Negotiations in Chartering (Shipping)

What is Chartering:  Chartering in shipping is the hiring of a ship and crew for a voyage between a load port and a discharge port. The charterer pays the vessel owner on a per-ton or lump-sum basis. The owner pays the port costs (excluding stevedoring), fuel costs and crew costs. The payment for the use of the ship is known as freight.
charter party is the contract by which the owner of a ship lets it to others for use in transporting a cargo. The shipowner continues to control the navigation and management of the vessel, but its carrying capacity is engaged by the charterer.


The negotiations between a charterer and a ship owner is in terms and conditions, or based on terms and conditions, some of which are written below.

1. Contractual Partner
Contractual partners are the  ship Charter Operator or ship owners and the Charterer – as mentioned in the Contract. The ship Charter Operator is the Owner of the ship chartered by the Charterer or a person authorised by the latter.2. Acceptance of the Contract and its Conditions
a) The Agency is authorised to set up this Contract as representative of the Charter Operator and duly sign it.
b) The Charterer confirms that he has read the Contract and that he understood the nautical terminology used therein. Moreover, the Charterer agrees with the General Conditions of the Contract including the special characteristics of chartering a craft and with this type of sportive activity.3. Charter Fee
The charter fee encompasses the use of the vessel and its inventory. Extras and incidental expenses will be calculated separately and will not be taken into consideration in case of possible refunding of charter costs. The following items are not included in the charter fee: Port charges, fuel, gas, water and all expenditures for measures which are required for the proper operation of the craft during the trip. Obvious mistakes in calculating the charteer fee or inadequacies referring to some of the terms in the Contract do not justify exiting from the Contract; rather, corrections may be duly undertaken, based on the current list of fees and the current contractual conditions of the agency. Irregularities in equipment or gear (non-correspondence with inventory or equipment lists supplied to Charterer) do not authorise the Charterer to make any deductions – provided safety and operation of the craft as such and functioning equipment are guaranteed.

4. Journey to Location of ship Check-in
The journey to the location is not part of the Contract. If the start of the journey is delayed because the Charterer or a member of the crew arrives late, there shall be no refunding of costs. Charterer and crew are aware of the fact that they are leasing an “instrument” to exercise boating and that the terms agreed on differ from laws and regulations governing the tourist sector.

5. Charterer´s Exiting from the Contract
Should the Charterer for any reason whatsoever cancel the charter, the Charterer can after making a prior agreement with the organization,  find another person to take on its rights and obligations. Should the Charterer fail to find a third party to replace him/her, the cancellation costs shall be deducted as follows:
– 50% charter price if a reservation has been cancelled more than a month prior to the first charter day.
– 100% charter price if a reservation has been cancelled less than a month prior to the first charter day
a) The period of validity of the Contract can only be changed in agreement with the ship charter organization and according to the existing possibilities.
b) Cancellation by the Charterer up to four weeks before the start of the journey: cancellation fee depending on the payments already made. After this deadline the full amount has to be paid. It is highly recommended to the Charterer to take up a special insurance in case of cancellation.
o If there is a possibility to recharter the craft for full week, (either in part or in full), 20% of the charter fee will be withheld to cover relevant expenses. If rechartering is just partial and not for full week, 20% of the charter fee + pro rata of remaining charter will be withheld. The remaining sum will be refunded to the Charterer by the ship owner.
c) Defects, incorrect recordings of instruments or other problems with gear or equipment do not entitle the Charterer to either refuse check-in, stop the trip or raise financial claims – provided correct navigation is possible by applying classical navigation methods, such as position fixing by bearing, dead-reckoning navigation etc. and if safety of ship and crew is guaranteed by good seamanship.

