ICM300-Chartering and Charterparty Analysis

Module Provider: ICMA Centre
Number of credits: 20 [10 ECTS credits]
Level:7
Terms in which taught: Spring term module
Pre-requisites:
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2022/3

Module Convenor: Prof Photis Panayides
Email: p.panayides@reading.ac.uk

Type of module:

Core

Summary module description:

The aim of this course is to provide in-depth and holistic understanding of charter markets, chartering practice and charter party analysis in dry cargo and tanker shipping. Content includes the procedures and practices in chartering merchant ships in the dry cargo and tanker markets, their commercial employment under various forms of chartering and the detailed calculation of financial (freight) performance, voyage planning and laytime estimations. The module provides an in-depth analysis of charter party forms and adopts a legal and commercial perspective to analyse significant clauses and to explain various specialized terms in dry cargo and chartering contracts. The market structure of dry cargo and tanker industries are also analysed, and an overview of the practitioners involved (brokers, owners, charterers) is provided as are the sources of data and information required to initiate, negotiate, agree, execute and assess a successful charter party contract in the dry bulk and tanker markets.

Aims:

The aim of this course is to provide in-depth and holistic understanding of charter markets, chartering practice and charter party analysis mainly in dry cargo and tanker shipping.

Assessable learning outcomes:

Understand the players and processes involved in freight market and chartering practice

• Explain the key clauses in time and voyage charterparties


• Analyze the terms, conditions and respective obligations, responsibilities and accountabilities in charterparty contracts


• Calculate freight income and expenses related to the chartering of ships


• Discuss the concept of laytime in voyage chartering


• Calcula te laytime given a set of relevant data


• Design and analyze voyage plans including voyage estimate calculations given a set of relevant data


• Define specialized terms, abbreviations and notation used in chartering

Additional outcomes:

Outline content:

• Introduction to Chartering


• The Chartering Process


• Dry Cargo Chartering Contracts


• Time Chartering – Calculating Hire


• Voyage Chartering – Freight Calculations


• Laytime


• Dry Cargo Voyage Estimating


• Tanker Chartering and Worldscale


• Tanker Chartering and market practice


• Tanker Charters


• Tanker Voyage Estimation

Brief description of teaching and learning methods:

Lectures will be used for the exposition of theory as well as non-assessed problems and case studies. The techniques used to achieve the stated module objectives and assess its learning outcomes will consist of a combination of teaching, question/answer sessions and discussions, case discussions and assignments.

Summative assessment- Examinations:

A 2-hour final exam

Summative assessment- Coursework and in-class tests:

One 3,000 word assignment typically submitted by the end of March

Formative assessment methods:

Penalties for late submission:

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Assessment requirements for a pass:

A minimum total final mark of 50%.

Reassessment arrangements:

Re-examination takes place in August/September of the same year

Additional Costs (specified where applicable):

Required text books £40

Last updated: 29 March 2022