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Law
of Charterparties
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Law
of Charterparties
The depicted
charter has some unique characteristics that form the basis for the legal
engagement between the parties. First, The Orinoco is envisioned to
ferry cargo from New York to Bremen, but the vessel has to go through Weser
Lightship, which is 20 miles from Bremen. One binding agreement is that the
vessel is available for 10-running days at 20,000, with a provision of 6 hours
for loading or discharging. The reachable arrival aspect is also deliberated,
which stipulates how the ship's master should deal with unreachable berths (Wilson, 2010).
At Weser
lightship, The Orinoco is provided with a Notice of Readiness by the
master. However, a free pratique was not issued until the following day. Based
on the charterers' initial agreement, after a Notice for Readiness is issued, a
free pratique should not surpass 6 hours, upon which the Notice for Readiness
is invalidated. According to BIMCO,
a charter is a binding agreement between a shipper and master to follow
stipulated terms, which appear to have been negated in this case.
Once the vessel
arrived at Bremen, it took more than 6 hours to discharge the cargo. It arrived
at Berman on the 17th, and completion of activities was recorded on
the 19th. Based on the agreement's particulars, 6 hours allowable
for discharge commences when (i) when a vessel arrives at where it is required,
and (ii) when the master has issued a Notice of Readiness.
Additionally, the
charter stipulates a 10-day running period, but from the record shown in the
case study, the voyage ran from 1st to 19th. The market price for The Orinoco is
32,000 per day. Considering the delay evident in the completion of discharging of
The Orinoco, it is clear that the shipper has two costs to pay, one for
acquiring the vessel for 10 days, another one associated with the cost of
demurrage per day passed as of the terms of the charter.
From the case study's particulars, it is evident that the charterers have both demurrage and damage for detention liabilities. In the first instances, demurrage is prevalent because the shipper took more time than stipulated in the charter. For example, the charter provides for 10 days only, beyond which demurrage of 20,000 per day...