6. Check-in and Check-out of ship
a) The ship owner is obliged to properly instruct the Charterer or the person nominated by him (Skipper) about all technical details concerning gear and equipment, using a check- or inventory-list. Trial trip may also be effected. By signing the checklist the Charterer/Skipper confirms that he has taken over the craft in good condition, clean, with full tanks (fuel, water) and fully functioning gear and equipment. Possible defects, damages or missing parts of gear and/or equipment must be laid down in writing.
b) The Charterer may refuse check-in if safety standards do not comply with national rules and regulations or if hull, bonding deck to hull, rig, sail or steering gear are damaged to such an extent that safety of both ship and crew can no longer be guaranteed. In this case item 6a comes to bear.
c) The shio owner may refuse to hand over the ship if:
• the fee has not been fully paid
• deposit has not been made or replaced by an insurance
• necessary documents are missing or insufficient (no license or a license not valid for the chartered craft, etc.)
• during the process of check-in or during a trial trip it turns out that the Charterer does not have the required qualification for this job.
d) in the latter case or if there are licensing problems, the journey may be started with another skipper , expenses paid by the Charterer.

7. Delayed Check-in Procedure
a) If the ship owner cannot supply the craft or ship or an appropriate replacement (meaning a type similar in dimensions, gear and equipment) and the delay exceeds ¼ of the total charter time or a maximum of three (3) days, the Charterer has the right to withdraw from the Contract. In this case payments already made will be refunded to him. No further claims may be raised.
b) If it is an established fact before the start of the trip that neither craft nor replacement will be available on the agreed date, the ship owner shall be obliged to inform the Charterer as soon as the former knows the facts. In this case both parties may withdraw from the Contract before the assumed start of the trip. Payments made by the Charterer will be refunded as above. No further claims may be raised.
c) If check-in time is delayed by the ship owner for reasons he is responsible for, the Charterer will get a pro rata refund from the ship owner
• provided either the check-in procedure had originally been agreed to take place in the second part of the day including an overnight stay on the craft or ship.
• or if a replacement and/or actual check-in has not occurred until noon the next day the latest
• or if the check-in of the ship had originally been agreed to take place during the first part of the day but in reality was delayed for more than 12 hours.

Key Note: A skipper is the captain of a Ship.

8. Insurance and Deposit
The chartered yacht is insured against third party damage, fire, lightning, explosion, theft or robbery or damage caused by natural disasters, marine and collision risks, and against any loss or damage except equipment expressed in this contract.
The financial liability of the client (charterer) for loss or damage caused by him or a crewmember is limited with the agreed deposit. Agreed deposit can also be insured by the insurance company.
Exceptions are mentioned in this contract.
a) The insurance premium for the ship chartered is included in the charter price or separately charged as extra costs.
b) The insurance does not cover accidents of crew members, losses or damage to their personal belongings. We recommend taking up a special insurance for this purpose.
c) If the insurance comes to bear in case of damage, terms state that the damage had not been caused deliberately or by gross negligence or that the charterer did not set a behavior, which release the insurer to fulfill its contractual obligation.
It is expressly stipulated that in case of gross negligence or deliberate act the liability of the Charterer is not limited by the deposit. The Charterer may be forced to pay the full sum of the damage.

