Charter Parties :Charter Parties :

1. Voyage – Contract of Carriage 1. Voyage – Contract of Carriage – BULK – BULK commoditiescommodities

2. Time – Contract of Hire2. Time – Contract of Hire

3. Bareboat – Contract of long term 3. Bareboat – Contract of long term hire/ownershiphire/ownership

Bills of Lading – Central document to all Bills of Lading – Central document to all Shipping Shipping

LINER TRADES (Manufactured Goods in Containers)LINER TRADES (Manufactured Goods in Containers)

) BULK TRADE BULK TRADE

VOYAGE STANDARD C/Ps

AMWELSH Coal Americanized Welsh coal C/P. Widely used.

ASBATANKVOY Tanker American form.

AUSTWHEAT Australian wheat Australian Wheat Board form.

BEEPEEVOY Tanker BP form, used by many companies.

CRUISEVOY Cruising BIMCO form for cruise ship charter

C”ORE”7 Iron ore Full name: Mediterranean Iron Ore C/P.

FERTIVOY Fertilisers

GENCON General purpose.

GRAINVOY Grain BIMCO form.

NUBALTWOOD Timber Used in Baltic trade.

SHIPOWNER’s COSTSSHIPOWNER’s COSTS

Voyage costs -Voyage costs -- are variable costs associated with the commercial employment of the - are variable costs associated with the commercial employment of the ship.ship.- include costs of bunkers, port and canal dues, pilotage, tug hire, - include costs of bunkers, port and canal dues, pilotage, tug hire, agency fees and loading/discharge costs. agency fees and loading/discharge costs. -are the responsibility of the ship’s owner or are the responsibility of the ship’s owner or manager.

If the ship is let on a time charter, the charterer is liable for the voyage If the ship is let on a time charter, the charterer is liable for the voyage costs.costs.

Operating or running costs -Operating or running costs -- are semi-variable costs which fall between capital and voyage costs.- are semi-variable costs which fall between capital and voyage costs.- include costs of crewing, storing, ship maintenance, insurance and - include costs of crewing, storing, ship maintenance, insurance and administration.administration.- are the responsibility of the ship owner or are the responsibility of the ship owner or manager.

What is a voyage charter?What is a voyage charter?

• Agreement between a shipowner and a Agreement between a shipowner and a charterer for carriage by a charterer for carriage by a named vesselnamed vessel of of a a specified quantityspecified quantity of a of a specified commodityspecified commodity from a from a named place(snamed place(s) to another ) to another named named place(splace(s),), in return for agreed in return for agreed sum of sum of freightfreight..

• Shipowner pays all vessel operating expenses Shipowner pays all vessel operating expenses (“running costs” and voyage expenses, (“running costs” and voyage expenses, except where otherwise agreed.except where otherwise agreed.

SEE SMBL-3SEE SMBL-3

Time charterTime charter• Agreement between shipowner and charterer Agreement between shipowner and charterer

whereby shipowner agrees to let and charterer whereby shipowner agrees to let and charterer agrees to hire a named vessel for agreed agrees to hire a named vessel for agreed duration in return for an agreed sum of hire.duration in return for an agreed sum of hire.

• Charterer is responsible for all voyageCharterer is responsible for all voyage expenses expenses (bunkers; canal dues; cargo-handling; berth (bunkers; canal dues; cargo-handling; berth dues; light dues; pilotage; harbour towage; line-dues; light dues; pilotage; harbour towage; line-handling).handling).

• Charterer hopes to make profit from ship.Charterer hopes to make profit from ship.

STANDARD TIME C/Ps

BALTIME Dry cargo tramp or liner BIMCO form. Boxed layout. Popular in short sea trades.

BEEPEETIME Tanker Widely used BP form with various versions.

GENTIME 1999 Dry cargo tramp or container

INTERTANKTIME Tanker Intertanko form. Used by independent owners.

LINERTIME Dry cargo liner BIMCO form. Boxed layout.

NEW YORK PRODUCE EXCHANGE (NYPE) Dry cargo tramp or liner Most commonly used time C/P form. 1946 version more popular than 1993 version.

SHELL VESSEL TIME Offshore service Shell form. SHELLTIME Tanker Shell form, but widely used.

BAREBOAT CHARTERBAREBOAT CHARTERA bareboat charter (sometimes called a charter A bareboat charter (sometimes called a charter by demise or demise charter) is a contract for by demise or demise charter) is a contract for the hire of a vessel for an agreed period during the hire of a vessel for an agreed period during which the charterers acquire most of the rights which the charterers acquire most of the rights and responsibilities of the owners. and responsibilities of the owners.

It may be thought of as a maritime equivalent of It may be thought of as a maritime equivalent of a long term vehicle rental or lease contract.a long term vehicle rental or lease contract.

Charterer pays Voyage & Running Costs – Charterer pays Voyage & Running Costs – becomes virtual (and in some cases legal becomes virtual (and in some cases legal owner) owner.owner) owner.

3. Deviation Clause 283. Deviation Clause 28The Vessel has liberty to call at any port or ports in any order, for any The Vessel has liberty to call at any port or ports in any order, for any purpose, 29purpose, 29to sail without pilots, to tow and/or assist Vessels in all situations, and also to sail without pilots, to tow and/or assist Vessels in all situations, and also to 30to 30deviate for the purpose of saving life and/or property. 31deviate for the purpose of saving life and/or property. 31

6. Laytime 896. Laytime 89(a) Separate laytime for loading and discharging 90(a) Separate laytime for loading and discharging 90(b) Total laytime for loading and discharging 97(b) Total laytime for loading and discharging 97(c) Commencement of laytime (loading and discharging) (c) Commencement of laytime (loading and discharging) NOR NOR 101101(d) Time to count.(d) Time to count.

