Time Charter Firm Offer Example

Time Charter Firm Offer Example

Main terms of a firm offer at a Time Charter:

• Reply by: (place and time limit)
• For account of: (name and background of charterers)
• The ship’s name and particulars: (description)
• Name of shipowner: (full style)
• Delivery: (when/where ready, arrival pilot station – aps or passing “x”)
• Laydays/ Laycan:
• Duration:
• Trading area: (e.g., worldwide, Atlantic Basin)
• Intended trade:
• Cargo and trading exclusions:
• Hire rate: (daily, per metric ton – pmt, lump sum; when, where, and how paid)
• Redelivery: (when/where ready, dropping outwards pilot – dop or passing “x”)
• Commissions: (address/brokerage)
• Charter party form to be used
• Subjects: (detail/stem/shippers’ -receivers’ approval/owner’s- charterer’s board of directors’ approval)

Time Charter Example:

Owners would like to offer firm for reply today, March 30, 2022, 09:00 HRS London time as follows:

• MV HANDYBULK YAGMUR (built, type, class, flag, etc.)
• Account: Cargill
• Owners: HandyBulk LLC
• Delivery: AFSPS Piraeus ATDNSHINC
• Laycan: May 15-30,2022,00:01-23:59 HRS LT
• Period: 1 year T/C, always within thirty days MOL INCHOP
• Trading: Worldwide Trading and always within INL, via GSP(s), GSB(s), GSA(s), AAAA.
• Trading and cargo exclusions to be discussed and mutually agreed with c/p details
• Intended Trade: Atlantic Ports WOG
• Hire Rate: $15,000 PDPR
• Commissions: 2.5% Address Commission + 1.25% AMORBULK LLC
• Redelivery: DLOSP 1 SP ARAG range
• All other terms and conditions to be discussed and mutually agreed as per Cargill pro forma/executed c/p dd 06.30.2020
• Subjects (detail/stern/shippers-receivers’ approval/owner’s- charterer’s board of directors’ approval)

This example of a firm offer for a time charter concerns the MV HANDYBULK YAGMUR for delivery upon Arrival at the First Sea Pilot Station (AFSPS) in Piraeus Any Time of Day and Night, Sundays and Holidays Included (ATDNSHINC).

The arrival is estimated May 15-30, 202022. The charter period is one year, always within thirty days More or Less (MOL) In Charterers’ Option (INCHOPT).

The ship may trade worldwide within International Navigating Limits (INL), via Good Safe Ports (GSP), Good Safe Berths (GSB), and Good Safe Anchorages (GSA), Always Accessible and Always Afloat (AAAA).

Potential trading exclusions and cargo exclusions must be mutually discussed between the parties and agreed in the Charterparty.

The intended trading of the MV HANDYBULK YAGMUR is in the Atlantic Ocean With-out Guarantee (WOG), and the hire rate is $15,000 Per Day Pro Rata (PDPR).

Commissions payable by the shipowner are 2.5% Address Commission (ADDCOM) and 1.25% shipbrokerage to AMORBULK LLC.

Redelivery of the ship to take place upon Dropping the Last Outward Sea Pilot (DLOSP) in a safe port in the Antwerp-Rotterdam-Amsterdam-Ghent (ARAG) range.

All other terms and conditions to be discussed and mutually agreed as per the Pro-Forma Charterparty. The firm offer is subject to details, including Subject To Enough Merchandise (STEM), shippers’ and receivers’ approval, and the approval of the board of directors of the charterer.