Chartering Desk

Voyage charter, time charter or COA

The charter type decides who carries the market and operating risks. Most spot cargoes move on voyage charters. Time charters suit customers with steady programs who want control of a ship. A contract of affreightment (COA) commits the owner to carry a set volume over a period, leaving the owner to choose which ship lifts each cargo.

Worldscale and freight

Tanker voyage freight is usually quoted in Worldscale points. The Worldscale Association publishes a flat rate in US dollars per metric ton for each route, calculated for a notional standard tanker, and issues new rates every January. WS 100 is the flat rate itself; a fixture at WS 85 pays 85% of it. Because flat rates change each year, a WS figure means nothing without its year.

Freight is calculated on the bill of lading quantity, or on the minimum cargo quantity in the charter party if that is higher. If the charterer ships less than the agreed minimum, the shortfall is paid as deadfreight. Contracts of affreightment often carry a bunker adjustment clause, so freight follows fuel prices over the life of the contract.

Charter party forms

Most tanker voyage charters start from one of three printed forms, amended by the main terms and by long riders of standard clauses. The form matters most when something goes wrong: an invalid NOR, a ship waiting for a berth, cargo short on outturn. We read each charter party against the terminal rules at both ends and flag conflicts before fixing.

Laycan, NOR, laytime and demurrage

Laycan is the window of laydays and cancelling: laytime does not start before the first day without the charterer's consent, and the charterer may cancel if the ship is not ready by the last. Once the ship has arrived at the customary anchorage or berth and is ready in every respect, the master tenders notice of readiness (NOR). Under ASBATANKVOY, laytime starts six hours after NOR or on arrival in berth, whichever comes first.

Laytime is the time allowed for loading and discharging, often 72 running hours in total. Time beyond it is demurrage, paid at the daily rate in the charter party and pro rata for part days. Shifting from anchorage to berth does not count, and under ASBATANKVOY some causes, such as fire, explosion or storm, are paid at half rate. Claims must be filed with documents within the time bar, often 90 days.

Deviation, vetting and voyage orders

Deviation is departing from the agreed or customary route without permission. An unjustified deviation is a serious breach that can strip the owner of contractual protections, so any change in discharge port, ship-to-ship transfer or bunkering stop is agreed in writing and matched in the bills of lading.

• Vetting approval confirmed before subjects are lifted
• Voyage orders with terminals, grades, quantities and heating instructions
• Letters of indemnity only on standard wording, for discharge without original bills or at a changed port
• Daily position reports and ETA updates fed to the tracker
• Laytime statement and demurrage claim filed with supporting documents