Chartering Vessel Agreement - PowerPoint by egk33331

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									EYES WIDE OPEN
 Recent Developments in Tanker
       Voyage Chartering
         Singapore, March 2006
MOVING THE GOALPOSTS

• The development of house charterparties:

  – Early loading clause

   Shellvoy 5 v. Shellvoy 6

   London Arbitration 27/04
MOVING THE GOALPOSTS

• Shellvoy 5, Cl. 4 of the 1999 Additional
 Clauses:

    “If, with Charterers prior consent and agreement, the
    vessel loads earlier than commencement of laydays
    then charterers shall have the benefit of such time
    saved when calculating laytime and/or demurrage at
    subsequent ports… ”
MOVING THE GOALPOSTS

 Loading completes two days before the
 commencement of laydays.

 Owners: Only time spent loading should be credited to the
 charterers.

 Charterers: All time up to the commencement of laydays should be
 credited to the Charterers
MOVING THE GOALPOSTS

HELD:

  – The time between the completion of loading
    and the commencement of the original
    laydays could not be credited to the
    charterers as it would not have counted as
    laytime under normal circumstances
MOVING THE GOALPOSTS
The Shellvoy 6 effectively overturns this
arbitration.

Cl. 12 (2):

“Charterer shall have the benefit of such time
saved by way of offset from any demurrage
incurred. Such benefit shall be the time between
the commencement of loading until the
commencement of the original laydays”.
NOTICES
Part I (B) of the Shellvoy 6:

  the owners undertake not to “negotiate or enter
  into any business or give the current Charterers
  any further options that may affect or alter the
  programme of the vessel as given in this clause“
  unless it is “with Charterers’ prior consent”
NOTICES

 Shell’s Explanatory Note:

 “New wording inserted to ensure the
 Owner keeps Charterers informed of the
 schedule of the vessel prior to loading”.

 And so much more…
NOTICES
Preceding voyages…

Obligations under preceding charterparties:

e.g. Asbatankvoy option to renegotiate.

(No such provision under the Exxonmobilvoy 2005)
CANCELLATION
Part II Cl. 11:

      “As soon as Owners become aware that the vessel will not be ready to
      load by noon on the terminating date, Owners will give notice to
      Charterers declaring a new readiness date and ask Charterers to elect
      whether or not to terminate this Charter.

      Within 4 days after such notice, Charterers shall either :
        (i) declare this charter terminated or

        (ii) confirm a revised set of laydays which shall be amended such that
      the new readiness date stated shall be the commencement date and the
      second day thereafter shall be the termination date or

        (iii) agree a new set of laydays or an extension to the laydays
      mutually acceptable to Owners and Charterers.”
CANCELLATION

 And if the charterer does not exercise its
 options under Cl. 11???

 – Breach?

 – Waiver of right to cancel?
CANCELLATION
Obligation to notify charterers:

Shellvoy 5:

    “If Owners reasonably conclude that, despite the exercise of due diligence, the
    vessel will not be ready to load by noon on the termination date, Owners may, as
    soon as they are able to state with reasonable certainty a new date when the vessel
    will be ready, give notice to Charterers declaring the new readiness date and asking
    Charterers to elect whether or not to terminate the charter

Shellvoy 6:

    “As soon as Owners become aware that the vessel will not be ready to load by
    noon on the terminating date, Owners will give notice to Charterers declaring a new
    readiness date and ask Charterers to elect whether or not to terminate this Charter.”
CANCELLATION

Exxonmobilvoy 2005:

 “laytime shall commence no earlier than
 48 hours after the tender of NOR or on
 the commencement of loading, whichever
 occurs first ”
NOTICE OF READINESS
Shellvoy 6, Cl. 13(1)(a)(ii):

    “If owners fail…

    to obtain free pratique unless this is not
    customary prior to berthing…

    …then the original notice of readiness shall not
    be valid.”
NOTICE OF READINESS
Shellvoy 6, Cl. 13(1)(a)(iii):

  The owners have on board “all
  papers/certificates required to perform this
  Charter, either within 6 hours after notice of
  readiness or when time would otherwise
  normally commence under this Charter” failing
  which the original NOR becomes invalid.
NOTICE OF READINESS
Shellvoy 6, Cl. 13(1)(a)(iii):

  Valid documentation a condition subsequent to
  the tender of a valid NOR

  London Arbitration 6/84 – Gas free certificates

  Shellvoy 6, Cl. 13(3) - “THE HAPPY DAY”
NOTICE OF READINESS
Exxonmobilvoy 2005, Cl. 11:

  “At each load port or place, the Vessel shall be
  fully bunkered for the intended voyage and the
  Notice of Readiness shall, without limitation,
  confirm such bunkering.”

  – Practical difficulties
CHANGE OF ORDERS
Cl. 26 Shellvoy 6 v. Shellvoy 5:

   “If after loading and/or discharging ports have been nominated,
   Charterers wish to vary such ports or thei rotation, Charterers may
   give revised orders… as the case may be. Charterers shall reimburse
   Owners at the demurrage rate for any deviation or delay which may
   result therefrom and shall pay at replacement cost for any bunkers
   consumed. Charterers shall not be liable for any other loss or
   expense which is caused by such variation unless promptly on
   receipt of the revised orders Owners notify Charterers of the
   expectation of such loss or expense in which case unless Charterers
   promptly revoke such orders, Charterers shall be liable to reimburse
   Owners for any such loss or expense proven.”

cf. Exxonmobilvoy 2000/2005
PUMPING WARRANTIES
Part I (A)(I)(vii) of the Shellvoy 6:

  “Owners warrant that the vessel

  (vii) Can discharge a full cargo (whether homogenous or
  multi grade) either within 24 hours, or can maintain a
  back pressure of 100 PSI at the vessel’s manifold and
  Owners warrant such minimum performance provided
  receiving facilities permit and subject always to the
  obligation of utmost despatch...”
PUMPING WARRANTIES

Exxonmobilvoy 2005:

 “Owner warrants that the vessel shall discharge
 entire cargo (be it one or more grade) within 24
 hours pumping time or maintain the maximum
 safe pressure at the vessel’s rail that the vessel
 can discharge at, but always at a minimum of
 100psi…”
LAYTIME & DEMURRAGE



        Little Change
CONCLUSION

								
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