Time Charter vs. Voyage Charter: Everything You Need to Know

Navigating maritime logistics demands a robust understanding of chartering options—each type has unique implications for operational strategy and financial outcomes.

Choosing between a time charter and a voyage charter isn’t merely a logistical decision; it’s a strategic one that impacts cost, control, risk management, and operational flexibility.

In this article, we delve deep into the two main types of charters – a time charter and a voyage charter – exploring their advantages and disadvantages, and offering a comparison between the two.

The goal of this article is to:

  • equip you with the essential knowledge to navigate these choices 
  • ensure that your chartering decisions align seamlessly with your business objectives and market conditions 
  • enhance your company’s competitive edge in the global marketplace.

But before going any further, it’s important to understand the terms used by the industry. Here are the most common: 

Time Charter

A time charter   grants the charterer the use of a vessel and its crew for a specified period from a shipowner. The ship owner and the charterer will agree on the exact period the lease will run for. 

However, the two parties will not need to agree on ports of call and destinations, as the charterer has complete discretion over this. The charterer can direct the vessel’s movements and cargo operations within agreed and imposed contractual limits. 

The shipowner retains responsibility for the vessel’s operational aspects, including maintenance (ensuring the vessel meets all necessary maritime safety standards), and crewing, but the charterer must pay for fuel and supply costs, as well as the cost of cargo operations and port charges. 

This arrangement is akin to leasing a car, where the lessee drives but doesn’t worry about long-term maintenance. For example, a charterer might lease the ship for six months, during which time they have the flexibility to choose their routes and destinations.

Ship owners generally prefer their vessels to be leased on a time charter. This is because time charters guarantee income for a long period, giving the ship owner increased security.

Voyage Charter

A voyage charter focuses on the transportation of a specific cargo on a single voyage between designated ports.

The most common way to pay for this type of charter is on a per-ton basis. As the name implies, this sees the charterer paying a set price for every ton of cargo they transport and is preferred when the amount of cargo they’re transporting is significantly less than the vessel’s gross maximum cargo tonnage.

The second most common payment method is a lump sum – one payment that allows the charterer to transport as much cargo as they wish. It is the ship owner’s responsibility to ensure the cargo weight does not exceed the gross maximum tonnage of the vessel. This type of payment is preferred by charterers when they’re carrying a higher weight of cargo.

Under this contract, the ship owner is tasked with delivering the cargo and handling all nuances of the voyage itself. Nearly all costs are covered by the ship owner and include costs relating to staffing, berthing, loading, unloading, and fuel. They cover these costs by charging the charterer a fee for leasing the vessel.

Before the charter contract is signed, the parties will agree on the end destination, any ports of call, laytime, and whether there will be any restrictions on cargo. The ship owner pays for all costs at the port of call. If the charterer exceeds the agreed time, they must pay demurrage to the ship owner.

This type of vessel chartering is generally preferred by charterers. This is because it often has more competitive prices, plus they are not tied down to any long-term commitments

Voyage and Time Charters

There are other definitions which are useful to understand.

Charter party

Central to these contracts is the charter party —the formal agreement that stipulates the specific terms, conditions, and obligations agreed upon by the ship owner and the charterer. 

This document is crucial as it governs what each party is responsible for, including costs, risks, and how disputes are resolved.

Freight Rates

Freight rates, a critical element of the contract, determine the cost associated with transporting cargo and are influenced by various market conditions and ship specifications.

These rates not only affect the profitability of a voyage but also influence global trade patterns.

Cost Analyses

Cost analysis in this context involves evaluating the expenses related to different chartering options to determine the most cost-effective approach. 

This analysis is essential for chartering managers and financial analysts who aim to optimize operational costs against market conditions. 

The Statement of Facts (SoF) is an important maritime document that logs vessel activities while in port. It includes times of arrival and departure, cargo handling details, and records of any delays or incidents, providing a factual foundation for operational and legal evaluations.

Freight and Charges

Lastly, understanding freight & charges—the costs incurred during the shipment of cargo—is vital. These charges can vary widely depending on the route, type of cargo, and specific terms of the charter party.

Once again, the use of historical data from SoFs can assist in providing clarity and transparency on these fees.

Advantages and Disadvantages of a Time Charter

Time chartering presents a unique set of advantages and disadvantages that vessel chartering managers, operations VPs, and demurrage cost analysts must weigh carefully when strategizing for optimal operational flexibility and cost efficiency.

