This document summarizes key topics from an academic conference on shipping conferences, including: - The many perils that can arise in the shipping industry, such as navigation hazards, pirates, dangerous cargoes, and more. - The pleasures of working in the shipping industry, such as stable long-term business opportunities and the ability to earn income from buying and selling ships. - Several case studies that illustrate legal and commercial risks that can occur when chartering ships, including loading the wrong cargo, voyages taking much longer than expected, cargo becoming infested with insects, and not receiving payment of freight. - Ship owners must take many risks and make careful decisions to avoid losses from issues outside their

1. Shipping Academic ConferencesShipping Academic Conferences
www.shippingconferences.comwww.shippingconferences.com
Ship CharteringShip Chartering
The Importance of Knowledge &The Importance of Knowledge &
TimingTiming
Presented byPresented by
CK SharmaCK Sharma
Academic AdvisorAcademic Advisor
7th
March 2018
Leela Hotel Mumbai

2. Perils in ShippingPerils in Shipping
High Value Assets.
Changing Markets.
Pollution Risk.
Navigation Hazards.
Pirates.
Dangerous Cargoes.
War Zones.
Dangerous Countries.
Cyclical Industry
Bad Owners/Charterers
Maritime Frauds
Commercial Risks

3. Pleasures Of ShippingPleasures Of Shipping
Perennial Business.
Encashable Property.
Big Investment.
Income on sale and purchase of the ship.
Huge cash flows.
World wide business.
Moveable Assets
Shipowner’s Status in Society

4. Chartering & Operations
linkage
Charter Party mentioned two grades of Coal
loading at South Africa for two port discharge
in India.
Vessel loaded 2 grades of coal which were
stowed separately. However, both grades
showed same cargo description. Master
discharged the right quantity as per BLs for
first disport but wrong grade got discharged
which caused delays at the 2nd
port as
documents had to be refiled, parties notified
etc.
Owners claimed that as cargo description was
the same across all BL’s, they could not be held
responsible for “wrong discharge” & delays.

5. Is Charterer really responsible for the
duration of the Voyage?
A vessel was fixed on 1 TCT from Indonesia to
India for a duration of about 25-30 days WOG.
Due to delays at load port, the entire voyage
lasted 99 days due to which Owners were
claiming losses due to rising market.
The market had indeed gone up
Case went to arbitration which ruled that when
the vessel was fixed, it was genuinely believed
that the vessel will complete in 25-30 days.
Also, as WOG was also agreed, Owners could
not claim any losses since there was no
dishonesty on the part of Charterers.

6. Chartering Manager & the
unknown future
Under Amwelsh Voyage CP, a cape size vessel
loaded Coal from USA but was arrested
before she could sail out due to dispute
between Head Owners and disponent Owners.
Cargo belonged to a large Trading House who
tried to unload the cargo but not allowed due
to local laws.
The dispute turned worse & ship was
ultimately auctioned. The Trading Company
bought the vessel and reached cargo to the
receiver in Europe.
A great loss making voyage for the Trader.

7. Case of Cashew cargo from West
Africa to Cochin
A Handy vessel was loaded from West Africa
to Cochin by a reputed Singapore Trader.
The Buyers’ Cartel made the Trader divert
the cargo first to Kandla & then to Haldia.
At Haldia the cargo was found infested with
insects and impounded by Customs. The
trader lost millions in freight and cargo value.
Mainly the loss was due to lack of Shipping
Knowledge.

8. Ship Owners are real risk takers
Vessel loaded Coal at Richards Bay for India.
Freight was to be paid before breaking Bulk.
Vessel arrived India on Friday. Charterers
issued a Guarantee Letter on their letterhead
that Freight would be remitted Monday. Vessel
commenced Discharge.
Charterers company faced Hostile take-over on
Monday. Vessel discharged & sailed on Tuesday.
New controlling promoters declined to stand
behind Guarantee Letter for Freight Payment.
The Lien on cargo was deemed lost as Owners
agreed to the Guarantee letter.
WHERE DID THE OWNERS GO WRONG?

9. THANK YOU FRIENDS

10. THANK YOU FRIENDS