8. Lien Clause 1328. Lien Clause 132The Owners shall have a lien on the cargo and on all sub-freights payable in 133The Owners shall have a lien on the cargo and on all sub-freights payable in 133respect of the cargo, for freight, deadfreight, demurrage, claims for damages 134respect of the cargo, for freight, deadfreight, demurrage, claims for damages 134and for all other amounts due under this Charter Party including costs of 135and for all other amounts due under this Charter Party including costs of 135recovering same.recovering same.

19. Law and Arbitration 38219. Law and Arbitration 382

* (a) This Charter Party shall be governed by and construed in * (a) This Charter Party shall be governed by and construed in accordance with accordance with 383383English law and any dispute arising out of this Charter Party shall be English law and any dispute arising out of this Charter Party shall be referred to referred to 384384arbitration in London in accordance with the Arbitration Acts 1950 and arbitration in London in accordance with the Arbitration Acts 1950 and 1979. 1979. 386386

LAYDAYS LAYTIME DEMURRAGE

DISPATCHDISPATCH

CANCELLING DATE

VOYAGE C/PVOYAGE C/P

ARRIVED SHIP

Arrived Ship Arrived Ship –Requirement of all voyage charters that the ship must have arrived before laytime can commence.

Where the charterer has nominated a berth or dock, the ship must have arrived at that berth or dock.

When a port is nominated, the ship must have arrived at the port

1) The vessel must have arrived at the loading or discharging berth or port as stipulated in the charter.

2) The vessel must be fully prepared to load or discharge.

3) Notice of readiness in writing, as prescribed, must have been given to shippers or consignees.

6. Laytime 896. Laytime 89(a)(a)Separate laytime for loading and discharging 90Separate laytime for loading and discharging 90

(b) Total laytime for loading and discharging 97(b) Total laytime for loading and discharging 97

(c) Commencement of laytime (loading and (c) Commencement of laytime (loading and discharging) discharging) NOR NOR 101101

(d) Time to count.(d) Time to count.

Therefore a charterparty usually contains a Therefore a charterparty usually contains a stipulation, namely stipulation, namely a range, of days, a range, of days, within which within which the owner must present vessel at load port and a the owner must present vessel at load port and a further option entitling the charterer to further option entitling the charterer to cancel the cancel the contract contract if the ship is not ready to load within a if the ship is not ready to load within a specified time.specified time.

What does “SHINC” “SHINC” meanin a voyage charterparty?

“Sundays and Holidays Included”, meaning that these days are included in (or not excepted from) the laytime.

What does “SHEX” “SHEX” mean in a voyage charterparty?

“Sundays and Holidays Excepted”, meaning that these days are excepted from the laytime.

What does “WIBON, “WIBON, WIPON, WCCON & WIPON, WCCON & WIFPON” WIFPON” mean in a voyage charterparty?

“Whether In Berth Or Not”, “Whether In Port Or Not”, “Whether Customs Cleared Or Not”, and “Whether In Free Pratique Or Not”, meaning that laytime may commence under any of these conditions.

MASTERMASTER(1)(1) Master’s speedy prosecution of voyagesMaster’s speedy prosecution of voyages

(2) master’s and crew’s assistance to charterer;(2) master’s and crew’s assistance to charterer;

(3) master’s obedience of charterers’ orders relating to vessel’s (3) master’s obedience of charterers’ orders relating to vessel’s employment, agency, etc.;employment, agency, etc.;

(4) charterers’ indemnification of owners against (4) charterers’ indemnification of owners against consequences of owners’ servants signing bills of lading or consequences of owners’ servants signing bills of lading or other documents, or complying with charterers’ orders, other documents, or complying with charterers’ orders, etc.;etc.;

(5) exclusion of owners’ liability for cargo claims; and(5) exclusion of owners’ liability for cargo claims; and

(6) owners’ agreement to investigate charterers’ complaints (6) owners’ agreement to investigate charterers’ complaints about crew.about crew.

LAYCANLAYCAN

A charterer wants, if he can get it, a fixed date for the arrival A charterer wants, if he can get it, a fixed date for the arrival of the ship at the port of loading. of the ship at the port of loading. He has to make He has to make arrangements to bring down the cargo arrangements to bring down the cargo and to have it ready to and to have it ready to load when the ship arrives and he wants to know as near as load when the ship arrives and he wants to know as near as he can what that date is going to be. he can what that date is going to be.

On the other hand, it is to the interest of the shipowner, if he On the other hand, it is to the interest of the shipowner, if he can have it, to have the date as flexible as possible because can have it, to have the date as flexible as possible because of the inevitable delays due to bad weather or other of the inevitable delays due to bad weather or other circumstances that there might be in the course of a voyage. circumstances that there might be in the course of a voyage. He can never be sure that he can arrive at a port on a fixed He can never be sure that he can arrive at a port on a fixed and certain day. and certain day.

SEE STATEMENT OF FACTSSEE STATEMENT OF FACTS

What matters are What matters are usually covered in usually covered in the the Suspension of Suspension of Hire Clause Hire Clause in a in a time charterparty?time charterparty?

(1)(1) Suspension of hire payment Suspension of hire payment for duration of any for duration of any “downtime” of vessel in “downtime” of vessel in specified circumstances; and specified circumstances; and

(2) charterers’ responsibility for (2) charterers’ responsibility for loss of time in specified loss of time in specified circumstances.circumstances.

What matters are What matters are usually covered in usually covered in the the Sublet Clause Sublet Clause in a time in a time charterparty?charterparty?

Charterers’ option to sublet Charterers’ option to sublet vessel; original charterers’ vessel; original charterers’ responsibility for due responsibility for due performance of charter.performance of charter.

