Most studies in the area of ocean shipping are descriptive. Certain aspects of tramp shipping have been subjected to empirical analysis, but few authors have been concerned with an objective study of the behaviour of charter rates. The major purpose of this thesis is to analyse the behaviour of tramp shipping rates over the years 1960 -1968, and to discover what impact the forces of supply and demand had on voyage and time charter rates during those years. To accomplish this objective, the thesis is divided into two distinct parts: the first half of the text is confined to identifying the various markets that exist in the shipping industry today. Incorporated with this discussion are pertinent facts and figures that exemplify the changing pattern of vessel ownership within the industry, as well as the impressive growth and diversification of the various facets of ocean shipping. The second half of the text is concerned with a statistical analysis of tramp charter rates, ie., voyage and time charters. Monthly data were gathered on several variables of supply and demand in the shipping industry. The relationships between these variables and charter rates were examined in four distinct categories: 1. between the various categories of rates, ie., voyage, time and tanker rates. 2. the relationship between laid up tonnage and charter rates. 3. the relationship between charter rates and the various stages of activity in the shipyards, ie., ship ordering, ship launching and ship completions. 4. the relationship between the demand for shipping space, as indicated by world sea trade, and charter rates. A number of hypotheses concerning the economic behaviour of charter rates with respect to these variables were formulated and tested by means of a series of multiple regression models to determine whether these hypotheses could be accepted or rejected. Initial tests produced what appeared to be some significant results. However, these proved to have high autocorrelation in the residuals. Following more rigorous testing to remove the autocorrelation, the relationships broke down and the hypotheses had to be rejected. / Business, Sauder School of / Graduate

There are many major shipping companies which operate fleets comprised largely of vessels which are time chartered and subsequently sub-chartered on voyage terms. Legal risks will arise for the time charterer due the differing natures and terms of time and voyage charters. The essential question examined in this thesis is that of whether, and to what extent, legal risk can be minimized by the negotiation of equivalent contractual terms under time and voyage charter parties. The key areas addressed in this thesis are delivery under time charters compared to readiness under voyage charters, off hire under time charters versus suspension of laytime under voyage charters, obligations relating to cleanliness of cargo spaces, rights and responsibilities relative to safe berths and ports, the time charterer's position under bills of lading, and issues relating to redelivery of the vessel and consequent voyage charter liability if the vessel is unable to undertake the final voyage. The methodology applied is an examination of the case law, with a primary focus on the extensive body of English jurisprudence. This analysis of the case law is accompanied by a consideration of provisions of major charter party forms. The analysis leads to the conclusion that risk, to varying degrees, can be minimized through the application and clarification of contractual language. With respect to readiness of the vessel it is considered that risk will be reduced through agreeing contractual language which requires early notification of the vessel's delay. As regards off hire and laytime wording that clarifies non physical deficiencies is proposed. With regard to vessel cargo spaces intermediate cleanliness is identified as the greatest risk. Safe port and berth warranties are determined to represent an area of easily manageable risk, while letters of indemnity relating to bills of lading continue to represent very significant risk with suggested but no certain solution. Finally, with respect to redelivery a final voyage clause for time charters has been proposed which serves to almost eliminate risk in this area. Therefore, it is broadly concluded that risk can be managed but not eliminated through drafting of appropriate contractual terms.