π°️ Why GMT Matters More Than You Think in Charter Parties: Demystifying Clause 39
❓ Are You Sure You’re Calculating
Hire Correctly Across Time Zones?
❓ Could Misinterpreting Time
Zones Be Quietly Costing You Thousands?
❓ Do You Know Why Charter Parties
Often Insist on GMT for Delivery/Redelivery?
π Clause 39 – Time
Clause: What It Really Means
Clause Text:
“Time on delivery/redelivery to be based on Greenwich Mean Time (GMT) for
hire calculation.”
This seemingly simple clause packs more punch than meets the
eye. By standardizing time reference to GMT, the charter party ensures a
uniform basis for hire calculations, regardless of where in the world
the vessel is delivered or redelivered.
π Why Use GMT?
- Consistency:
Ships operate globally, crossing multiple time zones. GMT eliminates
confusion in tracking time-related obligations.
- Clarity
in Billing: Ensures both owners and charterers use the same baseline,
especially critical for voyage demarcations and precise hire computation.
- Dispute
Prevention: Ambiguities over “local time vs. UTC vs. GMT” can lead to
expensive arbitration or litigation.
⚠️ Implications & Common
Pitfalls
- Mistaking
Local Time for GMT: Operators may record delivery/redelivery at a
local port time, leading to billing errors.
- Time
Conversion Errors: Failing to adjust for daylight saving time (DST)
or using incorrect conversion tools.
- Unclear
Time of Day in Delivery Notices: Notices sent at “08:00” must specify
GMT to avoid disputes.
π§ Real Example:
A redelivery notice from a vessel discharging in Singapore
at "12:00 local time" (UTC+8) was used without conversion. The owners
billed 8 hours extra hire, leading to a USD 25,000 claim, later settled with
costs.
⚖️ Legal Insight:
While not tied to a specific BIMCO clause, this provision is
commonly accepted in Shelltime and NYPE charters. Maritime courts
generally uphold GMT-based interpretations when explicitly stated in
charter terms.
✅ Pro Tips & Action Steps
For Operators/Managers/Charterers:
- π
Standardize Your Time Logs: Always log key events (delivery,
redelivery, notice issuance) in GMT, even if locally timestamped.
- π§
Use Verified Tools: Rely on trusted GMT converters or vessel reporting
software with UTC/GMT time capture.
- π
Explicitly State Time Zones in all written communications,
especially hire statements and voyage updates.
- π
Align Notices with Clause: Ensure your delivery/redelivery notices
reference GMT as per the charter clause.
- π
Train Ops Staff: Include a “Time Zone Discipline” module in your
ops SOP.
π§ Conclusion: Clarity is
Currency in Shipping Ops
Time might be a constant, but its interpretation in shipping
can vary wildly—unless you anchor it to GMT. Clause 39 may appear technical,
but it safeguards against miscommunication, billing disputes, and operational
inefficiencies.
By mastering GMT-based hire calculation, you're not just
ticking a box—you’re proving your operational excellence.
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helpful? Let us know in the comments!
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⚠️ Disclaimer
This blog is intended for general informational purposes
only and does not constitute legal or operational advice. Please consult your
charter party, legal team, or P&I Club for specific guidance related to
your contracts.
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