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Sinochem Clause (Revised)

SINOCHEM CHARTERING TERMS AND CLAUSES (REVISION 2)
DATED 18TH OCTOBER, 1988
SINOCHEM STANDARD TERMS
1. Worldscale terms and conditions as of date of Charter Party to apply.
2. Revised P and I Tovalop Clause 1987 to apply.
3. General Average/Arbitration in London, English Laws to apply.
4. York/Antwerp Rules 1990 to apply.
5. If the vessel has not given Notice of Readiness to load by 1600 hours local time on the
cancelling date, laytime shall commence upon the vessel's arrival in berth.
6. Vessel agents shall be nominated by Charterers at loading and discharge port(s).
Customary agency fees shall be for Owners' account.
7. Owners' option to slow steam down to about ________ (Owners to advise) knots
weather safe and navigation permitting.
8. No freight on slops carried, if any.
9. Freight Tax (including Chinese Freight Tax of 4.025% in China) in load and/or
discharge port(s), if any, to be for Owners' account.
10. Freight payable in United States Dollars to Owners' designated bank via telegraphic
transfer ______ working days after receipt of Owners' confirmation of completion of
discharge.
11. Should a dispute arise between Owners and the Charterers, both parties will
endeavour to settle dispute amicably otherwise same to be settled in London by
Arbitration as per Charter Party.
12. Owners warrant that vessel to proceed directly to discharge port after loading.
13. This fixture has to be kept strictly private and confidential.
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Sinochem Clause (Revised)
SINOCHEM CLAUSES
CLEAN BALLAST CLAUSE
1
This vessel should arrive at load port with clean ballast water in SBT only. Any
.
dirty
ballast water or clean ballast water in CBT should be discharged onto the shore and
all fees or charges thus occurred should be for Owners' account.
SHIFTING CLAUSE
2
If more than one berth at load or discharge ports is used, shifting expenses to be
.
for
Charterers' account, except that shifting expenses from anchorage to first berth will
not be for Charterers' account.
3 BILL OF LADING INDEMNIFICATION CLAUSE
. In the event the original Bill of Lading does not arrive at the port(s) of ultimate
discharge prior to the vessel's arrival, the Owners shall release and discharge the
entire cargo in accordance with the Charterers' telex instructions and Charterers agree
to indemnify and hold Owners harmless from and against any and all claims, demands
or liabilities in connection with or arising out of the discharging of the cargo without
presentation of such original Bill of Lading. Charterers also to provide Owners with a
telex Letter of Indemnity with wording as per Owners' P and I Club. It is understood
that no bankers guarantee nor countersigning of Letter of Indemnity by bankers shall
be required.
If an original Bill of Lading is distributed to Master for cargo receivers, Master shall
discharge the entire cargo against cargo receivers endorsement of this original Bill of
Lading, and in such event no Letter of Indemnity shall be required.
Letter of Indemnity shall automatically become null and void against presentation of
one(1) out of three(3) original Bills of Lading, or after thirteen(13) months after
completion of discharge, whichever occurs first, provided within such thirteen(13)
months no legal proceedings have been instituted against Owners.
4 AMOCO CLAIMS CLAUSE - 60 DAYS
. Owners agree to invoice Charterers for all charges and claims arising from this
Charter Party, including but not limited to, demurrage, deadfreight, deviation, and
shifting, within sixty (60) days from the completion of discharge. Charterers will not be
responsible for any charges or claims not submitted within the time specified.
5. WARRANTY CLAUSE
a. Owners warrant the vessel have no pollution, stranding, or any serious accidents
within the last twelve(12) months from the date of this Charter Party.
b. Owners warrant that the vessel is in all respects eligible for trading within, to and
from ranges and areas specified in Charter Party, and that for all necessary
times she shall have on board fully valid CLC/ITF and all necessary certificates
required for such service.
c. Owners warrant that vessel is in compliance with U.S. Port and Tanker Safety
Act.
