COMMERCIAL MANAGEMENT  

CHARTERING

§         Act as owner’s broker

§         Keep in daily contact with charterers’ brokers

§         Visit potential charterers in the Houston area; near our office

§         Provide vessel details, cargo capacity, speed, ETA at various load ports

§         Calculate cargo capacity (see below)

§         Calculate voyage cost/revenue (see below)

§         Select voyages that position the vessel in favorable back-haul position

§         Check on load/discharge port restrictions

VLCC at SBM

§         Check on berth congestion/demurrage

§         Calculate voyage distance via great circle or via rhumb line

§         Select routes that take advantage of favorable trade winds & currents

§         Calculate voyage duration and total fuel consumption

§         Negotiate proper c/p clauses, freight and demurrage terms (see below)

§         Advise Master of c/p terms and voyage orders

§         Management & administration of t/c contracts

MAXIMIZE CARGO CAPACITY

·        Calculate maximum cargo capacity

·        Determine Seasonal Allowances/restrictions

·        Apply Fresh Water Allowance (FWA) to brackish water

·        Determine bunkers required and burn-off

·        Calculate maximum cargo based on draft restrictions

·        Calculate maximum cargo if lightering is possible

·        Determine max. cargo in case of “on-top-of-tide” fairway passage

·        Determine max. cubic and max. deadweight cargo

·        Calculate oil cargo intake taking OBQ into account

·        Determine volume of oil cargo with VCF for various temperatures

·        Review owner’s option to load additional cargo for increased revenue

·        Determine Deadfreight if applicable

Voyage Operations  

CALCULATE VOYAGE COST/REVENUE

·        Obtain WS rate and apply Fixed and Variable differentials

·        BHS has in-house software to calculate detailed voyage cost/revenue

·        Contact Port Agent for pro-forma Port Charges

·        Determine vessel’s daily operating cost: at sea and in port

·        Determine proper daily Demurrage rate

·        Review Lump-Sum or Freight + Ballast Bonus voyage offers

·        Calculate reverse WS to compare against prevailing freight market

·        Calculate Canal Tolls

·        Calculate total Fuel Oil cost

Ships operate literally and figuratively in a
dangerous environment

PROTECT OWNER’S INTEREST

§         Secure a Standby L/C for freight/demurrage from unknown charterers

§         Discuss pros & cons of a Letter of Indemnity (LoI) with owner

§         Assist owner with arranging a lien on the cargo

§         Provide Master with proper NoR tendering instructions

§         Provide Master with proper B/L clausing guidelines

§         Provide Master with proper Early Departure Procedure (EDP) guidelines

§         Provide Master/Agent with proper Letter of Authority to sign B/L

§         Provide Master with comprehensive Letter of Protest form

§         Appoint Agent(s) on behalf of owner; include special protective clause

BHS has developed special PROTECTIVE C/P CLAUSES regarding:

Ø      Freight earned and due after completion of loading

Ø      Hague-Visby/York-Antwerp Rules

Ø      Proper INCO terms for trading company sales contracts

Ø      Use of Waybill instead of B/L to lower risk

Ø      Provisions for arrival before/after cancelling date

Ø      Issuing proper NoR

Ø      Laytime/demurrage calculation under adverse weather conditions

Ø      Payment of voluntary pilotage/weather routing services

Ø      Laytime during vessel inspections by USCG/ISM/ISPS/Port & Flag

Ø      Laytime calculation for tank/hold cleanliness inspections

Ø      Detention after completion of cargo; hose disconnection at SBMs

Ø      Laytime while taking on bunkers/segregated ballast

Ø      Lack of loading orders/collection of demurrage

Ø      Strikes by labor/pilots/tugs; work stoppages; shore breakdowns

Ø      Loading & discharge capabilities of shore and ship

Ø      Oil cargo retention claims; high paraffin content; high pour point  

Ø      Oil cargo loss due to evaporation; maximum heating temperature

Ø      COW of oil cargoes prohibited by shore and effect on cargo claims

Ø      Port Charges Assessments; cost of security guards; launch services

Ø      Payment of lightering equipment/services

Ø      Operation in ice; definition of “tide”

Ø      Quarantined ports

Ø      Deviation and return to trade route after dry-docking

Ø      Nomination/Appointment and payment of charterer’s Agent

Ø      Obtainability of signatures for cargo documents from shore people

Ø      Time-bar by charterer for demurrage claims

This OBO previously under BB charter to BHS

POST-FIXTURE ADMINISTRATION

§         Monitor voyage progress and performance

§         Calculate Laytime; Off-hire; Demurrage/Despatch

§         Review Port Charges actually incurred against Agent’s pro-forma invoice

§         Screen for fake vendor invoices

§         Prepare Freight & Demurrage/Despatch statements and invoices

§         Review Statement of Fact/Time Sheets/Pumping Logs

§         Resolve minor Freight/Demurrage/Despatch disputes

§         Resolve minor Load/Discharge/Pumping rate claims

§         Determine Time-Charter Equivalent after completion of the voyage

§         Claim Deadfreight if applicable

§         Issue banking instructions on behalf of owner to collect Freight/Demurrage

BUNKERS

§         Estimate FO/MDO + spare quantity required for the voyage

§         Determine optimum bunker port with BHS in-house software program

§         Order bunkers on behalf of owner

§         Provide Master with example of proper Bunker Confirmation Note

§         Verify loaded fuel quantity and file claim for shortage

§         Calculate Economic Speed to optimize vessel’s fuel consumption

§         Calculate fuel savings during Slow-Steaming

One of the world's largest Diesel engines

CONSULTING SERVICES (special projects)

§         Calculate economics of lightering vs. discharge at LOOP/Caribs.

§         Determine freight costs under CoA, bareboat, time or spot charter

§         Review and update charter parties and suggest special protective clauses

§         Vessel Break-Even (BE) and Present Value (PV) cash-flow analysis

§         Determine BE contribution vs. Lay-Up option

§         Select optimum alternative between buying a vessel, bb,  t/c or spot charter

§         Calculate various Principal & Interest payment schedules

§         Calculate various vessel Depreciation schedules

§         Offer Expert Witness services in Court or Arbitration cases

§         Review Ullage sheets for oil cargo claims

§         Calculate Wedge Formula oil quantities

§         Recalculate Draft Surveys for dry cargoes