9. Use of the ship, Obligations, Damages
a) The Charterer agrees to navigate the craft with special consideration of good seamanship and careful observation of all legal regulations and provisions as applicable in all the countries visited
b) The Charterer  nominated by the Charterer are committed
• not to accept more than the maximum number of persons permitted on board and to inform the ship owner and the relevant authorities about any changes in the crew
• not to allow the ship to be used for transporting passengers nor for commercial fishing nor for any other gainful activity
• not to take part in races without the express agreement of the ship owner and not to recharter the ship.
• not to use the ship for towing other ships or to be towed or rescued by other ships except in cases of emergency; should such an emergency arise, orders have to come from the ship owner(or a person authorised by him). Should this not be possible, the Charterer has to establish contact with the owner of the other vessel and come to an agreement about costs of towing or other rescue operations before help is accepted.
• to write a logbook in which the following items have to be recorded in chronological order: course, maneuvres, logs, proper handling of sails/engine, positions, checks, maintenance and repairs, important events or observations (accidents)
• no to let the engine run if the ship sails in a sloping position and to use the engine only as long as it is necessary; sails should be adapted to the rig and to the existing wind forces
• to leave a protected harbour only if the principles of good seamanship allow this
• to leave unsafe anchorage places or moorings if the weather forecast, the existing weather conditions or the foreseeable development makes it necessary.
• to take care that while the ship is anchored or moored danger to the craft has to be recognisable at all times, thus allowing measures to be taken to avoid danger.
c) If there is damage on the craft due to material wear, the Charterer has to arrange for a replacement of the parts or repair as instructed by the  ship owner or his deputy. If neither can be reached, Charterer  are authorised to organise repair or replacement – provided the amount does not exceed 100 Euros. This sum will be refunded at the end of the journey after submitting the bill except if the damage is due to incorrect operation of the ship, faulty or negligent handling by Charterer or the crew. Parts that had to be exchanged are not to be disposed of. If the craft or ship has to stay in port because of repairs, the Charterer is not entitled to raise any claims if the delay does not exceed ¼ of the entire charter period. Otherwise the Charterer has to be reimbursed on a pro-rata basis. There are no further claims to be raised.
d) In case of major sea damage or accident, possible delay or loss of maneuverability of the craft, the ship owner has to be informed at once. The Charterer has to undertake everything in his power to reduce the effects as well as to avoid consequential damage (for instance breakdown, etc.).In concerted agreement with the ship owner, the Charterer has to organise the necessary repair work, to document all the facts, to monitor the repair work and to negotiate price and payment. Moreover, the Charterer is obliged to keep a record of the details of the damage and – provided there are claims of third parties – to have all the data confirmed by the relevant
authorities. The Charterer may be obliged to pay for the entire costs if the aforementioned conditions are not properly adhered to. The Charterer is fully liable for all direct and consequential costs such as confiscation of the ship if it is within the scope of responsibility of the Charterer or members of the crew.
e) If there is reason to assume that the ship is damaged in the part under water, the ship has to be navigated to the nearest port where the services of a diver must be engaged, the supply of a crane organised or a slip up arranged. The costs have to be borne by the Charterer.
f) Theft of the ship or of part of the gear or equipment has to be reported to the nearest police precinct
g) Animals may be taken aboard only with the express permission of the ship owner.




Cloning is the process of producing similar populations of genetically identical individuals that occurs in nature when organisms such as bacteria, insects or plants reproduce asexually.

Clones are organisms that are exact genetic copies. Every single bit of their DNA(Deoxyribonucleic Acid) is identical.  Cloning is commonly used to amplify DNA fragments containing whole genes, but it can also be used to amplify any DNA sequence such as promoters, non-coding sequences and randomly fragmented DNA. It is used in a wide array of biological experiments and practical applications ranging from genetic fingerprinting to large scale protein production.


                                    CLONING A GENE (Artificial)

When scientists clone an organism, they are making an exact genetic copy of the whole organism.

When scientists clone a gene, they isolate and make exact copies of just one of an organism’s genes. Cloning a gene usually involves copying the DNA sequence of that gene into a smaller, more easily manipulated piece of DNA, such as a plasmid.


clonesSome researchers are looking at cloning as a way to create stem cells that are genetically identical to an individual. These cells could then be used for medical purposes, possibly even for growing whole organs. And stem cells cloned from someone with a disease could be grown in culture and studied to help researchers understand the disease and develop treatments.

Cloning can also occur Naturally;

some plants and single-celled organisms, such as bacteria, produce genetically identical offspring through a process called asexual reproduction. In asexual reproduction, a new individual is generated from a copy of a single cell from the parent organism.

