Exceptions clause ("Exclusion of liability"). In chartering, and, indeed, in any contract the expression "exceptions clause" describes the effect on liability of one or both parties to the contract. Such clauses fall under a general heading of "protective clauses".

Excluded spaces. These are not included in the “gross tonnage”: e.g., dry cargo space above the upper deck, machinery spaces above the upper deck, wheelhouse, navigation spaces, galley, dedicated water ballast tanks above the upper deck and so on.

Such excluded spaces (except dry cargo space) must be certified by a surveyor to be reasonable in extent, properly constructed and permanently marked as to their purpose. Double bottom tanks are not spaces included in the gross tonnage.


Expected ready to load. This term is found in the "preamble"-or introduction-to the charterparty, in the general "description" of the ship to be used. It can be important information for the charterer so that he can plan in advance for loading any cargo he may be shipping and thus it can affect the "laycan" details. For example in cl. 1 of the GENCON voyage charterparty (1922 and revised with a box layout in 1976) it is stated:

Exceptions to laytime. Laytime is the period of time during which the shipowner will make the vessel available for loading and/or discharging. The user of the ship, presumably the charterer, will therefore enjoy a "store" or "stock" of time.

E.i.u. (Even if used). This expression is used in either its full form or in its abbreviated form, for example in "fixing letters or "recap telexes".

Economic speed or Optimum speed. Several factors are considered when determining the economic speed of a vessel. This is the speed producing the best possible financial result for owners mainly because at the economic speed the least fuel will be consumed, especially in times when fuel costs are very high, and also produce the least wear and tear on the main propulsion machinery. These factors include:

Evidence of contract of carriage. Functions of a bill of lading. When asked to define a bill of lading, people may state that it “... has the following functions: it is a receipt for cargo, a document of title to the goods described and evidence of the contract of carriage”.

Escalation clause(or Escalator clause) With currency values fluctuating, with the revenue of the shipowner being in one currency and his costs possibly being in another, and, with rising costs and inflation, he will want some compensatory protection, especially when the charter is for a long period, such as in time charters and COAs.

Exceptions to liability. Under a bill of lading the carrier undertakes to deliver the goods to their agreed destination unless prevented by “excepted perils” or “exceptions”. In an early case, Grill v. General Iron Screw Collier Co., 1866, it was said:

Employment and Indemnity clause. This can sometimes be called merely the "Employment clause" especially if it is found in a charterparty in which the charterer is not obliged to indemnify the shipowner against all consequences or liabilities from following the charterer's orders as regarding the employment of the ship: "To indemnify" means to reimburse a person for his loss or to place him in the same financial position after a. loss in which he was before the loss.

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