker, Call Sign 3EMT, IMO Number
9337418

3. laydays/can clause
• Substitution: sister ship
• The period of time that the vessel present at the loading

port to start the voyage as discussed in the C/P.
• The shipowner/carrier is obliged to arrange a vessel to
be at the fixed place, fixed time, and ready to load
- Option 1: a fixed day
- Option 2: a period of time (promt, promtisimo, spot
promt)
- LAYCAN 26TH APRIL -06 MAY 2008
4. Cargo Clause
• Name of cargo: rice, crude oil, coal,…

• Cargo not confirmed: a legal cargo
• Packing: number of package, packing..
• Volume/ Quantity of cargo:
- In taken quantity: B/L
- On delivery Quantity: ROROC ( report on
receipt of cargo)

CARGO
• CARGO: 15,000 MT +/- 05 PCT MOLOO
PRILLED UREA IN BULK (SF: ABT 52)
• CARGO: 90,000 tonnes +/- 05 PCT MOLOO
CRUDE OIL

5. Loading/ Discharging Port Clause
• Confirm the port/ berth: name of port/berth

• Not confirm: a safe port one safe berth at..
• LOADING : 1-2 SB 1 SP QATAR
• DISCHARGING : 1-2 SB 1 SP HCMC

6. Freight Clause
• Rate of freight
• Unit of freight (MT, cubic feet, container..)
• Volume of freight
- On taken quantity (B/L quantity)
- Delivery quantity (ROROC quantity)
• Payment time
- Freight Prepaid
- Freight to Collect
FREIGHT CLAUSE
• Freight rate: USD 50 per metric ton including
Vietnamese freight tax and VAT and payable without
deduction
• Freight payable to............................
• The freight shall be calculated on the intaken quantity of
cargo.
• Prepaid. Freight is to be paid on shipment, it shall be
deemed earned and non-returnable, Vessel and/or
cargo lost or not lost. Neither the Owners nor their
agents shall be required to sign or endorse bills of lading
showing freight prepaid unless the freight due to the
Owners has actually been paid.
• On delivery.

7.Loading and discharging
• Theo ®iÒu kiÖn tµu chî (Liner terms/

Gross terms/ Berth terms)
• Theo ®iÒu kiÖn miÔn chi phÝ xÕp dì
cho ngêi chuyªn chë (FIO- Free In and Out)
• Theo ®iÒu khoản miÔn xÕp hµng cho ng
êi chuyªn chë (FI):t¬ng ®¬ng víi ®iÒu kiÖn
FILO (Free In Liner Out)
• Theo ®iÒu khoản miÔn dì hµng
(FO):gièng nh®iÒu khoản (Liner in free
out).
PUMPING IN AND OUT
The cargo will be pumped into the vessel at the
expense, risk and peril of the Charter, and shall
be pumped out of the vessel, but at the risk and
peril oft he Vessel so far as the Vessel’s
permanent hose connections, where dilvery of
the cargo shall be taken by the Charterer or its
consignee.

8. Laytime
3 ways: separate, combined, as custom
• Unit
- Ngµy (Days): lµ ngµy theo lÞch
- Ngµy liªn tôc (Running Days)
- Ngµy lµm viÖc (Working Days)
- Ngµy lµm viÖc 24h (Working Days of 24 hours)
- Ngµy lµm viÖc 24 giê liªn tôc
- Ngµy lµm viÖc thêi tiÕt tèt (WWD)

• LOADING RATE : 5,000 MT PER WEATHER WORKING DAY
OF 24 CONSECUTIVE HOURS. TIME FROM 1200 HRS ON
FRIDAY TILL 0700 HRS ON SUNDAY NOT TO COUNT AS
LAYTIME EVEN IF USED. IF A LOCAL OR A LEGAL HOLIDAY
PRECEDES WEEK-END, TIME FROM 5.00 P.M. ON THE
PREVIOUS WORKING DAY UNTIL 8.A.M. ON NEXT
WORKING DAY TO BE EXCLUDED AND NO TIME TO
COUNT EVEN IF USED.SUNDAY IS BEING COUNTED AS
NORMAL WORKING DAY.
• DISCHARGE RATE: 2,000 MT PER WWD SATPMSHEX EIU
BASIS OWNERS GUARANTEE VSL GEARS MIN 4 X 15MT TS
CAPACITY

