3) Chapter 3. Freight Markets and Market Practice. Flashcards
Actors of marketplace?
Charterer,
Shipowner,
Operator,
Shipbroker
Charterer?
Shipowner?
Operator?
Shipbroker?
Charterer - Those who charter ships to carry commodities.
Shipowner - owners of a ship.
Operator - experienced in mechanisms, setting out to create income from trading in ships and cargoes.
Shipbrokers - actors in the middle of this marketplace.
Letter of Credit?
A documentary letter issued through a bank of good repute, satisfactory to the seller.
Might be revocable or irrevocable.
Bill of lading?
Shipowner or ship’s Master confirms that cargo received on board is in good condition at the port of loading.
Other Documents used as prerequisite to release funds under a letter of credit:
- Insurance papers, either a policy or a certificate, in accordance with the sale agreement.
- Invoices covering the goods.
- Certificate of origin of the goods.
Methods of ship employment?
- Voyage Chartering
- Consecutive voyages
- Time chartering
- Bareboat chartering
- Contracts of affreightment
- Joint Ventures
- Shipping pools
- Parcelling
- Project cargoes
- Slot charters
Voyage Chartering?
Single trip.
Load cargo, discharge cargo. Receive a monetary reward -freight.
Specify amount of time allowed for loading, discharging.
Laytime?
Amount of time spend on loading and discharging.
Consecutive voyage?
Pre-agreed repeat business.
Each voyage is treated as a separate contract for purposes of demurrage and despatch.
Time chartering?
Charterer assume control of the operational and commercial destiny of a vessel.
Management of the ship is owners responsibility.
Bareboat chartering?
Charterer assume both the time charterer’s responsibilities and shipowner’s.
Contracts of affreightment?
The governing detail is the cargo.
Contracts to carry a given quantity of cargo between named ports.
Joint ventures?
Those controlling cargoes come to terms under a joint veture arrangement with those controlling ships.
Profits and losses shared.
Shipping pools?
Group of shipowners band together.
Parcelling?
Grouping small parcels of commodities and shipping them together.
