COGSA, the Carriage of Goods by Sea Act, does not apply of its own force to charter parties, but does apply to bills of lading issued to a shipper by the charterer (in the US) in conjunction with charterer's operations. As a practical matter, many charter party forms stipulate the applicability of COGSA or the Harter Act to the relations between owner and charterer. Such a stipulation is valid and enforceable even without the issuance of a bill of lading. Law suits brought for the breach of an obligation under a charter party are generally within the admiralty jurisdiction. As long as the agreement is executory, for inadequate performance the remedy is in personam which allows the plaintiff to go to state court under the "saving to suitors" clause. If, however, a charter breach creates a maritime lien, the suit is in rem, against the vessel itself, with exclusive admiralty jurisdiction.
What has been said above mostly applies to commercial operations and voyages. In pleasure boating, the most frequent charter arrangement is the bareboat charter. The voyage or time charter is only used for larger yachts and is more the exception than the rule. Charter fleets are mostly made up of boats belonging to individuals or companies who only use their boats on a part time basis or as an investment. a recent arrangement in recreational boating is the time-share chartering in which several charterers are assigned a certain number of days per month or season in a manner which resembles time-share for residential resorts.
A charter-party may contain these clauses.
A bunker clause stipulates that charterers shall accept and pay for all fuel oil in the vessel's bunkers at port of delivery and conversely, owner shall pay for all fuel oil in the vessel's bunkers at port of re-delivery at current price at the respective ports. It is customary to agree upon a certain minimum and maximum quantity in bunkers on re-delivery of the vessel.
An ice clause is inserted in a bill of lading or a charter-party when a vessel is bound for a port or ports which may be closed to shipping by ice when the vessel arrives or after the vessel's arrival.
A lighterage clause is inserted into charter-parties which show as port of discharge any safe port in a certain range, e.g. Havre/Hamburg range.
A negligence clause tends to exclude shipowner's or carrier's liability for loss or damage resulting from an act, default or neglect of the master, mariner, pilot or the servants of the carrier in the navigation of manoeuvring of a ship, not resulting, however, from want of due diligence by the owners of the ship or any of them or by the ship's husband or manager.
Ready berth clause
A ready berth clause is inserted in a charter-party, i.e. a stipulation to the effect that laydays will begin to count as soon as the vessel has arrived at the port of loading or discharge "whether in berth or not". It protects shipowner's interests against delays which arise from ships having to wait for a berth.
Letter of Indemnity - LOI
To the owners, master, beneficial owners timechartered owners and/or managers of m.v. _, _
Re: MV _; Voyage: _; Goods: _; Description: (full details): _; Marks: (full details): _; No: _; Bs/L: _ Dated: _ whereas the above goods were loaded on board of the MV _ at _on _ and whereas (enter description of cargo discrepancies) and whereas we, (enter name of shipper/name of charterers) require clean on board Bills of Lading to be issued in respect of the above mentioned cargo:
In consideration of your issuing/authorizing us (enter name of shippers/charterers) to issue clean on board Bill of Lading in respect of the above mentioned cargo of _ in respect of which we (enter name of shippers/charterers) are the shippers/charterers:
We hereby irrevocably agree as follows:
1. To indemnify you and your servants and agents and hold all of you harmless in respect of any liability, loss, damage of whatsoever nature which you and your servants and agents may suffer by reason of issuing clean Bills of Lading in accordance with our request.
2. To pay on demand the amount as calculated by you of any loss, damage, fees, and/or costs which you and/or your servants and agents have incurred or will incur in the future which have resulted or will result from the issuing of clean Bills of Lading as aforesaid.
3. In the event of any proceedings being commenced against you or any of your servants in connection with the issuing of clean Bills of Lading as aforesaid, we understand and agree that we are liable and responsible for all coats and fees necessary for such defense.
4. If the vessel or any other vessel or property belonging to you and your servants or agents should be arrested or detained or if the arrest or detention thereof is threatened, to provide such bank guarantee, bail or other security as may be required to prevent such arrest or detention or to secure the release of such vessel or property and to indemnify you in respect of any loss, damage or expenses caused by such arrest or detention whether or not the same may be justified.
5. We, undersigned, declare that we give our irrevocable consent that a copy of this document is sent to cargo receivers, underwriters or any other party in interest, if you and/or your servants and agents decide that to be necessary.
6. We furthermore guarantee that we will pay, if requested by you, any cargo claim or any settlement which will directly or indirectly result from or is related to the before mentioned remarks.
7. The undersigned certifies that he has full powers and is authorised to sign this indemnity.
8. The liability of each and every person under this indemnity shall be joint and several and shall not be conditional upon your proceeding first against any other person whether or not such person is party to or liable under this indemnity.
