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Shipbroking and Chartering Practice, 8th Edition, 2018

20 Απριλίου 2018.

biblioship1by Evi Plomaritou and Anthony Papadopoulos

Publisher: Informa Law from Routledge

Series: Lloyd's Practical Shipping Guides

 

Specifications: 738 pages, 15 chapters, 53 illustrations, 16 appendices, analytical glossary of chartering terms and abbreviations

 

This classic Lloyd’s English textbook - which received wide recognition worldwide since its first edition in 1980, as written by Lars Gorton, Rolf Ihre and Arne Sandevärn-is now being published in the 8thedition by a new authoring team (Evi Plomaritou and Anthony Papadopoulos), but by the same publisher (Informa Law from Routledge, Taylor & Francis Group), as part of their series“Lloyd's Practical Shipping Guides”.

This book is a first point of reference for anyone looking to obtain an understanding of chartering and shipbroking practice. It provides hands-on, commercially-focused explanations of chartering business and invaluable advice on how the shipping market operates across a broad range of topics. The authors, based on personal experience, primary research, extensive bibliography and excellent sources, cover a wide range of topics around the subject, presenting thoroughly the commercial, financial, legal, operational and managerial aspects of chartering, through numerous case studies and tangible examples linking theory to practice.

This new edition has been fully revised and updated to reflect the current trends in chartering practice, legal developments and standard forms of charterparties. Highlights of this edition:

-Enriched with practical examples coveringcrucial aspects of chartering and shipbroking business, such as voyage estimations, comparison among chartering alternatives, freight conversions, the meaning of time charter equivalent, chartering negotiations, charter fixtures and tanker calculations based on Worldscale analysis.

-New material on day-to-day laytime principles, including "Laytime Definitions for Charterparties 2013", associated official commentary and relevant examples.

-Shipping Marketing as a modern tool of improving chartering and shipbroking business.

-Expanded coverage on the economic background of chartering, including markets, vessels, cargoes, trades and fixtures.

-Tables of historical time charter rates for all vessel types from 1980 to 2015.

biblioship2-Updated review of well-known standard charter party documents (including NYPE 2015), together with clauses and wordings commonly applying to various charter types.

-Analytical glossary containing typical terms and abbreviations used in daily chartering negotiations.

-The comprehensive, concise, authoritative and easily conceivable writing style of previous versions is maintained.

This book is an essential guide for practitioners (in private practice or in-house for shipowners or cargo houses), as well as those studying shipbroking and chartering.

biblioship3Dr. Evi Plomaritou is a Shipping Consultant in Chartering & Shipping Marketing at Lloyd's Maritime Academy (UK) and a Lecturer at Frederick University (Cyprus).

Mr. Anthony Papadopoulos is a Shipping Credit Officer / Senior Shipping Analyst at National Bank of Greece.

Price: £220,00

Electronicpurchase / Discount:For any books ordered directly from the publisher’s internet sitewww.routledge.com/9781138826946, the code ATP20 can be used at the checkout to receive a 20% discount at the purchase, by following these two steps:

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2)SimplyenterthediscountcodeATP20 at the checkout to receive 20% off the electronic purchase.

 

Here below you may see an excerpt from the book:

 

Cost Allocation per Charter Type

 

The charter types influence considerably the revenue side, the cost structure, the risks undertaken and thus the profitability of a shipping company. Therefore, understanding the mechanisms behind the vessels’ charter types is a key aspect in the commercial management of ships. The most popular types of vessels’ charter are the voyage charter, the time charter, the bareboat charter and the contract of affreightment (CoA). This article presents briefly the cost and risk allocation per type of charter.   

 

1. Types of Charter

 

From a functional point of view, the most important distinction of charter types is made among a voyage charter, a time charter, a bareboat charter and some hybrid forms.

Under a voyage charter the owner promises to carry on board a specific ship a particular cargo from one port to another. The vessel shall arrive at the first loading port and be ready to receive the cargo on a certain day or within a certain period of time. The freight - to be paid per ton of cargo carried - is calculated for the voyage or the voyages to be performed. In a voyage charter the shipowner retains the operational control and the commercial management of the vessel, being responsible for all the (variable) voyage expenses, such as bunkers, port charges, canal dues, extra insurances, etc., further to the (fixed) daily running costs of the vessel. The charterer’s costs are usually expenses and charges relating only to the cargo. Loading and discharging costs are divided between the owner and the charterer in accordance with the agreement from case to case. For example, if FIO (free in and out) terms are agreed in the charterparty, the charterer bears the costs involved in connection with loading and discharging of cargo. When the charterer controls the cargo handling operations, he also has the responsibility for the efficiency of the loading and discharging, as well as for the time the vessel spends at ports. Often, but not always, he may have a liability with respect to damage occurring to the goods during loading and discharge.

The owner often puts the ship at the disposal of the charterer for a certain period of time, during which the charterer, within the limits of the agreement, controls the commercial employment (not the operation) of the vessel. In such cases, the price paid to the owner is not called “freight”, but “hire”, determined per time unit (for example per day) and paid regularly in advance. This type of charter is known as time charter.

Bareboat charter (or demise charter) is another form of a period charter, where the vessel is put at the disposal of the charterer for a certain period of time, but here the charterer takes over the possession and full control of the vessel (i.e. the entire responsibility for the operational and commercial function of the ship). All the costs and expenses except the capital costs are borne by the charterer. The capital costs are the only remaining to the shipowner.

Sometimes, the picture is often complex, since mixed charter forms have evolved. The most common hybrid charter type  is the contract of affreightment (CoA), where a shipowner may agree with a charterer to carry for him a large quantity of goods, on specific voyages between certain ports and within a specified period (e.g. 1 year). In order to perform his obligations under a contract of affreightment, the shipowner may employ several of his vessels on an almost continuous basis which in its regularity is similar to liner trading.

 

2. Cost Allocation per Charter Type

 

The commercial management of a ship always involves certain costs, undertakings, obligations, duties, risks and rights. The owners and the charterers have to determine the allocation of all these different elements when considering the charter form to be used and the necessary amendments to be made in the charterparty.

As to the costs involved, first the ship’s capital costs (e.g. interest, debt amortisation, rate of return) must be taken into account. Then, the ship’s operating or running costs follow. The ship must be manned, this involving wages, social costs, sickness costs, travel & repatriation costs, training costs, etc. The vessel has to be continuously maintained and repaired, while the owner has normally insured the vessel (hull and machinery, war risks), as well as his liability against third parties and banks (P&I, MII). Finally, the ship’s voyage costs are considered. Bunkers and other consumption materials (except lubricants which are typically regarded as operating expenses) have to be paid for, as well as port charges, canal dues, loading and discharge expenses etc. Besides, there are administrative costs which are dependent on the shipping business in general and the specific engagement of the individual vessel.

Further to the distribution of these costs, there are also risks to be allocated. For instance, who will bear the risk for loss of time arising from weather hindrance during the transit or in port, strikes, or political events? Who will bear the risk for a bad freight market? When such calculations are made, it is necessary to pay attention to the profit or loss arising.

The ship costs may be divided into fixed costs (capital and operating / running expenses) which are irrespective of the ship’s employment and variable costs (voyage expenses) which are directly influenced by the operation. It should be remembered that ship costs may be influenced considerably by legislation applied in different countries.