Time Charter

Malcolm Maclachlan

Time charter
Agreement between shipowner and charterer
whereby shipowner agrees to let and charterer agrees to hire a named vessel for agreed duration in return for an agreed sum of hire. Charterer is responsible for all voyage expenses (bunkers; canal dues; cargo handling; berth dues; light dues; pilotage; harbour towage; line handling!. "imilar to hire of a chauffeur driven car. Charterer hopes to make profit from ship.

"hipowner#s obligations
$. %ring ship to agreed delivery port or '. +. ..
place by agreed time on Cancelling &ate. (rovide master and crew. )aster to be under charterer#s orders as regards employment matters (i.e. cargo* etc.!. (ay all vessel operating expenses (,running costs-!. (erform voyages* load/discharge cargoes* etc. as re0uired by charterer.

Charterer#s obligations
(ay monthly or half monthly hire (or
,charterhire-! into bank a/c as per C/(. 1mploy vessel within agreed geographical limits for agreed purposes* carrying lawful cargoes. 2ssue %/3s* etc. to shippers if appropriate. (rovide bunkers as re0uired and pay all voyage expenses. 4e deliver vessel at agreed port/place on expiration of charter in same good order as when delivered* fair wear and tear excepted. Compensate shipowner for any damage caused by charterer#s cargo or other operations.

)aster
To prosecute all voyages with the utmost
despatch. To render all customary assistance with ship#s crew and e0uipment. To be under the orders and directions of the charterers as regards employment. ()eans following charterer#s routeing instructions* unless an encountered ha5ard necessitates a deviation.!

The vessel
To meet charterer#s specifications re
type* length* draught* speed* consumption* etc. 6oes ,off hire- (payment of hire is suspended! if not available to charterer* as specified in C/(.

(eriod of hire
As agreed. )ay be for one voyage (,trip
T/C-! to several months or '7 years (,period T/C!. 8ptional margin9 1.g. ,8ne month more or less at charterer#s option-. &isputes common re ,legitimate- or ,illegitimate final voyage-. :as there reasonable expectation that ship could be redelivered by redelivery date9

Trade
;or agreed lawful purposes only. Any owner#s restrictions9 Any prohibited

cargoes* e.g. &6s* livestock* fishmeal* scrap9! Any political restrictions9 (2srael9 Cuba9! 2ndustrial restrictions9 ("candinavia* Australasia9! (2T; strongholds.! 8therwise often ,:orldwide within 2nstitute :arranty 3imits- or ,:ithin 2:3-.

&elivery of vessel
<essel to be delivered by owner to charterer at
specified port/place* e.g. ,&8"( =ong >ong-; ,passing "kaw-; ,passing Cape (assero-. 8n specified date/range of dates. 8n hire survey re0uired9
? Check of general condition. ? 1xisting damage/defects noted (charterer doesn#t want to pay for existing damage!. ? Check of bunkers 48% 0uantity; charterer ,buysfrom owner.

=ire (charterhire!
(aid monthly or half monthly in advance
to owner. @" dollars or other agreed currency. 2nto specified bank account by agreed date. Charterer may suspend in agreed cases. &isputes over late payment.

"uspension of hire
"tandard clauseA hire payment
suspended '. hrs after ship unavailable due to breakdown* shortage of crew* drydocking* etc. 4ider clause may modify standard clause (e.g. in ro roA hire suspended +7 mins after breakdown of ramp or lift!.

4edelivery
<essel to be delivered by charterer
to owner at specified port/place on specified date. 8ff hire survey9
? &amage caused by charterer#s ops9 ? %unkers 48% 0uantity; shipowner ,buys- from charterer.