Every shipping deal lives or dies by the contract behind it. Whether you are fixing a vessel under a charter party, agreeing a Memorandum of Agreement (MOA) for a sale, or signing a management contract, the document defines who carries the risk when something goes wrong. A disciplined review process turns dense legal language into clear commercial decisions. Below is a practical checklist drawn from common charter party and sale-and-purchase practice.
Identify the Parties, Vessel and Core Terms
Start with the basics, because errors here unravel everything after. Confirm the legal names of owner and charterer, the correct vessel particulars (IMO number, flag, class, deadweight and built year), and that the description matches the certificates. Check the hire or freight rate, the duration or voyage, the delivery and redelivery ranges, and the laydays and cancelling date. Make sure the governing law and arbitration seat are stated clearly. A standard form such as BIMCO, GENCON, NYPE or the Norwegian Saleform gives a reliable base, but the rider clauses are where the real negotiation happens.
Scrutinise the Clauses That Allocate Risk
Most disputes arise from a handful of clauses, so read them slowly. For charter parties, focus on:
- Laytime and demurrage — how laytime is counted, when it starts, and the demurrage rate that applies if loading or discharge runs over.
- Off-hire — the events that suspend hire, and whether they are exhaustive or open-ended.
- Seaworthiness and maintenance — the owner's continuing obligations and any due-diligence wording.
- Bunkers — quantity and price on delivery and redelivery, and quality specifications.
- Indemnity and liability — who answers for cargo claims, and how the Inter-Club Agreement may apply.
For an MOA, check the deposit mechanics, inspection and class records, the condition on delivery, and the cancellation and default remedies. An independent expert maritime contract review at this stage often pays for itself many times over.
Confirm Compliance, Insurance and Exit Routes
Finally, look beyond the commercial figures. Verify that sanctions and trading-limit clauses reflect current regulations, that P&I and hull cover are in place and named correctly, and that BIMCO compliance clauses (sanctions, anti-corruption, war risk) are included where relevant. Confirm how notices must be served, how the contract can be terminated, and what happens to disputes mid-voyage. Keep a signed master copy and a clean record of every amendment, addendum and side letter, because partial or undocumented changes are a frequent source of conflict.
A thorough review is not about distrust; it is about pricing risk before it becomes a claim. If you are about to fix a vessel or close a sale, let our team carry out an independent review. Visit our contract review consultation to have your charter party or MOA checked clause by clause before you sign.
