What Are Dollar Terms?

Also known as the JUPITER clause, the reason for this clause is as follows: In 1970, the tanker market took a rapid turn. A Bermuda leather bag company called JUPITER leased 10 supertankers on standby in the Persian Gulf, waiting for the market to turn for profit. As a result, the market continued to be sluggish, with no people chartering, and 10 ships waited for a long time and had no cargo to load. The lessee ran away in the face of millions of dollars of demurrage fees, which caused the lessor a heavy loss. With this lesson in mind, the lessor has developed a precautionary clause specifically for this, so that it can escape in the event of the above. This precautionary term is called "JUPITER CLAUSE".

Jubbit Clause

Right!

Also known as the JUPITER clause, the reason for this clause is as follows: In 1970, the tanker market plummeted, and a Bermuda leather bag named JUPITER

A typical case in this regard is the so-called "Jupiter" scandal that took place in the mid-1970s. A charterer called Jupiter was a Bermuda-registered leather bag company. When the tanker market fell at that time, the voyage charterers chartered a large number of super tankers, but these tankers did not receive port loading instructions. We can wait outside the port of the Persian Gulf. The fact is clear that this Jubbit is a speculator, hoping to re-lease for profit when the market stops falling and picks up. But despite the market slumping at that time, Jupiter was still reluctant to give up this hope, so he never broke the contract. These lessors naturally dare not rush to sail or sublease, and have to wait between the boundless waiting and the risk of breaking the contract. The ending was that many tankers waited for a long time, and Jubbit did not show up and disappeared.

Summarizing the above situations, it can be seen that the lessor is always passive due to the uncertainty of its legal status when facing the above dilemma; in fact, the lessor is not willing to wait for a long time at the risk; plus the above mentioned In the bitter lesson of the Jupiter case, the lessor began to formulate a variety of so-called Jupiter Clauses to prevent such situations from happening again

Expression of JUPITER terms

This clause is available in INTERTANKVOY 76 and reads as follows: ^[1]

OWNER'S OPTION OF CANCELLING: (JUPITER CLAUSE)

IF FOR REASONS NOT ATTRIBUTABLE TO THE VESSEL AND / OR OWNERS

(A) CHARTERERS FAIL IN THEIR DUTY TO FURNISH VOYAGE INSTRUCTIONS OR LOADING ORDERS IN ACCORDANCE WITH CLAUSE 2, AND SUCH FAILURE HAS LASTED FOR NOT LESS THAN 10DAYS, OR

(B) LOADING HAS NOT COMMENCED AND 20DAYS HAVE PASSED AFTER VALID NOTICE OF READINESS HAS BEEN TENDERED, OWNERS SHALL HAVE THE OPTION OF CANCELLING THIS CHARTER PARTY.

IF SUCH OPTION IS EXERCISED AND THE DELAY IS ATTRIBUTABLE TO CHARTERERS, THEY SHALL BE LIABLE FOR LOSS OF CHARTER. WHETHER OR NOT OWNERS EXERCISE THIS OPTION NO CLAIM THEY MAY HAVE ON CHARTERERS FOR LOSS OF TIME OR OTHERWISE SHALL BE PREJUDICED THEREBY.

The famous Jupiter clause ^[2]

Article 8 of the navyozai charter contract for loading timber provides:

"The charterer is allowed several consecutive 24-hour days at the loading port. If the charterer is unable to load within the above-mentioned period, the ship may carry the loaded cargo freely. The charterer shall pay the loss fee and incurred Demurrage. "

Another example is Article 7 of the famous Intertankvoy charter contract for oil tankers:

"If it is not due to the ship and / or the shipowner, the shipowner has the right to terminate the contract if:

(A) the charterer has not given a voyage instruction or loading order in accordance with the provisions of Article 2, and the delay instruction is not less than 10 days; or

(B) The loading has not yet started and 20 days have elapsed from the date of submission of a valid notice of readiness for loading and unloading.

If the shipowner exercises this option and the delay is due to the charterer, the charterer shall be responsible for the loss of the charter party. Regardless of whether the shipowner exercises this option, the shipowner's right to claim the time loss or other damages to the charterer will not be impaired. "

note

There is no such JUPITER clause in Jinkang 76. Shipowners who want to protect themselves must add this clause to the additional clause. However, Article 7 of Jinkang 94 states as follows: "The demurrage fee shall be calculated by the charterer at the daily rate specified in column 20, and the proportion shall be calculated on a pro rata basis and paid on a daily basis. If the payment is not made in accordance with the above provisions, the shipowner shall notify the charterer in writing to pay within 96 hours. If it is not paid within this time limit, and if the ship is in port, the shipowner has the right to This lease is terminated at any time and any damages arising therefrom are claimed. "A similar protection can therefore be provided. However, it should be noted that this clause will be invalidated if the parties have agreed otherwise on the time of payment of the demurrage in the charter party.