EYES WIDE OPEN

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EYES WIDE OPEN

• Recent Developments in Tanker Voyage Chartering

Singapore, March 2006
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MOVING THE GOALPOSTS

• The development of house charterparties
• Early loading clause
• Shellvoy 5 v. Shellvoy 6
• London Arbitration 27/04

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MOVING THE GOALPOSTS

• Shellvoy 5, Cl. 4 of the 1999 Additional Clauses
• If, with Charterers prior consent and
  agreement, the vessel loads earlier than
  commencement of laydays then charterers shall
  have the benefit of such time saved when
  calculating laytime and/or demurrage at
  subsequent ports

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MOVING THE GOALPOSTS

• Loading completes two days before the
  commencement of laydays.
• Owners Only time spent loading should be
  credited to the charterers.
• Charterers All time up to the commencement of
  laydays should be credited to the Charterers

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MOVING THE GOALPOSTS

• HELD
• The time between the completion of loading and
  the commencement of the original laydays could
  not be credited to the charterers as it would not
  have counted as laytime under normal circumstances

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MOVING THE GOALPOSTS

• The Shellvoy 6 effectively overturns this
  arbitration.
• Cl. 12 (2)
• Charterer shall have the benefit of such time
  saved by way of offset from any demurrage
  incurred. Such benefit shall be the time between
  the commencement of loading until the
  commencement of the original laydays.

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NOTICES

• Part I (B) of the Shellvoy 6
• the owners undertake not to negotiate or enter
  into any business or give the current Charterers
  any further options that may affect or alter the
  programme of the vessel as given in this clause
  unless it is with Charterers prior consent

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NOTICES

• Shells Explanatory Note
• New wording inserted to ensure the Owner keeps
  Charterers informed of the schedule of the vessel
  prior to loading.
• And so much more

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NOTICES

• Preceding voyages
• Obligations under preceding charterparties
• e.g. Asbatankvoy option to renegotiate.
• (No such provision under the Exxonmobilvoy 2005)

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CANCELLATION

• Part II Cl. 11
• As soon as Owners become aware that the vessel
  will not be ready to load by noon on the
  terminating date, Owners will give notice to
  Charterers declaring a new readiness date and ask
  Charterers to elect whether or not to terminate
  this Charter.
• Within 4 days after such notice, Charterers
  shall either
• (i) declare this charter terminated or
• (ii) confirm a revised set of laydays which
  shall be amended such that the new readiness date
  stated shall be the commencement date and the
  second day thereafter shall be the termination
  date or
• (iii) agree a new set of laydays or an
  extension to the laydays mutually acceptable to
  Owners and Charterers.

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CANCELLATION

• And if the charterer does not exercise its
  options under Cl. 11???
• Breach?
• Waiver of right to cancel?

12
CANCELLATION

• Obligation to notify charterers
• Shellvoy 5
• If Owners reasonably conclude that, despite the
  exercise of due diligence, the vessel will not be
  ready to load by noon on the termination date,
  Owners may, as soon as they are able to state
  with reasonable certainty a new date when the
  vessel will be ready, give notice to Charterers
  declaring the new readiness date and asking
  Charterers to elect whether or not to terminate
  the charter
• Shellvoy 6
• As soon as Owners become aware that the vessel
  will not be ready to load by noon on the
  terminating date, Owners will give notice to
  Charterers declaring a new readiness date and ask
  Charterers to elect whether or not to terminate
  this Charter.

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CANCELLATION

• Exxonmobilvoy 2005
• laytime shall commence no earlier than 48 hours
  after the tender of NOR or on the commencement of
  loading, whichever occurs first

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NOTICE OF READINESS

• Shellvoy 6, Cl. 13(1)(a)(ii)
• If owners fail
• to obtain free pratique unless this is not
  customary prior to berthing
• then the original notice of readiness shall not
  be valid.

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NOTICE OF READINESS

• Shellvoy 6, Cl. 13(1)(a)(iii)
• The owners have on board all papers/certificates
  required to perform this Charter, either within
  6 hours after notice of readiness or when time
  would otherwise normally commence under this
  Charter failing which the original NOR becomes
  invalid.

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NOTICE OF READINESS

• Shellvoy 6, Cl. 13(1)(a)(iii)
• Valid documentation a condition subsequent to
  the tender of a valid NOR
• London Arbitration 6/84 Gas free certificates
• Shellvoy 6, Cl. 13(3) - THE HAPPY DAY

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NOTICE OF READINESS

• Exxonmobilvoy 2005, Cl. 11
• At each load port or place, the Vessel shall be
  fully bunkered for the intended voyage and the
  Notice of Readiness shall, without limitation,
  confirm such bunkering.
• Practical difficulties

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CHANGE OF ORDERS

• Cl. 26 Shellvoy 6 v. Shellvoy 5
• If after loading and/or discharging ports have
  been nominated, Charterers wish to vary such
  ports or thei rotation, Charterers may give
  revised orders as the case may be. Charterers
  shall reimburse Owners at the demurrage rate for
  any deviation or delay which may result therefrom
  and shall pay at replacement cost for any bunkers
  consumed. Charterers shall not be liable for any
  other loss or expense which is caused by such
  variation unless promptly on receipt of the
  revised orders Owners notify Charterers of the
  expectation of such loss or expense in which case
  unless Charterers promptly revoke such orders,
  Charterers shall be liable to reimburse Owners
  for any such loss or expense proven.
• cf. Exxonmobilvoy 2000/2005

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PUMPING WARRANTIES

• Part I (A)(I)(vii) of the Shellvoy 6
• Owners warrant that the vessel
• (vii) Can discharge a full cargo (whether
  homogenous or multi grade) either within 24
  hours, or can maintain a back pressure of 100 PSI
  at the vessels manifold and Owners warrant such
  minimum performance provided receiving facilities
  permit and subject always to the obligation of
  utmost despatch...

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PUMPING WARRANTIES

• Exxonmobilvoy 2005
• Owner warrants that the vessel shall discharge
  entire cargo (be it one or more grade) within 24
  hours pumping time or maintain the maximum safe
  pressure at the vessels rail that the vessel can
  discharge at, but always at a minimum of 100psi

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LAYTIME DEMURRAGE

• Little Change

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• CONCLUSION