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Chapter 1 General Introduction1

Section 1 General Introduction of Tramp Shipping(Ⅰ)1

1.1 What is tramp shipping?1

1.2 Characteristics of tramp shipping4

1.3 Kinds of tramp shipping4

Section 2 General Introduction of Tramp Shipping(Ⅱ)6

2.1 What is chartering?6

2.2 Different kinds of chartering7

2.3 Differences between time charter and voyage charter11

Section 3 Charter Party13

3.1 The meaning of charter party13

3.2 Voyage Charter Party14

3.3 Time Charter Party16

3.4 Bareboat Charter Party19

Section 4 Entering into C/P＆Standard Form21

4.1 Making of C/P:chartering broker21

4.2 Forms of C/P25

Section 5 Law and Shipping Customs Relating to Charter Parties28

5.1 Application of Chinese Maritime Code28

5.2 International Shipping Practices30

Section 6 Chartering Market31

6.1 Purpose on learning the chartering market31

6.2 Kinds of freight markets32

Chapter 2 Voyage Charter Party35

Section 1 Representations under Voyage Charter Party35

1.1 Introduction35

1.2 Representations and misrepresen tations36

Section 2 Main Provisions on Representation41

Section 3 Preliminary Voyage＆Loading/Discharging47

3.1 Preliminary voyage47

3.2 Loading/discharging clause47

Section 4 Duties of the Charterer to Provide Cargo51

4.1 Sorts of cargo51

4.2 Quantity of cargo52

4.3 Specified duties of the charterer53

Section 5 Laytime/Demurrage/Dispatch Money(Ⅰ)55

5.1 Understanding of Laytime55

5.2 Definition of"days"as laytime58

Section 6 Laytime/Demurrage/Dispatch Money(Ⅱ)65

6.1 Commencement and end of laytime65

6.2 Problems arising from berth contract69

Section 7 Laytime/Demurrage/Dispatch Money(Ⅲ)75

7.1 Definition of Demurrage/Dispatch Money75

7.2 Calculation79

Section 8 Other Clauses under GENCON 199485

8.1 Responsibilities and exceptions of shipowner85

8.2 Deviation clause87

8.3 Lien clause/cesser clause90

Section 9 Law and Arbitration Clause96

9.1 General introduction of law and arbitration clause96

9.2 CMAC model arbitration clause98

Chapter 3 Time Charter Party99

Section 1 Representation under Time C/P99

1.1 Nature of time charter party99

1.2 Definition of key words and terms100

1.3 Representation102

Section 2 Shipowners/Charterers to Provide107

2.1 Importance of the clause of shipowner/charterer to provide107

2.2 Shipowners to provide107

2.3 Charterers to provide110

Section 3 Period of Hire112

3.1 Introduction112

3.2 Standard form113

3.3 Usual clauses on period of hire113

Section 4 Delivery of Vessel117

4.1 Date,place and condition of delivery117

4.2 Place of delivery119

4.3 Condition of delivery120

Section 5 Redelivery of Vessel124

5.1 Introduction of redelivery of vessel124

5.2 Time of redelivery125

5.3 Conditions of redelivery130

5.4 Ordinary tear and wear130

5.5 Legal effect131

Section 6 Payment of Hire133

6.1 Standard clause133

6.2 Common terms in practice135

Section 7 Withdrawal of Vessel139

7.1 Condition of withdrawal139

7.2 Limits to exercise withdrawal140

7.3 Legal effect of withdrawal141

7.4 Waiver of right to withdraw142

Section 8 Off-hire145

8.1 Standard clauses on off-hire145

8.2 Common provisions of off-hire146

Section 9 Responsibilities and Obligations of Shipowners152

9.1 Initial seaworthiness152

9.2 Maintenance seaworthiness152

9.3 Shipowners to provide153

9.4 Reasonable dispatch153

9.5 Customary assistance154

Section 10 Responsibilities and Obligations of Charterers155

10.1 Charterers to provide155

10.2 Safety of port/berth156

10.3 Definition of safe port156

10.4 Scope of safe port156

10.5 When to warrant the safety of port?158

Section 11 Exception Clause161

11.1 Exception clauses under standard forms161

11.2 Common nature of exception clauses162

Section 12 Employment and Indemnity Clause166

12.1 Employment and indemnity clause under standard forms166

12.2 Chinese law on the issue of employment and indemnity167

12.3 Problems under supervision of master168

12.4 Who shall be responsible for damages caused by the stevedore?168

Section 13 Trading Limits Clause170

13.1 Trading limits clause under standard forms170

13.2 Chinese law on the issue of trading limits171

13.3 Understanding of trading limits clause171

Section 14 Lawful Merchandise Clause174

14.1 Lawful merchandise clause under standard forms174

14.2 Chinese law on the issue of lawful merchandise175

14.3 Understanding of lawful merchandise clause175

Section 15 Sub-let Clause178

15.1 Sub-let clause under standard forms178

15.2 Understanding of sub-let clause179

Chapter 4 Bareboat Charter Party181

Section 1 Delivery Clause181

1.1 Definition of bareboat charter party181

1.2 Main provisions of bareboat charter party under BARECON184

1.3 CMC provision on the delivery of vessel194

Section 2 Inspection Clause195

Section 3 Maintenance and Operation Clause200

3.1 Maintenance and operation clause under BARECON200

3.2 CMC provision on maintenance and operation207

Section 4 Hire Clause209

4.1 Hire clause under BARECON209

4.2 Problems in practice213

4.3 Chinese law on payment of hire214

Section 5 Mortgage Clause215

5.1 Mortgage clause under BARECON215

5.2 CMC provision on mortgage217

Section 6 Insurance and Repairs219

6.1 Insurance clause under BARECON219

6.2 Chinese provisions on insurance224

Section 7 Redelivery Clause226

Section 8 Non-lien Clause229

8.1 No possessory lien or maritime lien229

8.2 Notice fastened on board230

8.3 The indemnity clause230

8.4 Security230

8.5 CMC provision on the effect of non-lien clause231

Section 9 Lien and Wreck Removal Clause232

9.1 Lien clause232

9.2 Wreck removal clause233

Section 10 Assignment and Sub-demise Clause235

10.1 Assignment＆sub-demise clause under BARECON235

10.2 Chinese law on the issue of assignment and sub-demise236

Section 11 Bareboat Charter Party with Hire Purchase Clause238

11.1 Transferring title of property and risks238

11.2 Risks and expenses for sale of ship239

11.3 Taxes and charges under purchasing contract241

11.4 Costs for dispatch of crew243

Chapter 5 Bill of Lading under Charter Party244

Section 1 General Introduction244

1.1 Bill of lading issued under C/P244

1.2 B/L under C/P and ordinary ocean B/L245

1.3 Differences between B/L under C/P and ordinary ocean B/L248

1.4 Identify B/L under C/P and ocean B/L248

Section 2 Incorporation Clause250

2.1 Incorporation clause and B/L under C/P250

2.2 Understanding of incorporation clause and its validity250

2.3 Which contract may be incorporated into B/L253

2.4 Common incorporation clauses254

2.5 Problems on incorporation of arbitration clause255

Section 3 B/L clauses under C/Ps257

3.1 B/L clause under voyage charter party257

3.2 B/L clause under time charter party＆bareboat charter party257

3.3 Few situations of refusing to sign B/L258

3.4 Meaning of"Without prejudice to"259

Section 4 Identifying the Carrier and Demise Clause260

4.1 Identify the carrier in case of B/L under C/P260

4.2 Demise clause261

References263

Author's Note264