HBI PROTECTIVE CLAUSE

Admin / 2003/02/04

HBI Protective Clause
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The Charterers have the option to carry a maximum of
three cargoes HBI, whether it be full or part cargo
of HBI (hot briquette iron) per annum, if exercised
the following conditions apply:

a) Only cargo of HBI from the Charterer's plant in
Australia is allowed.

b) Charterers should exert every effort to ship such
cargo for destination within the Far East area.

c) Shipment of HBI cannot be a consecutive voyage
after carrying salt or sulphur.

d) Such cargo cannot be the last cargo prior to the
redelivery.

e) The Charterers undertake to use the least number
of holds as possible provided the Vessel's stability,
trim and stress permit.

f) Before loading commences, the Charterers, at their
time, risk and expense shall provide to the Owners
and the Master for all the necessary certificates
issued by a competent person as to the stability and
suitability of the cargo for carriage whether
required by the IMO BC Code and/or by the
competent authorities of the countries concerned.

A competent person, the appointment to be mutually
agreed between Owners and Charterers, is an
independent person or body recognised by The national
administration of the country of shipment to be
competent in the relevant certification.

The Charterers undertake to provide to the competent
authorities with the information as regard to the
cargoes sheltered nature, storage period, storage
condition and its temperature before loading, length
of duration or any other applicable conditions of any
specific voyage.

g) Before loading commences, the Charterers at their
time, risk and expense shall obtain from the shipper
the certificate that the cargo material conforms with
the requirements of the IMO
BC Code.

h) The Owners, at the Charterer's time, risk and
expense, shall have the liberty to appoint the local
P & I correspondent to supervise either the whole
cargo loading or discharging operation.

i) The Charterers warrant that the cargo is to be
loaded/stowed/segregated/ trimmed/discharged strictly
in accordance with the latest IMO BC Code and/or any
other latest national and international
regulations/rules applicable to such cargo.

j) The Charterers further guarantee that the
stevedores are to be provided with the loading,
stowing and discharging requirements of the HBI cargo
and see these requirements are strictly followed.

Charterers are ultimately responsible for any loss/
damage/consequences due to disintegration of the
briquettes by starting loading in a customary manner
which is slow loading initially and then normal speed
thereafter.

k) The Master, at his sole discretion shall have the
right to reject the cargo which does not conform with
the IMO BC Code.

l) The Owner and the Master shall have the discretion
to suspend the cargo operation and close the hatches
in consideration of the prevailing weather condition
or the weather forecast. The suspension of cargo
operation remains Charterer's time.

m) The Charterers undertake to thoroughly clean all
holds used, twice with salt water and final wash by
fresh water immediately after discharge. The fresh
water so required for washing down all holds is to be
supplied by the Charterers at their expense.

n) The Charterers may alternatively request the
Vessel's crew, subject Master's agreement, to render
customary assistance in cleaning all cargo
compartments as required under M) above by
paying US$200 per used holds which is additional to
the normal intermediate hold cleaning stipulated
under Clause 59 of this Charter Party.
Notwithstanding the above, all intermediate hold
cleaning are at Charterer's time/expense/risk and
responsibility and in any case, Owners are not
responsible for passing cargo hold
cleanliness inspection.

o) The Owners/Master shall have the option to