Chartering Procedure

Chartering Procedure
• Inquiry or quote
• Offer
• Counter offer
• Subject to
• Acceptance and Fixture
• The period of following-up
Inquiry (Example)
• Min 130,000 mt (500kb AXL & 500kb ARM Segg) Crude, Chopt full cap of vsl
• Owners confirm vsl able to load min qty bss rstrctn at LP/DP.
• Lp:1 Sp/Sbm Ag (RT/JUY). L/C 10 Nov '18.(Canl 1200 Hrs Lt). Dp:1/2 Sp/Sbm
WCI Intn Kochi Or (Kochi Fb Mumbai),
• Ttl L/T: 96 Hrs.
• Vsl to have valid disch Sire (Other than Koch).
• Owners to confirm OFAC conditions and also be part of Charter Party.
• Vessel to be FOC 5 days before laycan.
• Last Port of call Iran Not Accepted.
• Open Time : 31-10-2018 11:00:00 IST
• Close Time : 31-10-2018 14:00:00 IST
• Valid Till : 31-10-2018 19:30:00 IST
Owners Offer.
REGISTERED OWNER: XXX
COMMERCIAL OPERATOR:XXX
VESSEL: M/T XXXX
DESCRIPTION:  AS PER Q88 ATTACHED
APPROVALS: TO THE BEST OF OWNERS KNOWLEDGE THE VESSEL
IS NOT UNAPPROVED BY: ENOC, ADNOC, BHP, BP, SHELL, IMT
LAST SIRE: ENOC AT MUMBAI ON 18TH SEPTEMBER 2018
LAST 3 CARGOES/CHARTERERS/VOYAGES: CRUDE/CRUDE/CRUDE
ITINERARY: 
ETA/ETD SRIRACHA (THAILAND) 23/24 OCT, ETA JEBEL DHANA 07
NOV AGW
Owners Offer (continued)
VOYAGE             : FOR SINGLE VOYAGE ONLY
CARGO/QUANTITY: MIN 130 TMT CRUDE OIL CHOPT FULL CAP
OF VSL, OWNER’S CONFIRM VESSEL ABLE TO LOAD MIN QTY
BASIS RESTRICTIONS/ REQUIREMENTS AT LOAD/DISCH PORT(S). 
LOADPORT: 1 SP/SBM AG-UAE EXCLUDING IRAN/IRAQ
(INTENTION RAS TANURAH).
DISPORT: 1/2 SP/SBM WCI (INTENTION KOCHI OR KOCHI F/B
MUMBAI).
LAYCAN: 10 NOVEMBER 18 (CANC HRS.1600 HRS.)
TTL LAYTIME: 96 HRS SHINC (1:1) + 12 HRS FOR EVERY
ADDITIONAL PORT. 
Owners Offer (continued)
RATE & EXTRAS:
WS xxx (WS 2019 AS AMENDED TO APPLY) – ALL INCLUSIVE . BASIS MIN
130,000 MT.
(RATE INCLUSIVE OF ALL PORT / CARGO DUES ETC. AWRP, K&R,
DEVIATION, INDIAN OCEAN TRANSIT, ARMED GUARDS, PIRACY COSTS,
CARGO DUES ETC. NO OTHER PAYMENT OTHER THAN FREIGHT WILL BE
REIMBURSED BY CHARTERER. ALL EXPENSES WILL FORM PART OF ALL
INCLUSIVE FREIGHT AND WILL NOT BE REIMBURSED SEPARATELY).
OVERAGE AT 50PCT
DEMURRAGE: USD xx,xxx/- PDPR
COMMISSIONS: ADDRESS COMMISSION OF 2.5 % IS PAYABLE BY OWNER
TO BHARAT PETROLEUM CORPORATION LTD., MUMBAI, ON
FREIGHT/DEADFREIGHT/DEMMURAGE
Owners Offer (continued)
• OTHER TERMS:
OWNERS CONFIRM OFAC CONDITIONS AND ALSO BE PART
OF CHARTER PARTY.
VESSEL WILL BE FREE OF CARGO 5 DAYS BEFORE LAYCAN.
APPLICABLE GST, SERVICE TAX AND CESS ON FREIGHT AND
DEMMURAGE PAYMENTS TO BE FOR CHARTERERS
ACCOUNT.
 
OTHER CP TERMS : AS PER LAST DONE XXX / BPCL SUEZMAX
CRUDE(M/T XXXX CP DATED 03 OCTOBER 2018) WITH
LOGICAL ALTERATIONS AND AMENDMENTS ONLY.
Counter offer
• A counter offer will be regarded as a rejection of
the original offer.
• A counter offer is a new offer.
• When one makes a count offer one is in fact saying
“I decline your offer and I now make you the
following new offer”.
Types of Counter offer
• ‘We accept Shipowner’s/Charterer’s offer, except´ followed by the terms
that shipowners or charterers want to change (this is if the offer is
acceptable in parts, but some terms must be subject to further
negotiation). The parties have already agreed on a number of terms.
• ‘We decline shipowner’s/Charterer’s offer and offer as follows´. Technically
the parties have not yet agreed on any point. If the charterers or
shipowners find most of the terms offered unacceptable, but nevertheless
will try to negotiate. The charterers or shipowners will in this case go back
to the shipowners or charterers with a full offer of their own.
• ‘Charterers decline shipowner’s offer without counter´. If the charterers
find the shipowner’s offer to be completely unacceptable and they find it
pointless to continue the negotiations. The negotiations will be terminated.
• ‘We repeat our last´ or ‘We repeat our last, except´--It means that the
shipowners or charterers insist on their requirement or with slightly
amendment.
Subject to….
• Subject to charterers’ board’s approval.
• Subject to receiver’s approval.
• Subject to stem.
• Subject to open.
• Subject to details.
Typical Voyage Estimate
for AG-WCI
Loadport Jebel Dhanna Sailing Bunkers at 42 MT/day 504
Discharge Port New Mangalore Loadport Bunkers at 10 MT/day 20
Disport Bunkers at 100 MT/discharge 100
Income Waiting Bunkers at 10 MT/day 20
Worldscale Flat rate ($/ton) 7.51 Total Bunkers Consumed 644
Min. Qty loaded (MT) 130,000
Freight in ws 80 Cost of Bunker (USD/ton) 410
Gross Freight (USD) 781,040 Total Cost of Bunker (USD) 264,040
Commission at 2.5% 19,526
Net Freight (USD) 761,514
TCY Calculations
Expenditure Net Freight 761,514
Port Cost - Jebel Dhanna 55,000 Less Total Port Cost 165,000
Port Cost - New Mangalore 110,000 Less Total Bunker Cost 264,040
Total Port Cost 165,000 Profit / (Loss) 332,474
Profit / (Loss) per day or TCY 18,471
Days
Sailing Days 12
Loadport Days 2
Disport Days 2
Waiting Days 2
Total Days 18
Performance of Voyage Charter
• The vessel must be directed to the port of loading.
• In the port of loading the charterer must deliver the
agreed cargo.
• The freight will be paid for cargo discharged after
the voyage.
Performance of Time Charter
• Timely delivery of vessel
• If vessel is delayed due to breakdown of machinery or for
other reasons under control of owner then vessel is off
hire and then a reduction of the time may be made so
that no hire will be paid during the off-hire period.
• The shipowner, basically, is not liable for delay not
caused by the ship.
• When giving orders to the vessel the charterer must
keep within the trading Restrictions prescribed by the
contract, with respect to geographical areas as well as
cargoes to be carried.
• At the end of the charter period the charterer has to
redeliver the vessel at the place agreed.