Gross Terms
The shipowner pays for all expenses including loading-discharging and port costs.
Nett Terms
The charterer pays for all expenses involved in ports such as fees and stevedoring.
Gross Load Free Discharge (GLFD)
The shipowner pays for loading and the charterer pays for the discharging expenses.
Free In and Out (FIO)
The charterer pays for loading discharging, and stevedoring, and the Ship owner pays all port fees and expenses.
Laydays
This is the range of days given to the ship owner to present his ship ready in all respect to load cargo at the first loading port. If the last date is a cancellation date then it is called Laycan.
Notice of Readiness
It is a notice given by the master of the ship to the charterer informing him about the arrival of the vessel at pre agreed place or port and its readiness to load or discharge cargo as the case may be.
Laytime
It is the time allowed for loading/discharging. If the charterer takes more time than agreed, he has to pay compensation to the shipowner called as Demurrage and if the same is completed earlier than the expiry of laytime Despatch is payable to the charterer by the shipowner. Usually in Bulk Trade, the rate of dispatch is half the rate of demurrage and there is no despatch in tanker trade. Periods for which Laytime shall not be counted are specified example SHEX, SSHEX, etc. Example 3 wwd SHEX EIU / UU
Laytime statement is prepared to ascertain time used in loading / discharging for determining time saved or lost for calculation of demurrage or despatch.
Cargo description
Quantity of cargo is usually given in range such as 50,000, 5% MOLOO or MOLCO. There is a guaranteed minimum quantity which the charterer must supply and who will determine the quantity in the given range is pre agreed.
Freight
The amount, when and how to be paid is pre agreed including Dead freight and back freight. Rate of Demurrage and Despatch is also pre agreed
Agency
Party responsible to appoint and pay for agent is pre agreed.
Lien
The shipowner has a lien on cargo for freight not paid.
Statement of Fact
It is prepared by agent and signed by Master and Charterer’s representative. It contains all details such as ship’s arrival, berthing and commencement of cargo, interruptions in cargo operation etc. with time.
Note of Protest
Master has top record before a notary the circumstances leading to damage of cargo or delay encountered in voyage.
Shipowner Pays
Repair & Maintenance, crewing, survey, stores and spares, food, other operating cost, water, minimum fuel for ships use, Insurance premium etc. Plus Loading and Discharging or Port fees as per terms and conditions.
Charterer Pays
Freight plus demurrage if applicable along with Loading and discharging as per terms and conditions.
*Examples of Voyage Charterparty: FONASBA, AMWELSH 93, GRAINVOY, NIPPONORE, GENCON