War Trade Board Files

Agreement between the Norwegian Shipping Commissioners and the United States Shipping Board 2

This Agreement, made this 20th day of April A. D. 1918, between T. Dannevig and Emil Stray, Norwegian Shipping Commissioners, for and on behalf of the Norwegian Ship Owners’ Association and the several owners of the vessels entered or to be entered under this agreement, and the United States Shipping Board.

Witnesseth:

1. Any iron or steel sailing vessel of Norwegian registry may be entered under this agreement, and the entry of any vessel under this agreement shall bind the owner thereof to enter all iron or steel sailing vessels of Norwegian registry owned by him which are then in, or which are under guaranty to return to, or which may subsequently come into, United States waters. The owners shall have the right, on forty-five days’ notice given prior to such entry, to enter under this agreement any such iron or steel sailing vessel or vessels upon their arrival in any South American or Australian port within the range of this agreement. Entry of vessels

2. The vessels entered under this agreement shall be employed under the direction of the United States Shipping Board regularly in trade between the United States Atlantic Port [sic] and Bio de Janeiro, Montevideo and/or Buenos Aires and/or Rosario; and/or between [Page 1164] United States Atlantic Ports or San Francisco and Australia, and the owners shall enter into charters with shippers in accordance with the terms and conditions of this agreement. Trades

3. Any vessel now or hereafter available in a United States port, either for outward general cargo or for coal, shall be towed to loading port at the expense of charterers. Shifiting to port of loading

4. Charterers shall be allowed one port for loading and one port for discharging, but charterers shall have the option in case of vessels loaded at North Atlantic ports, by paying additional freight of Two Dollars ($2) per ton, of discharging at two ports in Australia between Freemantle, W. A., and Newcastle, both included, rotation to be from west to east, and vessel to be always stiffened. Charterers shall, however, be permitted to discharge at Newcastle first with Sydney as second port of discharge. The charterers shall likewise have option in case of vessels loading at San Francisco, by paying an additional freight of Two Dollars ($2) per ton, [of] discharging at two ports in Australia between Newcastle and Adelaide, both included, rotation to be from east to west and vessel to be always stiffened. In the event two ports of discharge are used, the entire cargo shall bear the freight rate to the more distant port of discharge plus the additional freight of Two Dollars ($2) per ton. In Australia the range of ports shall be as above specified, and vessels shall load homeward at her port of discharge, and in case two ports are used for discharging, vessel shall load at her last port of discharge. Ports

If a vessel is required to shift from her port of discharge in the United States to another port to load, charterers shall furnish sufficient cargo for stiffening to enable the vessel to shift port safely. Charterers shall pay cost of towage to loading port, but time shall not count as lay days. If ballast is furnished for stiffening, all cost of handling same to be paid by charterers, and time used is to be counted as lay days, just as if cargoes were used for stiffening. If a vessel discharging at Montevideo is required to load at Buenos Aires or Rosario, charterers shall supply cargo for stiffening or leave sufficient inward cargo on board and shall pay for towage to Buenos Aires or Rosario, time for shifting ports not [Page 1165] to count as lay days. If ballast is supplied for stiffening, handling of same shall be paid by charterers and time to count as lay days.

No vessel under 1,200 tons net register shall be called upon to enter the Australian trade.

5. All cargoes including stiffening, to be brought to and taken from alongside at the risk and expense of charterers. Cargoes f.f.a

6. Description of cargo to be:

(a)
Coals outwards to Bio, Montevideo and Buenos Aires.
(b)
General cargo outwards to Australia (excluding explosives, implements of war and other goods not permitted to be carried in a Norwegian sailing vessel).
(c)
Manganese ore homewards from Rio.
(d)
Heavy grain, flour and/or linseed from Buenos Aires and/or Montevideo and/or Rosario.
(e)
Heavy grain, flour, wool and/or chrome ore from Australia. In case chrome ore be shipped quantity not to exceed one third of ship’s d. w. capacity balance of cargo to be wool. Any expense in loading wool and/or chrome ore in excess of that charged for heavy grain and/or flour to be paid by charterers, who are also to pay for mats and other expense in way of separation of combined cargoes.

7. Rates Commissions Hampton f.o. The following rates of freight shall prevail:

For coal to Rio $19.50 per ton net form charter
For coal to Buenos Aires 18.50
For coal to Montevideo 19.50
For general cargo to Australia from North Atlantic ports 30.00
For general cargo to Newcastle or Sydney from San Francisco 29.00
For general cargo to Melbourne or Adelaide from San Francisco 30.00
For manganese ore from Rio 15.00
For heavy grain and/or linseed from Buenos Aires or Montevideo 20.50
For heavy grain, flour, wool and/or chrome ore from Australia to North Atlantic ports 32.50 gross
For heavy grain, flour, wool and/or chrome ore from Australia to San Francisco 25.00
For case oil to Australia from Atlantic ports or San Francisco { 1.20 per case net form charter
1.35 gross

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The United States Shipping Board shall determine within 30 days after the signing of this agreement whether case oil shall be carried under net form charter or gross form charter.