19. Law and Arbitration 38219. Law and Arbitration 382

* (a) This Charter Party shall be governed by and construed in accordance with 383* (a) This Charter Party shall be governed by and construed in accordance with 383English law and any dispute arising out of this Charter Party shall be referred to 384English law and any dispute arising out of this Charter Party shall be referred to 384arbitration in London in accordance with the Arbitration Acts 1950 and 1979. 386arbitration in London in accordance with the Arbitration Acts 1950 and 1979. 386

BunkersBunkers(1) Charterers’ obligation to buy bunkers remaining on board at delivery port; (1) Charterers’ obligation to buy bunkers remaining on board at delivery port; (2) owners’ obligation to buy bunkers remaining on board at redelivery port; (2) owners’ obligation to buy bunkers remaining on board at redelivery port; and (3) minimum quantity of bunkers to be on board at redelivery.and (3) minimum quantity of bunkers to be on board at redelivery.

ExporterExporterShipperShipperSellerSeller

TransportTransport

StorageStorage LoadingLoading

StowingStowing

DischargeDischarge TransportTransport

ImporterImporterReceiverReceiverBuyerBuyer

Documents & RiskDocuments & Risk

Documents & RiskDocuments & Risk

Loading & StowingLoading & Stowing DischargeDischarge

Incoterms rules or International Commercial terms are a series of pre-defined commercial terms published by the ICCICC widely used in international commercial transactions.

Incoterms rules Incoterms rules are intended primarily to clearly communicate the tasks, costs and risks associated with the transportation and delivery of goods.

They are accepted by governments, legal authorities and practitioners worldwide for the interpretation of most commonly used terms in international trade.

They are intended to reduce or remove altogether uncertainties arising from different interpretation of the rules in different countries.

FunctionsFunctions

1.1. Receipt for goods received by carrier from Receipt for goods received by carrier from shippershipper

2.2. Evidence of a contract between carrier and Evidence of a contract between carrier and shippershipper

3.3. Document of titleDocument of title4.4. In some cases: receipt for freightIn some cases: receipt for freight

Traditional B/L procedureTraditional B/L procedure1: At the loading port1: At the loading port

1.1. C/F Agent books space with Carriers Agent (Booking C/F Agent books space with Carriers Agent (Booking Note).Note).

2.2. Consignment of goods loaded on board carrier’s ship.Consignment of goods loaded on board carrier’s ship.

3.3. Carrier tallies goods as received; notes “apparent Carrier tallies goods as received; notes “apparent order and condition”; issues original Mate’s Receipt order and condition”; issues original Mate’s Receipt to shipper; retains copy M/R.to shipper; retains copy M/R.

4.4. Shipper obtains set of blank B/Ls; copies description Shipper obtains set of blank B/Ls; copies description of goods loaded & other details (loading date, port, of goods loaded & other details (loading date, port, etc.) from M/R to B/Ls.etc.) from M/R to B/Ls.

Traditional B/L procedureTraditional B/L procedure1: At the loading port1: At the loading port

4.4. Shipper surrenders original M/R to carrier; Shipper surrenders original M/R to carrier; submits completed B/Ls for signature of carrier.submits completed B/Ls for signature of carrier.

5.5. Ship’s copy of M/R is compared with B/Ls. If all Ship’s copy of M/R is compared with B/Ls. If all details correspond, B/Ls are signed and issued to details correspond, B/Ls are signed and issued to shipper. Carrier retains several copy B/Ls; one shipper. Carrier retains several copy B/Ls; one copy sent to agent at discharge port.copy sent to agent at discharge port.

6.6. Shipper sends original B/Ls (separately) to Shipper sends original B/Ls (separately) to consignee (usually following payment by consignee (usually following payment by consignee/buyer). Risk of loss/delay.consignee/buyer). Risk of loss/delay.

Traditional B/L procedureTraditional B/L procedure2: At the discharge port2: At the discharge port

1.1. Consignee receives original B/Ls from shipper. One of these will be Consignee receives original B/Ls from shipper. One of these will be required to collect goods.required to collect goods.

2.2. 3.3. Ship arrives at discharge port.Ship arrives at discharge port.

4.4. Receiver (= consignee or his agent) shows ID and surrenders first Receiver (= consignee or his agent) shows ID and surrenders first original B/L to carrier’s agent.original B/L to carrier’s agent.

5.5. Agent checks ID and B/L, endorses B/L “Accomplished” and issues Agent checks ID and B/L, endorses B/L “Accomplished” and issues Delivery Order authorising release of goods from Delivery Order authorising release of goods from terminal/warehouse etc. Legal term for handover of goods: terminal/warehouse etc. Legal term for handover of goods: “delivery”.“delivery”.

6.6. Receiver takes goods from port to ultimate destination.Receiver takes goods from port to ultimate destination.

Problems with B/LsProblems with B/Ls

1.1. Carrier, agent or master endorses B/L with Carrier, agent or master endorses B/L with remarks re- shortage or damage (make it a remarks re- shortage or damage (make it a “dirty” B/L – but shipper needs “clean” “dirty” B/L – but shipper needs “clean” B/Ls!)B/Ls!)

2.2. Cargo arrives at discharge port before B/L. Cargo arrives at discharge port before B/L. Consignee demands cargo, but cargo can Consignee demands cargo, but cargo can only be released against B/L!only be released against B/L!

