Chartering
RMSI Shipping Services (RMSI-SS) has
expertise, network & support of major owners and shipping brokers. We specialize in international S&P and
chartering of Tankers and Offshore vessels.
Charter Types
Contract of Affreightment (COA) - A service contract
under which a ship owner agrees to transport a specified quantity of fuel
products or specialty products, at a specified rate per ton between designated
loading and discharge ports. This type contract differs from a spot or
consecutive voyage charter in that no particular vessel is specified. (Rates
are usually discounted below other forms of contracts.)
Period Charter - Refers to consecutive voyage (C/V) exceeding four voyages,
time charters (T/C) and bareboat charters. – Note: Loose term may have other
connotations.
Spot (Voyage) Charter - A charter for a particular vessel to move a single
cargo between specified loading port(s) and discharge port(s) in the immediate
future. Contract rate (spot rate) covers total operating expenses such as port
charges, bunkering, crew expenses, insurance, repairs, and canal tolls. The
charterer will generally pay all cargo-related costs.
Time Charter (T/C) - A charter for varying periods of time, usually between two
and ten years, under which the owner hires out the vessel to the shipper fully
manned, provisioned, stored and insured. The charterer is usually responsible
for bunkers, port charges, canal tolls and any crew overtime connected with the
cargo. The charter rate (hire) is quoted in terms of a cost per month per
deadweight ton.
Charterer - The company or
person given the use of the vessel for the transportation of cargo or
passengers for a specified time.
Charter Party - A document of contract, or agreement, by which
a ship-owner agrees to lease, and a charterer agrees to hire, an entire ship,
or all or part of the cargo space to carry cargo for an agreed sum under
certain conditions.
Vessels Size & Uses
VLCC 280K BLT 89/90
SUEZMAX 140K BLT 89/90
AFRAMAX 95K BLT 92/93
AFRAMAX 90K BLT 89/90
PRODUCT 40K BLT 89/90
Tankers and barges come in all sizes from the small harbor/lake variety to the
biggest things ever built by man that move. The size of any particular tanker
depends on many factors. Use, cargo type, amount and demand, passage length and
port restrictions at both loadport and the discharge port are among the most
important of these. Tankers were classified in 1974 by AFRA for freight
purposes as follows:
Under 16,500 DWT - Coastal, Small, Harbor/Lake Tankers
16,500 - 24,999 DWT - General Purpose Vessels
25,000 - 49,999 DWT - Medium Range Vessels
50,000 - 79,999 DWT - LR1 (Large Range 1)
80,000 - 159,999 DWT - LR2 (Large Range 2)
160,000-320,000 DWT - VLCC (Very Large Crude Carrier)
320,000 DWT & above - ULCC (Ultra Large Crude Carrier)
Coastal, Small, Harbor/Lake Tankers - Under 16,500 DWT
These small ships supply terminals with a variety of products from heating oils
gasolines and kerosene, to more exotic fuels and chemicals. They are
predominantly product carriers and are also are used extensively for bunkering
service in harbors and busy ports.
General Purpose Vessels - 16,500 - 24,999 DWT
On a worldwide basis, this class of vessel probably covers the largest range
and variety of cargoes carried. This class of ship includes chemical carriers,
special service product and crude oil vessels and serve mostly coastwise
terminal trades.
Medium Range Vessels - 25,000 - 49,999 DWT
Medium sized tankers cover a broad range of vessel types. Ships of this size
category are capable of carrying almost any kind of petroleum product. The
smaller group will usually carry gasolines, jet fuels, chemicals and heating
oils. The larger size of the group will carry heavier fuel oils and crude oils.
LR1 (Large Range 1) - 50,000 - 79,999 DWT
LR2 (Large Range 2) - 80,000 - 159,999 DWT
Vessels in this class that are less than 100,000 dwt are divided into two basic
categories namely, "Dirty " and "Clean". The
"dirty" vessels carry the "black" or dirty cargoes such as
crude oil , heavy fuel oils, asphalt etc. The "clean" vessels carry
the refined "white" clean products such as gasoline, jet fuels,
kerosene etc. Chemical carriers would also fall into the "clean"
category. Because of the strict tank inspection requirements for clean
products, most proprietary vessels or those on long term charter or do not
routinely change their trading patterns from clean to dirty or vice versa.
However market requirements and charter economics do require vessels to
sometimes slip in and out of these clean and dirty trades. Vessels in this
class that are over 100,00 dwt tend to be crude oil carriers only.
VLCC (Very Large Crude Carrier) - 160,000-320,000 DWT
ULCC (Ultra Large Crude Carrier) - 320,000 DWT and above
Because of their huge sizes these vessels have been almost exclusively only
used for the carriage of crude oils. Only the smallest of this category has
carried any type of refined products. Several of these ULCC classed vessels
were over 500,000 and the biggest of these ships had a deadweight of 564,939
tons.
