Charter Party Research Articles

Tank Cleaning Process Optimization For Loading Tanks MT Bauhinia Guna Cargo Change

Suboptimal implementation of tank cleaning will produce suboptimal results and can affect loading failure. These less than optimal results are influenced by several things. Tank Cleaning is a tank cleaning carried out on a tanker which serves to reduce the risk of damage to the cargo. Wall wash test is a tank cleanliness test for chemical tankers after completing tank cleaning. In the loading process, chemical tankers must prepare their loading tanks in accordance with the correct procedures. In every process of preparing this tank must always pay attention to the standards that have been determined from the surveyor or based on IMO (International Maritime Organization). When the Chemical ship will load, the ship's tank will be checked by the cargo surveyor, if there is dirt or residual cargo before the ship can be declared a failure in the tank cleaning process and as a result the ship will be ordered out of the Jetty, ordered to re-clean. This causes company losses because there will be delays in the loading and discharging process of the ship and the company gets complaints from the charter party. The method used to carry out the research is descriptive qualitative. Cutting the time for tank cleaning can result in poor tank cleaning results, poor quality materials also result in less than optimal results, and equipment that lacks maintenance will result in less than optimal tool performance. When the Chemical ship will load, the ship's tank will be checked by the cargo surveyor, if there is dirt or residual cargo before the ship can be declared a failure in the tank cleaning process and the ship will be ordered out of the Jetty and ordered to re-clean. This causes losses to the company because there will be delays in the loading and discharging process of the ship and the company can get complaints from the charter party. The success or failure of tank cleaning and wall wash tests depends on the discipline of the crew, adequate tools and materials, and procedures that are carried out properly.

Charter Parties in an Era of Change

Charter Parties in an Era of Change

A CRITICAL EVALUATION OF STAMP DUTY AS A CATALYST FOR ECONOMIC DEVELOPMENT IN NIGERIA: A PRAGMATIC APPROACH

The primary objective of this study is to examine the effective and efficient assessment and collection of stamp duty tax in Nigeria. Stamp duty tax is a tax imposed on both written and electronic instrument such as conveyance on sale, admission, bill of exchange, bill of lading, receipt, apprenticeship, charter party, hire purchase, contract note, promisory note, marketable securities etc. Recently, the Finance Act 2020 expanded the scope of stamp duty to include Electronic Money Transfer Levy (EMTL) for every bank deposit up to the tune of N10,000 and above for N50 charge (one off). The mode of assessment of stamp duty is either a fixed flat rate or alvalorem basis on the instrument. The relevant tax authority for the assessment and collection of stamp duty tax in Nigeria are the Federal Inland Revenue Service (FIRS) and State Internal Revenue Service (IRS). The inherent challenges of stamp duty are the acceptance of fake stamp duty instrument without verification and lack of awareness by taxpayers among others. The recommendation is continuous enlightenment of taxpayers on the existence and inport of stamp duty tax as well as the review and simplification of the stamp duty Act 2004 to reflect current economic realities.

An evaluation of operational risks for general cargo ship operators

As general cargo ships (GCSs) hold certain advantages over more mainstream shipping services, GCSs have a considerable degree of importance in the shipping market. This paper focuses on the use of risk evaluation procedures to perform empirical analysis of the operational risk faced by GCS operators, which is a subject that has garnered relatively little academic attention. After identifying risk factors, four risk aspects and 16 operational risk factors are determined and used to construct an Analytic Hierarchy Process (AHP)-based risk matrix evaluation model. An expert questionnaire addressing both subjective and objective facets is then used to perform evaluation of the model, enabling conversion of the relative weights to risk scales. Lastly, the determination of each risk factor’s risk areas allows the proposal of risk management strategies. The results indicate that four of the risk factors are in the high risk area; these consisted of the loading stage factor “delays at port of loading,” the laden voyage stage factor “poor stowage and securing,” the laden voyage stage factor “perils of the sea,” and the discharging stage factor “delays at port of discharge.” This paper also proposes risk management strategies on the basis of the experts’ recommendations, and its findings can provide shipowners and charterers with a reference for the drafting of risk clauses when entering into a charter party.