Advantages:

  • Flexibility in Operations : Time charters offer charterers significant control over the vessel’s employment, including the types and routes of cargoes, as well as one of the most important: access to a vessel. This flexibility is invaluable for adapting to changing market conditions or specific logistical requirements. Using no-code workflows to streamline processes and voyage turnaround simulators can support maritime operations and greatly improve flexibility.
  • Cost Predictability : With a fixed daily hire rate, companies can better forecast and manage their shipping expenditures. This predictability aids in budgeting and financial planning, reducing the unpredictability associated with fluctuating freight rates in spot market dealings.
  • Reduced Exposure to Market Volatility : During periods of market volatility, time charter arrangements protect the charterer from soaring freight rates, as the hire rate remains constant regardless of market conditions.

Disadvantages:

  • Long-term Commitment : One of the primary drawbacks of time charters is the requirement for a longer-term commitment to a vessel. This can be a double-edged sword, especially if market rates fall below the agreed hire rate, potentially leading to higher-than-market operational costs.
  • Operational Costs and Risks: While the shipowner handles maintenance and crewing, the charterer is responsible for costs related to the voyage, including fuel, port charges, and other variable expenses. 

Charterers should employ proactive cost tracking, negotiate favorable fuel clauses, utilize cost-efficient routing software, and maintain transparent communication with shipowners about anticipated expenses and operational strategies.

For example, a well-prepared and accurate Statement of Facts (SoF ) can provide detailed information about the events that occurred during the time a vessel spent at port.

However, when the opportunity to properly analyze the SoF has not been made available, disputes over ambiguous statements may arise.

On one side, charterers will try to leverage the delays that happened to decrease demurrage. Shipowners, on the other hand, may challenge a charterer’s laytime statement based on the events that are available in the SoF.

Time charters often include terms for demurrage (charges when the charterer uses the vessel beyond the agreed period) and dispatch (rewards for completing operations early). The SoF provides the necessary data to calculate these charges or rewards accurately, documenting the exact time spent during loading and unloading.

  • Lesser Control Over Maintenance : Charterers have limited control over the maintenance and condition of the vessel, relying on the shipowner to maintain standards. Poor maintenance can affect cargo schedules and overall shipping efficiency.

Maintenance of the vessel can also have a direct effect on the charterer due to new emissions regulations. 

Keeping track of current changes in maritime emissions regulations is a challenging task. With so many initiatives and new norms being implemented, trying to provide frameworks to capture and report on emissions, makes the topic extremely complex for operators, shipowners, and commodity manufacturers.

Advantages and Disadvantages of Voyage Charter

Voyage charters represent a different approach compared to time charters, focusing on specific trips rather than extended periods. This method suits operations that require precise cargo deliveries without long-term ship commitment, but it also carries its own set of pros and cons.

  • Direct Cost Association : The major appeal of voyage charters lies in their direct cost association with individual voyages. The charterer is not liable for any costs, except the initial charter fee, and is not responsible for finding a crew. Charterers pay per trip, making it easier to allocate costs directly to specific cargoes or projects. 
  • No Long-Term Commitment or Contract: Unlike time charters, voyage charters do not require a long-term commitment to a vessel, providing flexibility to switch between ships and routes as dictated by cargo needs or market conditions.
  • High Control Over Cargo Operations : Charterers maintain extensive control over the loading and unloading processes, ensuring that handling aligns with their standards and schedules. This is particularly beneficial for sensitive or high-value cargoes. 
  • Vulnerability to Market Fluctuations : While time charters protect against market volatility, voyage charters expose charterers to fluctuating freight rates. During peak times, costs can escalate significantly, affecting overall profitability and a lack of flexibility for the charterer.
  • Inconsistent Costs (and higher initial costs): The costs in voyage charters can vary widely from one trip to another, influenced by factors like fuel prices, port fees, and canal dues. This inconsistency makes budgeting and financial planning more complex.

For example:

a. Exceeding laytime – the time allowed for loading and unloading cargo at ports – can lead to demurrage charges. Having a well-prepared SoF ensures that the arrival, cargo operations, and departure times are documented, which are key data points for laytime calculations.

b. New emissions regulations leading to the use of specific fuels or ship adjustments may soon be passed on to charterers via higher freight costs. For many ships, technical modifications may be the only realistic way to attain the required certifications and to be under the emissions limit, impacting the commercial operation of the vessel.

