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Chapter 1 General Introduction 1

Section 1 General Introduction of Tramp Shipping(Ⅰ) 1

1.1 What is tramp shipping? 1

1.2 Characteristics of tramp shipping 4

1.3 Kinds of tramp shipping 4

Section 2 General Introduction of Tramp Shipping(Ⅱ) 6

2.1 What is chartering? 6

2.2 Different kinds of chartering 7

2.3 Differences between time charter and voyage charter 11

Section 3 Charter Party 13

3.1 The meaning of charter party 13

3.2 Voyage Charter Party 14

3.3 Time Charter Party 16

3.4 Bareboat Charter Party 19

Section 4 Entering into C/P＆Standard Form 21

4.1 Making of C/P:chartering broker 21

4.2 Forms of C/P 25

Section 5 Law and Shipping Customs Relating to Charter Parties 28

5.1 Application of Chinese Maritime Code 28

5.2 International Shipping Practices 30

Section 6 Chartering Market 31

6.1 Purpose on learning the chartering market 31

6.2 Kinds of freight markets 32

Chapter 2 Voyage Charter Party 35

Section 1 Representations under Voyage Charter Party 35

1.1 Introduction 35

1.2 Representations and misrepresen tations 36

Section 2 Main Provisions on Representation 41

Section 3 Preliminary Voyage＆Loading/Discharging 47

3.1 Preliminary voyage 47

3.2 Loading/discharging clause 47

Section 4 Duties of the Charterer to Provide Cargo 51

4.1 Sorts of cargo 51

4.2 Quantity of cargo 52

4.3 Specified duties of the charterer 53

Section 5 Laytime/Demurrage/Dispatch Money(Ⅰ) 55

5.1 Understanding of Laytime 55

5.2 Definition of"days"as laytime 58

Section 6 Laytime/Demurrage/Dispatch Money(Ⅱ) 65

6.1 Commencement and end of laytime 65

6.2 Problems arising from berth contract 69

Section 7 Laytime/Demurrage/Dispatch Money(Ⅲ) 75

7.1 Definition of Demurrage/Dispatch Money 75

7.2 Calculation 79

Section 8 Other Clauses under GENCON 1994 85

8.1 Responsibilities and exceptions of shipowner 85

8.2 Deviation clause 87

8.3 Lien clause/cesser clause 90

Section 9 Law and Arbitration Clause 96

9.1 General introduction of law and arbitration clause 96

9.2 CMAC model arbitration clause 98

Chapter 3 Time Charter Party 99

Section 1 Representation under Time C/P 99

1.1 Nature of time charter party 99

1.2 Definition of key words and terms 100

1.3 Representation 102

Section 2 Shipowners/Charterers to Provide 107

2.1 Importance of the clause of shipowner/charterer to provide 107

2.2 Shipowners to provide 107

2.3 Charterers to provide 110

Section 3 Period of Hire 112

3.1 Introduction 112

3.2 Standard form 113

3.3 Usual clauses on period of hire 113

Section 4 Delivery of Vessel 117

4.1 Date,place and condition of delivery 117

4.2 Place of delivery 119

4.3 Condition of delivery 120

Section 5 Redelivery of Vessel 124

5.1 Introduction of redelivery of vessel 124

5.2 Time of redelivery 125

5.3 Conditions of redelivery 130

5.4 Ordinary tear and wear 130

5.5 Legal effect 131

Section 6 Payment of Hire 133

6.1 Standard clause 133

6.2 Common terms in practice 135

Section 7 Withdrawal of Vessel 139

7.1 Condition of withdrawal 139

7.2 Limits to exercise withdrawal 140

7.3 Legal effect of withdrawal 141

7.4 Waiver of right to withdraw 142

Section 8 Off-hire 145

8.1 Standard clauses on off-hire 145

8.2 Common provisions of off-hire 146

Section 9 Responsibilities and Obligations of Shipowners 152

9.1 Initial seaworthiness 152

9.2 Maintenance seaworthiness 152

9.3 Shipowners to provide 153

9.4 Reasonable dispatch 153

9.5 Customary assistance 154

Section 10 Responsibilities and Obligations of Charterers 155

10.1 Charterers to provide 155