SEE FOLDER SMB3 – B/LSEE FOLDER SMB3 – B/L

SEE H - V RULESSEE H - V RULES

BUYER’s BUYER’s BANKBANK

SELLER’s SELLER’s BANKBANK (2) Seller’s requirements(2) Seller’s requirements

Incl Incl CLEAN B/LCLEAN B/L

(1) Buyer opens L//C

(3) Buyers bank opens L/C(3) Buyers bank opens L/C

((4) Seller notified4) Seller notified

(5) Carrier (5) Carrier signs B/Lsigns B/L

(6) Seller sends docs and bank pays seller(6) Seller sends docs and bank pays seller

(7) Bank sends docs and Buyer’s bank pays Seller’s (7) Bank sends docs and Buyer’s bank pays Seller’s

(8) Bank sends docs &8) Bank sends docs &Buyer pays bankBuyer pays bank

GENERAL AVERAGEGENERAL AVERAGE

GENERAL AVERAGEGENERAL AVERAGE

SALVAGESALVAGE

GENERAL AVERAGEGENERAL AVERAGE

(1)(1)The sacrifice or expenditure must be The sacrifice or expenditure must be extraordinary. extraordinary.

(2)(2)The sacrifice or expenditure must be The sacrifice or expenditure must be reasonable. reasonable.

(3)(3)The act must be intentional or voluntary, The act must be intentional or voluntary, and not inevitable.and not inevitable.

(4)(4) There must be an There must be an imminent imminent peril. peril.

(5)(5) The action taken must be for the common The action taken must be for the common safety and not merely for the safety of part of safety and not merely for the safety of part of the property involved.the property involved.

LLOYDS of LONDONLLOYDS of LONDON

TOTAL LOSSTOTAL LOSS

Constructive Total LossConstructive Total Loss

PARTICULAR AVERAGEPARTICULAR AVERAGE

What are P&I ClubsWhat are P&I ClubsThe Clubs are associations of shipowners and charterers, owned and The Clubs are associations of shipowners and charterers, owned and controlled by the insured shipowner or charterer "Members". They operate controlled by the insured shipowner or charterer "Members". They operate on a non-profit making mutual basis, that is to say the Members pool their on a non-profit making mutual basis, that is to say the Members pool their resources together in order to meet losses suffered by each individual resources together in order to meet losses suffered by each individual Member. Member.

The basic principle is that the contributions ("mutual premium") paid by the The basic principle is that the contributions ("mutual premium") paid by the Membership in relation to any one year should be sufficient to meet all the Membership in relation to any one year should be sufficient to meet all the claims, reinsurance and administrative expenses of the Club for that year. If claims, reinsurance and administrative expenses of the Club for that year. If there is a shortfall because claims are high, the Members may pay a pro rata there is a shortfall because claims are high, the Members may pay a pro rata "additional call" and if there is a surplus, a return may be made to the "additional call" and if there is a surplus, a return may be made to the Membership, or the surplus transferred to reserve to meet losses on other Membership, or the surplus transferred to reserve to meet losses on other years. years.

The mutual system is therefore very different to most other forms of The mutual system is therefore very different to most other forms of insurance, where the aim of the insurance company in accepting business is to insurance, where the aim of the insurance company in accepting business is to make a profit for its shareholders.make a profit for its shareholders.

Personal injury to or illness or loss of life of crew members

Personal injury to or loss of life of stevedores Personal injury to or loss of life of stevedores

Personal injury to or illness or loss of life of passengers and Personal injury to or illness or loss of life of passengers and others others

Loss of personal effects Loss of personal effects

Diversion expenses Diversion expenses

Life salvage Life salvage

Collision liabilities Collision liabilities

Loss or damage to property other than cargo Loss or damage to property other than cargo

Pollution Pollution

Towage contract liabilities Towage contract liabilities

Liabilities under contracts and indemnities Liabilities under contracts and indemnities

Wreck liabilities Wreck liabilities

Cargo liabilities Cargo liabilities

Cargo's proportion of general Cargo's proportion of general average or salvage average or salvage

Certain expenses of salvors Certain expenses of salvors

Fines Fines

Legal costs Legal costs

"Omnibus" cover "Omnibus" cover  

ELEMENTS OF SALVAGE ELEMENTS OF SALVAGE

1)1)There must be a peril (e.g. the threat of There must be a peril (e.g. the threat of the property sinking);the property sinking);

2)2)the salved property must be a recognised the salved property must be a recognised subject of salvage; subject of salvage;

3) the salvage service must be a voluntary 3) the salvage service must be a voluntary act; and act; and

4) the salvage service must result in 4) the salvage service must result in success (i.e. some or all of the property success (i.e. some or all of the property must be salved).must be salved).

Types of salvageTypes of salvage

Common law salvage Common law salvage - not under contract. Sometimes called voluntary salvage or pure salvage.

Contractual salvage Contractual salvage - under a pre-agreed contract such as Lloyd’s Open Form.

Article 8Article 8Duties of the salvor and of the owner and masterDuties of the salvor and of the owner and master

(1) The (1) The salvor shall owe a duty to the owner salvor shall owe a duty to the owner of the vessel of the vessel or other property in danger:or other property in danger:(a) to carry out the salvage operations with due care;(a) to carry out the salvage operations with due care;(b) in performing the duty to exercise due care (b) in performing the duty to exercise due care to prevent to prevent or minimize damage to the environment;or minimize damage to the environment;(c) whenever circumstances reasonably require, to seek (c) whenever circumstances reasonably require, to seek assistance from other salvors;assistance from other salvors; and and(d) to (d) to accept the intervention accept the intervention of other salvors when of other salvors when reasonably requested to do so by the owner or master of reasonably requested to do so by the owner or master of the vesselthe vessel

