{n){(nn) to be deleted BS (nn) & (p) (a) «) (s) (4 INTERCONSEC FG) ‘TANKER CONSECUTIVE VOYAGE CLAUSES Issued by Adopted by Intarnationsl Auction of ‘The Battle and Internetional Independent Tanker Owners Maritime Cantera UINTERTANKO). Ditibution (BIMCO}.. Distribution sgdrawe: P.O. Box 1452 Vika, sddrem: 10 Keitaniagact, ost? Dx-2100 COPENHAGEN’ ‘Addendum to INTERTANK VOY 76 (P | and 11) and other tanker vovage charts parias ferences 19 INTERTANK VOY 76, which ara in italics, should be amended) Duration: This Charter Party shall remain in force for consecutive voyages. The vessel shall perform the maximum number of consecutive voyages in respect of which the vessel can tender for loading within a period of commencing from the time of proper tendering of notice of readiness on the first voyage. Late Payment of Freight: Payment received after the time stipulated in Line 63 shall bear interest at a rate of . per cent. In the event of default of punctual payment of freight Owners will notify Charterers whereupon they shall make payment of the amount due within 96 hours of such notice being given, failing which Owners shall have the right to cancel the remaining voyages under this Charter Party. Until freight in respect of previous voyages has been paid Owners shall not be obliged to commence loading for a new voyage and time lost thereby to be counted as laytime. If Owners’ option to cancel is exercised and the delay in payment is not beyond Charterers’ control they shall be liable for loss of balance of charter. Whether or not Owners exercise this option no claim they may have on Charterers for loss of time or otherwise shall be prejudiced thereby. Laydays/Cancelling Date: The dates inserted in (e) and (f) above refer to the first voyage only, but any cancellation takes effect for the whole Charter Party. Backhaul Voyages: Charterers have the option of loading cargoes at the same port or place at which inward cargo was discharged or at a port or place near thereto for discharge at a port or place en route to the next loading port or near thereto. All time used on such backhaul voyages in excess of time used on a normal ballast voyage shall be paid for by Charterers at a rate of demurrage stipulated in (j) above, less value of in port bunkers consumption in accordance with Line 119. Charterers shall also pay all extra charges and expenses and for replacement of any additional bunkers consumed at the cost price at the port where and when bunkers are taken, If it may be subject to doubt whether a voyage shall be deemed to be a backhaul or an ordinary loaded voyage both parties shall have a duty to clarify this question before loading. First voyage loading range Last voyage discharge range. Ballast Distance: Charterers undertake that the total distance which they may require the vessel to steam in ballast, exclusive of the initial ballast voyage to the first loading port, but inclusive of the distance from the last discharge port under this Charter Party back to the first loading port on the final voyage, shall not be longer than the total distance the vessel steams with cargo on board. For the purpose of this calculation any voyage with backhaul cargo shall be regarded as a ballast voyage and any deviation from the direct route steamed for the purpose of a backhaul cargo shall be disregarded. Any time lost by any such excess ballast distance shall be paid for by Charterers at the rate of demurrage stipulated in (j) above. Charterers shall also compensate Owners for the additional bunkers consumption calculated on the excess ballast distance and the price paid when last bunkering under this Charter Party. 4 8 16 7 8 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 ul 112 113 14 115w) (uw) oy Average speed in ballast... Distance Table Bunkers consumption (a) at sea .. (b) in port... Short Ballast Voyages: If the duration of a ballast voyage is insufficient to enable the necessary cleaning of tanks or reception facilities are not available locally Owners to be compensated for time so lost at the demurrage rate stipulated in (j), less value of in port bunkers consumption in accordance with Line ¥ above. Charterers shall also pay for replacement of any additional bunkers consumed at the cost price at the port where and when bunkers are next taken. wen tons per day, War: In event of the outbreak of war (whether there be a declaration of war or not) between any two or more of the following countries: The United Kingdom, The United States of America, France, Japan, The Union of Soviet Socialist Republics, The People’s Republic of China and..... — or in the event of the vessel being requisitioned, either the Owners or the Charterers may cancel this Charter Party. The provisions of INTERTANKVOY PART II Clause 29 shall apply to any cargo on board at the time of cancellation. ‘The vessel is at present insured against war risks for a value of 7 ; a at rates of . per cent on hull and machinery risks and per cent on hull interest risks Any increase in the premium rate of these insurances during the currency of this Charter Party shall be reimbursed by Charterers. In respect of loss of hire insurance, Charterers shall bear any extra premium due to increase in the premium rates ruling at the date of this Charter Party. Any increase in the cost of war bonus to officers and crew for the voyage performed as compared with the cost ruling at the date of this Charter Party, shall be reimbursed by Charterers. Special Provisions: ‘Second printing December 1978, 6 17 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143INTERCONSEC 76 TANKER CONSECUTIVE VOYAGES CLAUSES ISSUED 1977 General Background ‘The Documentary Committee is of the opinion that a charterparty for consecutive voyages shall not be drawn up as a complete charter containing all the clauses necessary for performing each separate voyage, with only slight differences from the clauses of a single voyage charter party. Much space is saved by leaving everything concerning each single voyage to a usual voyage charter Party. The "Consecutive Clauses” will then only be dealing with the period, and other matters of particular interest because the voyages are to be consecutive. The consecutive clauses will then appear as a “rider” to the single voyage charter party