Load / Discharge Order Changes
Chartering the right vessel for a specific purpose is only just the start of ensuring an efficient - and profitable - cargo transfer. Even the most savvy commodities trader, who works deals on the spot market, can't always know the exact final destination of all of his or her cargo. When the inevitable changes to the port schedule, berth rotation and/or volume splits do occur, it is also important to understand how these changes to the original charter party can affect your bottom line. Only your SPI Marine broker will know for sure.
Changes to any aspect of the load or discharge sequence can seriously affect the cost of vessel hire. Anticipating the likelihood of these changes will allow you to build in parameters to prevent added, unforeseen costs to your freight bill. These potential changes are best discussed up front with your SPI Marine broker who can let you know your options. SPI Marine will assist you in building a charter party agreement with clauses that will best support your plans for this voyage.
The Impact of Changes
Altering the routing, schedule and berth rotation of your vessel will affect your rates unless you plan for these items in advance. Listed below are just a few of the "orders" reflecting changes that can have the most impact:
- Load / Discharge Port Changes: Adding or changing the routing of your ship alters the fundamentals upon which the charter was made in the first place. The shipowner has anticipated certain costs for a certain route. Altering those terms can seriously affect his bottom line in many ways. This starts with the cost of fuel and his ability to present his vessel in a timely manner for future voyages with others.
- A post-fixture change of cargo orders involving the stow of a bulk liquid cargo can be challenging, especially when that parcel is just one of twenty on board a specialized parcel carrier. Where that cargo involves an increased volume of a specialized grade which is not necessarily compatible with just any previous cargo - no matter how thorough the cleaning - then the consequences for your charter can be grave.
- Changing berth splits within a single port is a seemingly easy twist to an individual voyage. In reality, nothing could be further from the truth. The change in berths may involve an increase in time spent in that port and ultimately create demurrage, change laytime calculations and otherwise create headaches and delays not originally foreseen by the cargo owner. Unless you anticipated this situation, then his costs are now yours.
Considering Change Orders
Changes to any aspect of your original charter party terms may be expensive and, in the end, not all changes involving cargo are necessarily feasible, under certain circumstances. If your parcel is just one of many on board a vessel that has responsibility to many masters on one voyage, then you very well may be out luck. Beyond this, it is not unusual for some cargoes to be bought and sold on numerous occasions during an extended sea passage. If this sounds like your business profile, then plan for these variables in advance. Only when your SPI Marine broker fully understands your business can the right type of charter or freight agreement be crafted for your needs. Call SPI Marine today to get started.