“Owners’ Responsibilities” Clause Of Gencon 2022: An Assessment Under The Hague / Visby Rules, Gencon 94 Charter Party and the Turkish Commercial Code

The international nature of carriage of goods by sea has necessitated the establishment of uniform rules in progress of time. To address this need, standard contracts are developed by organizations engaged in maritime law. There is no obligation to use these standard forms in question, which are qualified as general terms and conditions and are drafted by international organizations operating in the field of maritime law. These standard forms are periodically updated in accordance with requirements of practice and considering the international character of maritime law and they are frequently employed by stakeholders who are reluctant to be subject to an unfamiliar legal system. Among these commonly used standard forms, the GENCON, prepared by BIMCO (“The Baltic and International Maritime Council”), holds a prominent position. GENCON charter party, containing the fundamentals of voyage charter agreements, was first introduced in 1922 and subsequently revised in response to practical needs in 1976, 1994, and most recently in 2022. With the revision in 2022, substantial alterations were made to certain clauses of GENCON 94 charter party.

벌크해운시장에서 용선계약유형 선정에 영향을 미치는 요인에 관한 연구

Purpose: This study provides to charter companies, including shippers, implications for charter party decision-making by identifying factors that affect the selection of contract types in the dry bulk shipping market.
 Research design, data, and methodology: For empirical analysis, the dependent variable was set as a choice between time charter and voyage charter, and the independent variables were set as company and cargo characteristic factors, company internal environmental change factors, and company external environmental change factors. A hypothesis test was conducted using 111 questionnaires.
 Results: Variables such as cargo volume and ship size were found to have a significant impact on the choice of charter contract. Company characteristics, investment propensity, and risk management factors were significant as a company's internal environmental factors. All variables, including market outlook, volatility, and cost factors, were statistically significant as a company's external environmental factors.
 Conclusions: Investment decisions and the outlook for future shipping market conditions are important factors to consider in decision-making as to the type of charter contract. Therefore, it is important for shippers as charters to obtain quick and accurate information on the shipping market.

Optimization of Waiting Time for Coal Loading and Unloading Activities to Ships at PT Andhini Samudera Jaya Bunati Branch

Coal is one of the fossil materials used as fuel for power generation. The miningindustry, especially coal in Indonesia, has an important role for the state, especially as a source of state revenue that is able to support the country's economic growth. One of the areas in Indonesia that is a coal-producing area is Laut Island, South Kalimantan. The results of coal mining in the South Kalimantan area are mostly exported abroad. The mode of transportation chosen as a means of transporting coal is a mode of sea transportation that can load large quantities of cargo. Coal loading activities can be carried out if the loading room (ship hatch), cargo (coal) and loading equipment (floating crane) are ready to carry out loading and unloading activities. After the ship docks at the loading point, the captain will send a NOR (Notice of Readiness) to all charter parties indicating that the ship is ready to carry out loading/unloading activities. However, the number of ships that come and will load coal with the amount of loading and unloading equipment available is not comparable. This causes waiting time, so that the implementation of loading coal to large ships is not effective because too much time is wasted. Over time, ship service providers are growing and competing to provide effective, efficient and satisfying services for service users. Both for domestic and foreign service users.

법원의 중재인선정 재판에 있어서의 심리

Could parties raise challenges to the existence or validity of the arbitration agreement in response to the application for judicial appointment of an arbitrator? It is an important and controversial issue and national authorities have taken different approaches.
 In 2020Gue633 case, according the Article 12 of the Korean Arbitration Act a party requested the court to appoint an arbitrator and the other party objected on the ground that she is not a party to the arbitration agreement. More specifically, she argued that she is not the carrier who issued the bill of lading, and therefore she is not bound by the arbitration clause in the Charter Party, which is incorporated in the bill of lading. The Supreme Court of Korea dismissed the special appeal on the lower court’s decision appointing the arbitrator, and set out a standard on what can be considered by a court requested to appoint an arbitrator. The Supreme Court has taken a limited scrutiny approach, and has ruled that court should only consider procedural issues, i.e. the written requirement of arbitration agreement or the existence of deadlock situation, and appoint an arbitrator if those are fulfilled, but should not look into substantive issues such as the existence or validity of the arbitration agreement.
 The limited approach the Supreme Court has taken in that case is coherent with the purpose of arbitration as well as the concept of Competence-Competence. However, the specific method it chose as a part of the limited approach could be somewhat unclear to lower courts or problematic in arbitration practice. Instead of restricting what issues can be considered, many other jurisdictions have rather limited the extent of scrutiny by ruling that courts could conduct only a prima facie review of the arbitration agreement. This will be a more flexible and practical solution, given that there can be various arguments which can be brought in relation to the arbitration agreement. It is also helpful in terms of minimizing the effect of the decision appointing the arbitrator to the future cases challenging the arbitral jurisdiction.

