SHELLTIME 4
The tanker period benchmark: the December 1984 form as revised 2003, its wide clause 21 off-hire and clause 24 continuous performance regime.
SHELLTIME 4 is the standard time charter party for tankers, issued by Shell in December 1984 and revised in December 2003. It is printed under licence by BIMCO and is the benchmark oil-major period form.
SHELLTIME 4 loads the owner’s performance obligations more tightly than a dry cargo time charter does. Clause 21(a) is a notably wide off-hire provision biting on each and every occasion that there is loss of time, whether by interruption in the vessel’s service or from a reduction in her performance, so a performance shortfall alone can put a ship off-hire without any listed event. Clause 24 sets an average speed and a maximum average bunker consumption measured during the currency of the order, so the warranty runs continuously across the period rather than being tested once at delivery.
The full article will cover the form clause by clause, the off-hire and performance regime and how claims under it are calculated, the vessel condition and certification requirements, the trading and cargo exclusions, and the differences from NYPE 2015 .