1. Carriage of goods by sea - framework
Dr. Iva Savić, Department for Maritime and Transport Law
April 5, 2018

2. Carriage of Goods by Sea - Main Routes -

3. Major global seaports

4. legal framework -Contracts
Introduction

5. Basic Division (i) Continental /Common Law Tradition Mix
Charterparties
Bareboat Charter
Legal nature: Service Contract
Shipowner keeps the right to manage the vessel
Charterer uses the vessel
Legal nature: Use of Vessel Contract
Charterer manages and uses the vessel

6. BASIC DIVISION (iI) – contracts of affreightment
CHARTERPARTY
BILL OF LADING
(CARRIAGE OF GOODS CONTRACTS)
Main Contract Element: vessel/vessel space
Individualized vessel (name or general attributes), possibility of utilizing the substitution clause
Main Contract Element: goods being carried
Modus: Charterparties
Modus: Bill of Lading
*straight bill
*sea-waybill
* Liner bill etc.

7. Basic Division (iiI) - services
Lines Trade
(liner shipping services)
Tramp Trade
(charter services)
Regular scheduled service, set routes
Individually negotiated departures and arrivals
General cargo, necessity of constant supply of a particular types of goods
Individual needs – specific purpose
More stable freight/tarifs (*Liner conferences)
Freight dictated by the market
Cargo manipulation – included in freight
Cargo manipulation – usually covered by the charterer
Adhesion contracts
Negotiation
Carriers’ cooperation /regulatory supervision
Individual, market forces
Vessels adapted to the lines
Open navigation
Wider availability
„Tailor Made”

8. Contracts of Affreightment
Maritime-Shipping contracts
Bareboat Charter
Carriage of Goods
Carriage of Goods by Sea (B/L)
Whole vessel
Carriage of Passengers by Sea contracts
Charterparties
Specific part of vessel
Towage
Voyage
Portion of vessel
Time
Other (standard form) contracts

9. Time Charter
Introduction

10. Basic elements (i) For the whole vessel;
Purpose: to carry goods by sea
Shipowner
possesses and manages the vessel
Basic responsibilities:
Seaworthiness of a ship (until the beginning of a voyage/throughout the charter service)
Cargoworthiness of a ship (throughout the whole voyage)
Master of Vessel and crew
Carriage in the agreed time frame with the agreed vessel
Master of Vessel – shipowner’s legal representative

11. Basic Elements (iI) Charterer Risk of delay taken by the charterer
Basic obligations:
Payment of Hire *OFF-HIRE CLAUSE
Payment of drive costs, port charges, special atonements
Redelivery of a ship *early/late redelivery – damages
Commercially manages a vessel
Master of Vessel? Shipowner’s responsibility?
Only with regard their specific duties
Free cargo space?
Shipowner has the right of disposition only with the charterer’s consent
Risk of delay taken by the charterer
Why?/allowing a degree of flexibility

12. Sub-Charter
Charterer’s responsibilty for the actions and omissions of sub- charterer
Charterer and Shipowner – Joint and Several Responsibility towards the cargo interest
Shipowner’s responsibility – mandatory regulation, common commercial terms or charterparty

13. Bareboat charter
Introduction

14. Bareboat charter
Use of Vessel contract, defined or undefined time frame (written cancelation, at least three months in advance), specified voyage(s)
Bareboat Charter – charter without the crew (presumed by statutory regulation)
Demise Charter – charter with the crew
Sub-Charter – only if agreed upon by the shipowner

15. Basic Elements (i) Shipowner
Delivers a vessel to be used for shipping enterprise (shipping service)
Vessel: as contracted (individually agreed, or agreed by scpecific characteristics or agreed/usual purpose)
Right to double charter fee – if charterer does not return the vessel after the expiry date
If the charterer is responsible for the delay – he will be liable for any additional damage as well

16. Basic Elements (ii) Charterer’s duties Payment of Hire
Unless it is not possible, due to shipowner’s fault or hidden defect present at the time of delivery, to utilize the vessel
Covering maintenance and drive costs
Redelivery at charter’s expiry
Charterer becomes a person in full charge of the vessel
*Insurance costs (with the acceptance of shipowner)
*Hidden defects present at the time of delivery – shipowner’s responsibility

17. Time Charter / Bareboat charter
Charterer not in full control
Charterer in full control
Vessel and crew
Vessel without crew
Exception: Demise Charter
Service contract
Use of vessel contract
Maritime-shipping contract, carriage of goods
Shipping and other contracts
If doubt, statutory presumption – time charter for the whole vessel

18. Voyage charter
Introduction

19. Basic elements Chartering a ship for one particular job
*Consecutive Voyage Charterparty
Carriage of goods, one or more passages
Departure and destination port set by contract
Freight
Lump Sum or calculated based on the cargo volume
for consecutive voyages - number of passages
Risk of delay – shipowner’s responsibility
Why? Difference to Time Charter?