8. Laytime
• Mèc tÝnh thêi gian xÕp dì (commencement): phô
thuéc vµo viÖc ngêi chuyªn chë ®· trao th«ng b¸o
s½n sµng xÕp dì NOR vµ viÖc chñ hµng chÊp
nhËn th«ng b¸o nµy
VD: theo quy ®Þnh cña mÉu hîp ®ång GENCON:

+) Thêi gian lµm hµng sÏ b¾t ®Çu tÝnh tõ 13h
nÕu NOR ®îc trao tríc hoÆc vµo lóc 12h tra.
+) Thêi gian lµm hµng ®îc tÝnh tõ 6h s¸ng h«m
sau nÕu NOR ®îc trao vµo giê lµm viÖc sau 12h
9. Despatch/ Demurrage
• TiÒn thëng xÕp dì nhanh (Despatch money)
- Despatch money: 1/2 of demurrage money
- Total despatch money= rate x total time
- Rate of despach
- Total time
• TiÒn ph¹t xÕp dì chËm (Demurrage Money)
- Demurrage money: twice of despatch money
- Total demurrage money= rate x total time
- Rate of demurrage
- Total time
• Demurrage
• Demurrage at the loading and discharging port is
payable by the Charterers at the rate USD1,500 per day
or pro rata for any part of a day. Demurrage shall fall due
day by day and shall be payable upon receipt of the
Owners' invoice.
• In the event the demurrage is not paid in accordance
with the above, the Owners shall give the Charterers 96
running hours written notice to rectify the failure. If the
demurrage is not paid at the expiration of this time limit
and if the vessel is in or at the loading port, the Owners
are entitled at any time to terminate the Charter Party
and claim damages for any losses caused thereby.

HUMIDITY BAD WEATHER
•
WEATHER WORKING DAYS EXCLUDE HIGH HUMIDITY
DAYS. IF HUMIDITY LEVEL REACHES 75% LOADING WILL
BE STOPPED AND LAYTIME WILL BE CEASED TILL
HUMIDITY LEVEL FALLS BELOW 75%. ANY LOADING
STOPPAGES DUE TO RAIN / STRONG & HEAVY WIND /
FOG / SEA SWELLS AND SANDSTORMS ARE EXCLUDED
FROM LAYTIME. THIS CLAUSE IS APPLICABLE
IRRESPECTIVE OF COMMENCEMENT OF LOADING OR
BERTH OCCUPIED WITH ANOTHER VESSEL WIBON,
WCCON, WIFPON,WIPON.
POLLUTION
• SHIPOWNERS WARRANT THAT THE VESSEL IS

FULLY INSURED AND CERTIFIED FOR POLLUTION
RISKS IN ACCORDANCE WITH THE RULES AND
REGULATIONS OF THE NATIONAL PORT
AUTHORITIES RELEVANT TO THE TRADING UNDER
THIS CONTRACT. IN NO CASE SHALL SHIPPERS
AND/OR SUPPLIERS BE LIABLE FOR DEMURRAGE
AS A RESULT OF SHIPOWNER FAILURE TO COMPLY
WITH SUCH RULES AND REGULATION
• VSL IS TO BE P&I COVERED, CLASSED HIGHEST LLOYD OR
EQUIVALENT, ISM CERTIFIED,IN POSESION OF EVERY
CERTIFICATE REQUIRED FOR
• INTERNATIONAL TRADE.
• ARBITRATION IN SINGAPORE, ENGLISH LAWS APPLIED
• HAGUE-VISBY RULES TO APPLY DURING THE CURRENCY
OF THIS C/P
• G/A PER YORK-ANTWERP RULES IN SINGAPORE.
Working in group of 2-6
• Vietnam exports 30,000 MT of rice to
Korea with FOB price of 500 USD/MT
FOB Catlai, Incoterms 2010.
• Arrange some main clauses of C/P:
vessel, laycan, loading and
discharging port, cargo, freight,
loading and discharging, laytime,
dispatch/ demurrage.

Chapter 2 - Charter Party 2

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CHARTER PARTY

05/29/2021 Foreign Trade University 3

• Very important as it is the main object of the

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• The period of time that the vessel present at the loading

• Name of cargo: rice, crude oil, coal,…

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• Confirm the port/ berth: name of port/berth

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• Theo ®iÒu kiÖn tµu chî (Liner terms/

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VD: theo quy ®Þnh cña mÉu hîp ®ång GENCON:

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• SHIPOWNERS WARRANT THAT THE VESSEL IS

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