Tanker Chartering

Start Date End Date Duration Location
Oct. 20, 2019 Oct. 24, 2019 5 Cairo

Description:

This course examines legal issues in tanker chartering. A key feature of the course is case studies run as mock arbitrations, these serve as a practical way of highlighting key issues and recent case law. One of the most popular sea transportation methods is to “charter” a tanker. A charter is somewhat similar to renting or leasing an apartment or a house. There are two basic types of charters, called charter parties. They are a voyage (or spot) and a time charter. The selection of the method of transportation is solely based on the cost of transportation and the availability of tankers

Goal:

To enhance the participants' knowledge, skills, and abilities necessary to understand the tanker chartering

Objectives:

By the end of this course, the participant will be able to:

  • Understand the basic procedures involved in the extraction of crude oil, of oil refining and its products and by products.

  • Understand the nature of chemical cargoes and special vessel requirements.

  • Understand the commercial requirement for parcel cargoes and specialist role of parcel carriers.

  • Be aware of vessels used, cargo tank types.

  • Understand the impact of seasonal climate, weather and physical restrictions in the main oil producing areas

  • Understand the structure of and typical locations of offshore loading and discharging facilities and customary abbreviations.

  • Understand the implications for the tanker trades and the practical effects of environmental protection and pollution liability legislation

  • Understand the structure of the International Tanker Chartering Market and the relative importance of the major market centers.

  • Understand the role of the Broker and its relationship to the principals as an agent.

  • Understand the structure and content of market reports and market indices.

  • Understand the nature and impact of external factors affecting the market

  • Understand the role and function of international organisations relevant to the tanker trades.

  • Understand the impact of e-commerce on market practice.

  • Understand the importance and proper use of additional clauses and addenda.

  • Be familiar with the common standard oil company additional clauses.

  • Understand the concept of Bareboat chartering and be aware of the main charter party terms.

  • Understand the role of the bill of lading in charter parties.

  • Understand the details required to quote a new order and the procedure of negotiations.

  • Understand the legal, tactical and ethical requirements of the market and the avoidance of conflicts between them.

  • Understand how to calculate freight and hire and the time when payment is due.

  • Understand the importance in time charters of performance claims and the nature of off-hire events.

  • Understand the arrangements for and relevant clauses regarding delivery, final voyage and re-delivery.

  • Understand how commissions and brokerage are calculated and who is responsible for payment.

  • Understand the use of freight market derivatives as a hedging tool and be aware of the operation of the derivatives market.

  • Thoroughly understand the importance of the clarity of notice of readiness clauses.

  • Understand the procedure for tendering a valid NOR and common problems relating to acceptance.

  • Understand the point at which laytime commences and the circumstances under which laytime may be interrupted.

  • Understand the application of the pumping warranty.

  • Prepare the Statement of Facts and the Laytime Statement.

  • Understand the structure of Worldscale and be familiar with its main features and use in all calculations.

  • Understand the charter party clauses for the resolution of disputes.

Outlines:

  • Ships and Cargoes
  • Basic Procedures Involved in the Extraction of Crude Oil, of Oil Refining and its Products and by Products.
  • Basic Constructional Details and Approximate Tonnages and Dimensions of Vessels Employed in the Tanker Trades.
  • Capacity and General Arrangement Plans.
  • Vessel Systems
  • Crude Oil
  • Main Petroleum Products
  • Different Types of Cargoes and Special Requirements
  • Commercial Requirement for Parcel Cargoes and Specialist Role of Parcel Carriers.
  • Liquid Natural Gas (LNG) and Liquid Petroleum Gas (LPG).
  • Ship Classification.
  • The Trades
  • The Essential Geography of the Tanker Trades and the Cyclical Nature of the Oil Markets.
  • Seasonal Climate, Weather and Physical Restrictions.
  • Locations of Production Areas, Refineries, Pipelines and Oil Terminals and the Routes Used for the Movement of Products, Chemicals and Gas Cargoes.
  • Locations of Offshore Loading and Discharging Facilities
  • Customary Abbreviations
  • Tanker Trades and Environmental Protection and Pollution Liability Legislation.
  • Freight Markets
  • Market Practitioners
  • International Tanker Chartering Market and the Relative Importance of the Major Market Centers.
  • The Role of the Broker.
  • Different Methods of Communications.
  • Structure and Content of Market Reports and Market Indices.
  • The Nature and Impact of External Factors Affecting the Market.
  • The Role and Function of International Organisations
  • E-Commerce and Market Practice.
  • Contracts
  • Charter Party Forms.
  • Voyage and Time Charters.
  • The Use of Standards Forms of Voyage and Time Charter Parties and their Suitability to Different Trades.
  • Additional Clauses and Addenda.
  • Common Standard Oil Company Additional Clauses.
  • Individual Rights Responsibilities and Liabilities of Owners, Charterers and Brokers that Arise under the Charter Party.
  • Consecutive Voyage Contracts and Contracts of Affreightment .
  • Bareboat Chartering.
  • Bill of Lading
  • The Role of the Bill of Lading in Charter Parties.
  • Delivery of Cargo Against Bills of Lading.
  • Bills of Lading Problems.
  • Chartering Market Practice
  • Quoting a new order and the procedure of negotiations.
  • Offers for both Voyage and Time Charters.
  • The Legal, Tactical and Ethical Requirements of the Market.
  • The Broker’s Responsibility to the Principal and the Circumstances under which Breach of Warranty of Authority Might Arise.
  • Professional Negligence and Indemnity Insurance for Brokers.
  • The Financial Elements of Charter Parties
  • Freight and Hire Calculations and the Time when Payment is Due.
  • Additional Payments Due under Charter Parties and the Appropriate Clauses.
  • Time Charters and Performance Claims and the Nature of Off-Hire Events.
  • Clauses of Delivery, Final Voyage and Re-delivery.
  • Commissions and Brokerage Calculation and who is Responsible for Payment.
  • Freight Market Derivatives as a Hedging Tool.
  • Laytime
  • The Procedure for Tendering a Valid NOR and Common Problems Relating to Acceptance.
  • Laytime Commencement Point and the Circumstances under which Laytime may be Interrupted and/or Excluded.
  • Pumping Warranty.
  • Statement of Facts and Laytime Statement.
  • Laytime Calculation.
  • Time-Bar and Tanker Demurrage Claims.
  • Calculations
  • The Structure of Worldscale, Its Main Features and Freight Calculation.
  • The Owner’s and Disponent Owner’s Cost Base.
  • Voyage Estimation.
  • Alternative Routes, Alternative Voyages and Compare Voyage with Time.
  • Calculation of Ballast Bonus in Time Charters.
  • General
  • The Charter Party Clauses For The Resolution Of Disputes
  • The BIMCO Arbitration Clause.
  • The Commercial Courts, Arbitration and Alternative Dispute Resolution (ADR).
  • Ship Owners’ P&I Associations and Their Role in the Context of Cargo Claims
  • Intermediaries’ P&I Associations and, the Classes of Cover Offered to Brokers and Agents.
  • Keeping Full and Proper Records to Assist in Dispute Resolution.