(2) The (2) The owner and master owner and master or the owner of other property in or the owner of other property in danger danger shall owe a duty to the salvor:shall owe a duty to the salvor:(a) to (a) to co-operate fully co-operate fully with him during the course of the with him during the course of the salvage operations;salvage operations;(b) in so doing, to exercise due care to (b) in so doing, to exercise due care to prevent or minimize prevent or minimize damage to the environment; damage to the environment; andand(c) when the vessel or other property has been brought to (c) when the vessel or other property has been brought to a place of safety, to a place of safety, to accept redeliveryaccept redelivery

Article 13Criteria for fixing the reward

(1) The reward shall be fixed with a view to encouraging salvage operations(a) the salved value of the vessel and other property;(b) the skill and efforts of the salvors in preventing or minimizing damage to the environment;(c) the measure of success obtained by the salvor;(d) the nature and degree of the danger;(e) the skill and efforts of the salvors in salving the vessel, other property and life;(f) the time used and expenses and losses incurred by the salvors;(g) the risk of liability and other risks run by the salvors or their equipment;(h) the promptness of the services rendered;(i) the availability and use of vessels or other equipment intended for salvage operations;(j) the state of readiness and efficiency of the salvor's equipment and the value thereof.(

Main features of Lloyd’s Open FormMain features of Lloyd’s Open Form

(1)(1) It is a “No cure, no pay” contract. It is a “No cure, no pay” contract.

(2) Use of the form can be agreed by radio, simply by (2) Use of the form can be agreed by radio, simply by reference; there is no need to have the form on board. reference; there is no need to have the form on board.

(3) The terms are fixed: there is no need to negotiate.(3) The terms are fixed: there is no need to negotiate. (4) The contract is governed by English law and disputes are (4) The contract is governed by English law and disputes are

submitted to arbitration in London by an expert salvage submitted to arbitration in London by an expert salvage arbitrator. arbitrator.

(5) Any reward will be determined either by settlement or, in (5) Any reward will be determined either by settlement or, in the event of dispute, by a Lloyd’s arbitrator after the the event of dispute, by a Lloyd’s arbitrator after the salvage service.salvage service.

(6) The salvor is entitled to security following the salvage (6) The salvor is entitled to security following the salvage

serviceservice. .

ART 14 Special compensation

(1)If the salvor has carried out salvage of a vessel which by itself or its cargo threatened damage to the environment and has failed to earn a reward has failed to earn a reward under article 13 under article 13 at least equivalent to the special compensation assessable in accordance with this article, he shall be entitled to special be entitled to special compensation compensation from the owner of that vessel.

(2) If, in the circumstances the salvor by his salvage operations has prevented or minimized damage to the environment, the special compensation payable may be increased up to a maximum of 30% to 100% of 30% to 100% of the expenses incurred by the salvor.the expenses incurred by the salvor.

TOWAGE:TOWAGE:

"(W)ithout attempting any definition that may be "(W)ithout attempting any definition that may be universally applied, towage service may be described as universally applied, towage service may be described as the employment of one vessel to expedite the voyage of the employment of one vessel to expedite the voyage of another when nothing more is required that the another when nothing more is required that the accelerating (of) her progress."accelerating (of) her progress."

THE MASTER/PILOT RELATIONSHIPTHE MASTER/PILOT RELATIONSHIP

In virtually every country (with the exception of Panama Canal) the master In virtually every country (with the exception of Panama Canal) the master has full responsibility for the navigation of the ship during all acts of has full responsibility for the navigation of the ship during all acts of pilotage. pilotage.

The pilot is charged with the safety of the ship and must use all reasonable The pilot is charged with the safety of the ship and must use all reasonable diligence, care and skill. He is entitled to the same assistance from the crew diligence, care and skill. He is entitled to the same assistance from the crew as the master has when there is no pilot on board. as the master has when there is no pilot on board.

Generally the master should:Generally the master should:•Follow the pilot’s advice;Follow the pilot’s advice;•See that the ship’s navigation is monitored as if there was no pilot on See that the ship’s navigation is monitored as if there was no pilot on board;board;•Insist that the pilot take all reasonable precautions;Insist that the pilot take all reasonable precautions;•Ensure that officers, helmsman, etc. attend to the pilot’s requests with Ensure that officers, helmsman, etc. attend to the pilot’s requests with efficiency and courtesy;efficiency and courtesy;•Instruct the OOW that he has charge of the vessel whilst under pilotage, Instruct the OOW that he has charge of the vessel whilst under pilotage, unless informed otherwise by the master;unless informed otherwise by the master;•Always state his opinion to the pilot on important matters of navigation Always state his opinion to the pilot on important matters of navigation and manoeuvring; andand manoeuvring; and•Warn the pilot if it is apparent that the pilot is taking or proposing to take Warn the pilot if it is apparent that the pilot is taking or proposing to take any action of which the master disapproves.any action of which the master disapproves.

Consult P & I Club Guides and CorrespondentsConsult P & I Club Guides and Correspondents

Collecting Physical Evidence Collecting Physical Evidence

Documenting Physical EvidenceDocumenting Physical Evidence

Sketching and MappingSketching and Mapping

Photographing and Videotaping Physical EvidencePhotographing and Videotaping Physical Evidence

Inspecting Physical EvidenceInspecting Physical Evidence

Collecting Documentary EvidenceCollecting Documentary Evidence

Preserving and Controlling EvidencePreserving and Controlling Evidence

Tell crew to SHUT UP!!!!!Tell crew to SHUT UP!!!!!

