Time-Charter Order Example

The content of an order for a time charter will contain the following parameters:

• Charterer’s name and domicile
• Places of delivery and redelivery of vessel
• The period within which the vessel is to be presented for delivery
• The time-charter period
• Details about the intended trade
• Any restrictions or preferences regarding type or size of ship
• CIP form on which the charterer wishes to base the terms and conditions
• Commissions to be paid by the owner

The following is an example of a time-charter order.

• Acct: COT (China Ocean Transportation), Shanghai, China
• Dely: N. China-Japan Range
• Laycan: IS-20/Feb 2012
• Redely: Red Sea (Jeddah) or Port Said in owners option
• Duration: Abt 4S days WOG
• 42-S3K DWT SDBC, max twenty years age
• Need vsl’s hold and tank-top dimensions to check workability
• NYPE 1993
• 3.75 pct ADD COM + 1.25 pct SHIPWELL
The example indicates the company China Ocean Transportation as the charterer, domiciled in Shanghai, China, placing an order to time charter a single-decker bulk carrier ship for delivery between February fifteenth and twentieth in the range North China to Japan and redelivery at Red Sea (Jeddah) or Port Said, as per the owner’s instruction at the time. The duration of the time charter is to be about forty-five days. There is no guarantee that it will be exactly forty-five days. The vessel is to be between forty-two thousand and fifty-three thousand deadweight capacity and to be a maximum of twenty years old. The vessel’s hold and hatch dimensions must be provided in order to check whether it is compatible with equipment for loading and unloading. The agreement will be based on the charter party form NYPE 1993. The owner will pay a 3.75 percent address commission and a 1.25 percent brokerage commission to brokers Shipwell.