ABSTRACT

The contract between the charterer (one who charters the ship) and the shipowner is known as a charterparty. 5 In English law, there is no requirement that it be in a written form. However, it is usual for the charterparty to be in writing. The charterparty will identify the vessel, the cargo it is to carry, the voyage(s) or time for which the ship is made available and contain terms in respect of the various responsibilities and liabilities of the shipowner and the charterer. Charterparties have been standardised since the beginning of the 20th century by organisations such as the Baltic and International Maritime Conference – now known as the Baltic and International Maritime Council (BIMCO) – and the Chamber of Shipping. A number of standard charter forms are available – some for use with all cargoes and some for special cargoes, such as grain. Of course, the parties may vary the charterparty clauses, should they wish to. It is not unusual to fi nd amendments or additional clauses, since some of the standard charterparties drafted in the early part of the 20th century do not refl ect the current trade practice. 6 Other than standard form charterparties, charterers such as oil companies who charter vessels on a frequent basis have their own charterparty forms (e.g., British Petroleum’s Beepeevoy and Shell’s Shellvoy). Terms expressed in the charterparty, provided it is governed by English law, are subject to rules of interpretation of contract terms and general principles of English contract law. 7 However, English common law implies a few

obligations on the part of the shipowner and the charterer, which are considered in this chapter. Before going on to the common law implied undertakings, a brief description of the different types of charterparties is provided.