This Institute of Chartered Shipbrokers (ICS) course aims to ensure a thorough knowledge and understanding of Dry Cargo Chartering.
As a supporting resource, please see Dry Cargoes of Importance This Dry Cargoes of Importance course is available for FREE for students who purchase Dry Cargo Chartering with tutor support.
Understand the fundamental differences between dry bulk cargo ships,
general purpose ships, liners (container, break bulk and RoRo) and
Thoroughly understand the differences in the types of ships employed
in dry cargo trades including Capesize, Panamax and Handy size bulk
carriers, General Purpose (Tramps), Container, Ro/Ro, Ore/Bulk/Oil
and Ore/Oil carriers, short sea and coastal traders.
Understand the basic dimensions, design and construction details
including decks, holds, hatches, derricks, winches, cranes and
specialised cargo handling gear.
Thoroughly understand the terminology of measuring ships including
dimensions, actual tonnages – deadweight (dwat & dwcc), displacement
(total & light), pseudo tonnages – NT & GT, capacities – bale & grain
Understand what information is contained in Capacity, General
Arrangement and Stowage Plans.
Thoroughly understand the central importance of ship classification,
the importance of charterers’ inspections and questionnaires.
(This subject should interlink with ships so that students can
understand how particular ship types are required for the different
cargoes and trade routes.)
Thoroughly understand the nature, characteristics, hazards and
stowage requirements of the four main dry commodities: Coal, Ore,
Grain and Fertilizers.
Understand the different sub-divisions within these categories and
the trade routes that apply.
Understand the nature and characteristics, main places of origin and
appropriate trade routes of other important cargoes.
Understand the stowage factors of goods. Be aware of the importance
of proper packing, angle of repose, ventilation and prevention of
Understand the use of alternative routes, the existence of seasonal
variations and their impact on markets.
Thoroughly understand the role of the different market practitioners:
Charterers, Shipowners, Operators.
Understand the structure of the international dry cargo chartering
market and the relative importance of the major market centres.
Thoroughly understand the role of the Broker and its relationship to
the Principals as an Agent (Owner’s Broker, Charterer’s Agent,
exclusive Broker, competitive Broker, intermediate Broker).
Understand the advantages and disadvantages of different methods of
Understand the structure and content of market reports and market
Thoroughly understand the nature and impact of external factors
affecting the market including natural catastrophes, environmental,
aid programmes, political crises.
Be aware of the effect that merchants’ trading terms (INCOTERMS) may
have on the shipping contract and the impact of documentary credits,
especially on documentation.
Understand the rationale of joint ventures and shipping pools and be
aware of how these operate.
Thoroughly understand the impact of e-commerce on market practice,
its advantages and disadvantages. Be aware of the main alternative
electronic solutions available to Brokers.
Thoroughly understand the basic format and purpose and content of
those main clauses common to all charter party forms.
Thoroughly understand the differences between the structure and
purpose of voyage charters and time charters.
Understand the reasons for the use of standard forms of voyage and
time charter parties and their suitability to different trades
including a working knowledge of the content of commonly used
standard forms including: voyage charters (Gencon, Norgrain, Amwelsh)
and time charters (Baltime, NYPE).
Understand the reason for charter party interpretation rules and be
aware of the contents of Voylay Rules 1993 and FONASBA Time Charter
Interpretation Code 2000.
Thoroughly understand the importance and proper use of additional
clauses and addenda and be able to draft simple specimen clauses.
Understand the individual rights, responsibilities and liabilities of
owners, charterers and brokers which arise under the charter party.
Understand the use of consecutive voyage contracts and contracts of
affreightment and be aware of the particular terminology required.
Thoroughly understand the role of the Bill of Lading in charter
parties and in particular the liabilities of the Shipowner to the
Bill of Lading holder. Understand the relationship to Mate’s Receipts
and potential problems arising from the demand for clean Bills of
Lading. Be aware of cargoes that pose particular problems in this
context, including steel and grain.
