Dry Chartering Course

Full Course Details

Module 1: Introduction, Market Context and Broking

Module 2: Time Charterparties I –Introduction and Owners’ Issues

Module 3: Time Charterparties II –Charterer Issues

Module 4: Time Charterparties III –Ports and Performance

Module 5: Voyage Charterparties I –Introduction and Owners’ Obligations

Module 6: Voyage Charterparties II –Charterers’ Obligations

Module 7: Voyage Charterparties III –Laytime and Demurrage

Module 8: Conflict, Interaction and Resolution

Module 1

Learning Outcomes:

• The basics of contract law and its importance to chartering
• The main types and the purpose of charter parties
• The different styles and the uses of charter parties used in different trades
• A shipbroker’s role in negotiating and ‘fixing’ charter parties

Module Content:

• Key issues of contract law as applicable to charterparties
• What is a charterparty?
• Types of charterparty
• Broker’s role in negotiating and fixing charterparties
• Warranty of authority
• Commercial context of charterparties
• Examples of charterparties used in different trades

Module 2

Learning Outcomes:

• To understand the two main forms of charter
• To outline the principle features common to all time charters
• To describe in more detail the main obligations assumed by the ship owner

Module Content:

• Trade ‘jargon’ and abbreviations
• Owners and time charterers – who are they?
• Main features of a time charterparty
• Routing and due dispatch to charterparties
• Description of the vessel
• Seaworthiness and maintenance
• Delivery obligations
• Customary assistance
• Bunkers – supply and liability issues
• Obligations to cargo interests
• When charter is terminated mid-voyage
• When contract of carriage is frustrated or repudiated

Module 3

Learning Outcomes:

• Know what hire is and how to calculate the hire period
• Be able to determine whether a final voyage order is legitimate
• Know the owners’ remedies for charterers’ failure to pay hire on time and hoes to invoke an antitechnicality clause and when to withdraw a vessel
• Know who is responsible for loading, stowing and discharging cargo
• Know when a vessel must comply with the description in the charterparty and remedies for mis-description
• Know the standard time charter provisions relating to the use and employment of the vessel and when the Master has to obey the charterers’ orders
• Know when the owners are entitled to an implied indemnity
• Know what the Inter-Club Agreement is
• Be able to apportion liability between owners and charterers under the Inter-Club Agreement

Module Content:

• Hire
• Failure to pay hire – owners’ remedies
• Cargo
• Loading and discharging
• Deck cargo
• Description of the vessel
• Use and employment of vessel and indemnity
• Cargo claims – Interclub Agreement

Module 4

Learning Outcomes:

• To know what will be considered an unsafe port under English Law
• To understand when charterers must give orders to a safe port
• To recognise both physical and other types of unsafety
• To understand the consequences of the breach by charterers of their obligations
• To appreciate how the master may be entitled to act in respect of an unsafe port

Module Content:

Safe ports

• What is safety?
• When is a port safe?
• What can owners do if in doubt?
• Port systems
• Berths vs ports Masters’ skill

 Performance

• Speed and consumption
• Warranty
• Allowances
• Weather, sea scale, current
• Period and voyage basis
• Assessing performance
• Recovering losses
• Routing organization

Module 5

Learning Outcomes:

• To identify major voyage charterparty terms
• To understand the different kinds of terms found in a voyage charterparty
• To appreciate the different legal remedies available for-breach of charterparty terms

Module Content:

• What is a voyage charterparty?
• Commercial context
• Stages of the charterparty
• Vessel description
• Expected ready to load/ETA
• Seaworthiness
• Hague Visby Rules
• Owners’ lien on cargo

Module 6

Learning Outcomes:

Understand the charterers’ obligations with respect to:

• The nomination of a port/berth and its safety
• What cargo and what quantity are to be supplied
• The reasons for the problems faced with respect to cancelling

Module Content:

Nomination of port

Supply of cargo

• Consequence of breach of obligation
• Quantity

Cancelling rights

Payment of freight

• What is freight
• Amount of freight
• Loading and discharging
• Earning and paying freight
• Dead freight

Module 7

Learning Outcomes:

• Describe the concept of laytime, and recognize laytime clauses in a standard charterparty Differentiate between laytime interruptions and exceptions to laytime
• Recognize the importance of the Notice of Readiness and the ingredients needed to ‘start the laytime and demurrage clock’
• Explain the concepts of demurrage and despatch and how they each differ from laytime Demonstrate how a laytime calculation works in practice and be able to construct your own laytime and demurrage statements

Module Content:

What is laytime?

Starting laytime

• Arrived vessel
• Readiness
• Notice of Readiness

Express exceptions to laytime

General exceptions

Demurrage and despatch

Laytime calculations

Charterers’ defences

Module 8

Learning Outcomes:

• Know and understand the functions and role of a bill of lading
• Be able to determine whether and to what extent a charterparty is incorporated into a bill of lading
• Know the risks of signing bills as presented, and when a Master can refuse to sign a bill Understand when a lien can be exercised over goods
• Learn how to draft a Letter of Indemnity, and know when it may be unenforceable
• Learn the principles of Court and Arbitration proceedings and how mediation works
• Learn how to calculate contractual losses

Module Content:

• Bills of Lading
• Charterparties v. Bills of Lading
• Incorporation of charterparties into bills
• Competing charterparties (time and voyage)
• Letters of Indemnity

Dispute resolution

• Arbitration
• Courts
• Mediation

Contractual losses – English law

To ensure a seamless learning experience, our course is delivered by seasoned industry professionals, with instruction available in both English and Arabic