The Fixture Process
How Vessel Chartering
Works — Step by Step
From initial enquiry to charter party execution — a clear guide to how a vessel charter fixture progresses, what to expect at each stage, and how Calmwaters manages the process on your behalf.
The Six Stages
Enquiry to Fixture — The Full Process
Enquiry & Qualification
Charterer Submits Requirements — Principal Confirmed
The process begins when a charterer submits their requirements — vessel type, cargo, ports, laycan, and charter type. Before vessel positions are shared, we confirm the principal's identity and cargo ownership. Cargo owners and licensed traders proceed directly to Stage 2. Operators acting for a named principal provide their client's details. Introducing brokers provide direct principal contact — vessel positions are not shared with unverified intermediaries.
Calmwaters Role
We review the enquiry, confirm principal status, and request a signed LOI on company letterhead from the principal before canvassing tonnage.
Charterer Action
You confirm your role in the transaction and submit cargo requirements. A signed LOI on your company letterhead is required before vessel options are presented.
Indication
Broker Sources Vessels & Provides Rates
The broker canvasses vessel owners and operators, matching the charterer's requirements against available tonnage. An indicative rate — expressed as Worldscale (for voyage charters) or USD per day (for time charters) — is provided, typically within one hour for standard enquiries.
Calmwaters Role
We contact owners, review vessel positions, check SIRE/CDI records, and present suitable options with indicative rates.
Charterer Action
You review the options and indicate your preferred vessel and rate basis to proceed.
Negotiation
Main Terms Agreed "On Subjects"
Once both parties agree on the principal commercial terms — vessel, freight rate, laycan, cargo, ports, demurrage — these are confirmed "on subjects." This means the fixture is agreed in principle, subject to formal charter party negotiation and the lifting of any outstanding subjects (such as management approval or cargo confirmation).
Calmwaters Role
We act as intermediary between charterer and owner, working towards a "clean recap" — a full summary of agreed terms.
Charterer Action
You confirm agreement on the main terms. Subjects are typically lifted within 1–3 business days.
Recap
Fixture Recap Circulated
Once all subjects are lifted, the broker circulates a fixture recap — a written summary of all agreed commercial terms, including vessel name, cargo, freight, laytime, demurrage, port rotation, and applicable charter party form. The recap is the binding commercial agreement and forms the basis for the formal charter party.
Calmwaters Role
We draft and circulate the recap to both parties, ensuring all terms are correctly captured and mutually confirmed.
Charterer Action
You review and counter-sign the recap. The fixture is now legally binding on commercial terms.
Charter Party
Charter Party Executed
The formal charter party document is prepared — typically on BIMCO-standard forms (GENCON for voyage, SHELLTIME or NYPE for time charter, SUPPLYTIME for offshore) with agreed additional clauses. This includes BIMCO's standard Anti-Corruption Clause, Sanctions Clause, and Cyber Security Clause. Both parties execute the charter party.
Calmwaters Role
We coordinate charter party preparation, rider clause negotiation, and execution. All Calmwaters fixtures use BIMCO-standard forms.
Charterer Action
You receive and execute the charter party. Our team verifies all clauses match the agreed recap.
Operations
Vessel Performs — Broker Supports
With the charter party signed, operations begin. The broker remains involved throughout — coordinating with port agents, monitoring vessel position, managing laytime, and handling any on-voyage issues. For Nigerian port calls, we handle all NPA, NIMASA, and customs clearance coordination.
Calmwaters Role
We remain your single point of contact from vessel nomination through to final discharge and freight settlement.
Charterer Action
You receive regular voyage updates. Our port agency team handles all Nigerian port operations on your behalf.
BIMCO Standard Forms
Charter Party Forms We Use
All Calmwaters fixtures are concluded on internationally recognised BIMCO-standard charter party forms. BIMCO forms are accepted by all major P&I clubs, oil company vetting departments, and international financiers — providing legal certainty and protection for both parties.
