Moogular And yes, this can be a charterers problem: This wording was not included in Gencon 76 and gives some defense to Owners in case something goes wrong with the bill of lading holder. P 10 0 E charterama charterama. Since the Gencon 76 and the Gencon 94 are the most used forms, here, we will focus on gencpn two versions and will discuss the terms that make Charterers and Owners have a strong preference of one form over the other. And your quotation and your documentation will be with you within 24 working hours, or even the same day. This simple abbreviation mostly used in boxes 10 and 11 in for example the Gencon 94 Charter Party makes charterers responsible for the safety of the port. Especially the first larty is more than just vencon exposure for stevedore damage; this can make the charterer liable for improper stowage of the cargo.
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When reviewing the history of the GENCON it is interesting to record that since this Charter was first issued by BIMCO in only a few amendments have been made to it, some of which must be categorised as purely technical. At that time, however, it proved to be difficult to find a general support for such a review and the matter was therefore deferred.
It was generally accepted that even though the GENCON was still by far the most widely used general purpose voyage charter it was also a continuing source of litigation which could hardly be said to comply fully with the needs of modern chartering practice in all areas.
Given the importance of the matter, the Documentary Committee decided that, before a final decision was made about whether or not the GENCON Charter should be revised, a study group should be appointed with a view to identify areas in the Charter traditionally the subject of amendments and to come up with a list of recommendations of the areas to which particular attention should be given.
The recommendations of the Study Group were that, considering the clear pattern in the amendments typically made to the Charter, in the form of deletions of the printed text and rider clauses being added to the Charter a modest revision should be made in accordance with the following guidelines: 1 Update and clarify the Charter wherever needed.
Therefore, and in view of the fact that the details to be written into the boxes should be considered against the background of the provisions in the corresponding clauses in PART II, it has been considered more practical to make these observations, if any, together with the comments on the standard clauses in PART II, as set out below.
It appears that under English law when the charter party contains an ETA or cancelling date, there is a strict obligation on the part of the owners to ensure that the vessel sets out on the ballast voyage in time to reach the loading port within ETA or before the cancelling date. Whilst the exception clauses in a charter party may protect the owners for delays which occurs after the vessel sets out for the ballast voyage, they may not offer similar protection for delays which may result from the previous voyage s and against which the owners may have had no influence whatsoever.
If shipment of deck cargo has been agreed between the owners and the charterers, liability for loss of or damage to such cargo should always rest with the charterers. It is useful to recall that the task of the sub-committee engaged in the revision of the GENCON Charter was to undertake a modest review of the Charter, adding clarity and certainty to the rights and obligations of the owners and the charterers and not to fundamentally change the basic character of the Charter.
Clearly, changing the responsibilities of owners and charterers as embodied in Clause 2 and which have been tested by a vast number of legal decisions would almost per se change the basic concept of the Charter. Clause 3 — Deviation No change has been made to this Clause. Clause 4 — Payment of Freight This Clause has been revised to provide for alternative freight payment methods in line with modern standard documents developed by BIMCO. Whilst it is recognised that freight prepaid seems to be the predominant method of paying freight when fixtures are made on the GENCON Charter the option for the contractual parties to agree on payment of freight on delivery has been maintained.
If freight to be paid on delivery the charterers are given the option of paying the freight on the basis of delivered weight notwithstanding the provisions of sub-clause a i.
In addition, the Clause has been clarified to specify when freight shall be deemed earned; prepaid, cargo lost or not lost and when freight is payable. This decision has been made on the simple grounds that practically all fixtures made today on the GENCON, be it for short sea or deep sea chartering, are based on f. However, as will be seen, this sub-clause now also contains provisions relating to dunnage, previously part of Preamble.
Stevedore damage is another area repeatedly generating arguments and disputes and a new sub-clause c Stevedore Damage has therefore been inserted to deal with the problem. However, the fact that the master may be unsuccessful in getting such acknowledgement from the stevedores does not exonerate the charterers from liability for stevedore damage.
