Sat, Oct

Delivery and redelivery clauses


Delivery and redelivery clauses. A time charter commences with the "delivery" of the vessel to the (control of the) charterer and comes o an end with the “redelivery" of the vessel to the owner's control.

The delivery and redelivery will usually take place at a port but can also occur at sea when the vessel is in a specified area. Examples of the latter are "Arrival Pilot Station", "Dropping outward pilot", "Passing Cape Passero" (in Sicily), "Passing the Skaw” (at the entrance to the Baltic Sea), and such other positions. In the latter case, the condition of the vessel can be ascertained in a port before the vessel reaches the nominated position; with regard to the fuel on board, a calculation can be made of the quantity taking into account the fuel consumption from the last position where tank soundings were taken. Normally an independent surveyor or surveyors representing the owner and charterer carry out an on hire and off hire survey but this would be impracticable when the vessel is in a position at sea. The delivery and redelivery are more concerned with the instant when the time charter commences and ends than with physical transmission of the vessel to the parties.

Numerous clauses in the charterparty will cover delivery and redelivery. Taking relevant portions in the ASBATIME form as examples:

"Delivery: Vessel shall be placed at the disposal of the Charterers . . . in such dock or at such berth or place . . . as the Charterers may direct . . . Vessel on her delivery shall be ready to receive cargo with clean swept holds and tight, staunch, strong and in every way fitted for ordinary cargo service, having water ballast and with sufficient power to operate all cargo handling gear simultaneously (and with full complement of officers and crew for a vessel of her tonnage) . . ."

"Bunkers on Delivery and Redelivery: The Charterers on delivery, and the Owners on redelivery, shall take over and pay fox all fuel and diesel oil remaining on board the vessel as named hereunder. The vessel shall be delivered with . . . long/metric tons of fuel oil at the price of . . . per ton; . . . tons of diesel oil at the price of . . . per ton."

"Rate of hire, Redelivery Areas and Notices: The Charterers shall pay for the use and hire of the said vessel at the rate of . . . commencing on and from the day of her delivery, as aforesaid, . . . hire shall continue until the hour of the day of her redelivery in like good order and condition, ordinary wear and tear excepted, to the Owners (unless vessel lost) at . . . unless mutually agreed. Charterers shall give Owners not less than . . . days notice of vessel's expected date of redelivery and probable port."

"On/Off-hire Survey: Prior to delivery and redelivery the parties shall each appoint surveyors, for their respective accounts, who shall conduct joint on-hire/off hire surveys. A single report shall be prepared on each occasion and signed by each surveyor, without prejudice to his right to file a separate report setting forth items upon which the surveyors cannot agree. If either parry fails to have a representative attend the survey and sign the joint survey report, such party shall nevertheless be bound for all purposes by the findings in any report prepared by the other parry. On-hire survey shall be on Charterer's time and off hire survey on Owner's time."

The delivery of the vessel must take place before the cancelling date agreed in the charterparty. The redelivery should take place at the date agreed for the end of the time charter but notice should be taken of any margin in the period. Because the vessel must be redelivered to the owners "in like condition", the cargo spaces must be in the same condition as when the vessel was delivered. This may require extensive cleaning. It may be possible far a clause to provide for the charterer to pay the owner an agreed sum of money to cover cleaning costs in exchange for a right to redeliver the vessel without the charterer's arranging for the cleaning. The sum can he agreed beforehand but it is more in the owner's interest to agree the amount on redelivery because at that time he will be able to assess the actual costs depending on the last cargoes carried.

The independent surveyors produce a "survey report" or "Certificate of Delivery" or "Certificate of Redelivery" after the relevant surveys. In the document the quantities of fuel and diesel oil on board and the apparent condition of the vessel and its cargo spaces are certified. If the delivery or redelivery is at a place outside a port, either the ship's officers can take tank soundings or a calculation can be made from the last certified tank soundings, based on the vessel's fuel consumption between points.