Maritime Contract Law

Maritime Contract Law is highly influenced by international maritime conventions. When a maritime contract is formed depends on the jurisdiction of a country. United States and England jurisdictions have different approaches.

American courts typically recognize that a Maritime Contract can be formed and enforceable as long as the parties have agreed on the essential points in other words main terms of maritime contract, even if other details were left for resolution.

On the contrary, England courts recognize that a Maritime Contract can be formed and enforceable if all terms are fully agreed without any details were left.

Maritime Contract’s main terms are critical and includes ship specifications, time and place of delivery, duration of the charter, place of redelivery, hire rate and freight rate. During ship chartering negotiations, ship owners and charterers try to match cargo to a ship at an acceptable rate in a short time frame. Ship owners and charterers negotiate charterparty main terms and all the other details can be resolved later. if details are not resolved, it will be determined based on the standard form that provides the template for the arrangement.

Maritime Contract does not have to be written single document. Oral contracts are acceptable. Maritime law enforce a maritime contract as a collection of communications between ship owners and charterers as long as maritime contracts represent a meeting of the minds and an intent to be bound to a contract. That’s why maritime practice will recognize an oral contract.

Ship owners trying to arrange charter of a ship, the shipment of goods, or the repair of a ship will commonly exchange communications, either in the form of faxes or emails, in the nature of a dialogue, to reach agreement on the key terms of the agreement. Once that agreement is reached, parties may leave matters there, and not prepare a formal written contract, either due to lack of time, or because it may appear unnecessary. If a dispute arises, the court will review the whole of the communications to determine if the parties reached an enforceable agreement, and if so, what the terms of that agreement are.

Maritime Contracts also include several implied terms that are assumed to be within the intent of parties to any maritime transaction. Maritime contracts are subject to an implied obligation of good faith and fair dealing. Under that implied term, when a maritime contract provides that a party has discretion under the contract, that discretion must be exercised in good faith.

All Maritime Contracts include an implied warranty of best possible performance.

Under Maritime Contracts, a maritime contractor implicitly agrees to perform those services in a diligent and workmanlike manner. Rules and regulations for interpreting a maritime contract are mostly the same as the rules and regulations for interpreting contracts under state law. Contracts are formed according to the mutual intent of both parties as of the time they entered into the contract.

• A Maritime Contract might be void if it fails to show meeting of the minds of both parties.
• A Maritime Contract might be void if one party entered into a contract by fraud or misrepresentation.
• All terms of the Maritime Contract must be consistent and specific language will govern over general language addressing the same matters.

In United States, Maritime Contracts can be enforced by United States district courts acting under their admiralty jurisdiction. Maritime contracts can also be enforced by state courts with jurisdiction over the parties, under the maritime jurisdiction’s “Saving to Suitors” clause. Although the law that governs the maritime contract will still be the federal maritime law in most cases.

Maritime Contracts also come within the scope of the United States Federal Arbitration Act and can be enforced by an arbitration brought pursuant to that act. As mentioned in previous paragraph, maritime contracts can also be enforced by state courts with jurisdiction over the parties, under the maritime jurisdiction’s Saving to Suitors Clause.

Saving to Suitors Clause grant plaintiff the right to sue in any state court that has jurisdiction over the parties and the claims. State courts apply state procedural rules and apply federal maritime law to the substance of the maritime claims.

Alternatively, under Saving to Suitors Clause, a plaintiff could bring the case in a federal district court under the court’s diversity jurisdiction that would allow the plaintiff to use the federal forum but avoid maritime-unique rules and preserve the right to a jury trial.

