Shipping Industry Grapples with Complex Charter Terms Like PWWD, SSHINC

This article analyzes the meanings and practical applications of commonly used terms in charter party contracts: PWWD, SSHINC, and CQD. PWWD refers to 'Per Working Weather Day' and relates to the measurement of loading and unloading time; SSHINC specifies that Saturdays, Sundays, and holidays are included; while CQD represents the customary discharge speed at the port, with associated risks. These terms are crucial for ensuring the smooth operation of voyage charter agreements.
Shipping Industry Grapples with Complex Charter Terms Like PWWD, SSHINC

In the modern shipping industry, voyage charter parties play a pivotal role as contractual agreements between shipowners and charterers. These documents clearly outline vessel usage terms, loading/discharge rates, and the allocation of responsibilities and risks. Among these provisions, the loading/discharge rate clauses are particularly crucial as they directly impact transportation efficiency and costs. However, terms like "12,000MT PWWD, SSHINC" often cause confusion. A thorough understanding of these terms is essential for all parties involved.

PWWD – Per Weather Working Day

In voyage charter contexts, PWWD stands for "Per Weather Working Day," defining how loading/discharge time is calculated. According to international shipping standards, particularly the 1980 Charterparty Laytime Definitions , working days are distinguished based on weather conditions.

What Constitutes a Weather Working Day?

A weather working day refers to periods when cargo operations can proceed unimpeded by adverse weather. However, what qualifies as "adverse" varies significantly by region, season, and cargo type. For instance, tropical downpours might halt operations that would continue during light rain in temperate zones. This variability makes PWWD calculations complex, requiring precise mutual understanding between contracting parties.

Calculating PWWD

Multiple factors influence PWWD calculations: workday definitions, holiday/weekend exclusions (unless otherwise specified), and weather disruptions. Charterers must ensure cargo readiness to avoid delays attributable to them. For example, with a loading rate of 15,000MT PWWD, seven consecutive fair-weather workdays would permit loading 15,000 metric tons. A storm interrupting operations for one day would exclude that day from counted time. Effective time management and communication thus become critical for minimizing demurrage costs.

SSHINC – Saturdays, Sundays, and Holidays Included

The SSHINC clause ("Saturdays, Sundays, and Holidays Included") explicitly incorporates weekends and holidays into laytime calculations, offering charterers greater scheduling flexibility.

Operational Implications of SSHINC

When a charter party specifies "XXXXX MT PWWD SSHINC," loading/discharge operations may continue uninterrupted throughout weekends and holidays. This arrangement proves particularly advantageous in congested ports where conventional workday restrictions might cause delays. For example, at a busy port with SSHINC terms, weekend operations could prevent costly demurrage by maintaining steady cargo flow.

While SSHINC benefits charterers through operational flexibility, shipowners must maintain oversight of cargo operations to prevent unreasonable demands on vessel availability.

CQD – Customary Quick Dispatch

The CQD ("Customary Quick Dispatch") clause bases discharge rates on a port's conventional practices rather than fixed metrics—a provision that often heightens shipowner risk due to its inherent variability.

Risk Considerations with CQD

CQD exposes shipowners to potential delays from inefficient port operations or charterer unpreparedness. Discharge speeds fluctuate dramatically between ports—from rapid turnovers at advanced terminals to sluggish progress at under-resourced facilities. Shipowners may recourse to detention clauses for compensation, but proactive risk assessment remains paramount.

Successful CQD implementation requires thorough evaluation of historical port performance, equipment availability, and labor conditions. Shipowners must balance revenue opportunities against potential delays when agreeing to such terms.

Conclusion

In voyage chartering, precise comprehension of PWWD , SSHINC , and CQD terms is fundamental to harmonious shipowner-charterer relationships. As maritime commerce grows increasingly complex and globalized, these clauses' proper application helps prevent disputes while safeguarding contractual rights.

Thorough pre-contract negotiations and mutual clarity on operational expectations enable efficient cargo movements while minimizing legal vulnerabilities. For shipping professionals, mastering these technical terms isn't merely academic—it's a commercial imperative that fosters competitive advantage and industry-wide progress.