Monetary

On redelivery, the reverse process takes place, with charterers estimating the quantity of bunkers remaining on board on redelivery and deducting the equivalent monetary value from the final (or penultimate in the case of large quantity of bunkers) hire payment. Adjustments in both cases are able to be made upon receipt of delivery and redelivery survey reports. Delivery and Redelivery: When a vessel delivers on to time charter, not only does the ‘time charter clock’ start to tick, but it sets in motion also the payment of the first hire and any additional sums such as for bunkers remaining on board at the time, and ballast bonus. It is therefore essential that copies of the survey reports signed and witnessed by the master and port agents and, if available, by a charterer’s representative such as a supercargo, be distributed to all concerned. In this way the accounts procedures can avoid being unnecessarily complicated. It is also vital to specify whether delivery and redelivery times will be recognised as being as per local times or as per some convenient ‘standard’ time, such as Greenwich Mean Time (GMT). If the charterparty is silent on this aspect, English Law will assume that actual ‘elapsed time’ will apply to the timecharter period, i.e. as if a stop-watch was started on the bridge of the ship upon delivery only to stop upon redelivery (and, of course, for any off-hires). If local time is specified, however, one party or the other might ‘benefit’ by gaining time by application of time zone changes. You can work it out for yourself with an atlas showing time zones and can calculate whether a ship moving east/west or west/east is to the advantage of a timecharterer basis ‘local time’. With GMT or equivalent, there is no advantage to either party and this, therefore, is to be recommended.