Constructive Total Loss A constructive total loss is where the subject-matter insured is reasonably abandoned on account of:its actual total loss appearing to be unavoidable; or because it could not be prevented from actual total loss without an expenditure which will exceed its insured value. where an assured is deprived of Possession of his ship or goods by a peril insured against and it is unlikely he can recover them or the cost of recovering exceeds the insured value. In the case of goods, the cost of repairing the damage and despatches to destination exceed their … [Read more...]

An athwartships bulkhead positioned at the forepart of the vessel. As the name suggests, it is meant to sustain the rest of the ship’s length following an impact such as when in a collision. The bulkhead is stiffened and considered watertight, although it is pierced by a single pipe usually to accommodate the fore peak pumping arrangement. It would be one of the structural members that would be visually sighted when carrying out a damage assessment following a collision, to detect cracks or similar damage which might lead to consecutive flooding of the vessel. … [Read more...]

A ‘U’-shaped plate found between the end of the keel and the bottom of the stern frame. … [Read more...]

A group of international lawyers and law associations specialising in maritime law, based in Antwerp, Belgium. CMI is responsible for some documents used in chartering, e.g., for the "Charterparty Laytime Definitions 1980". The CMI has also compiled a list of arbitrators, well-experienced in maritime arbitration and able to decide disputes arising from charters. Parties to a charter dispute can choose arbitrators from this list. … [Read more...]

CLEAR DAYS means that the day on which the notice (of readiness) is given and the day on which the notice expires are not included in the notice period.Charterparties for cargoes of coal sometimes stipulate that "7 clear days'' notice of the expected date of readiness at the port of loading will have to be given by owners to charterers in order to enable the charterers to arrange for delivery of the coal at the port of shipment in time. The addition "clear" implies that the first and last days are not included. … [Read more...]

If the charterers have an option to nominate any detail in a charter, for example, the "tolerance" percentage of the quantity of cargo to be loaded, this abbreviation is used in fixture telexes and other communications. For example, it may be that the cargo to be loaded is "20,000 metric tons l0pct. CHOPT". The charterers are allowed to require between 15,000 and 25,000 tonnes of cargo to be loaded, paying freight accordingly. … [Read more...]

It is customary to insert a special clause in voyage charterparties, where the charterer's liability ceases as soon as the cargo is shipped and the advance of freight, deadfreight and demurrage in loading (if any) are paid, the owners have a lien on the cargo for freight, deadfreight, demurrage and general average contributions.The clause is sometimes called a "Cesser and Lien Clause". … [Read more...]

The Customs department is one Government body whose main function is to protect a country's revenue. It is also a port authority that gives ships permission to discharge cargo if all dues are paid and the ship is "entered" and "cleared" inwards. The ship must be entered on the records kept by the Customs department and cleared by the department to commence cargo discharge. Before a ship's master can give notice of readiness (NOR) and trigger the commencement of the agreed laytime, the ship must be both physically and legally ready. Clearance by Customs authorities can be a formality that can … [Read more...]

Customary despatch (CD or CQD; Customary quick despatch) The bare meaning of the CD phrase is that the charterer must load and/or discharge as quickly as possible depending on the prevailing circumstances at the loading/discharging place. The phrase seems to modify the charterer's obligation to load/discharge the ship in a reasonable time but there is still no fixed criteria for how quick "customary despatch" should be, nor do the words point to a definite period of time allowed to the Charterer. … [Read more...]

The stipulation in a voyage charterparty that the vessel, after completion of loading, shall proceed with all possible speed to port of destination, is usually changed into "with all convenient speed" or "with all reasonable speed" The latter expression eliminates any controversy, which may arise about the speed actually maintained on the voyage.Another consideration in favour of changing "with all possible speed" into "with all convenient speed" is the saving of fuel costs by operating at reduced speed. If the charterparty provides for "proceed with all possible speed", shipowners should … [Read more...]