For general cargo and for wool, freight to be paid on vessel’s guaranteed deadweight capacity; otherwise per ton of cargo carried, either as per bills of lading or from weight delivered, according to the customs of the respective trades.

No address commission or freight brokerage to be paid except on cargoes from a U.S. port to Australia two and one-half per cent (2½%).

If any vessel on her homeward voyage is directed to Hampton Roads for orders, rate shall be increased fifty cents (50¢) per ton and orders to be given within 24 hours of arrival, and report within business hours, Sundays and holidays excepted, or lay days to count.

8. Loading and discharging to be effected by charterers at the rate of 250 tons per day at each port, running days, Sundays and holidays excepted, (except for loading in Australia where loading shall be effected at the rate of not less than 175 tons per running day, Sundays and holidays excepted). In all cases, the time for loading and discharging to be reversible, i. e., time saved loading port to apply to port of discharge. Despatch Demurrage Despatch money

Lay days for loading and discharging coal, manganese ore, heavy grain, flour, linseed, wool, and for loading general cargo shall count from time vessel reaches loading or discharging port, or dock or berth if available, captain giving written notice thereof and all customs formalities complied with. In the event of berth for loading or discharging not being available, lay days to count from time captain gives notice of readiness to proceed to loading or discharging berth, vessel being duly entered and all other custom formalities complied with. Demurrage to be paid by charterers for any time used in excess of the above named despatch at the rate of 20 cents United States gold on vessel’s agreed deadweight capacity per day or pro rata for part of a day.

Charterers are to be paid dispatch money for all time saved in loading and/or in discharging at the rate of 10 cents U.S. gold per ton on vessel’s agreed deadweight capacity per day and pro rata for part of a day.

[Page 1167]

Charterers shall have the privilege of working the cargo on Sundays and holidays, if they so desire, provided they pay all extra expenses and overtime actually incurred by the working of the cargo in connection with the ship and cargo; Sundays and holidays so used not to count as lay days.

9. Freight on all cargoes outward from the United States shall be paid in full on signing of bills of lading, except on outward cargo to Australia, which shall be paid when loading is completed and bills of lading are signed. Ninety per cent (90%) of the freight on all cargoes inward to the United States shall be paid seventy-two hours after receipt of cable advices that bills of lading have been signed and ship is ready for sea, the balance to be paid on delivery and weighing of cargo; freights to be paid in New York without discount. Payment of freight

10. It is understood that should the war risk insurance premium on hulls be raised above two and one-half per cent (2½%) for the voyage, charterers shall pay the excess of such premium, but if the same is raised above five per cent (5%) for the voyage, either party to have option of cancelling charter unless ship has commenced loading, in which case vessel is to proceed, charterers to pay the excess premium. For war risk insurance purposes, it is understood the valuation is to be One Hundred Dollars ($100) per ton deadweight.

In computing any addition premium to be asked for by the owners the American Underwriters’ rates shall be the basis.

11. Forty-five days notice shall be given the United States Shipping Board of vessels’ readiness for service for each voyage under this agreement, so that the Board may instruct the owners or their agents to whom the vessels are to be chartered and in what trade they are to be employed. This notice shall not be required, however, for initial voyages of vessels ready to report for loading within forty-five days from signing of this agreement, but lay days shall not commence to count against charterers in such cases until the expiration of ten days after the signing of this agreement unless with charterers’ consent. Notice

12. Enemy or ally of enemy nations shall always be excluded from the crews of vessels entered under this agreement.

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13. All other terms and conditions of charters to be in accordance with the charter party forms attached hereunto1 which are made part of this agreement. Charter terms

14. For the vessels covered by this agreement, the United States Shipping Board shall designate, and the owners shall accept as designated, charterers whose financial standing is satisfactory to the owners, it being mutually agreed, however, that the Shipping Board assumes no responsibility for the non-performance of obligations assumed by the charterer under the charter party

15. This agreement shall remain in force and effect until the cessation of hostilities between the United States and the countries now at war with it, but either the United States Shipping Board or the Norwegian Shipping Commissioners shall have the option of cancelling this agreement on giving six months written notice, such cancellation not to become effective as to any vessel until the completion of her present charter. Duration

16. Any dispute or [of] law or fact arising under this agreement shall be referred to the arbitration of three persons, one appointed by the Norwegian Shipping Commissioners, one by the United States Shipping Board, and the third by the two so chosen. They shall meet in the City of New York or Washington, and shall proceed in any manner determined by themselves; and their decision or that of any two of them shall be final. Such arbitration shall be a condition precedent to the commencement of any action. Arbitration

Witness to the signature of
Emil Stray
2
B. V. Cohen

Witness to the signature of United States Shipping Board
By
E. F. Carry
, Director of Operations
J. F. Andrews
  1. See also supplemental agreement of May 25, post, p. 1187.
  2. Not printed.
  3. The signature of T. Dannevig is not indicated on the copy in the War Trade Board Files.