chosen, and the clauses will mostly be individual, “fill-in” clauses. When INTERTANKVOY 76 is chosen, which we of course do here, the "Consecutive Clauses” will therefore come in Part I, but attached to the end. Nothing from Part I, names of the parties and the vessel ete can be left out. ‘Thus, Parts I og II have their usual functions. The present consecutives’ “rider” may in the same way be used with any other tanker voyage charter party. Then the specific references we have made to clauses of INTERTANKVOY 76 must be adjusted. In order to make those references easy to find, they are printed in Italics, see lines 79, 90, 96, 113, 122 and 131. Comments on the Clauses Duration, Clauses (n) and (nn) ‘Those two clauses are the common alternatives for defining the duration, Clause (n) stipulates a simple number of voyages, say five or ten. This is suitable for shuttle traffic between two ports or two ranges. When charterers have the choice between different voyages they may control the duration of the contract. If they have a wide option of long or1 short voyages, there is the risk that on a falling market all voyages will be short, reducing the volume of the contract. Clause (nn) is therefore more suitable when both long and short voyages may be chosen, since there will be a higher number of short voyages within the period of the charter party. However, it may be that very short loaded voyages do not give the same return as longer voyages. Partly this problem has been solved in the: Short ballast voyages, Clause (t) Under this clause charterers shall compensate owners for the difficulties and costs arising when the ballast voyages are so short that normal cleaning cannot be effected en route, A special arrangement may be agreed that sediment shall be left in the cargo tanks, but then the question of lost deadweight must be taken into account. ‘The finesse of deducting the value of in port bunkers consumption is due to the fact that this is included in the demurrage rate, and the additional consumption caused by the cleaning is payable in addition to the loss of time at the demurrage rate, Late payment of freight, Clause (0) INTERTANKVOY 76 has very little on that point, which is more burning for consecutive charter parties. As in time chartering the risk of being tied to a charterer who cannot pay is very serious, and it is necessary to stipulate a right to withdraw. The same modification by protesting against a late payment, coupled with "days of grace”, is needed. Also the right of suspension. The owners should not be obliged to lift a new cargo so long as freight for an earlier shipment remains unpaid. The provision for interest on overdue freight is reasonable. If the voyage charter party should — exceptionally — contain an interest clause it is not necessary here. Compare Clause 4 of INTER- TANKTIME 80 (page 17, below), and Clause (I) of INTERCOA 80 (page 26, below). Laydays / cancelling date, Clause (p) There is a cancelling clause in every charter party, but when there is question of a period charter party it is necessary to stipulate something like this. Compare Clause 2 of INTERTANKTIME 80, (page 13, below). Not so wide an option of cancelling is found in Clause (J) of INTERCOA 80, (page 26, below). Backhaul voyages, Clause (a) ‘The origin of such clauses were the need for fresh water at certain terminals, Water could be carried on the ballast legs on the basis of extra cost and time lost only. Since the freight in the tanker trade is based on a ballast voyage of equal length, this is reasonable. Such clauses are not found in single voyage charter parties. If charterers want to have any cargo carried on the approach voyage they must negotiate for it before fixture. First and last voyages, Clause (r) ‘The position of the vessel "before and after” is important. To limit the freedom of the last voyage has a bearing on the problems dealt with in the next clause(s).12 Ballast distance, Clause(s) It is essential on consecutive voyages that the charterers provide a reasonable balance between loaded and ballast distances. Charterers have no control over where the ballast voyage to the first loading port may begin. Thus, for calculation purposes the wording “exclusive of the initial ballast voyage to the first loading port” is a phrase common in such clauses, and also used in INTERCONSEC 76. When the vessel discharges the last cargo, a last ballast voyage is still "needed” to balance the picture, This is solved by Mobil, Caltex, Standard Oil and Shell by including the distance from the last discharging port back to the loading port on the final voyage. This principle is also now laid down in INTERCONSEC 76, even though a very short last loaded voyage might unbalance the picture in owners’ disfavour. War, Clause (u) ‘The effect of war risks upon performance of each separate voyage is dealt with in the voyage charterparty, see line 131 referring to Clause 29 of Part II. What is needed here refers to the period of consecutive voyages. First a cancelling clause, parallell to INTERTANKTIME 80, Clause 33 (E) and INTERCOA 80, Clause (K). Then escalation of war insurance premium and war bonus to officers and crew. If a wider scope of escalation is agreed, Clause 33(C) of INTERTANKTIME 80 could be a model. There, any increase of ordinary wages and cost of provisions and stores are included, Special provisions, Clause (v) Owners may here find it advisable to include a "bunker escalation clause”. A bunker clause suitable for a consecutive coyage charter party is-found in the BIMCO Bunker Rise Clause for ‘Voyage Chartering — "This Charter is concluded on the basis of a price of... per ton of* for bunker** it of .. usa: Grade in force on the date of this Charter. If the price actually paid by the Owners during the period of this Charter for the quantity consumed on the contracted voyage(s) should be higher, the difference shall be paid by the Charterers to the Owners on production of the Owners’ account therefor. * Insert 1,000 kilos or 2,240 Ibs as applicable ** Indicate whether diesel, fuel or gor ol.” Another possible additional clause is the draft SUBSTITUTION CLAUSE, see p. 3, above, As in other period charters a currency clause might be included amongst the Special Provisions. See under INTERTANKTIME, p. 14, below.