  • Dependency on Ship Availability : Charterers are at the mercy of market availability. During periods of high demand, finding suitable vessels can be challenging and more expensive, potentially leading to delays and increased operational risks.

How to Choose Between Time Charter and Voyage Charter: Factors to Consider

Choosing between a time charter and a voyage charter is a strategic decision that hinges on several criteria to be weighed carefully to align with organizational objectives and the dynamic nature of the maritime industry.

Here we present six criteria that every chartering manager or analyst should consider.

  • Duration and Frequency of Cargo Needs

Consider the length and frequency of your shipping needs. 

Time charters are more suitable for longer and more regular shipping requirements, providing stability and predictability. These agreements are signed only for a limited period, without providing any specified route to the other party. Throughout this charter period, the Charterer can use the vessel for trading on the recognized trade routes without restrictions. 

On the other hand, voyage charters are ideal for single, occasional, or irregular shipments. These contracts are signed for carrying a particular quantity of goods on the preset by the two parties. They also are obliged to carry the stated commodity onboard between pre-decided ports only. After the said trip is completed, the contract is automatically terminated.

  • Market Conditions and Freight Rate Volatility

The current and anticipated market conditions play a crucial role. In a volatile market with rising freight rates, a time charter might lock in a more favorable rate for a longer period. 

Conversely, in a stable or declining market, voyage charters might offer more cost-effective and flexible options.

  • Operational Control

Evaluate the level of control you need over the vessel’s operation. 

Time charters offer more control over the vessel’s itinerary and operations, beneficial for complex logistics operations.

Voyage charters provide control over the cargo but less so over the vessel’s operations.

  • Financial Planning, Profitability, and Budget Constraints

Assess your financial flexibility

Time charters require a substantial and consistent financial commitment, which is predictable but potentially higher in the long term. 

Time charters provide more predictable cash flow due to fixed daily hire rates, which can be advantageous in a volatile market as they protect against rate increases. 

However, they may result in negative cash flow if the market rates decrease significantly below the charter rate agreed upon, as the charterer still must pay the fixed rate.

Voyage charters , while potentially more variable in cost, do not require long-term financial commitments and can be adjusted according to budgetary needs. The absence of a long-term commitment allows companies to avoid the financial drain of a non-performing asset, which is possible in a time charter if market conditions worsen. 

Typically, payments in voyage charters are tied to specific milestones, such as loading or unloading completion, which can help in planning cash flow. 

  • Cargo Specificity and Handling Requirements

Consider the nature of the cargo. Special handling requirements, sensitivity, and value of the cargo might dictate the need for more direct control over handling processes, favoring voyage charters.

  • Risk Tolerance

Finally, analyze your company’s risk tolerance. 

Time charters minimize exposure to market fluctuations but involve commitment risks . They provide more predictable cash flow due to fixed daily hire rates, which can be advantageous in a volatile market as they protect against rate increases. However, they may result in negative cash flow if the market rates decrease significantly below the charter rate agreed upon, as the charterer still must pay the fixed rate.

Voyage charters offer flexibility but expose the charterer to market rate risks and operational uncertainties. Profitability and effectiveness in managing cash flow depend on the charterer’s ability to manage and mitigate risks associated with market volatility and operational uncertainties.

By automating manual workflows with available low-code technology , companies can save and reduce risk while maintaining data integrity and real-time visibility of their voyages’ most essential KPIs. 

To reduce risk, dedicated software to automatically assign tasks and notify stakeholders prevents constant back and forth through emails or updating of spreadsheets can be implemented. Stakeholders can be given dedicated access to track their inbound shipments, schedule changes, and collect documents.

If you want the lowest possible ongoing costs, the clear winner is the voyage charter.

Why? Because they don’t require a long-term contract. They do have a higher initial cost, but this is offset by the fact that no other significant fees need to be paid, in general.

But, when it comes to the initial cost of chartering a ship, it’s nearly always going to be cheaper to go with a time charter.

A ship owner is more open to a lower price, as they know you’ll be hiring the vessel for longer. What’s more, you, and not the ship owner, will be expected to cover other costs, pushing the initial price down further. As the vessels are leased for long periods, the vessel can be used to travel anywhere, without restriction.

In making your final decision, engage with stakeholders, including operations managers, financial analysts, and logistics coordinators, to understand the full implications of each option.

