Typical voyage charter party clauses in a voyage charter agreement for a cargo vessel

Typical voyage charter party clauses in a voyage charter agreement for a cargo vessel

Defining voyage charter party clauses

A general purpose dry cargo voyage charter party will usually incorporate clauses covering the basic provisions tabulated below. The provisions may be expressed in different charter parties by clauses bearing different names, or by numbered clauses with no names.

Name of clauses and matters to be covered are discussed here.

Preamble : Identity of parties; identity of vessel; warranty of seaworthiness; present position of vessel; expected date of readiness to load; obligation to proceed to loading port or place; identity of and safety of loading port or place; amount and nature of cargo to be loaded; obligation to proceed to and identity of discharge port or place; obligation to deliver cargo.

Owners’ Responsibility: Responsibility of the owners for loss of or damage to goods or delay in delivery of goods; exclusion of owner’s liability for loss of or damage to goods or delay in delivery of goods.

Deviation : Liberty of vessel to call at ports in any order; liberty of vessel to tow and assist vessels; liberty of vessel to deviate for purpose of saving life or property or other purposes.

Freight : Rate and amount of payment of freight.

Loading/Discharging Costs: Responsibility for costs of loading and/or discharging of cargo.

Laytime : Duration of laytime allowed; exceptions to laytime; commencement of laytime; time and manner of tendering of notice of readiness.

Demurrage : Duration of demurrage period allowed; whether demurrage allowed at loading and/or discharge ports.

Lien :Whether the owners are to have a lien on cargo for freight, deadfreight, demurrage and/or damages for detention; whether the charterers are to be responsible for freight and demurrage, etc. incurred at the discharge port.

Bills of Lading : Master’s obligation to sign bills of lading.

Laydays and Cancelling : Laydays; cancelling date; conditions under which charterers have option to cancel charter; charterers’ obligation to declare intention to exercise option to cancel, if applicable.

General Average : Rules under which any General Average is to be settled; obligation of cargo owners to pay cargo’s share of General Average expenses.

Agency: Owner’s (or charterer’s) obligation to appoint agents at loading and discharge ports.

Brokerage : Amount of brokerage commission due and party or parties to whom payable.

Strikes : Allocation of responsibility for consequences of strikes or lock-outs preventing fulfilment of obligations.

War Risks : Liberty of owner to cancel charter in event of outbreak of war; liberty of master to sail from loading port before completion of loading in event of outbreak of war.

Ice : Liberties of master in event of inaccessibility of, or threat of trapping at, loading and/or discharge ports due to ice.

Clause Paramount : Identity of liability regime applying to bills of lading issued.

New Jason Clause :Protection of owner against US lawsuits where General Average is to be adjusted in accordance with US law.

Both To Blame Collision Clause: Protection of owner against US law in collision cases.

Law and Arbitration : Jurisdiction to which any dispute will be referred; place of any arbitration; appointment of arbitrators.

Rider clauses : as agreed between the parties, will generally be appended to the standard clauses

Read more on : Voyage charter party laytime calculation

Summarized below seagoing cargo ship various employment guide:

Charty party forms

Typical voyage charter party clauses in a voyage charter agreement for a cargo vessel

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