—

Maritime Contract Fully Enforceable in UK Vs USA

In both the United Kingdom (UK) and the United States (USA), maritime contracts are generally enforceable, subject to the specific laws and regulations governing maritime activities in each jurisdiction. The enforceability of a maritime contract in the UK and the USA may depend on various factors, including the governing law, the jurisdiction, and the terms and conditions of the contract. Below is a comparison of some key aspects regarding the enforceability of maritime contracts in the UK and the USA:

1. Governing Law: A maritime contract usually specifies the governing law, which dictates the legal principles and rules that apply to the contract’s interpretation, performance, and enforceability. If the contract’s governing law is that of the UK or the USA, the respective laws of these countries will apply. In the UK, maritime law is primarily governed by domestic legislation and common law principles, while in the USA, it is governed by a combination of federal and state laws as well as common law.
2. Jurisdiction: The jurisdiction specified in a maritime contract determines which country’s courts or arbitral tribunals have the authority to hear disputes arising from the contract. Both the UK and the USA have well-established maritime arbitration and litigation systems that provide fair and efficient dispute resolution mechanisms. However, it is essential to ensure that the jurisdiction specified in the contract is mutually agreed upon by the parties and is enforceable under the laws of both countries.
3. International Conventions: Both the UK and the USA are signatories to various international maritime conventions, such as the United Nations Convention on Contracts for the International Carriage of Goods Wholly or Partly by Sea (the “Rotterdam Rules”) and the Hague-Visby Rules. These conventions establish uniform rules governing various aspects of maritime law, including the carriage of goods by sea and marine insurance. Compliance with these conventions can help ensure the enforceability of a maritime contract in both the UK and the USA.
4. Validity and Enforceability: The general principles of contract law in both the UK and the USA require that a maritime contract be valid and enforceable. This means that the contract must have the necessary elements of a legally binding agreement, such as offer, acceptance, consideration, intention to create legal relations, and certainty of terms. Additionally, the contract must not contravene any public policy or statutory regulations in either jurisdiction.
5. Conflict of Laws: In cases where a maritime contract involves parties from different jurisdictions or is subject to the laws of multiple countries, conflict of laws issues may arise. Both the UK and the USA have conflict of laws principles that determine the applicable law and jurisdiction in such cases. Parties to a maritime contract should consider these principles when drafting the contract to ensure its enforceability in both jurisdictions.

In conclusion, maritime contracts can generally be fully enforceable in both the UK and the USA, subject to the specific laws and regulations governing maritime activities in each jurisdiction. To ensure the enforceability of a maritime contract in both countries, the parties should consider specifying the governing law and jurisdiction, complying with relevant international conventions, and adhering to the general principles of contract law in both jurisdictions.

 

What is a shipping contract called?

A shipping contract, also known as a charterparty, is an agreement between a shipowner and a charterer that outlines the terms and conditions under which a vessel is employed for the transportation of goods or passengers. The charterparty specifies the rights and obligations of both parties involved, such as the freight rate, the duration of the contract, the cargo to be carried, and the ports of loading and discharge. There are several types of charterparties, including time charters, voyage charters, and bareboat or demise charters, each with its unique set of terms and conditions.

 

 

Where can I find a Maritime Contract or Charter Party Form?

We kindly suggest that you visit the web page of BIMCO (Baltic and International Maritime Council) and ASBA (Association of Ship Brokers and Agents) to obtain the Maritime Contracts or Original Charter Party forms and documents. www.bimco.org  and  www.asba.org

 

Maritime Contract Example 1

 

 

Maritime Contract Example 2

Below is a simplified example of a Time Charterparty contract. Please note that this is only a basic illustration and not a comprehensive or legally binding document. It is always recommended to consult with a maritime lawyer for drafting a proper and legally enforceable contract.

---

TIME CHARTERPARTY AGREEMENT

This Time Charterparty Agreement (the “Agreement”) is entered into on this [Date], by and between:

[Shipowner’s Name], having its principal place of business at [Address], herein referred to as the “Shipowner”, and

[Charterer’s Name], having its principal place of business at [Address], herein referred to as the “Charterer”.

