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Drafting Charterparty Contracts

LIVE ONLINE TRAINING | 4-Part series | 4 hours per part
22-25 March 2022 | 14:00 – 18:00 (AEDT)

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overview

Key Learning Objectives

  • Gain a clearer perspective of the nature of maritime trade
  • Understand the different forms of Charterparty contracts
  • Become familiar with the function of Bills of Lading
  • Gain insight into risk allocations between Carrier and Owner
  • Know the importance of other contractual related issues such as fuelling, dry docking and repairs
  • Grasp the factors that could impinge upon the performance of a Charterparty Contract such as adverse weather and delay
  • Understand payment and contract settlement issues

About the Course

International maritime trade is one of the largest and most complex fields of human endeavour. It is continuous and ensures that many other businesses and industries remain supplied with the goods and materials that are required for their daily operations. Underpinning this vast commercial endeavour are the vessels themselves utilised to carry a huge array of cargos to destinations anywhere and everywhere on the planet. These vessels are subject to complex legal agreements known as ‘Charterparty Contracts’ which come in various forms and serve different purposes. Given the complexity, risk and uncertainty of the maritime trade, it is imperative that these contracts and agreements establish the rights; duties and obligations of the parties to one another as well as offering protection and certainty by managing the interface with other relevant necessary components such as insurance and compliance requirements internationally. This course has been designed to be an immersive experience with focus on open dialogue and problem-solving exercises and case studies throughout.

Who Will Benefit

  • Ship owners and managers
  • Charterers including Importers
  • Exporters and Traders
  • Shipbrokers
  • Port and ship agents
  • P&I personnel
  • Logistics and shipping professionals
  • Legal advisers, solicitors and barristers
  • Freight forwarders
  • Government bodies and representatives

trainer

Christopher Lennon

Director, Stone Falcon Corporate and Legal Consulting Ltd

Testimonials

“Very insightful, very relevant to our current business, gives a good perspective”
Managing Director, Ocean Network Express (Singapore)

“I acquired many new & interesting charterparty clauses never used before and gained knowledge of vessel’s performance/ under-performance claims, carriers’ responsibility as well as safety clauses”
Assistant Manager – Chartering, NOVA Carriers

“It was informative and the trainer had a good depth of knowledge”
Chartering and Operations Executive, Global Marine Logistics Pte Ltd

Course Outline

TOPIC 1: INTRODUCTION

  • Ship Chartering – what does it mean?
  • The 2 main strategies of Chartering
  • The meanings of the different types of charters – voyage, time, bareboat, contracts of affreightment
  • Tanker trades
  • Key vessel parameters of consideration

TOPIC 2: VOYAGE CHARTERS – KEY CLAUSES FOR DRAFTING EXAMINED

In this section some of the key clauses that are vital from the contractual drafting perspective are presented and discussed – issues such as the specific vessel characteristics; voyage time, the issue of deviation clauses; ‘Dead Freight’, Demurrage and Laytime, FM and the arbitral clause and many more. Case Study and exercise

TOPIC 3: TIME CHARTERS – KEY CLAUSES FOR DRAFTING EXAMINED

In this section some of the key clauses that are vital from the contractual drafting perspective are presented and discussed – issues such as usage of ‘standard form’ charters; the ‘Freight Rate’, vessel characteristics, speed and bunkering (fuel consumption/refuelling issues), period of charter, the ‘off-hire’ clause, liability for cargo damage, the ‘Division of Responsibility’, etc. Case Study and exercise

TOPIC 4: BAREBOAT CHARTERS

  • What makes a bareboat charter different from other forms?
  • All operational and managerial functions controlled by charterer (except capital costs)
  • Bareboat charters and purchase options – a form of ‘financial leasing’
  • Other reasons for Bareboat charters – not wanting to make additional investment (therefore risk) – additional tonnage required for a specific period of time
  • Important clauses – vessel description and characteristics, the ‘hire’ period, delivery and redelivery of vessel ‘hire’ amount, payment, ship maintenance, Insurance

TOPIC 5: CONTRACTS OF AFFREIGHTMENT (CONTRACT CHARTERS)

  • A ‘hybrid charter’ combination of elements of both time and voyage charters – AKA ‘volume contract’
  • Co-operation the key
  • Normally medium to long term
  • Specific quantities of cargo at agreed dates within an agreed time period
  • Advantages of a CoA

TOPIC 6: BILLS OF LADING – MAJOR TERMS AND CONDITIONS

In this section the key terms and conditions associated with the Bill of Lading are examined and why they are important from a drafting perspective – issues such as The ‘Clause Paramount’; Responsibility for Carriage; ‘Voyage Clause’; ‘Container Clause’, The ‘Transhipment Clause’; Dangerous goods; ‘Freight Clause, Lien, General Average Clause, ‘Both to blame’ collision clause, the New Jason Clause; etc. are discussed

TOPIC 7: RISK ALLOCATION IN CHARTER PARTIES

  • The 2 ‘Broad Categories’ of maritime risk – loss or damage to ship or cargo, risk associated with delay
  • Class exercise – the ‘Doric Pride’ case
  • The ‘Global Santosh’ case

TOPIC 8: SOME FURTHER CONTRACTUAL ISSUES

  • Drydocking and repairs
  • Fuelling
  • Coverage of port charges
  • Pilotage and tugs
  • Force Majeure provisions
  • Class exercise

TOPIC 9: TRANSPORTATION AND LOADING

  • Adverse weather provisions
  • Compatibility between vessel and infrastructure
  • SIGTTO/SIGTTO Paper no.5
  • Port Liability Agreements
  • The NOR
  • WIPON
  • Berthing assignments

TOPIC 10: CONTRACT SETTLEMENT (INVOICING AND PAYMENT)

  • The Buyer’s and Seller’s Heads of Agreement
  • Payment terms
  • Late payment and suspension
  • Dealing with payment disputes
  • The importance of the Dispute Resolution Clause

when & where

22 - 25 Mar 2022

Live Online Training

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contact

Still have a question?

Sushil Kunwar
Training Consultant
+61 (0)2 9080 4395
training@informa.com.au

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