how do charter parties are formed if no one knows the clauses or understands just the basic ones.
where does one draw clauses from to form 35 pages?
Is shipbrokers' knowledge limited to specific charterparties according to the owners that trade with them?
Many thanks for the question. What you are alluding too are the 'rider clauses' which are the additional clauses that can add another 20 to 50 pages to a charterparty..
How are these formed? Good question. Truth is that over the years various rider clauses do the rounds, so to speak, and then end up as standard type clauses in various types of charterparties.
You will find that many of the clauses form organically. BHP for example may have (20 years ago) insisted on a specific laytime clause. Slowly this clause gets accepted by shipowners and then other 'charterers' hear about the clause and decide they also like it and then incorporate same into their charterparties.
Same goes for shipowners. Many moons ago, for example, shipowners and their lawyers came up with various rider clauses they wanted to be part of any charterparty they agree too. During the course of negotiations these charterparties would be discussed and agreed and disagreed too. Eventually they find their way into standard type charterparties and eventually anyone and everyone agrees to them.
The shipowners have help too. For nice shipowner friendly rider clauses go to the Bimco website. These guys produce a number of shipowner friendly clauses covering every rider clause imagineable.
(In truth the Bimco sanctioned cps are well balanced these days because most shipowners are also charterers depending on the day)
Heres another thing that many people dont realise. Charterparty clauses are highly negotiable. Some people are experts at these clauses. Being a Charterparty guru can save you and make you millions of dollars.
In a high market (low supply and high demand for ships) - shipowners can push through just about any clause they like.
But when the market drops look for the charterers to push through clauses that no shipowner of right mind would ever agree too...
So we end up having 'shipowner friendly charterparties" and "charterer friendly charterparties"...the trick is to spot the difference.
If you need help on a charterparty drop me a line - maybe we can work something out. I have put together a number of charterparties over the years skewed towards both shipowners and charterers. Im happy to help out ........................for a fee! Very underrated thing is getting your cp right! Could save you (or make you) millions
- The Virtual Shipbroker
- Hi. I am a shipping company director, transport academic, author, family man and all round nice guy. I have worked as shipbroker, shipowner, freight trader and bulk charterer, in senior positions, with some of the largest and most disrespected (joke) companies in the world. Ask my advice on all things shipping and you will receive my blunt and always honest answer. Hang around to learn more about chartering and ship broker salaries, chartering and ship broker jobs, chartering and shipbroker recruitment agencies, cheap freight, maritime education, chartering and ship broker qualifications, become a ship broker, tips on how to be a successful bulk shipping executive, philosophy, Zen and the art of shipbroking, and much more. Yours The Virtual Shipbroker (recently proclaimed the guru of shipbroking) Copyright © 2009-17 by Virtualshipbroker