A contract such as a charter is entered into with a clear intention to create legal relations between the parties. However, what has actually been agreed may not always be clear. All the details may or may not be incorporated into the printed and typed document evidencing that a contract exists. If they are in writing they are named "express terms". … [Read more...]

In chartering, and, indeed, in any contract the expression "exceptions clause" describes the effect on liability of one or both parties to the contract. Such clauses fall under a general heading of "protective clauses". The phrases, "exclusion clauses", "exemption clauses" and "force majeure" clauses are sometimes used instead of "exceptions clause". These clauses generally exclude the liability of a party. There are other clauses that have a smaller effect of merely reducing the amount of compensation payable. These are "limitation of liability" clauses. … [Read more...]

This word generally refers to laytime where all time is to be counted against the charterer except certain expressly stated periods. The most obvious example is "Sundays and Holidays excepted", where the charterer is permitted to disregard Sundays and holidays as time for loading and/or discharging even if he uses these days for these activities These exceptions to laytime are interruptions or suspensions of the "laytime clock" which runs against the charterer. It should be stated here that if the charterer is already in breach of the charterparty, for example, if the laytime has expired, then … [Read more...]

With currency values fluctuating, with the revenue of the shipowner being in one currency and his costs possibly being in another, and, with rising costs and inflation, he will want some compensatory protection, especially when the charter is for a long period, such as in time charters and COAs. Because there are so many possible variables an escalation clause (similarly to "currency clauses") must be carefully drafted.BIMCO does publish a standard "escalator clause":"The rate of hire agreed in this charter is based upon the level of Owners' monthly operating expenses ruling at the … [Read more...]

This can sometimes be called merely the "Employment clause" especially if it is found in a charterparty in which the charterer is not obliged to indemnify the shipowner against all consequences or liabilities from following the charterer's orders as regarding the employment of the ship: "To indemnify" means to reimburse a person for his loss or to place him in the same financial position after a. loss in which he was before the loss. … [Read more...]

"Sundays and Holidays excepted" can be qualified by the words "even if used". This means that the charterer can, in fact, use Sundays and holidays to load or discharge cargo but the time used on these days does not reduce the total laytime he is allowed. This qualification to the laytime is very favourable to the charterer. The opposite effect (that is, favourable to the owner) is caused by words such as "unless used". … [Read more...]

With currency values fluctuating, with the revenue of the shipowner being in one currency and his costs possibly being in another, and, with rising costs and inflation, he will want some compensatory protection, especially when the charter is for a long period, such as in time charters and COAs. Because there are so many possible variables an escalation clause (similarly to "currency clauses") must be carefully drafted. BIMCO does publish a standard "escalator clause":"The rate of hire agreed in this charter is based upon the level of  Owners'  monthly operating expenses ruling at the date … [Read more...]

a work permit which is issued prior to entry into an enclosed space compartment. The permit is issued only after all the required safety checks and inspections of the compartment have been made and the relevant precautions have been taken. … [Read more...]

Electrical equipment is defined and certified as explosion-proof when it is enclosed in a case which is capable of withstanding the explosion within it of a hydrocarbon gas/air mixture or other specified flammable gas mixture. It must also prevent the ignition of such a mixture outside the case either by spark or flame from the internal explosion or as a result of the temperature rise of the case following the internal explosion. The equipment must operate at such an external temperature that a surrounding flammable atmosphere will not be ignited. … [Read more...]

A space which has the following characteristics:• Limited Openings for entry and exit;• Unfavourable natural ventilation; and• Is not designed for continuous worker occupancy.This includes, but is not limited to, cargo spaces, double bottoms, fuel tanks, ballast tanks, pump rooms, compressor rooms, cofferdams, void spaces, duct keels, inter-barrier spaces, engine crankcases and sewerage tanks. … [Read more...]