Project Cargoes

Project cargoes. A specialised form of joint venture/contract of affreightment is terms a ‘project cargo’ or a ‘turnkey project’, a term commonplace in the heavy lift market, whereby a marine specialist undertakes complete responsibility for the seaborne movement of both small and large prefabricated structures, constructional equipment, and raw materials (e.g. cement) together with all the paraphernalia of major projects (e.g. site huts and machinery) to the project’s eventual location. An example would be the movement of material and equipment necessary to construct a de-salinisation plant or cement factory in a developing nation. Slot charters. We have seen how a liner operator may have an interest in Time chartering a vessel for his liner service. There is another form of chartering space prevalent in liner (particularly containerized) trades. As liner ships have increased in size the owners have sometimes found themselves having difficulty in filling their ships. Some freight forwarders and even former operators of smaller liner ships that have lost out to the bigger competitors have found themselves in a position whereby they were controlling large quantities of cargo. Rather than merely contracting with the liner operator as a shipper they have contracted to take a set amount of space or slots on each voyage the ship makes. They then sell this space on to their customers as if they were in fact the line operators. People who do this are known as NVOCCs (Non Vessel Owning Common Carriers). The NVOCC pays the head owner freight based on a fixed rate for each TEU slot he has contracted for possibly with a premium for hazardous cargoes. It is usual for the owner to agree a reduced rate for any cargo supplied in excess of the contracted amount.