BROKERAGE AND CHARTERING EXAM 1 2026
AND 2027 ULTIMATE SUCCESS PACK
COMPLETE REVIEW QUESTIONS AND
ANSWERS 100% CORRECT.
◎ Carta Partita. ANSWER:- divided document
◎ Charter Party. ANSWER:- A contract for the hiring or letting of all or part of all a
vessel, it's legal and is governed by all usual laws applying to contracts
◎ HIRE. ANSWER:- "consideration" the money the charterer pays the ship-owner for
use of the vessel
◎ For Voyage Charters, the "consideration" is referred to as. ANSWER:- Freight
◎ Bareboat Charter. ANSWER:- designated period of time
charter is responsible for the physical operations of the vessel
the costs to operate the vessel
◎ Time Charter. ANSWER:- the vessel's cargo carrying capacity for (a) a designated
period of time, or (b) for a described voyage on a time charter basis (called a time
charter trip)
◎ Voyage Charter. ANSWER:- An agreement to move a specific cargo from a
designated location or locations to another designated location or locations
*most frequently employed type of Charter
◎ Typical Order of Events in negotiation. ANSWER:- Indication
Offer
Counter Offer
Acceptance
◎ Main Terms. ANSWER:- These are the primary terms negotiated and agreed upon
during the trade (the offer/counter offer process)
Examples: ID of owner, ID of charterer, quantity and cargo type, commission, ports
◎ Subjects. ANSWER:- Most of these are the details contained in all Charter Party
agreements but not main negotiated term
, Example: Details, Stem, open/unfixed, board of directors approval, management
approval
◎ FIOS L/S/D. ANSWER:- Free In/Out Stowed, Lashed, Secured and Dunnaged
◎ FILO. ANSWER:- Free In/Liner Out.
◎ LIFO. ANSWER:- Liner In/Free Out
◎ FLT H/H. ANSWER:- Full Liner Terms Hook/Hook
◎ Disponent Owner. ANSWER:- a person or company, which "displaces" or takes the
place of the legal, registered owner. (Time Charter)
◎ The charters may even be another vessel owner who
has_______________________________________________________________.
ANSWER:- cargo to move, but no ship of his own in position to move it
◎ Lay Can. ANSWER:- when the ship needs to show up
◎ In Voyage Charters, the Charterer must:. ANSWER:- be ready to either start loading
or discharging operations when the vessel is properly tendered, by the owner
◎ Broker. ANSWER:- (a) An agent who arranges marriages
(b) An agent who negotiates contracts of purchase and sale
◎ A broker can only function effectively if?. ANSWER:- he has the trust of the
concerned parties and more broadly, his concerned market
◎ How much commission does a broker get?. ANSWER:- between 1.25% to 2.5%
◎ Owner's Broker. ANSWER:- Endeavors to arrange the most profitable employment of
vessels that the "owner" owns or controls
◎ Responsibilities of ALL BROKERS. ANSWER:- (a) to act strictly in accordance with
authority given by the principle
(b) to exercise due diligence and skill in the execution of the assigned functions
(c) to communicate all pertinent information to his principal which might affect the
principals attitude in the negotiation
◎ The broker could be held liable____________________. ANSWER:- to an injured
party
AND 2027 ULTIMATE SUCCESS PACK
COMPLETE REVIEW QUESTIONS AND
ANSWERS 100% CORRECT.
◎ Carta Partita. ANSWER:- divided document
◎ Charter Party. ANSWER:- A contract for the hiring or letting of all or part of all a
vessel, it's legal and is governed by all usual laws applying to contracts
◎ HIRE. ANSWER:- "consideration" the money the charterer pays the ship-owner for
use of the vessel
◎ For Voyage Charters, the "consideration" is referred to as. ANSWER:- Freight
◎ Bareboat Charter. ANSWER:- designated period of time
charter is responsible for the physical operations of the vessel
the costs to operate the vessel
◎ Time Charter. ANSWER:- the vessel's cargo carrying capacity for (a) a designated
period of time, or (b) for a described voyage on a time charter basis (called a time
charter trip)
◎ Voyage Charter. ANSWER:- An agreement to move a specific cargo from a
designated location or locations to another designated location or locations
*most frequently employed type of Charter
◎ Typical Order of Events in negotiation. ANSWER:- Indication
Offer
Counter Offer
Acceptance
◎ Main Terms. ANSWER:- These are the primary terms negotiated and agreed upon
during the trade (the offer/counter offer process)
Examples: ID of owner, ID of charterer, quantity and cargo type, commission, ports
◎ Subjects. ANSWER:- Most of these are the details contained in all Charter Party
agreements but not main negotiated term
, Example: Details, Stem, open/unfixed, board of directors approval, management
approval
◎ FIOS L/S/D. ANSWER:- Free In/Out Stowed, Lashed, Secured and Dunnaged
◎ FILO. ANSWER:- Free In/Liner Out.
◎ LIFO. ANSWER:- Liner In/Free Out
◎ FLT H/H. ANSWER:- Full Liner Terms Hook/Hook
◎ Disponent Owner. ANSWER:- a person or company, which "displaces" or takes the
place of the legal, registered owner. (Time Charter)
◎ The charters may even be another vessel owner who
has_______________________________________________________________.
ANSWER:- cargo to move, but no ship of his own in position to move it
◎ Lay Can. ANSWER:- when the ship needs to show up
◎ In Voyage Charters, the Charterer must:. ANSWER:- be ready to either start loading
or discharging operations when the vessel is properly tendered, by the owner
◎ Broker. ANSWER:- (a) An agent who arranges marriages
(b) An agent who negotiates contracts of purchase and sale
◎ A broker can only function effectively if?. ANSWER:- he has the trust of the
concerned parties and more broadly, his concerned market
◎ How much commission does a broker get?. ANSWER:- between 1.25% to 2.5%
◎ Owner's Broker. ANSWER:- Endeavors to arrange the most profitable employment of
vessels that the "owner" owns or controls
◎ Responsibilities of ALL BROKERS. ANSWER:- (a) to act strictly in accordance with
authority given by the principle
(b) to exercise due diligence and skill in the execution of the assigned functions
(c) to communicate all pertinent information to his principal which might affect the
principals attitude in the negotiation
◎ The broker could be held liable____________________. ANSWER:- to an injured
party
