Ship Chartering contribution in wealth creation - 25 April 2019

1. Shipping Academic ConferencesShipping Academic Conferences
www.shippingconferences.comwww.shippingconferences.com
Ship CharteringShip Chartering
Contribution in Wealth CreationContribution in Wealth Creation
Presented byPresented by
CK SharmaCK Sharma
Academic AdvisorAcademic Advisor
25th
April 2019
Leela Hotel Mumbai

2. Chartering FocusChartering Focus
Timing of Market Entry
Parcel Size determination
Choice of Owners
Age of vessels to be Chartered
Studying Markets – present and future.
Understanding Risks
Navigation Hazards in Voyage.
Dangers associated with Cargoes.
Cargo Insurance – extreme care needed
Dangerous Countries.
Beware of Maritime Frauds controllable
by Smart Chartering.

3. Period Charter – mv Coral SeasPeriod Charter – mv Coral Seas
The vessel was on 5 year period Charter
Charterers returned her to Owners after 3
years.
The Owners sold the ship and claimed that they
would have made USD 12 Million more if the
vessels had continued on Charter for 5 years.
Case went upto Supreme Court. It was decided
that Owners had the right to sell the ship
anytime and can’t claim any loss from
Charterers.
As the Charter Hire market was higher than the
TC rate, there was no claim on Charterers.

4. Chartering CasesChartering Cases
Force Majeure : Power Failure vs.
Power Shut down – Jag Rani C/P Feb
2012 at Ennore.
SCI vessel on Trip Time Charter for
Loading Rice from Kandla to Mongla
in Bangla Desh.
Difference between full stop and
Comma in a CP.

5. Contract – Offer & Acceptance
 The machine represents the offer, the acceptance is inserting the money.
 Thornton v Shoe Lane Parking [1971] 2 WLR 585 Court of Appeal:
 The claimant was injured in a car park partly due to the defendant's
negligence. The claimant was given a ticket on entering the car park
after putting money into a machine. The ticket stated the contract of
parking was subject to terms and conditions which were displayed on the
inside of the car park. One of the terms excluded liability for personal
injuries arising through negligence. The question for the court was
whether the term was incorporated into the contract i.e. had the
defendant brought it to the attention of the claimant before or at the time
the contract was made. This question depended upon where the offer
and acceptance took place in relation to the machine.
Held by Court:
The machine itself constituted the offer. The acceptance was by putting
the money into the machine. The ticket was dispensed after the
acceptance took place and therefore the clause was not incorporated
into the contract.

6. Due Diligence before fixing leading to profit
or loss to Owners/Charterers
I am faced with a real life scenario today when an
unknown Owner has given me the lowest offer
through a lesser known broker. My challenge is
whether I should just fix the lowest or negotiate
with a well known Owner like Cargill by asking
them to match the figure. Will I be dishonest?
Korean Fiasco:
Very reputed Charterer in Bombay hired a
vessel for Project cargo from China from a
Korean Owner. The new broker fiddled with the
CP and changed Freight payment to be paid in
Bombay through brokers account ………… rest
is history.

7. THANK YOU FRIENDS