GENCON 1994
Standard voyage charter — dry cargo and general use
ASBATANKVOY
Tanker voyage charter — widely used for crude and product trades
SHELLVOY 6
Shell oil company voyage charter form — required by many oil majors
BPVOY 5
BP voyage charter form — crude and product fixtures involving BP
NYPE 2015
New York Produce Exchange — standard time charter for most vessel types
SHELLTIME 4
Shell time charter form — tankers on extended time charter
SUPPLYTIME 2017
BIMCO standard for offshore support vessels (PSV, AHTS)
COA / AFFREIGHTMENT
Multi-voyage volume agreement — rate certainty over a series of shipments
Standard Protective Clauses
In addition to the base charter party form, all Calmwaters fixtures incorporate BIMCO's standard protective clauses: the BIMCO Anti-Corruption Clause 2021, the BIMCO Sanctions Clause 2020, and the BIMCO Cyber Security Clause 2021 — plus Nigerian-specific addenda covering NIMASA levy, GON Navy notification, and NPA port agency requirements.
Key Terms
Chartering Terminology Explained
Laycan
The window of dates within which the vessel must arrive at the load port ready to load. Typical tanker laycans are 5–10 days wide.
Worldscale (WS)
The standard pricing index for voyage charter freight rates. WS 100 is the reference flat rate — fixtures are expressed as a percentage (e.g. WS 85 = 85% of flat rate).
Demurrage
A daily penalty rate payable by the charterer if the vessel is delayed beyond the agreed free laytime at load or discharge port. Nigerian port demurrage rates typically range $15,000–$50,000/day.
Despatch
The reverse of demurrage — a daily payment by the owner to the charterer if loading/discharging is completed faster than the agreed laytime. Usually set at 50% of the demurrage rate.
Subjects
Conditions that must be satisfied before a fixture becomes binding. Common subjects: management approval, cargo confirmation, vessel inspection, letter of credit establishment.
Recap
A written summary of all agreed fixture terms circulated by the broker to both parties. Countersigning the recap constitutes binding commercial agreement.
SIRE
Ship Inspection Report Programme — the oil industry's vessel inspection database. Most major oil company charterers require a current SIRE report before approving a tanker for a fixture.
NOR
Notice of Readiness — a formal notification from the master to the charterer that the vessel has arrived at the agreed berth/anchorage and is ready to load or discharge. Triggers laytime commencement.
SHINC
Sundays and Holidays Included — a laytime convention meaning time counts continuously including Sundays and public holidays. Standard for most Nigerian port fixtures.
Common Questions
Process FAQ
How long does a fixture take from enquiry to charter party?+ / −
A straightforward spot voyage charter can be fixed in 24–72 hours once both parties agree on commercial terms. Time charters and COAs take longer — typically 1–2 weeks for full negotiation and charter party execution. Complex fixtures involving oil major vetting or multi-port approval may take longer.
Who pays the broker's commission?+ / −
In the standard BIMCO convention, the owner pays the address commission (typically 1.25%) and the broker's commission (typically 1.25%) — totalling 2.5% of gross freight. The exact split is negotiated as part of the fixture terms and is always disclosed in the recap.
What if the vessel fails after subjects are lifted?+ / −
Once subjects are lifted and the recap is signed, the fixture is binding. A party that fails to perform is liable for damages under the charter party. Disputes are typically resolved through London arbitration per the BIMCO arbitration clause.
Can Calmwaters arrange vessels not already in its network?+ / −
Yes. We canvass the open market — including Baltic Exchange platforms and our global owner network — for every enquiry. We are not limited to a fixed fleet. Our role is to find the right vessel at the best rate, wherever she is.
What is the difference between a voyage charter and time charter?+ / −
In a voyage charter, you pay a freight rate per tonne (or lumpsum) for a specific cargo from port A to port B — the owner controls the vessel. In a time charter, you hire the vessel for a period of time at a daily rate and control the voyage. Time charter suits operators with recurring cargo needs; voyage charter suits one-off shipments.
I submitted an enquiry but have not received vessel options — what is the hold-up?+ / −
The most common reason is that we are waiting for a signed LOI from the principal on company letterhead. Vessel positions are only shared once principal status is confirmed and the LOI is received. If you submitted as a broker, check that your principal has sent their LOI directly to us. Once it arrives, we respond with options within the hour.
Do you charge for the initial enquiry or consultation?+ / −
No. Our service is commission-based — we earn only when a fixture is concluded. Following the BIMCO convention, the owner pays the combined commission (address commission 1.25% + broker commission 1.25% = 2.5% of gross freight). There is no fee to submit an enquiry, receive rate guidance, or go through the qualification process.
Ready to Start
Submit Your Charter Enquiry
We respond within the hour — covering Nigeria and all major West African ports.