20 Questions
What is a charter party?
A legal agreement between a shipowner and a charterer
What is the role of the opening bank in a letter of credit transaction?
They issue the L/C and are responsible for payment
What are the two main types of charter parties?
Time charter and voyage charter
What is the purpose of the advising bank in a letter of credit transaction?
To notify the beneficiary of the L/C terms
What is voyage charter used for?
A single voyage or a series of voyages
What is the role of the confirming bank in a letter of credit transaction?
To assure payment under the credit
What is time charter used for?
A specific period of time
What are the documents required for payment under a letter of credit?
Bill of lading and commercial invoice
What is the purpose of a documentary collection?
To enlist the help of a bank in the exporter's country to collect payment from the importer
What are some examples of standard charter party forms for different types of cargo?
Grain Charter and Australian Wheat Charter
What is a common type of documentary collection?
Bill of exchange or draft
What is bareboat charter?
A type of charter party where the charterer takes full control of the vessel
What is TradeCard?
A proprietary electronic system gaining more acceptance in the trade community
What are some costs associated with shipping?
All of the above
What are some examples of voyage costs?
Bunker/fuel costs and port expenses
How much does TradeCard charge for a transaction up to $100,000?
$150
What can affect ship costs?
All of the above
What is the expected role of TradeCard in the future?
To become a dominant method of payment in the 2020s
What can affect ship revenues?
Both A and B
What is the purpose of the Uniform Customs and Practice for Documentary Credits (UCP)?
To set rules on the issuance and use of letters of credit
Study Notes
- The text discusses various types of charter party forms used in shipping.
- Charter parties are legal agreements between a shipowner and a charterer.
- There are two main types of charter parties: voyage charter and time charter.
- Voyage charter is used for a single voyage or a series of voyages.
- Time charter is used for a specific period of time.
- There are various standard charter party forms available for different types of cargo.
- Some examples of standard charter party forms are Grain Charter, Australian Wheat Charter, AMWELSH, FERTICON, CUBASUGAR, INTERTANKVOY, GASVOY, and BIMCHEMVOY.
- There are also standard charter party forms for time charter, such as BALTIME 1974, LINERTIME 1974, NYPE, SHELLTIME, and BEEPEETIME.
- Bareboat charter is another type of charter party, where the charterer takes full control of the vessel.
- The text mentions BARECON A as an example of a standard bareboat charter party form.
- Charter parties contain various clauses, such as the Bunker Clause, Ship Clause, Ice Clause, and Negligence Clause.
- Costs associated with shipping include acquiring ships, operating costs, voyage costs, cargo handling costs, and landside costs.
- Operating costs include crew costs, stores and consumables, maintenance and repairs, insurance, and administration.
- Voyage costs include bunker/fuel costs, port expenses, and canal charges/dues.
- Cargo handling costs include loading and discharging costs, such as stevedoring and cargo surveys.
- Landside costs include cargo wharfage, warehouse rent, and onward transportation.
- Loading and discharging costs can be divided between shipowners and charterers.
- Ship costs are affected by factors such as ship age, inflation, and company management.
- Economies of scale can affect ship costs, with larger ships having lower costs per unit.
- Ship revenues are influenced by cargo capacity, ship productivity, and freight rates.
Think you know about shipping and charter parties? Test your knowledge with this quiz! From different types of charter party forms to the various clauses found within them, this quiz will cover it all. Learn about the costs associated with shipping and how they affect ship revenues. Test your understanding of the terminology used in the shipping industry and see how much you know!
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