Integrated laycan and berth allocation problem with ship stability and conveyor routing constraints in bulk ports

In this paper, we study the integrated Laycan and Berth Allocation Problem (LBAP) in the context of bulk ports, which considers two problems in an integrated way: the tactical Laycan Allocation Problem and the dynamic hybrid case of the operational Berth Allocation Problem. To make the LBAP closer to reality, we consider tidal bulk ports with conveyor routing constraints between storage hangars and berthing positions, preventive maintenance activities, multiple quays with different water depths and fixed heterogeneous bulk-handling cranes, navigation channel restrictions, vessels with multiple cargo types, charter party clauses, non-working periods, and ship stability considerations during loading operations. The proposed integer programming model aims to define an efficient schedule for berthing chartered vessels and new vessels to charter. The model is formulated with predicates that guarantee maximum flexibility in the implementation and greatly improve the computational performance. Finally, the model is tested and validated through a set of relevant case studies inspired by the operations of OCP Group at the bulk port of Jorf Lasfar in Morocco in very reasonable computational time using commercial Software.

Perlindungan Hukum Terhadap Perusahaan Pelayaran Atas Wanprestasi Pencarter dalam Perjanjian Pengangkutan

Shipping companies are one of the parties that are vulnerable to becoming victims of default in a charter party agreement, thus in practice shipping companies as carriers always apply clauses of retention rights and sell cargo clauses in their charter party agreement. This research is a follow-up to earlier research that has discovered that charterers often commit acts of default, where this research focuses on legal protection for shipping companies in the event of default by charterers. This research is qualitative research using normative juridical research methods based on laws and case approach. A Charter party agreement is a legal relationship between the carrier and the charterer where the carrier binds himself to organize the transportation, nn the other hand the charterer binds himself to make payments. By the act of default committed by Bintang Sarana Laut, Co. Ltd. (charterer), Bendera Bahtera Kemenangan, Co. Ltd. (carrier) can terminate the agreement unilaterally without prejudice to their rights to demand reimbursement of costs, compensation, and interest. The law also gives the rights to Bendera Bahtera Kemenangan, Co. Ltd. to request guarantee before the cargo is delivered to Bintang Sarana Laut, Co. Ltd. But if Bintang Sarana Laut, Co. Ltd. doesn’t wish to provide any guarantee, Bendera Bahtera Kemenangan, Co. Ltd. can store the cargo and may file a lawsuit against Bintang Sarana Laut, Co. Ltd. and make a request to the court to give power for Bendera Bahtera Kemenangan, Co. Ltd. to sell the cargo as payment for charter and storgae fees. The method used by Bendera Bahtera Kemenangan, Co. Ltd. in resolving the default disputes in the charter party agreement is through a consensus deliberation mechanism.

Comparative analysis of charter party clauses versus marine insurance contractual terms: present legal status and future trends

This paper aims to classify and assess the impact of charter party clauses against the contractual terms of marine insurance contracts. Initially, a contractual term may be classified as a condition, a warranty, or an innominate term when the nature of a clause is not yet classified. Based on this classification, the effectiveness of those terms and the available remedies vary significantly upon a contractual dispute or termination. Specifically, the classification of a term as a condition has similar effects in charter parties and insurance contracts, namely, the termination of the contract and/or claim for damages. Nevertheless, the marine insurance conditions also rely on the claim’s seriousness to effectively provide the election of contractual termination, thus rendering them rather weakened compared to charter parties. At the same time, classifying a term as a warranty always had a different impact. The classification of a term as a warranty in a charter party may only offer as a remedy compensation for damages, but not the option to terminate the contract. In insurance contracts, the classification of a term as a warranty provides the same options to the affected party as a term classified as a condition, namely, the termination of the contract and/or claim for damages. With the introduction of MIA 2015, the affected party, when triggering a warranty, has a third option, namely, to be able to amend the contractual relationship in case reasons of termination emerge, protecting at the same time the other party, rendering it irresponsible of any damages or claims until the contractual relationship is reinstated.