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Sinochem Clause (Revised)
d. The vessel to be a member of P and I Club and Tovalop Scheme and shall
comply with the U.S. Coast Guard Regulations for crude oil discharges.
Any delays and consequential damages/losses suffered by the Charterers due
to non-compliance by the Owners of the above warranties (a) to (d) to be for
Owners' account.
6. PUMPING CLAUSE
The vessel shall discharge the entire cargo within twenty-four(24) hours or maintain a
back pressure of 100 PSI at ship's rail provided shore facilities permit.
If the vessel fails to comply with the above warranty, the Charterers shall not be
responsible for any demurrage caused by the failure.
7. ETA CLAUSE
Master/Owners to give Charterers, suppliers and load port agent notices of arrival at
load port immediately and where applicable every five(5) days and then 96, 72, 48, 24
and 12 hours notice. Master/Owners also to provide Charterers, receivers and
discharge port agent notices of arrival discharge port immediately after sailing load
port and where applicable, followed by every five(5) days, and then 96, 72, 48, 24 and
12 hours, failing which, the Charterers shall have no liability for demurrage for the
period of delay caused by failure to give such notice.
8. CLEANING CLAUSE
a. For Clean and Dirty Petroleum Products:
Master of the vessel is to thoroughly clean the cargo tanks/lines/pumps of the
vessel up to Charterers' inspector's satisfaction for carriage of intended cargo.
Owners further warrant that due to the proceedings, vessel will present at load
port with tanks/lines/pumps sufficiently clean to load/carry/discharge Charterers'
cargo without contamination from residues of previous cargo. (Delete STB Voy
Charter Party Part II Clause 16 (a).)
b. For Crude Oil:
As per STB Voy Charter Party.
9. AMOCO CARGO RETENTION
In the event that any cargo remains on board upon completion of discharge
Charterers shall have the right to deduct from freight an amount equal to the FOB port
loading value of such cargo plus freight due with respect thereof, provided that the
volume of cargo remaining on board is pumpable as determined by independent
surveyor.
Any action or lack of action in accordance with this provision shall be without prejudice
to any rights or obligations of the parties.
10. IGS CLAUSE
Owners warrant the vessel is equipped with a fully operational inert gas system.
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Sinochem Clause (Revised)
11. SPILLAGE CLAUSE
Prior to commencement of loading or discharging operations, all overboard lines are to
be checked to ensure they are securely closed. All other precautions are to be taken
to avoid any spillage and/or leakage. If during loading or discharging operations there
is any indication of a spillage or leakage, the vessel shall immediately cease all
pumping operations and notify shore personnel. The vessel shall not resume loading
or discharging until a thorough investigation is conducted and appropriate remedies
taken.
12. AFRAN VESSEL TO VESSEL LIGHTERAGE CLAUSE
If requested by Charterers, Owners agree that vessel will perform a vessel to vessel
lighterage operation at sea at a safe location other than the customary anchorage for
the discharge port(s), in which event, Charterers will provide the lighterage vessel,
mooring master, fenders, hoses and all other equipment necessary for a safe
operation.
All time consumed from vessel's arrival at the lightering site until the cargo hoses are
disconnected shall count as used laytime as calculated in Part II hereof except those
delays attributable to proven weather conditions which shall count as one half laytime,
or if on demurrage as one half demurrage, provided vessel is otherwise capable at all
times of discharge while at the lighterage location.
The lightering location shall not count as an additional discharge port or discharge
berth in the determination of freight payable per published Worldscale rates.
Owners warrant that the vessel is out-fitted and capable of safely carrying out all
procedures as set out in the latest revised edition of the ICS/OCIMF Ship To Ship
Transfer Guide (Petroleum).