WHEREAS, the Shipowner represents that they are the owner of the vessel [Vessel Name] (the “Vessel”), and the Charterer desires to charter the Vessel for a specified period;

NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the parties hereto agree as follows:

1. Vessel Particulars The Vessel’s details are as follows:
   • Name: [Vessel Name]
   • Flag: [Flag of Registry]
   • Gross Tonnage: [Gross Tonnage]
   • Deadweight: [Deadweight Tonnage]
   • Cargo Capacity: [Cargo Capacity]
2. Charter Period The Shipowner agrees to let, and the Charterer agrees to hire the Vessel, for a period of [Charter Period] from the date of delivery, subject to extension or termination as provided in this Agreement.
3. Delivery and Redelivery The Shipowner shall deliver the Vessel to the Charterer at [Delivery Port] on or about [Delivery Date]. The Charterer shall redeliver the Vessel to the Shipowner at a safe port within the [Redelivery Area] upon the expiration or termination of this Agreement.
4. Hire The Charterer shall pay the Shipowner hire at the rate of [Hire Rate] per day, payable [Payment Terms] in advance. If the Vessel is off-hire during any period, the Charterer shall be entitled to a pro-rata reduction in hire for the off-hire period.
5. Employment and Voyage Instructions The Charterer shall have the full liberty to employ the Vessel in lawful trades and services within the trading limits specified in this Agreement. The Charterer shall provide the Shipowner with voyage instructions, including the ports of loading and discharging, the description of the cargo, and any other relevant details.
6. Maintenance and Operation The Shipowner shall be responsible for maintaining the Vessel in a seaworthy condition, providing the necessary crew, and covering all operational expenses, including fuel, port charges, and insurance. The Charterer shall be responsible for all cargo-related expenses, such as loading, discharging, and securing the cargo.
7. Off-Hire The Vessel shall be considered off-hire during any period when the Vessel is unable to perform the Charterer’s instructions due to breakdown, damage, dry-docking, or any other reason attributable to the Shipowner. The Charterer shall not be responsible for hire during any off-hire period.
8. Governing Law and Dispute Resolution This Agreement shall be governed by and construed in accordance with the laws of [Governing Law]. Any dispute arising out of or in connection with this Agreement shall be finally settled by arbitration under the [Arbitration Rules] by [Number of Arbitrators] arbitrator(s) appointed in accordance with the said Rules.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first above written.

---

[Shipowner’s Name]

 

 

Maritime Contract Example 3

Below is a simplified example of a Bareboat Charterparty contract. Please note that this is only a basic illustration and not a comprehensive or legally binding document. It is always recommended to consult with a maritime lawyer for drafting a proper and legally enforceable contract.

---

BAREBOAT CHARTERPARTY AGREEMENT

This Bareboat Charterparty Agreement (the “Agreement”) is entered into on this [Date], by and between:

[Shipowner’s Name], having its principal place of business at [Address], herein referred to as the “Shipowner”, and

[Charterer’s Name], having its principal place of business at [Address], herein referred to as the “Charterer”.

WHEREAS, the Shipowner represents that they are the owner of the vessel [Vessel Name] (the “Vessel”), and the Charterer desires to charter the Vessel on a bareboat basis;

NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the parties hereto agree as follows:

1. Vessel Particulars The Vessel’s details are as follows:
   • Name: [Vessel Name]
   • Flag: [Flag of Registry]
   • Gross Tonnage: [Gross Tonnage]
   • Deadweight: [Deadweight Tonnage]
   • Cargo Capacity: [Cargo Capacity]
2. Charter Period The Shipowner agrees to let, and the Charterer agrees to hire the Vessel, for a period of [Charter Period] from the date of delivery, subject to extension or termination as provided in this Agreement.
3. Delivery and Redelivery The Shipowner shall deliver the Vessel to the Charterer at [Delivery Port] on or about [Delivery Date]. The Charterer shall redeliver the Vessel to the Shipowner at a safe port within the [Redelivery Area] upon the expiration or termination of this Agreement.
4. Hire The Charterer shall pay the Shipowner hire at the rate of [Hire Rate] per month, payable [Payment Terms] in advance. If the Vessel is off-hire during any period, the Charterer shall be entitled to a pro-rata reduction in hire for the off-hire period.
5. Charterer’s Responsibilities The Charterer shall, during the term of this Agreement, be responsible for the management, operation, and maintenance of the Vessel, including but not limited to: a. Providing a competent crew; b. Ensuring the Vessel is seaworthy and properly maintained; c. Obtaining and maintaining necessary insurances for the Vessel; d. Paying all operational expenses, such as fuel, port charges, and crew wages; e. Complying with all applicable laws, regulations, and requirements of the Vessel’s flag state and the countries where the Vessel operates.
6. Shipowner’s Warranties The Shipowner warrants that the Vessel shall be in good condition and suitable for the intended use at the time of delivery, and that the Shipowner has full power and authority to enter into this Agreement.
7. Indemnities The Charterer shall indemnify and hold the Shipowner harmless from any claims, damages, or liabilities arising from the Charterer’s use, management, or operation of the Vessel during the term of this Agreement, except to the extent caused by the Shipowner’s negligence or willful misconduct.
8. Governing Law and Dispute Resolution This Agreement shall be governed by and construed in accordance with the laws of [Governing Law]. Any dispute arising out of or in connection with this Agreement shall be finally settled by arbitration under the [Arbitration Rules] by [Number of Arbitrators] arbitrator(s) appointed in accordance with the said Rules.
   9. Termination Either party may terminate this Agreement upon written notice to the other party in the event of a material breach of the Agreement by the other party that remains uncured for a period of [Number of Days] days after written notice of such breach.
   10. Notices All notices, requests, consents, claims, demands, waivers, and other communications under this Agreement must be in writing and sent to the parties at their respective addresses set forth at the beginning of this Agreement or to such other address as a party may designate by written notice to the other party.
   11. Miscellaneous This Agreement constitutes the entire agreement between the parties concerning the subject matter hereof and supersedes all prior understandings and agreements, whether written or oral, relating thereto. No modification, amendment, or waiver of any provision of this Agreement shall be effective unless in writing and signed by both parties.

   IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first above written.

   ---

   [Shipowner’s Name] [Charterer’s Name] By: ________________________ By: ________________________ Name: ______________________ Name: ______________________ Title: _______________________ Title: ______________________

 

 

 

 

Maritime Contract Drafting and Disputes

Maritime contract drafting and disputes are significant aspects of maritime law, which governs a wide range of commercial transactions and activities in the shipping industry. Drafting clear and enforceable contracts is essential for avoiding disputes and protecting the rights and interests of all parties involved in a maritime transaction. Below are some key considerations and challenges related to maritime contract drafting and disputes:

1. Drafting Maritime Contracts: When drafting maritime contracts, such as charterparties, bills of lading, or shipbuilding contracts, it is crucial to address the following aspects:

   a. Identification of Parties: Clearly define the parties involved in the contract, including their names, addresses, and roles (e.g., shipowner, charterer, carrier, consignee).

   b. Scope of the Agreement: Define the purpose and scope of the contract, including the description of the vessel, cargo, services provided, or works to be carried out.

   c. Terms and Conditions: Outline the key terms and conditions of the contract, such as freight rates, payment terms, laytime and demurrage, delivery schedules, performance guarantees, and insurance coverage.

   d. Governing Law and Jurisdiction: Specify the governing law and jurisdiction that will apply to the contract and any disputes that may arise, as well as the preferred method of dispute resolution (e.g., arbitration or litigation).

   e. Boilerplate Clauses: Include standard clauses, such as force majeure, indemnification, warranties, and termination provisions, that address various contingencies and protect the parties’ rights and interests.

2. Maritime Contract Disputes: Despite careful drafting, disputes may still arise in maritime transactions due to various factors, such as non-performance, breaches of contract, or disagreements over the interpretation of contractual terms. Common sources of disputes in maritime contracts include:

   a. Payment Issues: Disagreements may arise over the payment of freight, hire, demurrage, or other fees and charges, leading to disputes between the parties.

   b. Performance Issues: Delays in loading or discharging, non-compliance with the agreed specifications, or the failure to provide services or deliver goods as agreed can result in disputes.

   c. Liability and Damage Claims: Disputes may arise over the responsibility for damages or losses to the vessel or cargo, or third-party claims for personal injury, pollution, or other liabilities.

   d. Contract Interpretation: Parties may disagree on the interpretation of specific terms or provisions in a contract, leading to disputes over their respective rights and obligations.