영국법상 정기용선계약에서의 반선과 잔존유 반환채권에 관한 고찰 -대법원 2019.12.27. 선고 2019다218462 판결 평석-

This case is one of several types of legal claims that occurred due to the bankruptcy of H Shipping, which had a major impact on the shipping industry in South Korea. Among them, there are various issues such as the determination of the governing law for the claim for damages in relation to the termination of the contract due to the commencement of the rehabilitation procedure in time charters, the issue of the claim for the return of residual oil at the time of redemption in time charters, and the issue of the application of off-set under English law. Among the main issues related to this, we will look at the problem of the residual oil return bond according to the time charters’ forms. In the case where the governing law is designated as the English law of a foreign law, it is expected that the issue of off-set will be reviewed. First of all, there are many differences between the use of the NYPE 1946 and 1993 forms and the use of the NYPE 2015 forms. When using the former forms, it is necessary to supplement the ‘rider clause’. Especially, it is necessary to recognize that the residual oil return bond due to the termination of the time charter contract, which is the core of this case, is excluded from the NYPE 1946 form, but is included in the NYPE 2015 form. Next, there is the issue of off-set the termination of the contract under English law. The position of the English and Korean Courts are that set-off under common law and set-off under common law have a substantive nature in the application of set-off under the equitable law. Under English law, the problem of set-off for premature termination lies in the application of set-off under common law and set-off under equitable law. The judgment of the English court and the Korean court is that set-off under the common law is applied because it has a substantive law nature. Although it is a reasonable judgment, when the English law is applied as the governing law, there are cases where the position on the permissible off-set by the cause of the voyage charter party and the time charter party is different in carriage of goods by sea, so additional review is necessary. Based on these results, it is hoped that they will serve as practical references in the future.

Legal assessment of BIMCO’s infectious or contagious diseases (IOCD) clauses for voyage and time charter parties

The impact of the Covid-19 pandemic on the shipping industry is still severe, ranging from vessels being denied entrance to ports to crews on board ships being trapped for many months. To counter and regulate those emerging issues, the shipping industry presently incorporated into the charter parties the BIMCO’s Disease Clause originated from the 2015 Ebola outbreak, the so-called BIMCO’s Infectious or Contagious Diseases (IOCD) Clauses. While proved successful during the Ebola outbreak, those Clauses were inadequate to regulate a global pandemic such as Covid-19 effectively. Specifically, the IOCD Clauses, while they successfully establish the concepts of ‘Disease’ and ‘Affected Area’, fail with the allocation of liability, especially when the crew on board is affected by Covid-19 and the ship needs to deviate from course to change the crew. In that instance, the shipowner, provided that he exercised due diligence in proactively avoiding the infection of his crew, is excluded from liability. In contrast, it is deemed that the liability between shipowner and charterer should be at least shared. For voyage charter parties BIMCO’s Infectious or Contagious Diseases Clause 2015, applied both to the Ebola and the Covid-19 outbreak, allocates the right of termination and the liability for deviations and excessive costs strictly to charterers. In contrast, for the time charter parties, BIMCO has imposed the ‘BIMCO Infectious or Contagious Diseases Clause for Time Charter Parties 2022′ amended presently. According to those regulations, the liability can and should be shared between charterers and ship owners. As a result, the shipowner is forced to exercise due diligence more effectively, especially when he is initially liable for the excessive costs.

