Tolani Maritime Institute; B Tech ME, IV th Year

Online learning material for subject: Ship Operation and Management

Number: Ch 3 -02 Prepared By: S K Srivastava

Chapter III – Chartering and Charterparties

Special Clauses in Tanker Charterparty:
1) Cargo retention clause: In the event that any cargo remains on board upon completion of
discharge, the charterer has the right to deduct from freight an amount equal to Free on
Board price of cargo retained plus freight payable
2) War Risk Insurance Clause: Policy to be arranged for first fourteen days by shipowner then by
charterer.
3) Cleaning Clause: Owner has to ensure that tanks, pumps and pipelines are cleaned to
charterer’s satisfaction prior to loading. (Product Tankers) and the sediments are reduced to
minimum by crude oil washing (Crude Oil Tankers)
4) Inert Gas Clause: The vessel must maintain a fully operational Inert Gas System at all times.
5) Pumping Clause: The Shipowner shall discharge all her cargo within 24 hours or maintain
100 PSI Pressure at manifold at all times.
6) No Drug and Alcohol Clause: By Seafarers.
Worldscale:
Worldscale rates are published by Worldscale association once a year on 1st Jan. It covers WS rates
for about 60,000 voyages. This schedule is available to members on subscription. The are calculated
for a standard vessel of 75000Mt DWT, capable of doing 14,5 Kt burning 55Mt of 380 cst fuel, 100
Mt is provided additionally for port operation and heating. Laytime is 4 days including loading and
discharging. Assuming the income of owner at 12000 USD per day.
Since owner’s vessel many not be same as standard vessel, he has to find a correlation between
freight of his ship with worldscale rate for same voyage.
Consecutive Voyage Charters:
To protect against fluctuating freight rates and need of finding ship every time the charterer
negotiates CVC with shipowner, They are nothing but voyage charters repeated many times. Every
condition remains same except Freight which changes at pre agreed formula giving weightage to
inflation, fluctuation in bunker price etc.
Contract of Affreightment:
It is not a charterparty but a contract of carriage of cargo (oil) by shipowner in various ships. It is
used in Long term and large quantity cargo contracts which are delivered over a period of time. The
terms and conditions are same as voyage charter including freight fixation but shipowner can provide
any suitable ships

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