(1)(1) After every case of General Average; After every case of General Average;

(2)(2) after wind and/or sea conditions have been after wind and/or sea conditions have been encountered which may have damaged cargo;encountered which may have damaged cargo;

(3)(3) after wind and/or sea conditions have been after wind and/or sea conditions have been encountered which caused failure to make a cancelling encountered which caused failure to make a cancelling date; date;

(4)(4) after cargo is shipped in a condition likely to after cargo is shipped in a condition likely to deteriorate during the forthcoming voyagedeteriorate during the forthcoming voyage

(5)(5) after the ship has been damaged from any cause; after the ship has been damaged from any cause;

(6) after a serious breach of the charterparty by the (6) after a serious breach of the charterparty by the charterercharterer

•LETTER OF PROTESTLETTER OF PROTEST

• M.v.M.v. Voyage No.:Voyage No.:• Cargo:Cargo:• Port:Port: Berth/terminal:Berth/terminal:• Date:Date: Time:Time:

• To: (recipient’s name and/or position)To: (recipient’s name and/or position)• Please be advised that there is a discrepancy between ship Please be advised that there is a discrepancy between ship and and • shore figure coveringshore figure covering (description of (description of • cargo) loaded at your terminal this (date).cargo) loaded at your terminal this (date).• Shore figures: …………………………………………………………Shore figures: …………………………………………………………• Ship figures: …………………………………………………………Ship figures: …………………………………………………………• Difference: ………………………………………………………………Difference: ………………………………………………………………

• The undersigned hereby declares that the Bill of Lading was The undersigned hereby declares that the Bill of Lading was • signed under protest because of the unreasonable difference signed under protest because of the unreasonable difference • between ship and shore figures.between ship and shore figures.• Protest lodged by …………………………Master(Signature and ship’s Protest lodged by …………………………Master(Signature and ship’s stamp)stamp) Signed for receipt ………………………(Position & Company)Signed for receipt ………………………(Position & Company)••

EXEMPTED PERSONSEXEMPTED PERSONS

Repair or offshore workers

Shopkeepers & Entertainers (Pass ships)

Military

Contractual provisions

The MCA will expect a crew agreement to contain contractual provisions governing the following matters:

• the persons between whom the agreement is made;

• the description of the voyage or voyages to which the agreement relates and their geographical limits and/or the duration of the employment;

• the capacity in which each seafarer is to be employed;

• the pay, hours, leave and subsistence, etc

• the other rights and duties of the parties to the agreement;

• the terms under which either of the parties may give notice to terminate the agreement;

• the circumstances in which, notwithstanding the provisions governing the giving of notice, the agreement may be terminated by either of the parties.

•- An outer cover,;- An outer cover,;

•- Agreement & List of Crew signing the Agreement;- Agreement & List of Crew signing the Agreement;

•- List of Crew exempt from signing the Agreement;- List of Crew exempt from signing the Agreement;

•– – List of Young Persons;List of Young Persons;

•– – Crew Agreement contractual clauses; andCrew Agreement contractual clauses; and

•– – Copy of Crew Agreement.Copy of Crew Agreement.

SIGNING ON:SIGNING ON:(1) Prepare the ALC documents and the Official Log Book, entering an “E” reference number against the master’s own details.

(2) As each seaman approaches, ask to see his Medical Fitness Certificate and his Certificate of Competency.

(3) check the certificates for STCW 95 references and endorsements,

(4) For non-exempt seamen (i.e. those signing on), write a reference number, complete the details, complete the certificate and endorsement details.

(5) Show all non-exempted crew the contract by which they will be bound once they sign the Agreement, and note requests for a personal copy (which must be provided).

(6) Show any seaman on request any relevant document mentioned in the Crew Agreement (e.g. MN Code of Conduct or company Drug and Alcohol Policy).

(7) Request non-exempt seamen to sign in the List of crew & Agreement. 7) Request non-exempt seamen to sign in the List of crew & Agreement.

(8) Enter details of exempted seamen(8) Enter details of exempted seamen

(9) Note all seamen under 18 years listed and copy their details onto List of Young (9) Note all seamen under 18 years listed and copy their details onto List of Young Persons. Persons.

(10) Make out a duplicate copy of contractual Clauses complete with any (10) Make out a duplicate copy of contractual Clauses complete with any additional clauses and affix it to the copy of agreement and post it up in the crew additional clauses and affix it to the copy of agreement and post it up in the crew accommodation. accommodation.

(11) Copy all details of all personnel engaged (including exempted personnel) into (11) Copy all details of all personnel engaged (including exempted personnel) into the Official Log Book. the Official Log Book.

(12) Make an entry in the OLB to the effect that a new Crew Agreement was (12) Make an entry in the OLB to the effect that a new Crew Agreement was opened and crew engaged, listing their reference numbers opened and crew engaged, listing their reference numbers

(13) Send the employer a list of all crew engaged so that they know who is on (13) Send the employer a list of all crew engaged so that they know who is on board and are in a position to notify details to MCA should the need arise.board and are in a position to notify details to MCA should the need arise.

SIGNING OFFSIGNING OFFThe agent should be informed, with instructions to notify Immigration, The agent should be informed, with instructions to notify Immigration, Customs, travelling arrangements etc. Customs, travelling arrangements etc.

If the seaman is being paid from the ship, make up his overtime, bar If the seaman is being paid from the ship, make up his overtime, bar account, etc., and an Account of Seamanaccount, etc., and an Account of Seaman’’s Wages s Wages

Pay his wagesPay his wages

Make appropriate entries in the seamanMake appropriate entries in the seaman’’s Discharge Book and ask him to s Discharge Book and ask him to sign off on the Agreementsign off on the Agreement

Witness his signature by signing beneath it. Witness his signature by signing beneath it.

Make an OLB entry to the effect that Make an OLB entry to the effect that ““Seaman N” today discharged from Seaman N” today discharged from the Crew Agreementthe Crew Agreement””. .

