Preferred CP Basis or Draft Terms – We generally work on Shellvoy 6 or BPVOY4 forms with mutually agreed amendments.
VLCC chartering on Shellvoy 6 or BPVOY4 basis.
1. Sample Main Terms (Recap / Fixture Note)
This is a typical VLCC crude oil voyage recap structure. In practice, it is sent by the broker shortly after fixture and later forms the basis for the full Charter Party.
SUBJECT TO STEM / DETAILS / APPROVALS / MUTUALLY AGREED AMENDMENTS
Vessel: [Vessel Name], [IMO No.], VLCC, [DWT] mt, [Year Built], [Flag], [Class], [SIRE/CDI last inspection date] Owners: [Owner Name] Charterers: [Charterer Name / Ametheus Holdings]
Cargo: [e.g., 260,000 mt ±5% MOLOO] Iranian Heavy Crude / Basrah Light / [Grade] Loading: [1/2 SB/1 SP] [Port/Range, e.g., Ras Tanura, Saudi Arabia] Discharging: [1/2 SB/1 SP] [Port/Range, e.g., Chiba, Japan or Rotterdam]
Laycan: [Date] – [Date] (e.g., 05–15 July 2026) Freight: Worldscale [XX] basis [load/discharge ports] (or lumpsum [USD XXX]) Freight Payment: 100% within [3/5] banking days after completion of discharge and receipt of commercial invoice + supporting documents
Demurrage: USD [XXX,XXX] per day/pro rata (or Worldscale equivalent) Laytime: 72/84 running hours SHINC (or 36/42 for load/discharge) all purposes
Charter Party: Shellvoy 6 [or BPVOY4] dated [Year] with mutually agreed amendments as per attached/additional clauses
Other Key Terms (Typical):
- Cargo Quantity: Min/Max MOLOO (More or Less Owner’s Option)
- Vessel Speed/Consumption: [Knots] laden/ballast on [IFO/MGO] + [MDO] basis no adverse currents
- Bunkers: Owners/Charterers supply at loading/discharging (standard allocation)
- NOR / Laytime: As per CP form + amendments (free pratique, etc.)
- ITT/STS: Allowed at Charterers’ option, risk and expense
- Vetting: Vessel to be acceptable to Charterers / Major Oil Companies
- Sanctions / OFAC / EU / IMO Compliance: Full warranty
- Pumping Warranty: As per form (e.g., full cargo within 24 hrs or 100 PSI)
- General Average / New Jason / Both-to-Blame: Standard
- Brokerage: [X]% to [Broker] payable by Owners on freight/deadfreight/demurrage
All other terms as per Shellvoy 6 / BPVOY4 with mutually agreed amendments.
This recap is usually followed by full wording of additional clauses.
2. Common Amendments in VLCC Fixtures
These are frequently negotiated (added, deleted, or modified) on Shellvoy 6 or BPVOY4:
- Performance (Speed & Consumption): Detailed warranty with weather routing (e.g., Good Weather basis Beaufort ≤4, Douglas Sea ≤3), penalties/bonuses, and bunker over/under consumption claims.
- Bunker Clauses: Prices, quality specs, stem details, non-commingling, low-sulphur / scrubber / ECA compliance (IMO 2020+).
- Laytime & Demurrage: Adjustments to NOR validity (free pratique, clearance, berth availability), shifting time, pumping time counting, 24/7 operations, and exceptions (e.g., weather, strikes).
- Cargo Operations: Co-mingling, topping-off, crude oil washing (COW), inert gas, vapor recovery, heating (if required).
- Safety & Compliance: ISGOTT, SIRE, CDI, TMSA, vetting acceptance, right to inspect, pollution prevention.
- Sanctions, War Risks, Piracy, Force Majeure: Enhanced clauses for current geopolitics.
- Deviation / Slow Steaming: At Charterers’ request with compensation.
- Freight Payment & Invoicing: Documentary requirements, interest on late payment.
- STS / Lightering / Ship-to-Ship: Detailed operational and cost allocation.
- General Average / Arrest / Liens: Modernized wording.
- Brokerage & Commission: Payment terms.
- Fixture Note / Recap Binding: Clause 47 in Shellvoy 6 style (fixture note binding).
- Additional: BIMCO clauses (e.g., COVID, cyber security, emissions trading if applicable).
3. Shellvoy 6 vs BPVOY4 – Key Clauses Comparison
| Aspect | Shellvoy 6 (Shell, 2005) | BPVOY4 (BP, 1998/rev) | Typical Market Preference |
|---|---|---|---|
| Owner Due Diligence | Strong “due diligence” throughout voyage | Similar, with emphasis on condition & compliance | Comparable |
| NOR & Laytime | Standard + incorporated practices | Detailed (free pratique within 6 hrs, etc.) | BPVOY4 often more prescriptive |
| Pumping Warranty | 24 hrs or 100 PSI, subject to utmost despatch | Similar pumping guarantees | Comparable |
| Speed & Performance | Detailed in Part I + amendments common | Integrated performance clauses | Shellvoy slightly more owner-oriented |
| Cargo Care | Good care, co-mingling/dyeing allowed | Strong compliance focus | Comparable |
| Deviation | Reasonable deviation clause | Charterer-friendly options | Negotiable |
| Demurrage | Standard rate, exceptions limited | Clear commencement rules | Comparable |
| Overall Balance | Slightly more balanced / modern (incorporates many prior amendments) | Often seen as slightly more charterer-friendly | Both widely used |
| Vetting / Safety | Strong requirements | Very strong (ISGOTT, etc.) | Similar |
Shellvoy 6 is popular for its clarity and incorporation of standard market amendments. BPVOY4 remains very common, especially with BP-affiliated or certain crude trades.
Both are owner/charterer balanced after amendments.
4. Full Proforma Charter Party Structure (High-Level)
A full CP on Shellvoy 6 / BPVOY4 consists of:
- Part I (Box layout): Vessel details, cargo, ports, laycan, freight, demurrage, etc. (filled in)
- Part II (Printed clauses): Standard terms (Condition of Vessel, Voyage, Laytime, etc.)
- Additional Clauses / Rider Clauses: All mutually agreed amendments (the bulk of negotiations)
- Annexes: Vessel questionnaire (VPQ/OCIMF), cargo specs, bunker specs, etc.
Fixture Note (Recap) binds the parties first; full signed CP follows if requested.
