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Charterers’ to provide - BIMCO

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									Charterers’ to provide - BIMCO                                                                           https://www.bimco.org/Members/Chartering/Time_Chartering/Chartere...




              Charterers’ to provide

              Most of the standard time charter parties prescribe that the charterers must defray, inter alia, the cost of pilotage. Keep in mind that, if owners agree to add the word “compulsory”
              before the word “pilotage”, the charterers will be required to pay solely compulsory pilotage meaning that the owners will have to defray all other pilotage, however highly
              recommended it may be.


              Parties occasionally agree to charterers to pay for “customary pilotage”. This term has quite uncertain implications and it may prove difficult if not impossible to ascertain whether it
              is indeed “customary” to employ pilots at the particular place; it is a perfect dispute-breeder.


              Some elements of “Port charges” do from time to time cause problems, for instance, garbage collection charges. The term “port charges” implies the charges and costs, which the
              vessel must pay before it leaves a given port during the time charter period. Dues and charges ordinarily incurred should therefore be considered an integral part of the port
              charges at the particular port and, accordingly, they should be defrayed by the time charterers, for instance under clause 4 of the BALTIME 1939 providing that the time charterers
              must pay “all…port charges …and all other charges and expenses whatsoever…”. In the GENTIME the relevant provision reads: “The charterers shall…pay…all port charges
              (including compulsory charges for…garbage removal…”.


              Another aspect is that garbage collection services may include removal of waste and sweepings from the cargo hold and or from the deck.


              The effect of adding the words “and responsibility” in, inter alia, clause 8 of the Nype (46) will have the effect of switching the responsibility for stevedore negligence in respect of
              the cargo and vessel upon the owners. In broad terms it means that the responsibility for damage to the cargo and or ship will rest with the owners, unless the owners can
              demonstrate that active intervention by time charterers was the proximate cause of damage.


              Whereas the Inter-Club New York Produce Exchange Agreement 1996 has taken the above addition into consideration and no longer considers it a “material amendment” (under
              the previous Agreement the words “and responsibility” in clause 8 precluded application of the Agreement altogether) it is submitted that the words may nevertheless result in a
              different distribution of liability under the Agreement.




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