13. AFRAN (GULF) LIGHTERAGE CLAUSE
If lightering is required prior to berthing at any designated port, and it is necessary to
lighter the vessel while at a customary lightering anchorage, time used in lightering
shall count as used laytime and shall commence six(6) hours after anchoring and
presentation of Notice of Readiness or when the first lightering craft is moored
alongside, whichever first occurs. The lightering anchorage shall not be considered as
an additional discharge port nor an additional discharge berth and running time from
the anchorage to the berth shall not count as used laytime or demurrage if allowed
laytime has expired.
14. TEXACO CRUDE OIL WASHING CLAUSE
Vessel will routinely employ crude oil washing (COW) on discharge in accordance with
the procedure described in the ICS/OCIMF "Guidelines for Tank Washings with Crude
Oil" in the absence of express contrary instructions of the Charterers or prohibition by
port or terminal regulations. Any delay to the vessel occurring solely as a result of
COW operations shall count as used laytime or if the vessel is on demurrage, as
demurrage.
Owners agree to comply with applicable port and terminal regulations, and as
necessary, to submit any advance information or technical data that may be required
by local authorities relative to the conduct of COW operations. Owners further agree
that a representative of the Charterers may attend the discharge to monitor cargo
operations.
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Sinochem Clause (Revised)
15. FMC CLAUSE
Owners warrant to have secured and carries aboard the vessel a U.S. Federal
Maritime Commission's Certificate of Financial Responsibility as required by the U.S.
Water Quality Improvement Act of 1970 (effective 0001/April 3, 1971), as amended.
Any delay or expense to the vessel resulting from non-compliance with this warranty
shall be for Owners' account and such delay will not count as used laytime or
demurrage if allowed laytime has expired.
16. USCG COMPLIANCE CLAUSE
Owners warrant that during the term of the Charter the vessel will be in full compliance
with all U.S. Coast Guard and safely regulations as contained in, but not limited to,
titles 33 and 46 of the Code of Federal regulations as amended. Any delay or
expense to the vessel resulting from non-compliance with this warranty shall be for
Owners' account and such delay shall not count as used laytime or demurrage if
allowed laytime has expired.
17. HEATING CLAUSE
Heating throughout voyage at Owners' option but Owners guarantee maximum heat
135 degrees Fahrenheit and minimum 125 degrees Fahrenheit temperature on
vessel's arrival discharge port and throughout discharge.
18. CANAL TOLL
Suez or Panama Canal Toll, if applicable, shall be for Owners' account.
19. ADDRESS COMMISSION
2.5% address commission to Charterers on freight, deadfreight and demurrage
payable by Owners. Such address commission is deductible by Charterers from
freight and, if any, deadfreight and demurrage.
20. SLOP CLAUSE
Slop, if any, will not be permitted to be discharged at loadport. No load-on-top of slops
is allowed and Owners warrant vessel can comply with the minimum cargo quantity of
...........
(Delete STB Voy. Charter Party II Clause 28 lines 404-417)
21. CORPUS CHRISTI CLAUSE
Owners warrant that vessel does not exceed 174 feet from keel to the highest fixed
point on the vessel. Owners also warrant vessel is able to clear bridge height limit to
138 feet mean high water (it is understood safe draft at Corpus Christi mean high
water is 39 feet salt water).
Furthermore, Owners also warrant that the vessel complies with the following
restrictions :
1. LOA : 1,000 feet maximum
2. BEAM : 140 feet maximum
3. Deadweight 120,000 metric tons maximum
(Owners to advise on arrival draft of 45 feet at Corpus Christi, what is vessel's
maximum loadable cargo quantity).
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Sinochem Clause (Revised)
If on arrival at Corpus Christi or other U.S. Gulf ports, vessel is found to be not in
compliance with any of the above restrictions and warranties, all delay to vessel,
expense of lightering and any consequential expenses or losses suffered by
Charterers shall be for Owners' account and responsibility.
22. BUNKER CLAUSE
Charterers shall have the option of supplying bunkers required for performing this
Charter if available, provided that prices and quality are competitive. In the event that
Owners are able to obtain bunkers at a price lower than that quoted by Charterers,
then Owners shall give Charterers a further opportunity to meet such lower price.
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