EYES WIDE OPEN
Recent Developments in Tanker
Voyage Chartering
Singapore, March 2006
MOVING THE GOALPOSTS
• The development of house charterparties:
– Early loading clause
Shellvoy 5 v. Shellvoy 6
London Arbitration 27/04
MOVING THE GOALPOSTS
• 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
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
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
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”.
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”
NOTICES
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
Preceding voyages…
Obligations under preceding charterparties:
e.g. Asbatankvoy option to renegotiate.
(No such provision under the Exxonmobilvoy 2005)
CANCELLATION
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
And if the charterer does not exercise its
options under Cl. 11???
– Breach?
– Waiver of right to cancel?
CANCELLATION
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
Exxonmobilvoy 2005:
“laytime shall commence no earlier than
48 hours after the tender of NOR or on
the commencement of loading, whichever
occurs first ”
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.”
NOTICE OF READINESS
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
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
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
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
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...”
PUMPING WARRANTIES
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…”
LAYTIME & DEMURRAGE
Little Change
CONCLUSION