Vessel Description
Physical description of the vessel including speed and bunker consumption in ballast and laden voyage. Cargo discharging and loading capabilities and rate. All calculations of the voyage are for good weather conditions such as a Beaufort scale of 3.
Laydays
This is the range of days given to the ship owner to present his ship ready in all respect at the Delivery Place agreed in charterparty. If the last date is a cancellation date then it is called as Laycan.
Duration
Duration of Charterparty with margin such as 5 years, more or less 15 days charter option. Words such as all going well, without guarantee are written.
Trade limitations
Areas of the world where the ship should not be employed, similar to trading navigational warranty of H&M insurance policy
List of cargo which can be carried
Owner’s responsibility and expenses covered
Charterer’s responsibility and expenses covered
Bunker
Generally, the charterer provides the bunker so the quality of the bunker is to be specified by the owner.
Delivery and Redelivery
Delivery is the place and time where time-charter starts, the vessel starts following the commercial instructions of the charterer. The charterer starts paying hire charges. At the time of Delivery ON-HIRE survey is done to assess the condition of the vessel and quantity of bunker on board which is purchased by the charterer at the price in that area on that day. Redelivery is the end of the charterparty. The bunker on board is bought by the shipowner at the price of that area on that day. An OFF-HIRE survey is conducted to assess the damages to ship during employment.
Hire
The amount, when, and how to be paid with an annual increase is pre-agreed.
Offhire
It is the non-payment or deduction of hire charges by the charterer for non or poor performance of the vessel. It includes the time lost due to non-performance and extra bunkers consumed.
Shipowner Pays
Repair & Maintenance, crewing, survey, stores and spares, food, other operating cost, water, minimum fuel for ships use, Insurance premium etc.
Charterer Pays
Hire Charges plus Bunker, Port expenses, canal dues, stevedoring, agency fees, etc.
*Examples of Time Charterparty: ASBATIME, NYPE 93