MARCH 2014 SHIPBROKING & CHARTERING PRACTICES Instructions to candidates: a) Time allowed: Three hours (plus an extra ten minutes’ reading time at the start – do not write anything during this time) b) Answer any FIVE questions c) All questions carry equal marks. Marks for each question are shown in [ ] 1. Charter parties contain clauses that protect the interest of both the charterer and the ship owner. Identify

and explain the reasons when a time charterer could claim ‘off-hire’ of the vessel and could be entitled to compensation. [20]

2. There are many shipping associations and organisations in the maritime community who are Non Governmental

Organisations at the IMO and an example is BIMCO. Explain about BIMCO’s history, achievements and influence in the maritime industry. [20]

3. Explain what you understand about how the freight markets impact on a shipping company’s business and

how freight markets move or react. [20] 4. The oil tanker market is said to be one of the most rate volatile sectors of shipping. Explain what you understand

about why this is and what you understand about the tanker market, giving examples of ship size, cargoes and trading areas. [20]

5. In the shipping industry there are a number of charter parties and arrangements offering flexibility to a charterer

and stability to a ship owner. Give examples of these agreements and explain the difference between each charter party and who is responsible for what costs. [20]

6. As a tanker operator in the shipping industry, explain what you understand about a tanker calculation. [20] 7. There are many disputes regarding the calculation of laytime. Explain the important items that have to be

considered in a laytime calculation. [20] 8. As a ship operator, list and explain the points you would need to estimate and take into consideration in a

voyage calculation when considering taking on employment for the ship. [20] © INSTITUTE OF COMMERCIAL MANAGEMENT