3. Dispute Resolution: In the event of a maritime contract dispute, the parties may resort to various methods of dispute resolution, such as negotiation, mediation, arbitration, or litigation. The choice of method will depend on the contractual provisions, the nature of the dispute, and the parties’ preferences. Arbitration is a popular choice in maritime disputes due to its confidentiality, flexibility, and enforceability of arbitral awards across jurisdictions.

Effective maritime contract drafting and dispute resolution are vital aspects of maritime law, ensuring that the rights and interests of all parties involved in maritime transactions are protected. Engaging the services of experienced maritime lawyers or professionals can help minimize the risk of disputes and facilitate efficient and fair resolution when disputes do arise.

 

Maritime Contract Law

Maritime Contract Law refers to the body of legal rules, principles, and regulations governing contracts related to maritime activities, such as the transportation of goods and passengers, chartering of vessels, and insurance, among others. This specialized area of law is essential for facilitating international trade and ensuring the rights and obligations of all parties involved in maritime transactions are clearly defined and protected.

Key aspects of Maritime Contract Law include:

1. Charterparties: A charterparty is a contract between a shipowner and a charterer that outlines the terms and conditions under which the vessel is to be employed. There are several types of charterparties, including time charters, voyage charters, and bareboat charters, each with its unique set of rights and obligations for the parties involved.
2. Bills of Lading: A bill of lading is a document issued by a carrier (usually a shipowner) that serves as evidence of the contract of carriage, receipt of the goods, and document of title to the goods. It is crucial in international trade, as it facilitates the transfer of ownership of goods and ensures the rights and obligations of all parties involved in the shipping transaction are clearly defined.
3. Contracts of Affreightment (COA): A contract of affreightment is an agreement between a shipowner and a cargo owner to transport a specified quantity of goods over a specified period. It sets out the terms and conditions of the carriage, including the freight rate, ports of loading and discharge, and the timeframe for the transportation.
4. Marine Insurance: Marine insurance contracts protect shipowners, charterers, and cargo interests from various risks and liabilities associated with maritime activities, such as damage to the vessel, cargo loss, and third-party liabilities. Key aspects of marine insurance law include the principles of utmost good faith, insurable interest, indemnity, and subrogation.
5. Salvage Contracts: Salvage contracts are agreements between a salvor and a vessel owner or other interested parties to recover a ship or its cargo that is in danger. Salvage contracts outline the terms and conditions for the salvage operation, including the compensation to be paid to the salvor, which is often based on the value of the property saved and the degree of risk involved.
6. Towage Contracts: Towage contracts are agreements between a towage service provider and a vessel owner or other interested parties for the provision of towage services. These contracts outline the terms and conditions for the towage, including the scope of services, remuneration, and liabilities of the parties involved.
7. Governing Law and Dispute Resolution: Maritime contracts often involve parties from different jurisdictions, making it essential to specify the governing law and the forum for dispute resolution. Parties may choose to resolve disputes through litigation or arbitration, depending on their preferences and the nature of the dispute.

Maritime Contract Law plays a crucial role in the efficient functioning of global maritime trade, as it ensures that the rights and obligations of all parties involved in maritime transactions are clearly defined and protected. This area of law is governed by a combination of domestic legislation, international conventions, and customary practices, making it a complex and specialized field of study.

 

 

What are the Types of Contract in Maritime Law?

In maritime law, there are several types of contracts that govern various aspects of maritime activities and transactions. These contracts are essential for facilitating international trade and ensuring the rights and obligations of all parties involved in maritime transactions are clearly defined and protected. Some of the main types of contracts in maritime law include:

1. Charterparties: A charterparty is a contract between a shipowner and a charterer that outlines the terms and conditions under which the vessel is to be employed. There are several types of charterparties:

   a. Time Charter: In a time charter, the shipowner leases the vessel to the charterer for a specified period, during which the charterer has control over the vessel’s commercial operations.

   b. Voyage Charter: In a voyage charter, the shipowner agrees to transport a specified cargo from one port to another, with the charterer paying freight based on the quantity or weight of the cargo.

   c. Bareboat or Demise Charter: In a bareboat charter, the shipowner leases the vessel to the charterer without the crew, giving the charterer full control over the vessel’s operations, including the selection of the crew and bearing all operational expenses.