Thoroughly understand the requirements regarding delivery of cargo
against Bills of Lading. Understand the problems arising from the
non-production of originals at discharge ports and practical
Understand the particular problems for Owners arising from Bills of
Lading under time charters and the potential special problems of
freight prepaid Bills of Lading.
Thoroughly understand the procedure of negotiations including cargo
circulars, indications, and firm offers.
Understand all the customary abbreviations used during negotiation.
Understand the process of offer, rejection and new offer (counter
offer, accept/except) and acceptance.
Thoroughly understand the details to be included in offers for both
voyage and time charters and be able to draft a firm offer.
Understand what ’subjects’ are, be able to identify some common
examples of subjects and explain how they are lifted. Understand at
which point the ship and cargo are ’fully fixed’.
Understand the role of the post fixture department and be able to
identify and explain its functions.
Thoroughly understand the legal, tactical and ethical requirements of
the market and the avoidance of conflicts between them.
Thoroughly understand the Brokers’ responsibility to the Principal
and the circumstances under which breach of warranty of authority
(with and without negligence) might arise. Be aware of the consequent
Understand the importance of professional negligence and indemnity
insurance for Brokers and be aware of the cover provided.
Be aware of the remedies available to the Broker in the event of the
Principal defaulting on its obligations.
Thoroughly understand the various ways in which freight (rates per
tonne or lump sum) and hire calculations (rate per day or per
dwt/month) are made and the time when payment is due.
Thoroughly understand that reasons for and calculation of additional
payments due under charter parties, and the appropriate clauses for
Voyage Charters (deadweight, demurrage/despatch, damages for
detention and freight taxes) and Time Charters (payment for bunkers,
Understand the importance of clauses in time charters relating to
late hire payment and the remedies available to the Owner.
Understand the importance in time charters of performance claims and
the nature of off-hire events.
Understand the arrangements for and relevant clauses regarding
delivery, final voyage and re-delivery.
Thoroughly understand how commissions and brokerage are calculated
and who is responsible for payment.
Understand the use of freight market derivates as a hedging tool and
be aware of the operation of the derivates market.
Thoroughly understand the importance of the clarity of notice of
readiness clauses and be able to draft a concise clause.
Understand the procedure for tendering a valid NOR and common
problems relating to acceptance.
Understand the point at which laytime commences and the circumstances
under which laytime may be interrupted; understand what time is
excluded from laytime.
Thoroughly understand the principle of ’once on demurrage always on
demurrage’ and the rare exceptions.
Thoroughly understand the extent and nature of the information
contained in the Statement of Facts and how the Laytime Statement is
prepared. Be able to calculate the laytime used and
demurrage/despatch earned from appropriate data.
Understand the application of ’Voylay Rules’ with particular
reference to Berth-v-Port charters and Weather Working days.
Thoroughly understand the essential procedures used to create a
voyage estimate and be able to make complete calculations from given
Be aware of the main variables including change of loadline zones,
fresh water allowances, draft limitations (including draft
calculation – tpi/tpcm) also the importance of careful bunker
Understand the techniques used and be able to make the calculations
to compare alternative routes, alternative voyages, compare voyage
with time charter, compare $/tonne with lump sum rates and $/day with
Understand the reason for and means of calculation of Ballast Bonus
in time charters.
Thoroughly understand the charter party clauses for the resolution of
disputes, including the application of arbitration and jurisdiction
clauses. Be aware of the BIMCO Arbitration Clause.
Understand the roles of the commercial courts, arbitration and
Alternative Dispute Resolution (ADR) in settling disputes and be
aware of the differing procedures.
Understand the importance of Shipowners’ P&l Associations and their
role in the context of cargo claims; be aware of the other sectors of
Owners’ P&l cover.
Understand the role of Intermediaries’ P&l Associations and the
classes of cover offered to Brokers and Agents.
Be aware of the importance of keeping full and proper records to
assist in dispute resolution.