Clause 6 — Laytime Only minor clarifications have been made to sub-clauses a Separate laytime for loading and discharging and b Total laytime for loading and discharging. Previously, reference was made to hours only. Whilst sub-clauses a and b remain almost the same, sub-clause c Commencement of laytime loading and discharging has been subject to some amendment.
First of all, in order to pre-empt discussions about when laytime starts to count if notice of readiness has been given at noon it is more clearly specified by stating that if notice of readiness is given up to an including Realising that on the date of signing the charter party the name of the shippers may not be known, it has been deemed appropriate to specify that notice of readiness in the loading port shall be given to the charterers or their agents when the shippers are not named. Whilst the previous edition of the GENCON charter contained no provision for the party to whom notice of readiness should be given in the discharge port, it is now provided that notice hall be given to the charterers or their agent, if the receivers are not named.
Occasionally a problem arises when the vessel arrives at the loading port and is required to wait at the anchorage because the loading berth is not available. If the vessel tenders notice and it later appears upon arrival at the berth that the vessel is not clean, then the notice may be invalid because the vessel was not ready at the time of tendering its notice of readiness and laytime will not start to count until the vessel has been passed and a new notice of readiness given.
However, for the sake of clarity and in line with the various other standard charter parties issued or recommended by BIMCO, sub-clause c now specifically takes care of the problem. Clause 7 — Demurrage In order to reflect current practice when making fixtures on the GENCON, the reference to ten running days on demurrage to be allowed the charterers in the port of loading and discharging, has been deleted.
However, in the absence of a specific provision allowing the charterers to keep the vessel on demurrage for a limited period of time it is important for the owners to have in the charter party an express right to cancel the charter party in the event of outstanding payments of demurrage, as otherwise they may find themselves in the position where they would have to keep the vessel waiting for cargo loading operations to start for a considerable time without being able to terminate the charter party.
This would, in particular, appear to be a problem under English law when the owners are not able to cancel until there is a repudiation of the charter party. Another problem which owners should be aware of under English law is that the timely payment of money is not always accepted as an essential part of the contract.
Therefore, if demurrage is not paid after proper notices have been given, the owners run the risk that they may have no claim for damages. Accordingly, to give the owners a legal remedy when these unfortunate situations occur, it is now expressly provided that if demurrage is not paid on the expiration of the time limit provided, i. It is to be noted, however, that the right to terminate the charter party applies to the loading port only and, for all practical purposes, depends on no cargoes or part cargoes having been loaded and no bill of lading issued transferring the rights to the cargo to a third party.
Clause 8 — Lien Clause In order to reflect common practice nowadays, the old reference to damages for detention has been deleted. In addition, the Clause has been brought up to date in accordance with the more modern lien clauses making no reference to cesser type provisions i. The purpose of these so-called interpellation provisions is that the vessel shall not have to proceed on a long ballast voyage towards the loading port not knowing whether or not the charterers will accept the vessel once it has arrived.
The interpellation provisions found in the prior version of the GENCON Charter served little purpose, in particular in the deep sea trade, as the owners could well find themselves in a position whereby they would have to commence and almost complete a long ballast voyage before it would be known whether or not the charterers would cancel the charter.
This new Clause strikes a balance in as much as the owners may avoid setting out on a long ballast voyage to no avail whereas the charterers are at the same time given a reasonable time to declare whether or not they wish to cancel the charter party.
It is realised that in some cases the courts would probably deem such right of indemnity to be implied. However, it appears that in cases where a specific form of bill of lading may be contemplated by the charter party, courts have been inclined to deny the owners such right of indemnity. Clause 12 — General Average and New Jason Clause This is another standard clause which forms part of many standard charter parties.
As will be seen, in accordance with other general average clauses, General Average shall be adjusted in London, unless otherwise agreed. It spells out who is responsible for payment of taxes and dues. Clause 14 — Agency Except for the deletion of reference to brokers, no amendments have been made to this Clause.