Besides, using a holistic approach to evaluate these factors will guide you toward the most strategic chartering decision for your specific circumstances.

  • April 30, 2024

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Dexter Offshore

Voyage Charter vs Time Charter – Everything You Need to Know

voyage charter vs time charter

Voyage Charter vs Time Charter – Everything you need to know.

One of the biggest questions facing a charterer is whether to opt for a voyage charter or a time charter. Evaluating voyage charter vs time charter can be a complex process, but we’ve broken everything down on this page, making it easier for charterers to decide which type of vessel chartering is best for them.

1. What is a Charter? 2. What is a Voyage Charter? 3. Voyage Charter Features/Terms 4. Voyage Charter Pros & Cons 5. What is a Time Charter? 6. Time Charter Features/Terms 7. Time Charter Pros & Cons 8. How to Choose a Charter Type 9. Charter Cost 10. Ongoing Cost 11. Flexibility 12. Contract Length 13. Convenience 14. FAQs About Voyage Charter and Time Charter 15. Conclusion

What is a Charter?

A voyage charter and a time charter are two options commonly found in the chartering business. A voyage charter is when the charterer leases a vessel for a specific voyage, such as Dubai to Singapore, while a time charter is a type of lease that allows the charterer use of the vessel for a specific period of time.

As you might imagine, there are many differences between these two types of charters, and both vessel chartering options have their own pros and cons. Keep on reading this page about voyage charter vs time charter to find out which of the two options will be most suitable for your ship chartering requirements.

Voyage Charter

What is a voyage charter.

A voyage charter is a type of ship chartering that sees the charterer agree to lease the vessel for one specific voyage. So, for example, the agreement might be for the charterer to gain use of the charter ship for a journey from Dubai to Dover.

Features/Terms

As just mentioned, a voyage charter is when a charterer leases a vessel for one voyage. Before the charter contract is signed, the parties will agree on the end destination, any ports of call, and whether there will be any restrictions on cargo. Once signed, the charterer must not deviate from any of these agreements.

The terms and conditions of the charter agreement will also stipulate the laytime permitted. The laytime refers to the amount of time it takes for the vessel to be loaded and unloaded. As the ship owner pays for all costs at the port, they need this process to be as quick as possible. If the charterer exceeds the agreed time, they must pay demurrage to the ship owner. Conversely, the ship owner will usually refund some money if the loading and unloading is quicker than stipulated.

But who is responsible for what costs? Well, with a voyage charter, nearly all costs are covered by the ship owner. These include costs relating to staffing, berthing, loading, unloading, and fuel. They cover these costs by charging the charterer a fee for leasing the vessel.

The amount of money paid by the charterer can be determined in two ways. The most common way to pay is on a per-ton basis. As the name implies, this sees the charterer paying a set price for every ton of cargo they transport. This is preferred by charterers when the amount of cargo they’re transporting is significantly less than the vessel’s gross maximum cargo tonnage.

The other payment type is a lump sum – one payment that allows the charterer to transport as much cargo as they want to. It is the ship owner’s responsibility to ensure the cargo weight does not exceed the gross maximum tonnage of the vessel. This type of payment is preferred by charterers when they’re carrying a higher weight of cargo.

This type of vessel chartering is generally preferred by charterers. This is because it often has more competitive prices, plus they are not tied down to any long-term commitments.

Pros & Cons

Pro: Charterer not liable for any costs, except initial charter fee Pro: Incentives to complete port operations quickly Pro: No need to find a crew Pro: No long-term contract

Con: Lack of flexibility for charterer Con: Higher initial charter fee

Time Charter

What is a time charter.

A time charter is a type of vessel chartering that sees the charterer lease the ship for a set period of time. So, they might lease the ship for two months, during which time they have the flexibility to choose their own routes and destinations.

Before anything is signed, the ship owner and the charterer will agree the exact period of time the lease will run for. Unlike with voyage charters, the two parties will not need to agree on ports of call and destinations, as the charterer has complete discretion over this.

With a time charter, the ship owner does not cover all costs. Instead, the charterer must pay for fuel and supply costs, as well as the cost of cargo operations. However, the charterer won’t have to pay such a large charter fee, which balances things out somewhat. The owner is still required to pay for the crew and ongoing maintenance, and also must ensure the vessel meets all necessary maritime safety standards.

