Charter related problems at loading ports - procedure for cargo ships employment

Charter related problems at loading ports - procedure for cargo ships employment

If charterers repeatedly reject the vessel on grounds of unclean holds or tanks most charter parties have clauses dealing with cleaning of compartments before loading. Some charter parties give the master sole authority to decide when the vessel is sufficiently clean for loading to commence, while others require the vessel to be cleaned “to the satisfaction of the Charterer’s Inspector”, which may lead to the charterers repeatedly rejecting the vessel and asking for more cleaning to be done before acceptance. The charterers must be able to show that such rejections and requests were reasonable.

Unless the charter party provides otherwise, the master has final responsibility for deciding when cargo compartments are sufficiently clean for loading. If personally satisfied that compartments are clean enough for the intended cargo, the master should:

• act reasonably;
• bear in mind that he is acting in the interests of both the owners and the charterer;
• politely and firmly point out to the surveyor that the responsibility outlined above is the master’s;
• point out that the cost of any further cleaning will be for the charterer’s account; and
• note protest. If ordered to leave the loading berth before acceptance, the master should not agree to do so unless so instructed by the owners/disponent owners, or unless there is a clause in the charter party giving the charterers the right to order the vessel off the berth, in which case the order should come from the charterers to the master via the owners.

If charterers cannot provide a cargo on arrival

The mastershould tender notice of readiness in accordance with the charter party, and inform the shipowner.
The charterers are not in breach of contract until the agreed laytime has expired.
The vessel should “sit out” the laytime, the period of which should be computed from the charter party. If no cargo has been provided by the time of expiry of laytime, the master should note protest, stating that the owners’ obligations under the charter party have been met, and await instructions.

If charterers cannot provide the agreed cargo quantity

It is customary in the bulk trades for the charter party to allow for the actual weight intaken to be more or less (MOL) than the proposed weight by a margin of perhaps 10%, in either the charterer’s option (MOLCO) or the owners’ option (MOLOO).

If the weight loaded is less than the agreed margin, the charterers will be in breach of contract and liable for deadfreight. The owners will be entitled to take reasonable steps to find other cargo to fill the unused space.

In such a case the master should send a letter of protest to the charterer, contact the owners, and note protest. A deadfreight claim form may have to completed by the master, for submission to the charterer.

Related articles :

Delivery conditions in a time charter agreement

Charter related problems at loading ports - procedure for cargo ships employment

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