At the seamanAt the seaman’’s request, issue a certificate as to the quality of his work or s request, issue a certificate as to the quality of his work or that he has fully discharged his obligations under the contract. that he has fully discharged his obligations under the contract.

Inform the owners of the change in the LOC as soon as possible but within Inform the owners of the change in the LOC as soon as possible but within 3 days.3 days.

SEAMAN LEFT BEHINDSEAMAN LEFT BEHIND

The master should notify the local Proper Officer (e.g. British The master should notify the local Proper Officer (e.g. British Consul) and make an OLB entry. Consul) and make an OLB entry.

The seaman’s gear should be tallied and packed by two officers, The seaman’s gear should be tallied and packed by two officers, and landed ashore to the agent.and landed ashore to the agent.

Record the seaman’s service in his/her discharge book, or on a Record the seaman’s service in his/her discharge book, or on a Certificate of Discharge if no discharge book. Certificate of Discharge if no discharge book.

Complete the entries on agreement and the reason why he/she Complete the entries on agreement and the reason why he/she cannot sign, e.g. “in hospital”. Sign in proper spacecannot sign, e.g. “in hospital”. Sign in proper space

Make an OLB narrative space entry recording the seaman’s place, Make an OLB narrative space entry recording the seaman’s place, date and reason for discharge, quoting the reference number in the date and reason for discharge, quoting the reference number in the List of Crew. List of Crew.

Notify the employer within 3 days of the change in the List of Crew. Notify the employer within 3 days of the change in the List of Crew.

Amend the Crew List.Amend the Crew List.

MASTER’s DUTIES – DISTRESSMASTER’s DUTIES – DISTRESS

ToTo proceed with all speed to the assistance of the persons in distress, informing them or the SAR service, if possible, that the ship is doing so.

An entry must be made in the Official Log Book or Radio Log of the receipt of the distress signal. Entries should also be made fully describing any assistance being given.

4(a)44(a)4If the ship receiving the distress alert is unable unable to do so or, in the special circumstances of the case, considers it unreasonable or unnecessary unreasonable or unnecessary to do so.

4(a)54(a)5

If the ship is unable, or in the special circumstances of the case considers it unreasonable or unnecessary to proceed to assist, the master must personally enter in the Official Log Book the reason for failing to proceed. The entry must be witnessed by a crew member.

COLLISIONCOLLISION

If and so far as he can do so without danger to If and so far as he can do so without danger to his own ship, crew and passengers:his own ship, crew and passengers:

(1) to render to the other ships, its master, crew (1) to render to the other ships, its master, crew and passengers such assistance as may be and passengers such assistance as may be practicable and may be necessary to save them practicable and may be necessary to save them from any dangerfrom any danger

(2) to stay by the other ship until he has (2) to stay by the other ship until he has ascertained that it has no need of further ascertained that it has no need of further assistance; and assistance; and

(3) to give the master of the other ship the name (3) to give the master of the other ship the name of his own ship and the names of the ports from of his own ship and the names of the ports from which it comes and to which it is bound.which it comes and to which it is bound.

(1) Under The MS (Accident Reporting and Investigation) Regulations: to send a report to the MAIB, and to preserve relevant evidence

(2) Under The MS (Reporting Requirements for Ships Carrying Dangerous or Polluting Goods) Regulations: to send a pollution report to the coastal State.

(3) Under The MS (Official Log Books) Regulations: to make an entry in the OLB

On meeting:On meeting: dangerous ice;dangerous ice; a dangerous derelict;a dangerous derelict;

any other direct danger to navigation (e.g. a any other direct danger to navigation (e.g. a floating container, ship NUC, unlit fishing vessels, floating container, ship NUC, unlit fishing vessels, etc.)etc.) a tropical storm;a tropical storm; subfreezing temperatures associated with gale subfreezing temperatures associated with gale force winds causing severe ice accretion on force winds causing severe ice accretion on superstructures; or superstructures; or

winds of Beaufort force 10 or more for which no winds of Beaufort force 10 or more for which no storm warning has been received.storm warning has been received.

ACCIDENT REPORTINGACCIDENT REPORTING

When a UK- or non-UK ship is involved in an accident, incident When a UK- or non-UK ship is involved in an accident, incident or pollution event in UK controlled waters (i.e. the UK Pollution or pollution event in UK controlled waters (i.e. the UK Pollution Control Zone) which is likely to result in the pollution of UK Control Zone) which is likely to result in the pollution of UK waters or the UK coastline, the master must immediately send a waters or the UK coastline, the master must immediately send a report to HM Coastguard by the quickest means possible. The report to HM Coastguard by the quickest means possible. The report must conform to the IMO Standard Reporting report must conform to the IMO Standard Reporting Requirements detailed in MGN 242.Requirements detailed in MGN 242.

IINFORMATIONNFORMATION(a)(a)The ship’s identity; The ship’s identity; (b)(b)the ship’s position;the ship’s position;(c)(c) the last port; (d) the next port;the last port; (d) the next port;(d)(d) the number of people on board; the number of people on board; (e)(e)the date and time of the incident ; the date and time of the incident ; (f)(f)details of the event; details of the event; (g)(g)the name and contact details of the body or person from the name and contact details of the body or person from whom information regarding any dangerous or polluting goods whom information regarding any dangerous or polluting goods on board may be obtained.on board may be obtained.

The master of the ship from which they are sighted The master of the ship from which they are sighted must immediately send HM Coastguard by the must immediately send HM Coastguard by the quickest means possible: quickest means possible:

(a)(a)the ship’s identity; the ship’s identity;

(b)(b) the ship’s position; the ship’s position;

(c)(c)the last port; and the last port; and

(d)(d)any other relevant informationany other relevant information

Sailing plan (SP) - Before or as near as possible to the time of departure from a port within a system or when entering the area covered by a system.

