Tanker Chartering

Commercial shipping tanker chartering is the process of hiring a tanker ship to transport oil or other liquid cargo. Tanker chartering can be complex and involves a number of factors, including the type of cargo, the size of the ship, the voyage route, and the current market conditions.

Types of tanker charter parties

There are two main types of tanker charter parties: voyage charter parties and time charter parties.

• Voyage charter parties: Voyage charter parties are agreements for the carriage of a specific quantity of cargo from one port to another. The charterer pays the shipowner a freight rate, which is typically calculated based on the amount of cargo transported and the distance traveled.
• Time charter parties: Time charter parties are agreements for the charterer to have the use of a tanker ship for a specific period of time. The charterer pays the shipowner a time charter rate, which is typically calculated based on the size of the ship and the duration of the charter.

##Common terms in tanker charter parties

Some of the common terms in tanker charter parties include:

• Freight rate: The freight rate is the price that the charterer pays to the shipowner for the carriage of the cargo.
• Laytime: Laytime is the amount of time that the charterer has to load and discharge the cargo.
• Demurrage: Demurrage is a charge that the charterer pays to the shipowner for each day that the laytime is exceeded.
• Despatch: Despatch is a bonus that the shipowner pays to the charterer for each day that the laytime is saved.
• Loading and discharging ports: The loading and discharging ports are the ports where the cargo will be loaded and discharged.
• Cargo specifications: The cargo specifications include the type of cargo, the quantity of cargo, and the condition of the cargo.
• Ice clause: The ice clause is a clause that protects the shipowner from additional costs incurred due to ice conditions in the loading or discharging ports.
• War risk insurance: War risk insurance is insurance that protects the shipowner and charterer from losses caused by war or other hostilities.

Negotiating a tanker charter party

The negotiation of a tanker charter party can be complex and time-consuming. The charterer and shipowner will need to negotiate the terms of the charter party, such as the freight rate, laytime, demurrage, and despatch. The charterer will also need to provide the shipowner with the cargo specifications and arrange for war risk insurance.

Once the terms of the charter party have been agreed upon, the charterer and shipowner will need to sign the charter party. The charter party will then be legally binding on both parties.

Conclusion

Commercial shipping tanker chartering is a complex process, but it is essential for the transportation of oil and other liquid cargo by sea. By understanding the different types of tanker charter parties and the common terms used in these charter parties, charterers and shipowners can negotiate and agree to contracts that meet their needs.

In addition to the above, here are some other factors that can affect the tanker chartering market:

• Global oil demand: Increased global oil demand can lead to higher tanker charter rates, as there is more demand for tanker ships to transport oil.
• Geopolitical instability: Geopolitical instability in oil-producing regions can lead to higher tanker charter rates, as there is increased risk associated with transporting oil from these regions.
• New tanker ship construction: An increase in new tanker ship construction can lead to lower tanker charter rates, as there is more supply of tanker ships available.
• Scrapping of older tanker ships: A decrease in the number of older tanker ships being scrapped can lead to higher tanker charter rates, as there is less supply of tanker ships available.

Tanker charterers and shipowners need to be aware of all of these factors when negotiating charter parties in order to ensure that they are getting the best possible deal.