9.The undersigned confirms that this letter of indemnity will be construed in accordance with English law only and notwithstanding anything agreed between you and us we confirm that any dispute arising under this letter of indemnity will be decided only by the High Court of Justice of England, to whose jurisdiction we will submit, if requested.
For and on behalf of the Charterers
name _ position _ signature _
For and on behalf of the Bankers
name _ position _ signature _
Charting Vessel Charter-Party
FIXTURE DATED: M/V: FLAG: DWT: GRT: NRT: LOA/BEAM/DEPTH: BUILT: CLASS: Dicker: FOR:
1- Loading Port :
2- Discharging Port :
3- LAYCAN :
4- Quantity :
5- LOADING :
5-1): At Port : 1500 mt pwwd sshex eiu
5-2): At Port : 1,500 MT WWD SSHEXP EIU .
6- FRT: USD 00.- / MT . FIOS PAYABLE WITHIN 3 BANKING DAYS AFTER SIGNING/RELEASING BS/L BUT IN ANY CASE BEFORE BREAKING BULK.
7- DEMRG/ DISP: USD 1,500 / DAY, PRORATA, HALF DISPTACH REVERSIBLE BOTH ENDS.
8- BILL OF LADING:
8-1): TYPE: CONBIL 3 ORIGINAL CLEAN ON BOARD, + 3 NON NEGOTIATE.
8-2): FREIGHT PRE-PAID
8-3): CONSIGNEE :
9- AT DISCH PORT: LAYTIME TO COMMENCE 24 HRS AFTER ACCEPTING N.O.R BY AGENTS TIME FROM 13:00 HRS ON THURSDAY TILL 08:00 HRS ON SUNDAY AND FROM 17:00 HRS ON THE DAY PRECEDING AN OFFICIAL HOLIDAY TILL 07:00 HRS ON THE NEXT WORKING DAY NOT TO COUNT AS LAYTIME EVEN IF USED.
10- AT LOAD PORT: TIME BETWEEN 17:00 HRS ON FRIDAY / A DAY PRECEDING A LEGAL OR LOCAL HOLIDAY ON 08:00 HRS ON MONDAY OR FIRST WORKING DAY AFTER LEGAL HOLIDAY NOT TO COUNT AS LAYTIME EVEN IF USED. N.O.R TO BE HANDED TO AGENT OR BUYER DURING WORKING HOURS.
11- OWNERS AGENT AT LDG PORT
12- CHARTRS AGENT AT DISCH PORT :
13- TAXES / DUES ON FRT/CARGO CHARTRS ACCT. TAXES/ DUES/ WHARFAGES ON VSL /FLAG/ AGE / CREW / OWNSHIP / CLASS ARE ON OWNS ACCT.
14- FREIGHT DEEMED EARNED AFTER COMPLETION OF LOADING REGARDLESS WHETHER VSL AND/OR CARGO LOST OR NOT LOST.
15- VSL COVERED BY P. AND I CLUB. DURING THE TIME OF LOADING / VOYAJE/DISCHARGING.
16- ALL VSL’S CERTIFICATES ARE VALID.
17- OWNS/MASTER TO GIVE 3/2/1 ARRIVAL NOTICE TO AGENTS AT LDG AND DISCH PORTS.
18- YORK/ANTWERP RULES TO APPLY FOR GENERAL AVERAGE. ARBITRATION IN LONDON AS PER ENGLISH LAW.
19 - OWNS/MASTER TO GIVE 3/2/1 ARRIVAL NOTICE TO LOAD AND DISCH PORT.
20- VSL CERTIFICATE ISSUED BY OWN/MASTER/AGENT THAT VESSEL IS ELIGIBLE TO ENTER INTO ANY SYRIAN PORT WITH IT’S CONFORMITY AND REQULATIONS.
21-THE CHARTERER HAS THE LIBERTY TO FUMIGATE THE CARGO ON BOARD BY FUMTABLETS AT LOADING PORT OR PLACES EN ROUTE (IN TRANSIT) AT THEIR RISK AND EXPENSE, AND THEIR RESPONSIBILITY FOR THAT THE OFFICERS AND CREW AS WELL AS ALL OTHER PERSONS ON BOARD THE VESSEL DURING AND AFTER THE FUMIGATION WILL NOT BE EXPOSED TO ANY HEALTH HAZARDS WHATSOEVER.
22 other terms as per synacomex or gencon
21) Arbitration in LONDON in accordance with the Rules of Arbitration and Appeal of the Federation of Oils, Seeds and Fats Associations Limited, in force at the date of this contract.