Position report (PR) - When necessary to ensure effective operation of the system.

Deviation report (DR) - When the ship’s position varies significantly from the position that would have been predicted from previous reports, when changing the reported route, or as decided by the master.

Final report (FR) - On arrival at destination and when leaving the area covered by a system.

1. 1. PROCEDURESPROCEDURESReports should be sent as follows:Reports should be sent as follows:

Dangerous goods report (DG)Dangerous goods report (DG) - When an incident takes place

involving the loss or likely loss

overboard of packaged dangerous

goods, including those in freight

containers, portable tanks, road

and rail vehicles and shipborne

barges, into the sea.

Harmful substances report (HS)Harmful substances report (HS)

                                                                                                  

- When an incident takes place

involving the discharge or

probable discharge of oil (Annex I

of MARPOL 73/78) or noxious

liquid substances in bulk (Annex II

of MARPOL 73/78).

Marine pollutants report (MP)Marine pollutants report (MP) - In the case of loss or likely loss

overboard of harmful substances

in packaged form including those

in freight containers, portable

tanks, road and rail vehicles and

shipborne barges, identified in the

International Maritime Dangerous

Goods Code as marine pollutants

(Annex III of MARPOL 73/78).

Any other reportAny other report - Any other report should be made

in accordance with the system

procedures as notified in

accordance with paragraph 9 of

the General Principles.

OIL/oilyOIL/oily

(1)(1)A standard Harmful Substances (HS) report, as A standard Harmful Substances (HS) report, as described in MGN 242, .to the nearest coast radio described in MGN 242, .to the nearest coast radio station or coastguard station; station or coastguard station;

(2)(2) (by phone, fax or telex) to the MAIB if there is (by phone, fax or telex) to the MAIB if there is serious harm to the environment; serious harm to the environment;

(3)(3) a report to the owners and charterers (if any)a report to the owners and charterers (if any)

(4)(4)OFF LOG BOOK entryOFF LOG BOOK entry

ORB ORB

DANGEROUS GOODSDANGEROUS GOODS

(1)(1)A Dangerous Goods (DG) Report and Marine A Dangerous Goods (DG) Report and Marine Pollutants (MP) Report, as described in MGN 242, to the Pollutants (MP) Report, as described in MGN 242, to the nearest coast radio station or coastguard station; nearest coast radio station or coastguard station;

(2)(2) a report (by phone, fax or telex) to the MAIB of loss of a report (by phone, fax or telex) to the MAIB of loss of cargo overboard and possible serious harm to cargo overboard and possible serious harm to environment; and environment; and

(3)(3) a report to the owners and charterers (if any). The a report to the owners and charterers (if any). The agent at the destination port should also be informed; agent at the destination port should also be informed; receivers of cargo in missing containers will have to be receivers of cargo in missing containers will have to be notified.notified.

(1)(1)Stop the polluting activity. Stop the polluting activity.

(2)(2) Record the pollution in the ORB. Record the pollution in the ORB.

(3)(3)Report the pollution in accordance with MGN 242. Report the pollution in accordance with MGN 242.

(4)(4)Log the pollution as a non-conformity in the ship’s ISM Log the pollution as a non-conformity in the ship’s ISM documentation.documentation.

(5)(5) Take disciplinary action as per MN or Company Code of Take disciplinary action as per MN or Company Code of Conduct (whichever is applicable), probably giving an oral or Conduct (whichever is applicable), probably giving an oral or written warning, as appropriate. written warning, as appropriate.

(6)(6)Give the 3rd Engineer further training in pollution Give the 3rd Engineer further training in pollution prevention. prevention.

(7)(7)Make an entry in the Official Log Book about the incident, Make an entry in the Official Log Book about the incident, the disciplinary action and the remedial training.the disciplinary action and the remedial training.

A UK ship appears to be the source of oil pollution UK ship appears to be the source of oil pollution

SEE PORT DOCSSEE PORT DOCS

Health questionsHealth questions

(1) Has any person died person died on board during the voyage otherwise than as a result of accident? yes.... no….. (2) Is there on board or has there been during the international voyage any case of disease which you suspect to be of an infectious nature? yes........ no….....

(3) Has the total number of ill passengers number of ill passengers during the voyage been greater than normal/expected? yes.... no…..How many ill persons? ..........

(4) Is there any ill person on board now? yes........ no….....

(5) Was a medical practitioner consultedmedical practitioner consulted? yes....... no…....

(6) Are you aware of any condition on board which may lead to infection or spread of disease?infection or spread of disease? yes........ no….....

(7) Has any sanitary measure (e.g. quarantine, isolation, sanitary measure (e.g. quarantine, isolation, disinfection or decontamination) disinfection or decontamination) been applied on board? yes ....... no…...

(8) Have any stowawaystowaways been found on board? yes ....... no…...

(9) Is there a sick animal sick animal or pet on board? yes ......... no........

Payment and collection of light dues in UK and Payment and collection of light dues in UK and IrelandIreland

•““General light duesGeneral light dues”” are a service charge on ships for the are a service charge on ships for the maintenance of lights and marks around the UK and Irish coasts, maintenance of lights and marks around the UK and Irish coasts, and are payable under section 205 of the Merchant Shipping Act and are payable under section 205 of the Merchant Shipping Act 1995. 1995.

* The ship* The ship’’s agent will normally be responsible for remitting light s agent will normally be responsible for remitting light dues payable in respect of a merchant vessel in a UK or Irish port, dues payable in respect of a merchant vessel in a UK or Irish port, and will arrange for the issue of a Light Certificate to the ship as a and will arrange for the issue of a Light Certificate to the ship as a receipt41.receipt41.