A Study on the Requirements for Incorporation of Chaterparties into Bills of Lading

Purpose The purpose of this paper is to review the current legal position in relation to the incorporation requirements while examining what is necessary for the successful incorporation of the charterparty terms into a bill of lading. Design/Methodology/Approach This thesis was reviewed through an analysis of precedents related to the requirements for the incorporation of charter party terms into a bill of lading. Findings Incorporating the charter party terms into the bill of lading binds the third party despite the lack of knowledge of the terms. Not all charter clauses relate to the relationship between the carrier and tholder. Not all charterparty clauses will be relevant to the relationship between the carrier and holder. Accordingly, the law adopts a strict approach to incorporating non-negotiable charter clauses into the bill of lading. Germane clauses such as freight clauses that are directly related to the contract clauses of the bill of lading are permitted to be incorporated as general incorporation clauses. As for the incorporation of the arbitration clause as an independent contract that is not related to the contents of the bill of lading: in principle, it is incorporated only by the specific incorporation clause to confirm the effect of the incorporation in relation to the wording of the incorporation clause. Research Implications In order to balance the rights of the carrier and the interests of the shipper, a strict approach based on the incorporation requirements according to existing precedents will be adopted for the incorporation of the charter party terms into the bill of lading.

Legal Analysis of Impact of Revised BIMCO Clauses on Crew Health and Safety During COVID-19 Era

This paper evaluates how the revised BIMCO Crew Change Clause 2020 affected crew health during this period. To satisfy the need for specific clauses, regulating the contractual relationships during the COVID-19 period, BIMCO created sets of clauses, such as the BIMCO Crew Change Clauses for Time Charter Parties (2020). The rationale of those clauses was based upon the pre-existing BIMCO Infectious or Contagious Diseases Clause for Voyage and Time Charter Parties 2015, but it was evidenced that the COVID-19 virus had many intricacies. Thus, new sets of rules are presently emerging to eliminate the gaps created. The basic downside of this legislation and the focus of this paper is to prove that these clauses are focused only on regulating the contractual relationship, without actually taking into consideration the crews’ health and safety.The analysis is focused on the impact of a COVID-19 incident on four specific legal aspects, i.e. i) vessels’ seaworthiness, ii) charter parties, iii) port safety, and iv) refusal of orders. There is also an analysis of the imminent Decease Clause 2021 and its actual impact upon the shipping industry. The analysis of the relevant legislation is based on legal doctrine, dominant form in legal research, aiming to provide a systematic exposition of the legal and regulatory principles. It analyzes the relationship between those principles to provide clarifications, utilizing legislation and relevant case law as the primary source of data. This research method is qualitative and is very similar to critical analysis, whose application is performed through (a) research and description of the existing legislation, (b) prescription, whose essence is to explore the statutory framework, locate the critical points, and assess the effectiveness of legislation on protecting the crew health and safety, and (c) evaluation of possible amendments or additions.The majority of studies conclude that shipping companies will be able to protect crew health and safety only through proactive measures and due diligence. The revised BIMCO terms on crew changes during Covid-19 and the new Disease Clause 2021 sadly did not have crew protection as their top priority. In most parts they tried to allocate and even mitigate the risk of the contracting parties, providing “windows” of opportunity for both sides to be excepted from any liability. Based on the analysis of resources, the new clause is not engaging the concept of proactive measures, unquestionably the most important method for the preservation of crew health usually referred to as “exercising due diligence”. It is a fact that BIMCO protects the clients’ interests, with the clients being the charter parties. It is also valid that the shipping industry supported the nations during the COVID-19 outbreak, but the BIMCO clauses were concentrated on the preservation of contractual relationships, leaving the concept of crew health and safety uncharted.

Penerapan Metode Time Charter Party Pada Sistem Informasi Penyewaan Alat Camping Berbasis Web

Sinar Adventure Store is a shop that provides camping equipment, this store has many customers who want to rent camping equipment such as tents, carril bags, stoves and sling bags. But the camping equipment rental transaction at this shop still uses the conventional process, so there are still many errors that occur in writing information and data reports on this camping equipment rental. This is the author's reference in designing a web-based camping equipment rental information system, with HTML, CSS, and PHP programming languages as the database. This system is designed using the waterfall method and the system follows the flow of the Time Charter Party method. In data processing, such as recording rental transaction data, it is still stored in a ledger storage media so that data security is not guaranteed because there is no more searching for camping equipment data at the Sinar Adventure Store who still has to wait a long time because they have to find one data person in the books. The purpose of creating this rental system is to overcome the problems that are currently happening at the Sinar Adventure Store store. The results of this study are to provide convenience in the processing of camping equipment data at the Sinar Adventure Store store such as admin data, data rental, ordering, checkout and to simplify the data search process in addition to having a more effective and larger storage media.

