Time Charters. Redelivery Last updated 12-Aug-2014

One must consider the language of the charterparty in order to give that argument its true weight. It is founded on the word "redelivery." As pointed out … that is not an apt word to express the obligation of either party to the other under such a contract as this. It might be an appropriate word if the ship had been demised, but under a charter like the present by which the owner places the ship with her captain, officers, seamen, engineers, firemen, and crew at the disposal of the charterer for a certain period on certain terms, the only redelivery possible is to make such arrangements as will enable the owner to resume control on the expiration of the charter and, it may be, if necessary, to inform the master that he is no longer under the charterer’s orders but must consider himself under the orders of the owner. That is the real meaning of the word "redelivery" in this charterparty.
Italian State Railways v Mavrogordatos [1919] 2 K.B. 305 per Bankes, L.J., at p. 311.

Power of disposition of the ship.

There is no possessory rights over the vessel vested in time charterers, therefore redelivery of vessel takes effect when the power of disposition of the vessel restored or transferred from the charterers back to the owner:

"Delivery" and "redelivery" in this clause relate to the same thing, the power of disposition of the ship. When the power of disposition is restored to the owner there is a redelivery within the meaning of the clause.
Per Duke, L.J., in Italian State Railways v Mavrogordatos [1919] 2 K.B. 305 at p. 312.

In Sea and Land Securities v Dickinson [1942] 2 K.B. 65, Mackinnon L.J., called a time charterparty "a misleading document, because the real nature of what is undertaken by the shipowner is disguised by the use of language dating from a century or more ago". Originated from what is now known as demise charterparty, certain phrases "survived" to be seen in modern time charters provisions. Delivery and redelivery terms are from that category:

"Redelivery" is only a pertinent expression if there has been any delivery or handing over of the ship by the shipowner to the charterer. There never had been any such delivery here. The ship at all times was in the possession of the shipowners and they simply undertook to do services with their crew in carrying the goods of the charterers. As I ventured to suggest quite early in the argument, between the old and the modern form of contract there is all the difference between the contract which a man makes when he hires a boat in which to row himself about and the contract he makes with a boatman that he shall take him for a row.

Redelivery of the vessel from the charterers to the owners takes place when, on expiration of the charter, the latter resumes control over it and informs her master accordingly (Read about historical background of the term "Redelivery"). Usually charterparty contains express provisions regarding delivery notices, such for example as below:

The charterers to give the owners not less than 10 days notice at which port and on which day the vessel will be redelivered. Should the vessel be ordered on a voyage by which the charter period will be exceeded the charterers to have the use of the vessel to enable them to complete the voyage provided it could be reasonably calculated that the voyage would allow re-delivery about the time fixed for the termination of the charter, but for any time exceeding the termination date the charterers to pay the market rate if higher than the rate stipulated herein.

NYPE 93 form provides for "redelivery in like good order and condition, ordinary wear and tear excepted, to the Owners (unless Vessel lost) at [named place/geographical location]" and also request from the Charterers to give the owners notice of the vessel’s expected date and probable port of redelivery. Shelltime 4, on the other hand, stipulates neither period of prior notice with regard to the time of redelivery nor does the printed form provide for any location where redelivery to take place. It also contains no requirements as to the state of the ship on redelivery, as NYPE 93 does. It is, however, nowadays almost imperative for the parties to agree on additional set of clauses which amends standard form. Some newer forms such as ExxonMobil Time 2000 (below) and

ExxonMobile Time 2000 Redelivery clause

BPTIME3 (below) contain detailed provisions regulating process of redelivery, including place and date of redelivery, tender of necessary notices and performance of the last voyage.

BPTIME3 Redelivery clause

Although, as mentioned above, Shelltime 4 form has no designated clause governing process of redelivery but related provisions spread over several clauses: cl.4 (Period, Trading Limits and Safe Places), cl.15 (Bunkers at Delivery and Redeliver), cl.19 (Final Voyage)

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