ICM300-Chartering and Charterparty Analysis

Module Provider: ICMA Centre
Number of credits: 20 [10 ECTS credits]
Level:7
Terms in which taught: Spring term module
Pre-requisites:
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2020/1

Email: p.panayides@reading.ac.uk

Type of module:

Summary module description:

The aim of this course is to provide in-depth and holistic understanding of charter markets, chartering practice and charter party analysis in the dry cargo and tanker shipping markets. Content includes the procedures and practices in chartering merchant ships in the dry cargo and tanker markets, their commercial employment under various types of chartering arrangements, analysis of charter party contracts, calculation of financial (freight and hire) performance,ÌýlaytimeÌýcalculations and demurrage estimations, voyage planning and estimation. The module provides an in-depth analysis of charter party forms and adopts a commercial perspective to analyze significant clauses and to explain various specialized terms in dry cargo and tanker chartering contracts.ÌýOverallÌýthe module provides a comprehensive understanding of the requirements to initiate, negotiate, agree, execute and assess a successful charter party contract in the dry bulk and tanker markets.Ìý

Aims:

The aim of this course is to provide in-depth and holistic understanding of charter markets, chartering practice and charter party analysis in the dry cargo and tanker shipping markets.ÌýOverallÌýthe module provides a comprehensive understanding of the requirements to initiate, negotiate, agree, execute and assess a successful charter party contract in the dry bulk and tanker markets.Ìý

Assessable learning outcomes:

After taking this course students will be able to:Ìý

• Understand the players and processes involved in freight market and chartering practice;Ìý


• Know and comprehend the key clauses in time and voyage charter parties;Ìý


• Analyze the terms, conditions and respective obligations, responsibilities and accountabilities in charter party contracts;Ìý


• Calculate freight income and expenses related to the cha rtering of ships;Ìý


• Calculate hire as per time charter parties terms and conditions;Ìý


• Appreciate the concept of laytime in voyage chartering;Ìý


• Calculate laytime and demurrage given a set of relevant data;Ìý


• Design and analyze voyage plans including voyage estimation calculations given a set of relevant data in dry cargo and tanker markets;Ìý


• Be familiar with specialized terms, abbreviations and notation used in chartering.ÌýÌý

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Assessable learning outcomes:Ìý

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The course focuses on the two main markets for chartering ships, dry cargo and tanker shipping. After taking this course students will be able to:Ìý

• Understand the players and processes involved in freight market and chartering practice;Ìý


• Kn ow and comprehend the key clauses in time and voyage charter parties;Ìý


• Analyze the terms, conditions and respective obligations, responsibilities and accountabilities in charter party contracts;Ìý


• Calculate freight income and expenses related to the chartering of ships;Ìý


• Calculate hire as per time charter parties terms and conditions;Ìý


• Appreciate the concept of laytime in voyage chartering;Ìý


• C alculate laytime and demurrage given a set of relevant data;Ìý


• Design and analyze voyage plans including voyage estimation calculations given a set of relevant data in dry cargo and tanker markets;Ìý


• Be familiar with specialized terms, abbreviations and notation used in chartering.ÌýÌý

Additional outcomes:

Outline content:

Introduction to Chartering The session will highlight and describe the market participants, the types of ship employment and will analyze the specific and specialized exchanges and notation used in chartering negotiations in the dry cargo marketsÌý

Dry Cargo Chartering Contracts There are several contracts used in dry cargo chartering for voyage and time charters. The session will adopt a legal/commercial perspective to analyze in-depth the various si gnificant clauses in dry cargo chartering contracts and explain various terms and specialized abbreviationsÌýÌý

Freight Calculations and Laytime The session aims to analyze the freight calculations involved in assessing the amount of income due to a shipowner and payable by a charterer. In doing so the session will analyze the methods and times of payment, the various risks involved, additions and deductions as well as the definition, description and calculat ion of laytime in voyage dry cargo chartering.Ìý

Dry Cargo Voyage Estimation Voyage estimating is an important skill for chartering practice. This session will describe a methodology for voyage estimation including the delineation of an itinerary, voyage plan, duration and bunker consumption, cargo quantity, voyage expenses and incomeÌýÌý

Tanker Chartering and Market Practice The session introduces the tanker market structure, the use of Worldscale and the factors influencing freight in tanker markets. It also analyzes the steps and circumstances involved from an order being quoted up to the agreement of a fixture and other aspects of tanker chartering market practice.Ìý

Tanker Charters The session describes and analyzes specific clauses and practices in tanker voyage and time charters.Ìý

Tanker Voyaging Estimation The session analyzes the freight calc ulations involved in tanker chartering and includes tanker laytime and voyage estimationÌý

Brief description of teaching and learning methods:

The course is made up of 28 hours of class time split into seven, 3-hour formal lectures and another 7 hours of tutorials. Students should study on a private basis for about 80 hours. Dry cargo chartering will be covered in four thematic areas and tanker chartering in three thematic areas.Ìý

Lectures will be used for the exposition of theory. The techniques used to achieve the stated module objectives and assess its learning outcomes will consist of a combination of te aching, question/answer sessions and discussions, case discussions and assignments.Ìý

Summative assessment- Examinations:

1 – 2 hours

Summative assessment- Coursework and in-class tests:

One 3,000 word assignmentÌý

Formative assessment methods:

Penalties for late submission:

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Assessment requirements for a pass:

StudentsÌýneed 50% overall to pass.

Reassessment arrangements:

Additional Costs (specified where applicable):

Required text books £30

Last updated: 27 August 2020