2. Bills of Lading: A bill of lading is a document issued by a carrier (usually a shipowner) that serves as evidence of the contract of carriage, receipt of the goods, and document of title to the goods. It is crucial in international trade, as it facilitates the transfer of ownership of goods and ensures the rights and obligations of all parties involved in the shipping transaction are clearly defined.
3. Contracts of Affreightment: A contract of affreightment is an agreement between a shipowner and a cargo owner to transport a specified quantity of goods over a specified period. It sets out the terms and conditions of the carriage, including the freight rate, ports of loading and discharge, and the timeframe for the transportation.
4. Marine Insurance Contracts: Marine insurance contracts protect shipowners, charterers, and cargo interests from various risks and liabilities associated with maritime activities, such as damage to the vessel, cargo loss, and third-party liabilities. Key aspects of marine insurance law include the principles of utmost good faith, insurable interest, indemnity, and subrogation.
5. Salvage Contracts: Salvage contracts are agreements between a salvor and a vessel owner or other interested parties to recover a ship or its cargo that is in danger. Salvage contracts outline the terms and conditions for the salvage operation, including the compensation to be paid to the salvor, which is often based on the value of the property saved and the degree of risk involved.
6. Towage Contracts: Towage contracts are agreements between a towage service provider and a vessel owner or other interested parties for the provision of towage services. These contracts outline the terms and conditions for the towage, including the scope of services, remuneration, and liabilities of the parties involved.
7. Shipbuilding Contracts: Shipbuilding contracts are agreements between a shipyard and a shipowner for the construction of a new vessel. These contracts outline the specifications of the vessel, the price, the delivery schedule, and the terms and conditions related to warranties, performance guarantees, and potential delays.

These types of contracts in maritime law play a crucial role in the efficient functioning of global maritime trade, as they ensure that the rights and obligations of all parties involved in maritime transactions are clearly defined and protected.

 

GENCON Charterparty Example

GENCON (short for General Charter Conditions) is a widely used standard charterparty contract form for the chartering of dry cargo ships on a voyage basis. It is issued by BIMCO, the Baltic and International Maritime Council. The GENCON charterparty template is revised periodically, with the latest version being GENCON 1994. Below is a simplified and abridged version of a GENCON charterparty contract. Please note that this is only an illustration and not a comprehensive or legally binding document. It is always recommended to consult with a maritime lawyer for drafting a proper and legally enforceable contract.

We kindly suggest that you visit the web page of BIMCO (Baltic and International Maritime Council) and ASBA (Association of Ship Brokers and Agents) to obtain the Maritime Contracts or Original Charter Party Forms and documents. www.bimco.org  and  www.asba.org

---

GENCON CHARTERPARTY AGREEMENT

This GENCON Charterparty Agreement (the “Agreement”) is entered into on this [Date], by and between:

[Shipowner’s Name], having its principal place of business at [Address], herein referred to as the “Shipowner”, and

[Charterer’s Name], having its principal place of business at [Address], herein referred to as the “Charterer”.