It is deemed reasonable that it is the party who is responsible for the non-execution who also pays the brokerage, although it is realised that it can have the negative effect for the brokers that they may have to await the outcome of a possible dispute between the owners and the charterers regarding who is the responsible party before the commission is furnished.
In particular the introductory paragraph of the Clause according to which neither the owners nor the charterers shall be responsible for the consequences of strikes or lock-outs preventing or delaying the fulfilment of any obligations under the charter has time and again given rise to disputes.
Despite the fact that this provision is for the potential benefit of both the owners and the charterers it is wide in its terms and the apparent danger is that any strike which prevents or delays the fulfilment of any obligation under the charter party may fall within the scope of the Clause.
For instance strikes which take place inland at the production plants far away from the loading port as well as strikes of the crew, or of pilots or tugmen may be covered by the provisions of the first paragraph. It was therefore considered appropriate to confine the application of the entire Clause to those strike situations which take place in the loading or discharging ports actually affecting the loading or discharging operations. Accordingly, the sequence of the paragraphs has been changed by moving the old introductory paragraph to the end of the Clause and by specifying clearly that the strikes concerned are those preventing or delaying the actual loading and discharging of the cargo.
As may be known the Onisilos case changed the general understanding that according to the third paragraph of the original version of the General Strike Clause half demurrage should be payable in respect of the period after the expiration of the laytime when the vessel is waiting for the strike to end, but that thereafter full demurrage should be payable until completion of the discharge.
Accordingly, to avoid any conflicting opinions in the future on this matter, it is now expressly provided in sub-clause b of the General Strike Clause that half demurrage shall be payable after the expiration of the time provided for discharging until the termination of the strike or lock-out and that full demurrage shall be payable thereafter until completion of discharging.
Apart from the amendments mentioned above only a few technical changes have been made to this clause. Clause 18 — General Ice Clause Only minor editorial changes have been made to this well-known general ice clause. Clause 19 — Law and Arbitration Of all the changes usually made to the GENCON Charter in the form of rider clauses, the insertion of a law and arbitration clause is probably the most common one.
Realising that practically all standard contracts of carriage for use in the maritime industry have or many years referred to arbitration as a common means of dispute resolution, it is difficult to explain why a law and arbitration clause has never formed part of the GENCON Charter.
To rectify this position the newly revised BIMCO Standard Law and Arbitration Clause has been incorporated and it provides for an optional jurisdiction and venue for arbitration by leaving it to the parties to make their own choice in each individual case and to fill in Box 25 accordingly.
As follows from sub-clause 19 d and the guide text of Box 25, if the Box is not filled in, sub-clause 19 a i. English law and arbitration in London will automatically apply. Whilst some completely new clauses have been incorporated into the revised GENCON Charter, only one existing clause has been deleted, i. Clause 12 Indemnity. Courts in England have held that unless there is a specific reference in a bill of lading to the law and arbitration clause in the governing charter party it may not necessarily be deemed part of the terms and conditions of the bill of lading even though the law a arbitration clause itself stipulates that it shall apply in any bill of lading issued under the charter party.
Ship Trade Brokers
Tamuro The Risk of GENCON Another clause which is extended in Gencon 94 is the lien clause which now includes also the lien on sub-freights to cover the cases the vessel is sub-chartererd. With our experience in the shipping industry, on board ships, in ship operation or in commodity trade, you benefit from our hands-on and pro-active mentality and approach. Therefore, which of the two charter parties will be used is usually a point of negotiation between the parties. This wording was not included in Gencon 76 and gives some defense to Owners in case something goes wrong with the bill of lading holder. In most Charter Parties the vessel is directed to 1 gsbaaaa 1 sp … ; 1 good safe berth always accessible always afloat 1 safe port …. Follow us on social media. The most frequent claims are damage to hull and cargo claims, however, third party liability like personal injury or worse and pollution are also real risks; exposures, which can run charrer millions of dollars.
GENCON 94 CHARTER PARTY PDF