Natural clones, also known as identical twins, occur in humans and other mammals. These twins are produced when a fertilized egg splits, creating two or more embryos that carry almost identical DNA. Identical twins have nearly the same genetic makeup as each other, but they are genetically different from either parent.

KEY NOTEIn 2013, scientists at Oregon Health and Science University were the first to use cloning techniques to successfully create human embryonic stem cells. The donor DNA came from an 8-month-old with a rare genetic disease.






A supply chain is a series of processes linked together to form a chain. It is the sequence of processes involved in the production and distribution of a commodity. The supply chain is the network created among different companies producing, handling and/or distributing a specific product. The supply chain encompasses the steps it takes to get a good or service from the supplier to the customer.

Supply chain begins with the ecological, biological, and political regulation of natural resources, followed by the human extraction of raw material, and includes several production links (e.g., component construction, assembly, and merging) before moving on to several layers of storage facilities of ever-decreasing size and increasingly remote geographical locations, and finally reaching the consumer.

KEY NOTE: Logistics is not supply chain. logistics refers to the distribution process within the company whereas the supply chain includes multiple companies such as suppliers, manufacturers, and the retailers.


A supply chain network shows the links between organization and how information and materials flow between these links.  The more detailed the supply chain network the more complex and web like the network becomes.

A supply chain network can be strategically designed in such a way as to reduce the cost of the supply chain; it has been suggested by experts that 80% of supply chain costs are determined by location of facilities and the flow of product between the facilities.Supply chain network design is sometimes referred to as ‘Network Modelling’, due to the fact a mathematical model can be created to optimize the supply chain network.


The two types of flow in a Supply Chain Network are:

  1. MATERIALS/CARGOES FLOW: Is the movement of goods from raw primary goods (such as Wool, Trees and Coal etc.) to complete goods (TV’s, Radios and Computers) that are to be delivered to the final customer.
  2. INFORMATION FLOW: Is the demand from the end-customer to preceding organizations in the network.

Supply chain allows Firms to move product from the source to the final point of consumption. Leading firms around the world, from large retailers to high-tech electronics manufacturers, have learned to use their supply chain as a strategic weapon.



A Virus is defined as a program inserted into another program. It gets activated by its host program. It replicates itself and spreads to others through floppy transfer. A virus infects data or program every time the user runs the infected program and the virus takes advantages and replicates itself.

There are two types of computer viruses ‘parasitic’ and ‘boot’ virus.

1. A Parasitic virus attaches itself to other programs and is activated when the host program is executed. It tries to get attached to more programs so that chances of getting activated is more. It spreads to other computers when the affected programs are copied. ‘Jerusalem’ and ‘Datacrime’ are parasitic viruses.

2. A Boot virus is designed to enter the boot sector of a floppy disc. It works by replacing the first sector on the disc with part of itself. It hides the rest of itself elsewhere on the disc, with a copy of the first sector. The virus is loaded by the computers built-in start-up program when the machine is switched on. The virus loads, installs itself, hides the rest of itself and then loads the original program. On a hard disc, virus can occupy DOS boot sector or master boot sector.

Some Reported Viruses

3. C-Brain: Amjad and Basit, two pakistani brothers, developed this software in January 1986 to discourage people from buying illegal software at throwaway prices. This was the most famous virus ever found and has a record of damaging few millions of personal computers. This is designed to stay in the boot sector of the disc or near zero sector. The virus enters the machine memory once the PC is booted with the infected floppy.

4. Macmag: This virus attacked Apple Macintosh computers only. Not much damage is reported because of this virus. This was not noticed on any IBM compatible PCs. It displayed a message of peace on the monitor and killed itself.

5. Cascade: This virus attacked IBM PCs and compatibles. The letters on the screen could be seen dropping vertically down to the bottom of screen after the virus picked them off in alphabetical order. This is a sort of parasitic virus. It attaches itself to other programs and gets activated when the host program is executed. It gets copied to other PCs when the programs are copied.