1. Vessel Particulars The Vessel’s details are as follows:
   • Name: [Vessel Name]
   • Flag: [Flag of Registry]
   • Gross Tonnage: [Gross Tonnage]
   • Deadweight: [Deadweight Tonnage]
   • Cargo Capacity: [Cargo Capacity]
2. Cargo The Charterer agrees to provide and the Shipowner agrees to carry a cargo of approximately [Cargo Quantity] metric tons of [Description of Cargo], within the Vessel’s cargo capacity, with a 10% more or less option at the Charterer’s discretion.
3. Loading and Discharging Ports The cargo shall be loaded at [Loading Port(s)] and discharged at [Discharging Port(s)]. The Charterer shall have the option to nominate additional loading or discharging ports within the agreed range, subject to the Vessel’s compatibility with such ports.
4. Freight Freight shall be payable at the rate of [Freight Rate] per metric ton, based on the Bill of Lading quantity. The total freight amount shall be paid by the Charterer to the Shipowner within [Payment Terms] after the Bill of Lading is issued.
5. Laytime and Demurrage The allowed laytime for loading and discharging shall be [Allowed Laytime] for each operation. If the Charterer exceeds the allowed laytime, demurrage shall be payable at the rate of [Demurrage Rate] per day or pro-rata for any part of a day.
6. Notice of Readiness and Commencement of Laytime Upon arrival at the loading or discharging port, the Shipowner shall give the Charterer a Notice of Readiness (“NOR”). Laytime shall commence upon the expiration of six (6) hours after the NOR is given, or when the first loading or discharging operation commences, whichever occurs first.
7. Governing Law and Dispute Resolution This Agreement shall be governed by and construed in accordance with the laws of [Governing Law]. Any dispute arising out of or in connection with this Agreement shall be finally settled by arbitration under the [Arbitration Rules] by [Number of Arbitrators] arbitrator(s) appointed in accordance with the said Rules.

8. Bills of Lading The Shipowner shall, upon completion of loading, issue a clean Bill of Lading to the Charterer, showing the quantity and description of the cargo loaded onboard the Vessel. The Bill of Lading shall be signed by the Master or an authorized representative of the Shipowner.
9. Liens The Shipowner shall have a lien on the cargo for freight, deadfreight, demurrage, and any other amounts due under this Agreement. The Charterer shall have a lien on the Vessel for any overpaid freight or other amounts due to the Charterer under this Agreement.
10. Exception and Force Majeure Neither party shall be liable for any failure or delay in performing its obligations under this Agreement due to circumstances beyond its reasonable control, including but not limited to acts of God, war, terrorism, labor disputes, strikes, or governmental actions.
11. Insurance The Shipowner shall maintain adequate hull and machinery insurance for the Vessel throughout the term of this Agreement. The Charterer shall be responsible for insuring the cargo against all risks customarily insured against in the trade.
12. Subletting and Assignment The Charterer shall have the right to sublet or assign the Vessel to third parties, subject to the Shipowner’s prior written consent, which shall not be unreasonably withheld. In such cases, the Charterer shall remain primarily liable for the performance of its obligations under this Agreement.
13. Amendments and Waivers No amendment or waiver of any provision of this Agreement shall be effective unless in writing and signed by both parties. A waiver of any provision or breach of this Agreement shall not constitute a waiver of any other provision or a subsequent breach.
14. Notices All notices, requests, consents, claims, demands, waivers, and other communications under this Agreement must be in writing and sent to the parties at their respective addresses set forth at the beginning of this Agreement or to such other address as a party may designate by written notice to the other party.
15. Entire Agreement This Agreement, including any schedules and exhibits attached hereto, constitutes the entire agreement between the parties concerning the subject matter hereof and supersedes all prior understandings and agreements, whether written or oral, relating thereto.

 

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first above written.

---

[Shipowner’s Name] [Charterer’s Name] By: ________________________ By: ________________________ Name: ______________________ Name: ______________________ Title: _______________________ Title: ______________________

 

 

NYPE Charterparty Example

NYPE (short for New York Produce Exchange) is a widely used standard charterparty contract form for the chartering of dry cargo ships on a time charter basis. The NYPE charterparty template is revised periodically, with the latest version being NYPE 2015, issued jointly by BIMCO, the Baltic and International Maritime Council, and ASBA, the Association of Ship Brokers and Agents. Below is a simplified and abridged version of an NYPE charterparty contract. Please note that this is only an illustration and not a comprehensive or legally binding document. It is always recommended to consult with a maritime lawyer for drafting a proper and legally enforceable contract.

