FREIGHT MARKET

Carriers Charterers

Cargo
Ships

Brokers
Brokers

Freight
Market
 SALES AGREEMENT
Exporter Importer
(Seller) Goods (Buyer)

Bulk + General Cargo

Break bulk + Containers
Tramp Liner

Next page
 SALES AGREEMENT

Exporter Sales Importer

(Seller) Terms (Buyer)

CIF FOB

Charterers Chartereres

Next page
 CHARTERING MARKET
Shipowner Charterer
(Carrier)

Bareboat C Time charter

(Carrier) (Carrier) Voyage
. Charter

Demise charter Preriod T/C Trip T/C

Single trip Round Trip

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 Carriers Charterers

Voyage
Charter

Service
Consecutive Spot COA contract

Full cargo Part cargo

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 CHARTERING STAGES

I. INVESTIGATION

II. NEGOTIATION

III. POST FIXTURE

 I. INVESTIGATION

Charterers
Sales contract L/C in order (if any)
signed
Cargo ready/expected
ready for loading
Brokers

Order

Firm with XX day’s

Prospective Firm Indications only
order notice
Next page
 I.FIRM ORDER
a) Firm order
b) Charterers are now firm as follows
c) Definite, firm and ready to go
d) Firm with letter letter of credit (L/C) in order.
e) If cargo circulated from a first class charterers and brokers
without aboce expressions
f) Firms offers invited or please offer firm for
 II.INDICATIONS
a) Indications only
b) Please indicate
c) Please propose
 III.PROSPECTIVE ORDER
a) Order expected become definite
b) Order not yet definite
 Charterers Carriers
Brokers Brokers

Requirement Freight idea

Freight idea Order Indication
Indication Order Firm offer
Firm offer Offer
•The charterer’s name (full style) and domicile
(First class charterers, A1 Charterers )
•Cargo quantity and description of the commodity
•Loading and discharging ports
•The period within which the vessel is to be
presented for loading Lay/Can
•Loading and discharging rates and terms
•Any restrictions or preferences regarding type or
size of ship
•Charter-party form on which the charterer wishes to
base the terms and conditions
 Charterers Carriers
Brokers Brokers

Requirement Freight idea

Freight idea Order Indication
Indication Order Firm offer
Firm offer Offer
Firm offer Firm offer
Charterers
Other Carriers
Freight ideas Freight ideas

Other Carriers
Indication Indication

Charterers Counter
offer
 II. NEGOTIATION

A. NEGOTIATION OF MAIN TERMS

B. DETAILS AND THE WORDING OF THE
CLAUSES
 Brokers Brokers

Charterers Carriers
Order Order

Firm offer Firm offer

Charterers
Counter offer Counter offer
Carriers

Confirmation Confirmation

Charterers Carriers
Reconfirmation Reconfirmation

FIXTURE
 Owner’s firm offer
“Owner’s offer firm…”
With a time limit for reply “
•The shipowner’s name (full style)
•The ship’s name and particulars
•Cargo quantity and description of the commodity
•Loading and discharging ports and berths
•Lay/can
•Loading and discharging rates and terms
•Demmurage and despatch rates
•Freight amount and conditions for payment of freight
•Charter party form
•Commissions
•Clauses covering time counting, extra insurances,tax,and duesetc.which owners
considers to be of prime importance
 CHARTERERS REPLY

“Charterers accept owners’ offer , exept…”

“Charterers decline owners offer and offer firm as

follows…”

“Charterers decline owners’ offer without

counter…”
 SUBJECTS

“Subject to charterers’ approval”

“subject to stem..”
“Subject to details”

ACCEPT…/ EXCEPT …BASE

 DETAILS AND THE WORDING OF THE CLAUSES

•Amendments
•Delations
•Additions

RECAPUTILATION

SUBJECT STEM

CLEAN FIXTURE
 DOCUMENT CONSTRUCTION

VOYAGE CHARTER CONTRACT

Contract
terms
C/P
Print
Form
C/P
Rider
Print
Form Adden
+ Adde
dum
Rider ndum
 III. POST FIXTURE

•The charterers or broker who has negotiated on

their be half:
•Draw up, copy and distribute the C/P and
•Check if duly signed
•Follow up notices, payments of freights and good
performance from both sides
•Mutually acceptable solutions to all problems