It is generally the case that the charterer will pay for hire in advance, on a per-day basis. Payment is not usually made in one lump sum, with the charterer instead paying the lease charge in set instalments, which are usually quarterly. It’s important to note that, should the ship be held up in unforeseen circumstances, such as inclement weather, the lost time – referred to as off-hire hours – will not usually be charged for, although if too many off-hire hours are accrued, the charterer might end up being liable.

Ship owners generally prefer their vessels to be leased on a time charter. This is because time charters guarantee income for a long period of time, giving the ship owner increased security.

Pro: Guarantees charterer access to a vessel Pro: Initial lease cost is lower Pro: More flexibility for the charterer

Con: Several ongoing costs to pay Con: Tied down to long-term contract

How to Choose a Charter Type

We’ve discussed voyage charter vs time charter above, looking at the various pros and cons of each. But which should you choose when looking to charter a ship?

Well, this really depends on your requirements. We’ve broken things down into five sections – charter cost, ongoing costs, flexibility, contract length, and convenience – and will let you know which of the ship chartering options is better for each one.

Charter Cost

When it comes to the initial cost of chartering a ship, it’s nearly always going to be cheaper to go with a time charter. This is because the ship owner will be more amenable to a lower price, as they know you’ll be hiring the vessel for longer. What’s more, you, and not the ship owner, will be expected to cover other costs, pushing the initial price down further.

So, if you’re looking for the lowest possible upfront cost, the best option is a time charter. However, remember that other costs will also need to be paid.

Ongoing cost

If you choose to take out a time charter, you will have to pay several costs, including fuel and supply costs. With voyage charters, the only significant cost payable is the initial charter – all other major expenses are covered by the ship owner.

Therefore, if you want the lowest possible ongoing costs, the clear winner is the voyage charter. However, the upfront cost will be more expensive than a time charter.

Flexibility

Those who sign up for a voyage charter are limited in their movements, as they will have already agreed a set route with the ship owners. Those who have taken a time charter have far more freedom, as they can choose where to go throughout their charter.

This clearly means that those looking for more flexibility should opt for a time charter, as there are no limitations on route, ports of call, and destinations.

Contract Length

With a time charter, you’re tied into a long contract, committing you to ongoing payments. Voyage charters, on the other hand, only last for the duration of the voyage, meaning voyage charters are generally much shorter than time charters.

This all means that those looking for the shortest contract should opt for a voyage charter. However, if you know you’ll constantly need an available vessel, the long contract of a time charter could be more suitable.

Convenience

There will be no need to hire and pay a crew when opting for either the time charter or the voyage charter. It’s only bareboat charters that require the charterer to hire and pay their own crew. However, the ongoing costs associated with time charters can be inconvenient.

Overall, voyage charters are the more convenient of the two options, as there’s no need to organise payment for such things as port costs and fuel. However, both options are generally far more convenient than a bareboat charter.

FAQs About Voyage Charter and Time Charter

What are BIMCO Sanctions Clause for Voyage Charter Parties 2020?

These are intended to help in two scenarios. Firstly, if one of the signatories of the agreement gets sanctioned, the other signatories will be able to end the contract and claim damages. Secondly, when the trade or activity is subject to or becomes subject to sanctions, the ship owners can refuse to perform their contracted duties.

What is the difference between bill of lading and charter party vs time and voyage charter?

A charter party is an agreement between charterer and ship owner to lease a ship. A bill of lading is an agreement that legally obligates the charterer to carry cargo that has been loaded aboard the ship.

A time charter is a type of vessel chartering whereby the ship owner leases the ship for a set length of time. A voyage charter is a type of vessel chartering whereby the ship owner leases the ship for the duration of a specific voyage.

What are the duties and responsibilities of the ship owner and charterer under a time charter and voyage charter party?

Under a voyage charter, the ship owner assumes almost all responsibility, including hiring and paying crew, and paying for all significant costs associated with the journey. The charterer simply has to pay the ship owner a fee to secure their vessel.

With time charters, ship owners must still hire and pay staff. However, most other significant costs associated with a voyage, such as fuel and port fees, must be paid by the charterer.

Why do ship owners prefer voyage charter over time charter?

Quite simply, they don’t. Ship owners usually prefer time charters, as they ensure that their ship is guaranteed to be chartered for a longer period, generating income throughout.

