New York Produce Exchange Form (NYPE) is a Time Charter Party form. Time charterer is responsible for:
- employing the ship
- finding the cargo
- paying port, canal
- paying cargo handling
- accomplishing tank and hold cleaning
- paying bunker (fuel) costs
However, management of the ship remains at the responsibility of actual shipowner. Time charterer may sublet the ship in other words time charterer may charter out the ship on the voyage market. In that case, time charterer becomes the disponent owner. Although time charterer does not own the ship, time charterer is entitled to the benefits that are obtained from trading the ship during the period of the charter.
Time charterer is the carrier and the master (captain) signs the Bills of Lading (B/L) on his behalf. Any claims for cargo damage or shortage must first be met by the time charterer. Time charterer may subsequently claim reimbursement from the actual shipowner (beneficial shipowner). In time charter, regardless of the number of sub-charters (charter chains), the head charterer (first time charterer) is always responsible to the shipowner for the employment of the ship. Mostly used dry cargo time charter forms:
- New York Produce Exchange (NYPE)
New York Produce Exchange form (NYPE) is produced by the Association Shipbrokers and Agents (ASBA) and is considered to be more biased in favor of the time charterer. On the other hand, BALTIME is produced by BIMCO and is considered to be more biased in favor of shipowners. GENTIME and LINERTIME charter-party forms are used less often.