We kindly suggest that you visit the web page of BIMCO (Baltic and International Maritime Council) and ASBA (Association of Ship Brokers and Agents) to obtain the Maritime Contracts or Original Charter Party Forms and documents. www.bimco.org  and  www.asba.org

---

NYPE TIME CHARTERPARTY AGREEMENT

This NYPE Time Charterparty Agreement (the “Agreement”) is entered into on this [Date], by and between:

[Shipowner’s Name], having its principal place of business at [Address], herein referred to as the “Shipowner”, and

[Charterer’s Name], having its principal place of business at [Address], herein referred to as the “Charterer”.

9. Vessel Particulars The Vessel’s details are as follows:
   • Name: [Vessel Name]
   • Flag: [Flag of Registry]
   • Gross Tonnage: [Gross Tonnage]
   • Deadweight: [Deadweight Tonnage]
   • Cargo Capacity: [Cargo Capacity]
10. Charter Period The Shipowner agrees to let, and the Charterer agrees to hire the Vessel, for a period of [Charter Period] from the date of delivery, subject to extension or termination as provided in this Agreement.
11. Delivery and Redelivery The Shipowner shall deliver the Vessel to the Charterer at [Delivery Port] on or about [Delivery Date]. The Charterer shall redeliver the Vessel to the Shipowner at a safe port within the [Redelivery Area] upon the expiration or termination of this Agreement.
12. Hire The Charterer shall pay the Shipowner hire at the rate of [Hire Rate] per day, payable [Payment Terms] in advance. If the Vessel is off-hire during any period, the Charterer shall be entitled to a pro-rata reduction in hire for the off-hire period.
13. Employment and Voyage Instructions The Charterer shall have the full liberty to employ the Vessel in lawful trades and services within the trading limits specified in this Agreement. The Charterer shall provide the Shipowner with voyage instructions, including the ports of loading and discharging, the description of the cargo, and any other relevant details.
14. Maintenance and Operation The Shipowner shall be responsible for maintaining the Vessel in a seaworthy condition, providing the necessary crew, and covering all operational expenses, including fuel, port charges, and insurance. The Charterer shall be responsible for all cargo-related expenses, such as loading, discharging, and securing the cargo.
15. Off-Hire The Vessel shall be considered off-hire during any period when the Vessel is unable to perform the Charterer’s instructions due to breakdown, damage, dry-docking, or any other reason attributable to the Shipowner. The Charterer shall not be responsible for hire during any off-hire period.
16. Governing Law and Dispute Resolution This Agreement shall be governed by and construed in accordance with the laws of [Governing Law]. Any dispute arising out of or in connection with this Agreement shall be finally settled by arbitration under the [Arbitration Rules] by [Number of Arbitrators] arbitrator(s) appointed in accordance with the said Rules.
17. Bunkers Upon delivery and redelivery of the Vessel, the Charterer shall take over and pay for all remaining bunkers onboard at the current market price at the respective ports.
18. Indemnities The Charterer shall indemnify and hold the Shipowner harmless from any claims, damages, or liabilities arising from the Charterer’s use, management, or operation of the Vessel during the term of this Agreement, except to the extent caused by the Shipowner’s negligence or willful misconduct.
19. Notices All notices, requests, consents, claims, demands, waivers, and other communications under this Agreement must be in writing and sent to the parties at their respective addresses set forth at the beginning of this Agreement or to such other address as a party may designate by written notice to the other party.
20. Miscellaneous This Agreement constitutes the entire agreement between the parties concerning the subject matter hereof and supersedes all prior understandings and agreements, whether written or oral, relating thereto. No modification, amendment, or waiver of any provision of this Agreement shall be effective unless in writing and signed by both parties.
21. Termination Either party may terminate this Agreement upon written notice to the other party in the event of a material breach of the Agreement by the other party that remains uncured for a period of [Number of Days] days after written notice of such breach.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first above written.

---

[Shipowner’s Name] [Charterer’s Name] By: ________________________ By: ________________________ Name: ______________________ Name: ______________________ Title: _______________________ Title: ______________________