Voyage charters are short, meaning the ship owner must continually find new charterers to lease the vessel to – something that isn’t always possible. When a new charterer can’t be found, the ship owner loses money.

Please note that charterers are required to take out insurance for both types of charter, to cover them against damage, injury, marine salvage , and more.

Those looking for short-term charters are best served by opting for a voyage charter, as these don’t require a long contract to be signed. They do have a higher initial cost, but this is offset by the fact that no other significant fees need to be paid.

However, those who know they’ll regularly require the use of a vessel might be better off with a time charter, as these see vessels leased for a long period of time. During this time, the vessel can be used to travel anywhere, without restriction. Time charters cost less upfront, but require the charterer to pay various other costs, such as the cost of fuel and port fees.

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voyage charter responsibilities

  • Ship to Shore

Latest Blog

voyage charter responsibilities

Ship Chartering

  • By Praneet Mehta
  • May 16, 2024

Ship Chartering Overview

  • Explore Ship Chartering

 This article will provide you with an in-depth look into ship chartering, including discussions on the opportunities and skills required in this important part of the maritime industry.

  • Learn and Apply

Gain insights into the different roles and skills required for success in ship chartering.

1:- What is Ship Chartering?

voyage charter responsibilities

  • Ship chartering is the process of hiring a ship temporarily for transporting goods or passengers, typically involving a contract between the charterer and the shipowner.
  • Ship Chartering involves a contractual agreement between a shipowner (or charterer) and a party requiring the use of the ship. This agreement allows the charterer to use the vessel for a specific period or voyage, typically in exchange for payment.
  • There are various chartering arrangements, including time charter, voyage charter, and bareboat charter. Each type defines the terms, duration, and responsibilities of both parties involved in the charter agreement. 
  • Join our free guidance series for Ship Brokering and Ship Chartering for the complete information and the procedure to become a Ship Charterer and Ship Broker from a Seafarer.

Ship Chartering and Ship Brokering

2:- Types of Ship Chartering

Types of Ship Chartering

2.1:- Time Charter

A time charterer is someone who hires a ship for a specific period, paying a fixed rate for the vessel’s use while having control over its operations.

Structure: Involves leasing a vessel for a specific period, typically ranging from a few months to several years.

Payment Structure: Charterers pay a regular hire fee to the shipowner for the agreed-upon duration.

Control: Charterers have operational control over the vessel during the charter period, deciding on ports of call and cargo.

2:- Voyage Charter

A voyage charterer is an individual or company that charters a ship for a specific voyage or journey, typically paying for the transportation of goods or passengers.

Structure: Encompasses a single voyage or a series of voyages between specified ports.

Payment Structure: Charterers pay freight based on the quantity of cargo loaded, and the shipowner covers voyage-related expenses.

Control: Shipowners maintain operational control, deciding the vessel’s route and scheduling.

3:- Bareboat Charter

A bareboat charterer is someone who rents a ship without crew or provisions, assuming full responsibility for its operation and navigation during the charter period.

Structure: Involves leasing the entire vessel for an extended period, often with an option to purchase at the end of the charter period.

Payment Structure: Charterers pay a fixed rate and are responsible for operating expenses, similar to owning the vessel temporarily.

Control: Charterers have complete control and responsibility for the vessel’s operations, crewing, and maintenance.

3:- Types of Voyage Chartering

Voyage Charter

1. Tanker Chartering: This involves the transportation of liquid cargoes, primarily oil and its derivatives. Tanker vessels are specialized to carry large quantities of liquid bulk cargo safely and efficiently.

2. Bulk Chartering: Bulk carriers are designed to transport unpackaged bulk cargo, such as grains, coal, ore, and cement in its cargo holds. This type of chartering is common for commodities that are traded in large quantities.

3. Container Chartering: Container ships are used for the transportation of containerized cargo. This method is highly efficient for shipping a variety of goods that have been packed into containers, allowing for easy loading and unloading.

4. General Cargo Chartering: This type of chartering is for vessels that carry goods that are not liquid or bulk. These can include goods packed in bags, boxes, crates, drums, or pallets.

5. Reefer Chartering: Reefer ships are refrigerated cargo ships used for transporting perishable commodities which require temperature-controlled transportation, such as fruits, meat, fish, vegetables, dairy products, and other foods.

6. Heavy-Lift Chartering: This involves the transportation of particularly heavy or large items that cannot be broken down into smaller, lighter units. These ships are equipped with cranes to load and unload heavy cargo.

