Time Charters & Hire Clauses - An Introductory Guide for Shipping Lawyers

Introduction

A time charter is a contract for services where the owner hires out their vessel to the charterer together with its master and crew for an agreed period of time.

During that time, the charterer will pay periodic hire payments to the owner. The owner earns money by being paid hire on a regular basis and the charterer may in turn make money by entering into other contracts.

Issues and disputes can arise between the owner and charterer under a time charterparty, particularly if a vessel is chartered for a long period.

It is therefore important for parties to understand their rights and liabilities, the potential areas where disputes may be fertile and the remedies which are available to them if a dispute arises.

This new virtual classroom seminar will provide you with an introduction to time charters under English law and focuses on the legal and practical issues which arise from some of the key terms in a time charter.

It will also focus on hire clauses, highlighting how the risk is allocated between the parties, the potentially problematic areas and provides practical tips when issues arise.

What You Will Learn

This live and interactive session will cover the following:

Nature of a time charter

• A contract for services
• The commercial reasons for time chartering
• The transfer of trading risk between the owner and charterer

Time charters in the context of international trade

• How the time charter fits in with other contracts (the bill of lading, sale contract and the charter chain)

When is a time charter concluded

• The format of a time charter
• How to read a time charter
• The status of the recap and the use of standard forms

The owner's principal obligations

• Delivery of the vessel
• Description of the vessel
• Seaworthiness obligations
• Allocation of risk for cargo operations

The charterer's principal obligations

• Safe port obligations
• Shipping lawful goods
• Allocation of risk for cargo operations

Key terms of a time charterparty including:

• The vessel
• The charter period
• Trading limits and safe ports/berths
• Hire and off-hire clauses
• Speed and consumption clauses
• Bills of Lading
• Cargo operations and claims

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.