AWT Weather Routing/Routeing: Applied Weather Technology

Charter Party Terms in the 21^st Century

By Jim Sigafoose, AWT

Speed and Consumption

From the IMO news, issue 3, 2009, it was reported that international shipping now accounts for 2.7 percent of total global CO2 emissions. It was also reported that, "Engine technology has evolved to the extent that modern main propulsion systems for ships consume about 10 per cent less fuel than their predecessors installed some ten years ago, but with the same power output."

At a time when companies are struggling to improve ship performance by a few percentage points, a one-half knot tolerance for speed and a 5 percent tolerance for consumption are generally allowed for the use of the word "about" in the speed and consumption clauses in charter party agreements for dry bulk tonnage.

In LMLN 0710 it was held "that it was arguable that with modern machinery it should be possible for owners to provide a bunker consumption warranty that was more accurate than one with a 5 percent margin. However, the 5 percent margin was so commonly used in concluding contracts and resolving disputes under them that it was reasonable to assume that, purely as a matter of contractual intent in the absence of any indication to the contrary, the parties intended to allow for the application of a 5 percent margin if they used the word 'about'."

With the global initiatives to reduce greenhouse gases and improve energy efficiency, it is time to rethink the descriptions and tolerances allowed for "about" that appear in modern charter party fixtures?

Winds and Waves

The following clause was discussed in the July 2009 edition of AWT Insights:

ABT 19.0 KNOTS ON ABT 36.5 MTS IFO PLUS ABOUT 2.5 MTS MGO AT DESIGN DRAFT OF 7.6 M BASIS CLEAN AND SMOOTH BOTTOM, EVEN KEEL, DEEP AND CURRENTLESS WATER/SEA WITH A TEMPERATURE OF MAX 28 DEGREES CELSIUS, WIND MAX BAUFORT 2 AND SEA NOT EXCEEDING DOUGLAS SEA STATE 2…

In July we discussed just how rarely terms like Beaufort Force 2 really exist. While the World Meteorological Organization has description for the wind seas and sea state, it does not incorporate the Douglas Scales and there is no internationally recognized definition or official status for any of the Douglas Scales.

The Douglas scales describe a Sea Scale and a separate Swell Scale in qualitative terms.

One can see in this historic log book that the logs actually called for entries of the sea scale code and the swell scale code separately.

Modern day log books may or may not even have reference to swells. Where there is such a reference, generally no indication regarding what units of measure have been used for the swells.

In an era where wind speeds and wave heights can be very accurately measured by remote satellite sensing, are chartering documents and interpretations keeping pace? Now may be the time to revisit the tolerance levels associated with the word "about" in the speed and consumption clauses.

With energy efficiency and greenhouse gas emissions occupying everyone's attention, perhaps the 21st century shipping industry's attention to the foregoing issues would have a positive global benefit.

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