4:- Responsibilities of Ship Charterer 

  • Voyage Planning: The charterer takes on the task of determining the vessel’s itinerary and timing.
  • Management of Cargo: The charterer is tasked with orchestrating the loading and unloading processes for the cargo.
  •   Security Measures: The charterer bears the responsibility for maintaining the safety of the vessel, its crew, and the cargo for the duration of the journey.
  •   Financial Responsibilities: In specific charter arrangements, such as a bareboat charter, the charterer is liable for all the costs associated with the vessel’s operation, which includes fuel, personnel, harbor fees, and insurance coverage.
  • Contractual Negotiations: The charterer engages in the discussion and finalization of the charter party contract with the vessel owner, detailing the agreement’s stipulations and provisions.

Find out the difference between the responsibilities in Ship Chartering and Ship Brokering with our just one click.

5:- Risk and Responsibilities of a Ship Charter

5.1:- time charter.

Risk : The shipowner bears the risk of market fluctuations and operational costs.

Responsibilities : Charterers are responsible for cargo handling, fuel costs, and port expenses.

5.2:- Voyage Charter

  • Risk : The shipowner is exposed to market risks, and charterers pay freight based on cargo volume.
  • Responsibilities : Shipowners handle vessel operations and voyage-related costs.

5.3:- Bareboat Charter

  •   Risk : Charterers bear the risk of market conditions and vessel maintenance costs.
  •   Responsibilities : Charterers take full responsibility for vessel operations, crewing, and maintenance.

6:- Voyage Charter vs Time Charter

A charter is a contract between two or more parties, known as charter parties, outlining the terms for leasing a vessel under specific conditions. There are primarily two types of charters:

  • Voyage charter
  • Time charter

In a voyage charter , a vessel is rented for a particular journey, specifying ports of call, destination, and any cargo restrictions. Typically, charterers with specific cargo shipping need to opt for voyage charters.

On the other hand, a time charter is a lease granting the charterer the vessel’s use for a defined period. The charterer pays a daily rate for vessel use, while the shipowner remains responsible for operating expenses during this timeframe.

7:- Ship Chartering Jobs

Ship chartering is a key aspect of maritime logistics, involving the leasing of ships for transporting goods. It offers various career opportunities such as brokering charter agreements and overseeing vessel operations. This field is critical for facilitating global trade by ensuring the smooth movement of goods across oceans. Whether you’re interested in negotiation, operational management, or other aspects of the industry, ship chartering presents a wide range of rewarding career paths within the maritime logistics sector.

Some Jobs in Ship Chartering involves :

7.1:- Charter Broker

Role : Facilitating charter agreements between shipowners and charterers.

Opportunity : Engage in negotiations, analyze market trends, and build relationships with clients to secure favorable charter deals.

7.2:- Operations Manager

Role : Overseeing the day-to-day operations of chartered vessels.

Opportunity : Manage vessel schedules, ensure compliance with charter agreements, and troubleshoot any operational issues.

7.3:- Freight Trader

Role : Trading in freight contracts, predicting market trends, and optimizing cargo movements.

Opportunity : Engage in dynamic market activities, utilizing market intelligence to make profitable trading decisions.

7.4:- Charterer Representative

Role : Representing charterers in negotiations with shipowners.

Opportunity : Advocate for favorable terms and conditions in charter agreements, protecting the charterer’s interests.

8:- Skills Required to Become a Ship Charterer

Skills required to become a ship charterer.

  • Negotiation Skills

Successful ship chartering often depends on effective negotiation skills. Brokers and charterers must navigate discussions adeptly to secure favorable terms and agreements. The ability to negotiate ensures that charterers get optimal deals, shipowners receive fair terms, and all parties involved are satisfied with the agreement.

  • Market Intelligence

Keeping up with shipping market trends, vessel availability, and freight rates is critical. A deep understanding of market dynamics helps in making informed decisions.

  • Clear Communication  

Ship chartering involves constant communication between charterers, shipowners, and various stakeholders. Clear and concise communication is vital for smooth operations. Effective communication ensures that all parties are on the same page, preventing misunderstandings and facilitating seamless chartering processes.

  • Analytical Thinking

Analyzing shipping data, market conditions, and contractual terms requires analytical thinking. This skill is essential for understanding complex variables and making strategic decisions.