The Role of the NYPE Inter-Club Agreement as a Modular Apportionment Mechanism for Cargo-Claims across Multiple Jurisdictions

The New York Produce Exchange Inter-Club Agreement (the 'ICA') is a staple maritime cargo claims provision incorporated into popular charter party forms, the NYPE46, ASBATIME, and NYPE15. It mechanically regulates cargo liability apportionment between charterers and shipowners mechanically for quick dispute resolution. This study aimed to examine the use and application of the ICA through a private international law lens to evaluate the ICA’s choice of law (being English law). ICA is an independent contract applicable to national legislation or any international convention, such as the Hague Rules, Hague-Visby Rules, and Hamburg Rules. It protects the commercial interests of shipowners and charterers and accommodates mandatory rules imposed by each jurisdiction. Furthermore, the popularity of ICA throughout the maritime industry as an apportionment mechanism was also determined by evaluating previous cases handled by English, Australian, and American Federal courts. Its importance in solving inconsistencies within maritime law on cargo apportionment and the perspective of ICA under the private international conflict of laws were also examined. Library research Involved studying conventions, statutes, and well-established cases of conflict of laws, private international law, cargo claims, and the ICA.

Comparative Analysis Of The Contracts For Maritime Transport Services. Chain Of Charter Parties

A basic principle in Law is the freedom of contract. Particularly, in Private Shipping Law, contractual parties may agree on all lawful terms and conditions which are most appropriate for the performance of the carriage. During the years of maritime trade practice, different types of contracts has been created, as well as systems of Chain Charter Parities have been adopted, through all of which the relations between maritime traders were settled. All this has contributed to maritime commercial practices for the carriage to be carried out not only by the shipowners, but also by other maritime traders with the appropriate authority and competence.

Insurance related problems in bareboat charter agreements

In 2017, the majority of the United Kingdom Supreme Court held in its judgment in the Gard Marine and Energy v China National Chartering (The Ocean Victory) case that, in bareboat charters under the ‘BARECON 89’ form, if both the owner and the charterer are jointly insured under a hull policy, the damages caused to the vessel by the charterer cannot be claimed by the insurer by way of subrogation after indemnifying the owner. The interpretation of the charter party leads to the conclusion that the liability between the parties is excluded. Faced with the Supreme Court’s decision, the Baltic and International Maritime Council (BIMCO) adopted a new standard bareboat charter agreement only a few months later, the ‘BARECON 2017’ form, which amends, among other clauses, the one related to insurance. The present paper analyses (i) the new wording of the clause mentioned above and (ii) its incidence on the relationship between the parties of both the charter agreement and the insurance contract and its consequences for possible third parties. Despite BIMCO’s attempt to change the solution adopted by the Supreme Court and his willingness to allow the insurer to claim in subrogation against the person who causes the loss, the consequences, as it will be seen, do not differ much in practice when the wrongdoer is the co-insured charterer. On the contrary, when the loss is caused by a time charter or a sub-charter, in principle, there will be no impediment for the insurer to sue him.

Tort Claim under the Ship Time Charter: The Perspective of Indonesian Law

During a cargo carriage by sea under the time charter scheme, there can be a situation where the Ship-owner of the vessel does not have a contractual relationship with the cargo owner. This situation could happen when the charterer becomes the contractual carrier under the bill of lading instead of the Ship-owner. In that given scenario, if cargo damage occurs, the cargo owner can submit a tort claim against the Ship-owner. Indonesia never ratifies an international convention in the field of carriage of goods by sea. Suppose the given scenario happens without the incorporation of the Charter party or the provision of any international convention into the bill of lading, a tort claim will become a choice for the cargo owner to ask the Ship-owner's liability. It is the purpose of this article to analyze how Indonesian laws will examine a tort claim and how the Ship-owner will construe his defense in the field of carriage of goods by sea. The writing finds that Indonesia Commercial Code provides a legal basis for a cargo owner's tort claim against the Ship-owner. However, it needs further discussion to set the relationship status among the Ship-owner, the time-charterer/contractual carrier, and the cargo owner under Indonesian laws and regulations.