CHARTERING AND BROKERAGE EXAMS SCRIPT
UPDATED QUESTIONS AND ANSWERS SURE A+
✔✔Norwegian Sales Form - ✔✔Used for the sale of used ships, negotiations start when
someone makes a firm offer
✔✔Tanker cargoes are negotiatied in - ✔✔World Scale Points
✔✔Most voyage charters are - ✔✔Free-in-and-out (FIO), loading and discharging paid
by the charterer
✔✔Light Dues - ✔✔Government imposed dues (lighthouses)
✔✔As long as an offer has not been accepted yet... - ✔✔It can be revoked unless
payment has been made to keep the contract open
✔✔Dockage - ✔✔charge for putting a ship alongside a dock
✔✔Two types of wharfage - ✔✔Side Wharfage
Top Wharfage
✔✔Side Wharfage - ✔✔Terminal charges to put the ship alongside
✔✔Top Wharfage - ✔✔Terminal charges for leaving cargo on the pier waiting for the
ship to load it
✔✔Charter Hire - ✔✔What the owner thinks his ship is worth in the market or the time
charter he is willing to fix at
✔✔War Risk - ✔✔If an area is deemed a war risk, insurance coverage for the hull does
not apply
✔✔Voyage Charter - ✔✔Owner is responsible for fuel costs, canal tolls, port charges,
load/discharge costs, despatch. Charterer's cargo will be taken from port to port at a set
rate per unit.
✔✔Time Charter - ✔✔Charterer obtains control of the cargo carrying capacity of the
vessel for the period agreed. Owner is responsible for fuel costs, pilotage, costs for
bringing vessel alongside.
✔✔When is freight owned by an owner in a voyage charter? - ✔✔- When cargo gets
onto ship (100% earned on loading)
- Freight is 95% payable on loading, charterer holds some money in case there is
despatch
, ✔✔Address Commission - ✔✔- Paid by shipowner
- Paid to charterer
- Usually 2.5% but is whatever is agreed upon
✔✔Bunker Clause - ✔✔compensation for higher bunker prices
✔✔Clean BoL - ✔✔No notation of cargo damage
✔✔Clause BoL - ✔✔Damage to cargo noted (not payed)
✔✔Straight BoL - ✔✔Issued to individual or company who should know about the cargo
✔✔To Order BoL - ✔✔Allows the cargo to be picked up by whoever has it
✔✔FOB - ✔✔Free on board. Seller gets the cargo on the ship.
✔✔FAS - ✔✔Free alongside. Seller gets the cargo alongside the ship.
✔✔CIF - ✔✔Cost Insurance and Freight. Seller makes arrangements for delivery to the
buyer.
✔✔EXWORKS - ✔✔Seller packages up the cargo get it to the buyer. Buyer makes
arrrangments for transportation
✔✔3 Major Types of Insurance - ✔✔Hull
Cargo
P&I (Protection and Indemnity) - covers more situations with liabilities such as injuries or
oil spills
✔✔P&C - ✔✔Private and confidential - not supposed to talk about the fixture for awhile
✔✔Equations to know - ✔✔Displacement - L.S. = DWAT/DWT - ABC = DWCC
Stowage Factor = Capacity/tonnage
Tons to load = Grain or Bale Cubic/Stowage Factor
✔✔Arbitration Hubs - ✔✔New York, London, Singapore
✔✔Proforma - ✔✔financial paperwork provided by the shipper/owner
✔✔Condition Precedent - ✔✔something that needs to be cleared up before the contract
is finalized
✔✔Bills of Lading - ✔✔1. Receipt of cargo
UPDATED QUESTIONS AND ANSWERS SURE A+
✔✔Norwegian Sales Form - ✔✔Used for the sale of used ships, negotiations start when
someone makes a firm offer
✔✔Tanker cargoes are negotiatied in - ✔✔World Scale Points
✔✔Most voyage charters are - ✔✔Free-in-and-out (FIO), loading and discharging paid
by the charterer
✔✔Light Dues - ✔✔Government imposed dues (lighthouses)
✔✔As long as an offer has not been accepted yet... - ✔✔It can be revoked unless
payment has been made to keep the contract open
✔✔Dockage - ✔✔charge for putting a ship alongside a dock
✔✔Two types of wharfage - ✔✔Side Wharfage
Top Wharfage
✔✔Side Wharfage - ✔✔Terminal charges to put the ship alongside
✔✔Top Wharfage - ✔✔Terminal charges for leaving cargo on the pier waiting for the
ship to load it
✔✔Charter Hire - ✔✔What the owner thinks his ship is worth in the market or the time
charter he is willing to fix at
✔✔War Risk - ✔✔If an area is deemed a war risk, insurance coverage for the hull does
not apply
✔✔Voyage Charter - ✔✔Owner is responsible for fuel costs, canal tolls, port charges,
load/discharge costs, despatch. Charterer's cargo will be taken from port to port at a set
rate per unit.
✔✔Time Charter - ✔✔Charterer obtains control of the cargo carrying capacity of the
vessel for the period agreed. Owner is responsible for fuel costs, pilotage, costs for
bringing vessel alongside.
✔✔When is freight owned by an owner in a voyage charter? - ✔✔- When cargo gets
onto ship (100% earned on loading)
- Freight is 95% payable on loading, charterer holds some money in case there is
despatch
, ✔✔Address Commission - ✔✔- Paid by shipowner
- Paid to charterer
- Usually 2.5% but is whatever is agreed upon
✔✔Bunker Clause - ✔✔compensation for higher bunker prices
✔✔Clean BoL - ✔✔No notation of cargo damage
✔✔Clause BoL - ✔✔Damage to cargo noted (not payed)
✔✔Straight BoL - ✔✔Issued to individual or company who should know about the cargo
✔✔To Order BoL - ✔✔Allows the cargo to be picked up by whoever has it
✔✔FOB - ✔✔Free on board. Seller gets the cargo on the ship.
✔✔FAS - ✔✔Free alongside. Seller gets the cargo alongside the ship.
✔✔CIF - ✔✔Cost Insurance and Freight. Seller makes arrangements for delivery to the
buyer.
✔✔EXWORKS - ✔✔Seller packages up the cargo get it to the buyer. Buyer makes
arrrangments for transportation
✔✔3 Major Types of Insurance - ✔✔Hull
Cargo
P&I (Protection and Indemnity) - covers more situations with liabilities such as injuries or
oil spills
✔✔P&C - ✔✔Private and confidential - not supposed to talk about the fixture for awhile
✔✔Equations to know - ✔✔Displacement - L.S. = DWAT/DWT - ABC = DWCC
Stowage Factor = Capacity/tonnage
Tons to load = Grain or Bale Cubic/Stowage Factor
✔✔Arbitration Hubs - ✔✔New York, London, Singapore
✔✔Proforma - ✔✔financial paperwork provided by the shipper/owner
✔✔Condition Precedent - ✔✔something that needs to be cleared up before the contract
is finalized
✔✔Bills of Lading - ✔✔1. Receipt of cargo
