VLCC Chartering on SHELLTIME 4 (as revised 2003) Basis — Professional Overview & Sample

SHELLTIME 4 is the most widely used standard form for Time Charter of VLCCs (and other tankers). It is balanced, well-established, and accepted by major players including national oil companies like SOMO.

Sample Main Terms (Fixture Recap / Term Sheet)

Subject to Details / Stem / Approvals / Mutual Agreement

Vessel: [Vessel Name], VLCC, IMO [No.], [DWT] mt summer deadweight, Built [Year], [Flag], [Class], SCRUBBER Fitted / Non-scrubber Owners: [Owner / Disponent Owner] Charterers: Ametheus Holdings Pvt Ltd / [Nominee]

Period: [e.g., 12 months + 6 months in Charterers’ option] Delivery: [Date/Range] at [Place, e.g., one safe port Arabian Gulf] Redelivery: [Date/Range] at [Place, e.g., one safe port Far East / Arabian Gulf / Worldwide]

Hire Rate: USD [XXX,XXX] per day pro rata, including/overlapping with [any premium for scrubber/age/etc.] Payment: Semi-monthly in advance / monthly in advance (as agreed)

Trading Limits: Worldwide trading within Institute Warranty Limits (IWL), subject to Charterers’ approval and excluding sanctioned countries/ports. Cargo: Crude oil and/or petroleum products (clean/dirty) in accordance with vessel’s natural segregation.

Key Performance:

  • Speed & Consumption: [e.g., 12.5 knots laden / 13.0 knots ballast on [X] MT IFO 380 + [Y] MT MDO] – Good Weather (Beaufort ≤4, Sea ≤3)
  • Bunker Specifications: As per Shelltime 4 + mutually agreed quality clauses

Other Important Terms:

  • Vetting: Vessel to remain acceptable to major oil companies (SIRE/CDI)
  • Drydocking: As per Clause 22 of Shelltime 4
  • Bunkers on Delivery/Redelivery: On hire basis with same specification
  • Off-hire: As per standard Shelltime 4 Clause 21 + amendments
  • Sanctions / Compliance: Full warranties (OFAC, EU, UN, etc.)
  • Charter Party: Shelltime 4 (as revised 2003) with mutually agreed amendments and additional clauses

Brokerage: [X]% to [Broker(s)] payable by Owners on hire earned and paid.

All other terms and conditions as per Shelltime 4 with mutually agreed Rider Clauses.

Common Amendments / Rider Clauses in VLCC Shelltime 4 Charters

  • Detailed Speed & Consumption warranty (good weather + weather routing)
  • Bunker Quality & Stem clauses (ISO specs, testing, liability)
  • Enhanced Sanctions, Anti-Corruption & Compliance clauses
  • Vetting / SIRE / Right to Inspect provisions
  • Trading Exclusions / War Risk / Piracy areas
  • Hire Payment & Default (interest, suspension, withdrawal)
  • Cargo Handling & Cleaning requirements
  • Slow Steaming clause (at Charterers’ option)
  • BIMCO clauses (e.g., Cyber Security, Sanctions 2020, etc.)
  • Charter Party – specific compliance (if applicable)
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