10.2 Safety of port/berth 156

10.3 Definition of safe port 156

10.4 Scope of safe port 156

10.5 When to warrant the safety of port? 158

Section 11 Exception Clause 161

11.1 Exception clauses under standard forms 161

11.2 Common nature of exception clauses 162

Section 12 Employment and Indemnity Clause 166

12.1 Employment and indemnity clause under standard forms 166

12.2 Chinese law on the issue of employment and indemnity 167

12.3 Problems under supervision of master 168

12.4 Who shall be responsible for damages caused by the stevedore? 168

Section 13 Trading Limits Clause 170

13.1 Trading limits clause under standard forms 170

13.2 Chinese law on the issue of trading limits 171

13.3 Understanding of trading limits clause 171

Section 14 Lawful Merchandise Clause 174

14.1 Lawful merchandise clause under standard forms 174

14.2 Chinese law on the issue of lawful merchandise 175

14.3 Understanding of lawful merchandise clause 175

Section 15 Sub-let Clause 178

15.1 Sub-let clause under standard forms 178

15.2 Understanding of sub-let clause 179

Chapter 4 Bareboat Charter Party 181

Section 1 Delivery Clause 181

1.1 Definition of bareboat charter party 181

1.2 Main provisions of bareboat charter party under BARECON 184

1.3 CMC provision on the delivery of vessel 194

Section 2 Inspection Clause 195

Section 3 Maintenance and Operation Clause 200

3.1 Maintenance and operation clause under BARECON 200

3.2 CMC provision on maintenance and operation 207

Section 4 Hire Clause 209

4.1 Hire clause under BARECON 209

4.2 Problems in practice 213

4.3 Chinese law on payment of hire 214

Section 5 Mortgage Clause 215

5.1 Mortgage clause under BARECON 215

5.2 CMC provision on mortgage 217

Section 6 Insurance and Repairs 219

6.1 Insurance clause under BARECON 219

6.2 Chinese provisions on insurance 224

Section 7 Redelivery Clause 226

Section 8 Non-lien Clause 229

8.1 No possessory lien or maritime lien 229

8.2 Notice fastened on board 230

8.3 The indemnity clause 230

8.4 Security 230

8.5 CMC provision on the effect of non-lien clause 231

Section 9 Lien and Wreck Removal Clause 232

9.1 Lien clause 232

9.2 Wreck removal clause 233

Section 10 Assignment and Sub-demise Clause 235

10.1 Assignment＆sub-demise clause under BARECON 235

10.2 Chinese law on the issue of assignment and sub-demise 236

Section 11 Bareboat Charter Party with Hire Purchase Clause 238

11.1 Transferring title of property and risks 238

11.2 Risks and expenses for sale of ship 239

11.3 Taxes and charges under purchasing contract 241

11.4 Costs for dispatch of crew 243

Chapter 5 Bill of Lading under Charter Party 244

Section 1 General Introduction 244

1.1 Bill of lading issued under C/P 244

1.2 B/L under C/P and ordinary ocean B/L 245

1.3 Differences between B/L under C/P and ordinary ocean B/L 248

1.4 Identify B/L under C/P and ocean B/L 248

Section 2 Incorporation Clause 250

2.1 Incorporation clause and B/L under C/P 250

2.2 Understanding of incorporation clause and its validity 250

2.3 Which contract may be incorporated into B/L 253

2.4 Common incorporation clauses 254

2.5 Problems on incorporation of arbitration clause 255

Section 3 B/L clauses under C/Ps 257

3.1 B/L clause under voyage charter party 257

3.2 B/L clause under time charter party＆bareboat charter party 257

3.3 Few situations of refusing to sign B/L 258

3.4 Meaning of"Without prejudice to" 259

Section 4 Identifying the Carrier and Demise Clause 260

4.1 Identify the carrier in case of B/L under C/P 260

4.2 Demise clause 261

References 263

Author's Note 264