Charter Party Agreements

There are different ways for a charterer to charter (rent) the ship. Similarly, it is the voyage charter of the shipowner who pays for the maintenance of the ship. There are four main methods to charter a tramp boat – travel charter, time rental, cash boat rental and “package contract”. Travel chartering is the most common. Under this method, a ship is chartered at a negotiated freight rate for a one-way trip between certain ports with a given cargo. In the case of a temporal charter, the charterer shall lease the vessel for a specified period, for a given round trip or, occasionally, for a specified disposable voyage, the rental rate being expressed in quantity per tonne of load capacity per month. Whereas, in the case of a charter trip, the owners bear all the costs of the trip (subject to the agreement on loading and unloading costs), the charterer bears the costs of bunkers and shops consumed during the time charter. The elaboration of charter party clauses with clear risk allocations between the parties to the charter agreement is a detailed document that contains, in addition to various clauses, information such as.B. while a party to the charter is the contract between a shipowner and a charterer, a contract of carriage is concluded between the shipper and the carrier. A carrier issues a bill of lading to a shipper, a receipt for the cargo shipped, which also serves as proof of the contract of carriage. (In the case of a charter, the charterer is the carrier; in a time or voyage charter, the shipowner is the carrier). .