Voyage Charter Firm Offer example

If an owner is interested in responding to the order, he will do so by the way of an offer. The content of a firm offer in the case of a voyage charter includes the following terms:

• 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)
• Cargo quantity and description of the commodity (more or less %)
• Loading and discharging ports and berths (always afloat! naabsa)
• Laydays! canceling day
• Loading and discharging rates (per weather working day, PWWD/Sundays Holidays Included or Excluded, SHINC/SHEX)
• Demurrage and dispatch rates
• Freight amount and conditions for payment of freight
• Clauses governing time counting, ice clause, etc. (not imperative)
• Commissions (address/brokerage)
• Charter party form
• Subjects (detail/stem/shipper’s-receiver’s approval/owner’s- charterer’s board of directors’ approval)

In the following example, the owners would like to offer firm for reply today, February 29, 2012, lO:OOhrs Greece time:

• M/V “Bulk Carrier I” (built, type, class, flag, etc.)
• Account: CUT Ltd.

• Owners: Bulk Owners Ltd
• Cargo: 33,000 mts of Bulk Grain SF 45, 10% moloo
• Load/disch. port: 1 sp Rosario/I sp Paranagua
• Always afloat bends except naabsa where customary
• Laycan: March 15-20,2012,00:01-23:59 hrs LT
• Load/disch. rate: 5,000 mts PWWD SHINC / 4,000 mts PWWDSHINC
• Dem: USD 9,000 pd/half dispatch
• Freight rate: USD 26.00 pmt FlO
• Frt payable 95 pct less commission within 7 bank working days after signing/releasing B/L
• Chrtrs agents bends
• Commissions: 2.50 % add. com. + 1.25% ABC brokers
• All other terms and conditions to be discussed and mutually agreed as per CUT pro forma/executed c/p dd 12.20.2011
• Subjects (detail/stem/shippers’ -receivers’ approval/owner’s- charterer’s board of directors’ approval)

In this example, the owners offer firm the bulk carrier M/V Bulk Carrier I (year of built, type, class, flag, etc.) to charterer CCI Ltd., for the carriage of thirty-three thousand metric tons of bulk grain (10 percent more or less owners option) of stowage factor forty-five cubic feet per ton. The loading and discharging ports are Rosario and Paranagua (both safe ports) respectively. The ship must be always afloat at both ends or, if not always afloat, safely aground where customary (e.g., when waiting for tides). Laycan is March 15-20, and the loading and discharging rates are specific at five thousand metric tons and four thousand metric tons respectively per weather working days, Sundays and holidays included in the assessment of lay time. The demurrage rate is agreed at nine thousand dollars per day, and the dispatch is half of the demurrage rate. The freight rate is twenty-six dollars per metric ton free-in-out, which means that the charterer pays the loading and discharging costs. The offer indicates that 95 percent of the freight, less commission, is payable within 7 bank working days after signing and releasing the bills of lading. The charterer must appoint agents at both ends of the trip, and commissions are 2.5 percent address commission and 1.25 percent brokerage commission to ABC Brokers. Other terms and conditions are to be mutually negotiated and agreed in accordance to charter party proforma. This is the standard contract form that will be adopted. The offer is valid subject to the details specified.