6. Jerusalem: Found in 1987 at Hebrew University, Jerusalem, this virus was designed to activate only on Friday, January 13 and delete all the files executed on that day. This infects the COM and EXE files. This is similar to Cascade virus in that it is parasitic in nature. This virus attaches itself to COM and EXE files to damage the data.

7. Daracrime/Columbus or October the 13th virus: This virus is similar to Jerusalem and was programmed to attack on October 13, 1989. Track zero of computer hard disk is destroyed and the contents of discs are rendered unreadable. This virus enters COM and EXE files and damages the hard disk. An antidote called ‘Vchecker’ was developed by the American Computer Society. Fortunately the virus was located in March 1989 itself and the damage reported after October 13 was minimal.

8. Bomb: This is also know as ‘Logic Bomb’ and ‘Time Bomb’. An event triggered routine in a program that causes a program to crash is defined as a ‘bomb’. Generally, ‘bomb’ is a software inserted in a program by a person working in the company.


Some types of anti virus are;

1.Microsoft Security Essentials: Released by Microsoft in late 2009, Microsoft Security Essentials sports more than a typically verbose Microsoft name: it’s also a really good antivirus. Lightweight enough to run on older machines without crippling their performance, yet competent enough to handle most viruses and malware out there.

2. AVG: Anti Virus Guard has become synonymous with free anti-virus, and there’s a reason for this: AVG offers complete malware protection, with considerably less bloat than the top pay-to-use antivirus clients. And while AVG Free does constantly remind you that you could pay for the professional version of the program, it does this without ever getting in the way of the program’s core purpose: protecting you from viruses.

3. Malwarebytes: This program doesn’t run in your system background and constantly protect you, but when you run into a problem running Malwarebytes will usually take care of what other programs can’t.

4. AVAST: This is one of the top free anti-viruses on the market, and for good reason: it’s remarkably complete. Expect great all-around protection, including against trojans and spyware. You can also expect constant reminders that there’s a free version you can upgrade to, on your desktop and in your inbox. Still, the protection is solid.

5. Comodo Firewall + Antivirus: Comodo is best known for its free firewall, but it also offers a bundled firewall and antivirus program. While the Comodo firewall isn’t the easiest to use, and the antivirus doesn’t include protection for non-virus forms of  malware, this one’s worth mentioning if you’re looking for a free securitysuite which includes both a firewall and anti-virus protection.




The economic cycle is the natural fluctuation of the economy between periods of expansion (growth) and contraction (recession). Factors such as gross domestic product (GDP), interest rates, levels of employment and consumer spending can help to determine the current stage of the economic cycle. Economic cycle is the downward and upward movement of gross domestic product (GDP) around its long-term growth trend.


Full Recession

This is not a good time for businesses or the unemployed. GDP has been retracting, quarter-over-quarter, interest rates are falling, consumer expectations have bottomed and the yield curve is normal. Sectors that have historically profited most in this stage include:

  1. Cyclicals and transports (near the beginning)
  2. Technology
  3. Industrials (near the end)

Early Recovery

In this stage, things are starting to pick up. Consumer expectations are rising, industrial production is growing, interest rates have bottomed and the yield curve is beginning to get steeper. Historically successful sectors at this stage include:

  1. Industrials (near the beginning)
  2. Basic materials industry
  3. Energy (near the end)

Late Recovery

In this stage, interest rates can be rising rapidly, with a flattening yield curve. Consumer expectations are beginning to decline and industrial production is flat. Here are the historically profitable sectors in this stage:

  1. Energy (near the beginning)
  2. Staples
  3. Services (near the end)

Early Recession

This is where things start to go bad for the overall economy. Consumer expectations are at their worst; industrial production is falling; interest rates are at their highest and the yield curve is flat or even inverted. Historically, the following sectors have found favor during these rough times:

  1. Services (near the beginning)
  2. Utilities
  3. Cyclicals and transports (near the end)


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