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| Skip Vaccarello |
In light of environmental concerns and technological advances, might it be time to address some terms in charter party clauses with regards to speed and consumption and have a fresh review of the tolerances attributed to the word “about”? This is the subject of the thought-provoking article by Jim Sigafoose, AWT’s marine claims expert. We are interested in hearing what our readers think about this issue. |
| You should also find our “Route of the Month” article fascinating. It is not uncommon for AWT to see situations like that described in the article, especially in winter months. |
| Enjoy your reading. We welcome your feedback. |
| Thank you, |
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Skip Vaccarello |
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| Charter Party Terms in the 21st Century |
| by Jim Sigafoose |
| 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.” |
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| Jim Sigafoose |
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| 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’.” |
| read more > |
| Route of the Month: Westbound Routing from Gibraltar Strait to New York Saves 2.5 Days and 165 MT of Fuel Oil; Avoids 11 Meter Head Waves |
| By George Schlinkert |
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| George Schlinkert |
This month we have identified a particularly interesting route to highlight due to a storm track that shifted southward. It is well known that winter time transit across the Atlantic can be subject to severe wind and wave conditions. AWT often sees Captains’ intended routes along options passing south of the Azores. |
| In some weather situations, this southerly option can avoid storms to the north and high seas over the Grand Banks. However, in the example here which occurred during December, 2009, opportunities existed to confidently clear north of the central ocean storms and storms forming off of the southeastern United States. The following was sent by AWT to the master after passing Gibraltar Strait: |
| “NOW RECOMMEND: AS SAFE NAVIGATION PERMITS, GC 45N 040W, GC 45N 058W, DIRECT AMBROSE PILOT VIA NORTH OF SABLE ISLAND, CAPE SABLE AND NANTUCKET LIGHT |
| CAPTAIN, BASIS LATEST FORECAST, NEW RECOMMENDATION IS DESIGNED TO PASS NORTH OF THE HEAVIEST ADVERSE CONDITIONS ASSOCIATED WITH STORM (1) EXPECTED BETWEEN 38N-30N AND WEST OF 030W BY THE 17TH/18TH, THEN THE RECOMMENDATION IS EXPECTED TO MINIMIZE EXPOSURE TO FORECAST STORM OFF THE UNITED STATES EAST COAST WHICH IS EXPECTED TO GENERATE HEAVY W/NW-LY SEAS/SWELLS (SIGNIFICANT WAVE HEIGHTS 9+ METERS) EXPECTED BETWEEN 42N-30N AND EAST OF 060W BY THE 21ST/22ND.” |
 During this time period, AWT routed several ships where the master had intended routes approximating the southerly option here. In this example, the master closely followed AWT’s recommended route and avoided the 11 meter head waves which prevailed to the south. |
| read more > |
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| BonVoyage System |
| Marine voyage optimization system provides 24/7 on-board weather… |
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| BonVoyage System & Ship Routing |
| The combination of BonVoyage System & AWT's ship routing services… |
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| Fleet Management |
| Quickly monitor your fleet & ensure they are operating efficiently & safely… |
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| Ship Routing – Earliest Arrival |
| Our weather routing experts recommend the optimum route analyzing… |
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| Ship Routing – Fuel Optimization |
| Improve schedule integrity & minimize fleet's fuel consumption… |
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| AWT has prepared numerous reports for use in arbitration & legal venues… |
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| AWT (www.awtworldwide.com) is the leading provider of fleet optimization services, ship routing services and onboard voyage management software to ship owners, operators and charterers seeking the safest and most efficient routes for their fleets. Unlike companies that provide weather services for multiple industries, or companies which only offer onboard weather software, AWT is staffed by world-renown experts in ship routing, meteorology, IT, maritime science and former mariners who are focused solely on the maritime industry. Using the most sophisticated technology available, AWT routes more ships per month than any other company. Its superior customer service and integrity have made AWT the most trusted fleet optimization provider in the maritime industry. Founded in 1996, AWT is privately held and headquartered in Sunnyvale, California with worldwide offices located in the UK, Hong Kong, Shanghai, Korea, Germany, New York, and New Jersey. More information is available at www.awtworldwide.com or by calling 1-408-731-8600. |
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