Kindly answer the following and submit by 22nd Sept 2013.

Question 1 Differentiate between a) b) c) d) e) Laytime and Laydays Demurrage and Despatch Voyage charter and time charter Bare boat charter and Bare boat cum demise charter Fresh water and Brackish water

Question2 . Give full forms a) b) c) d) e) f) g) h) i) j) k) l) m) APS and DLOSP LIO and FIO FOB and CIF SSHEX EIU ; FHEX IU ATUTC FOB WIBON VLCC NAABSA COA TCT PDA NOR POB

Question3 . You are a chartering manager of a shipping company owning Geared Handy max bulkcarrier, you have been asked to offer one of your bulk carriers for trip time charter. Prepare a detailed offer. Question 4 In relation to Chartering explain a) Firm offer b) Counter c) Subjects End

Laydays - The period of days during which the ship must present herself at the loading port, and during which charterers are obliged to accept the ship for loading. Cancelling date is the final layday after which, if the ship presents herself at the loading port, charterers have no obligation to load the cargo. For example, a lay/can of 18/22 would mean that the first layday is the 18th of the month, and the final layday, or cancelling date, is the 22nd. Laytime - The period of time agreed between the shipowner and charterer during which the owner will make and keep the ship available for loading and/or discharging without payment additional to the freight. Laytime is measured in days, hours and minutes, and can be considered as a reservoir of time that is gradually used up by the charterer. Three conditions must be met before laytime can commence (1) The vessel must be an arrived ship (2) she must be fully ready to load or discharge and (3) notice of readiness must have been tendered in accordance with the Charterparty.

Despatch - financial reward paid by vessel owner to the charterer if the load / discharge operations are completed in advance of expiry of laytime. Usually paid at half the demurrage rate. Demurrage- financial compensation paid by charterer to the vessel owner for delays after the laytime has expired at the load/discharge port.

Voyage charter advantage

Voyage charter gives the charterer a fixed price per ton of material and passes almost all the risks, especially risks of delays due to bad weather, strikes etc onto the shoulders of the shipowner. The charterer does, however, have to pay for the privilege of being risk-free.

Time Charter advantage

Time charter gives the charterer considerable flexibility as to where to send the ship and is spared the problems of demurrage. Time charter does, however, mean that if bad weather delays the ship or if workers in a chosen port decide to strike, the daily rate of hire still has to be paid.

Incidentally if the delay is caused through the ship breaking down, then hire is not payable; the ship goes off-hire. As the charterer assumes many of the owner's risks and costs, the equivalent amount paid to the owner per ton of cargo carried is less than for a voyage contract.

A bareboat charter is an arrangement for the chartering or hiring of a ship or boat, whereby no crew or provisions are included as part of the agreement; instead, the people who rent the vessel from the owner are responsible for taking care of such things.
bareboat charter-cum-demise means a bareboat charter where the ownership of the ship is intended to be transferred after a specified period to the company to whom it has been chartered; Fresh water may come from either a surface or ground source, and typically contains less than 1% sodium chloride. It may be either "hard" or "soft," i.e., either rich in calcium and magnesium saltsand thus possibly forming insoluble curds with ordinary soap. Actually, there are gradations of hardness, which can be estimated from the Langelier or Ryznarindexes or accurately determined by titration with standardized chelating agent solutions such as versenates.

Brackish water contains between 1 and 2.5% sodium chloride, either from natural sources around otherwise fresh water or by dilution of seawater. Brackish water differs from open seawater in certain other respects. The biological activity, for example, can be significantly modified by higher concentrations of nutrients. Fouling is also likely to be more severe as a consequence of the greater availability of nutrients. Within harbors, bays, and other estuaries, marked differences can exist in the amount and type of fouling agents present in the water. The main environmental factors responsible, singly or in combination, for these differences are the salinity, the degree of pollution, and the prevalence of silt. Moreover, the influence of these factors can be very specific to the type of organism involved. Apart from differences that can develop between different parts of the same estuary, there can also be differences between fouling in enclosed waters and on the open coast. In this respect the extent of offshore coastal fouling is strongly determined by the accessibility to a natural source of infection. Local currents, average temperature, seasonal effects, depth, and penetration of light are operative factors. The presence of pollutants can also be quite important and highly variable in coastal areas.

Firm Offer (of a cargo or of a ship). A charterparty is a contract. An enforceable contract is formed when there is a definite or "firm' offer incorporating terms, and the offer is unconditionally accepted by the person to whom it is made. There are other requirements but for chartering purposes, for now, an offer and acceptance are analytical "tools" by which agreement is seen to exist or not. During the negotiations for a fixture offers are part of the negotiation process; an offer by one party, or his shipbroker, can be met by a counter-offer by the other side. A counter-offer is not an acceptance.

Otherwise subject details

Usually, in the early stages of negotiations, the offers will state "otherwise subject details" which allows the parties to leave it until they are sure they are both seriously intent upon the business before going into all the other terms and conditions which, although important, would not have a significant effect upon the financial aspects of the charter.