Time charters by Zhuchina

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									                                           Time Charters by Igor Sterzhantov LLM




Time Charters.
                                             By Igor Sterzhantov @ 2010
                                                 www.lawandsea.net

Time Charters...................................................................................................................... 1
  Types............................................................................................................................... 1
    Net or demise time charter.......................................................................................... 1
    Gross charter or ordinary time charter ........................................................................ 1
  Redelivery....................................................................................................................... 3
  Legitimate and Illegitimate orders .................................................................................. 4
  Off-hire. Introduction...................................................................................................... 5
  Off-hire due to the seizure by pirates.............................................................................. 5
  Off-hire due to marine growth. ....................................................................................... 7



Read in full on: http://www.lawandsea.net


Types

In contrast to a voyage charterparty, a time charter contract does not based on either
single or consecutive transportations of the goods by sea between certain geographical
locations. It defined but by a period of time during which the charterer has the owner’s
vessel for its commercial use for agreed pay. Although sometimes, e.g. in case of trip time
charter, the period may be defined only by a description of the permitted employment. There are
two types of time charter, sometimes called "net" time charter and "gross" time charter.
"Net" time charter is more commonly known as bareboat or charter by demise.


Net or demise time charter

Net charter or charter by demise operates as a lease of the ship itself, usually without
master and crew, therefore often also called bareboat charter. The charterer therefore
becomes for the time the owner of the vessel employs the master and crew and through
them the possession of the ship is in him (Per Cockurn CJ in Sandeman v Scurr (1866)
L.R. 2 Q.B. 86 at p.96).


Gross charter or ordinary time charter

A gross time charter, unlike that one by demise, gives the charterer no right of property in
or to possession of the vessel(per Diplock J in Port Line Ltd v Ben Line Steamers Ltd
[1957] 2 Q.B. 146). The owner receive his monthly payments by means of ‘hire’,

                                                      Igor Sterzhantov@2010
                                                         www.lawandsea.net
                                                        info@lawandsea.net

								
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