Bunker Clause

Summary of Bunker Clause

A provision common to certain charter parties stipulating that the charterer shall pay to the vessel owner the value of coal or fuel oil aboard the ship at the commencement of the charter, and the owner shall pay the charterer the value of all coal or fuel oil aboard the vessel upon the termination of the charter. The prices in effect at the respective ports at the time of commencement or termination shall be used. It is common for minimum and maximum quantities to be stated in the charter agreement.

(Main Author: William J. Miller)