1. EYES WIDE OPEN Recent Developments in Tanker Voyage Chartering Singapore, March 2006

2. MOVING THE GOALPOSTS The development of house charterparties: The development of house charterparties: –Early loading clause Shellvoy 5 v. Shellvoy 6 London Arbitration 27/04

3. Shellvoy 5, Cl. 4 of the 1999 Additional Clauses: 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… ” MOVING THE GOALPOSTS

4. 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 MOVING THE GOALPOSTS

5. 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 MOVING THE GOALPOSTS

6. The Shellvoy 6 effectively overturns this arbitration. 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”. MOVING THE GOALPOSTS

7. 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”

8. Shell’s 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… NOTICES

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

10. 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.” CANCELLATION

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

12. 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.” CANCELLATION

13. Exxonmobilvoy 2005: “laytime shall commence no earlier than 48 hours after the tender of NOR or on the commencement of loading, whichever occurs first ” CANCELLATION

14. 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.”

15. 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. NOTICE OF READINESS

16. 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” NOTICE OF READINESS

17. 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 NOTICE OF READINESS

18. 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

19. 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 vessel’s manifold and Owners warrant such minimum performance provided receiving facilities permit and subject always to the obligation of utmost despatch...”

20. 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 vessel’s rail that the vessel can discharge at, but always at a minimum of 100psi…” PUMPING WARRANTIES

21. LAYTIME & DEMURRAGE Little Change

22. CONCLUSION