  • Relationship Building

Establishing and maintaining strong relationships with clients, shipping companies, and other industry stakeholders is crucial. Building lasting relationships fosters trust and enhances the likelihood of successful collaborations, providing a foundation for long-term success in ship chartering.

9:- Where and How to Apply for Ship Chartering 

9.1:- maritime job portals.

How to Apply:

  • Create a comprehensive profile on reputable maritime job portals.
  • Upload a well-crafted resume highlighting relevant skills and experiences.
  • Browse through posted ship chartering positions and apply directly through the portal.

Where to Apply:

  • Maritime Jobs: Platforms like MarineLink, Sea Career, and Martide often feature ship chartering positions.
  • General Job Portals: Explore broader job portals like Indeed or LinkedIn, filtering for maritime and ship chartering roles.

9.2:- Networking Events and Conferences

  • Attend maritime events, conferences, and seminars.
  • Network with professionals in the industry and express your interest in ship chartering positions.
  • Collect business cards and contact information for potential leads.
  • Trade Shows : Attend industry-specific trade shows such as Posidonia or NorShipping.
  • Maritime Conferences : Participate in conferences like CMA Shipping or the International Maritime Forum.

9.3:- Company Websites

  • Regularly check the careers section on shipping companies’ websites.
  • Submit online applications through the company’s official job portal.
  • Follow application instructions meticulously.
  • Major Shipping Companies: Check the websites of renowned shipping companies like Maersk, CMA CGM, or Mediterranean Shipping Company.
  • Specialized Broking Firms: Explore websites of firms specializing in ship brokering, as they often have chartering positions.

9.4:- Online Professional Communities

  • Join online maritime communities and forums.
  • Engage in discussions, showcase your expertise, and express your job-seeking status.
  • Utilize community job boards for potential opportunities.
  • LinkedIn Groups: Join maritime-focused groups on LinkedIn and explore job postings.
  • Forums like gCaptain: Participate in discussions on platforms like gCaptain, where job opportunities are sometimes shared.

9.5:- Recruitment Agencies

  • Register with maritime-focused recruitment agencies.
  • Submit your resume and express your interest in ship chartering positions.
  • Stay in regular contact with the agency for updates on potential opportunities.
  • Agencies such as Spinnaker Global or Faststream often specialize in maritime recruitment.

10:- Ship Charterer Salary

Ship Charterer Salary

The expected salary in ship chartering is influenced by diverse factors, including job type, geographical location, and the individual’s experience level. Let’s explore salary expectations across various roles within the ship chartering domain:

10.1:- Average Salary of a Ship Charterer in India

The average salary for shipping chartering jobs in India stands at ₹5 lakhs per year and can go up to ₹60 lakhs per year with experience.

This figure serves as a baseline, with variations dependent on factors like experience, qualifications, and the specific location within India.

10.2:- Factors Influencing Salary in Ship Chartering

Experience Level:

  • Impact : Professionals with more years of experience typically command higher salaries.
  • Consideration: You can anticipate salary growth as you accumulate experience in ship chartering.

Geographical Location:

  • Impact : Salaries can vary significantly based on the region or country.
  • Consideration : Urban areas and maritime hubs may offer higher compensation due to increased demand and cost of living.

Qualifications and Skills :

  • Impact : Advanced qualifications and specialized skills may lead to enhanced earning potential.
  • Consideration : Continuous upskilling and obtaining relevant certifications can positively impact your market value.

Check out the Ship Brokering salary with our dedicated article on Ship Brokering and choose the best possible career for you.

11:- Conclusion 

Ship Chartering

Ship chartering is a dynamic and rewarding career within the maritime industry. From brokering crucial agreements to overseeing vessel operations, the opportunities are vast. Success in this field demands a unique set of skills, continuous upskilling, and a keen understanding of the ever-changing maritime landscape.

Disclaimer :- The opinions expressed in this article belong solely to the author and may not necessarily reflect those of Merchant Navy Decoded. We cannot guarantee the accuracy of the information provided and disclaim any responsibility for it. Data and visuals used are sourced from publicly available information and may not be authenticated by any regulatory body. Reviews and comments appearing on our blogs represent the opinions of individuals and do not necessarily reflect the views of Merchant Navy Decoded. We are not responsible for any loss or damage resulting from reliance on these reviews or comments.

Reproduction, copying, sharing, or use of the article or images in any form is strictly prohibited without prior permission from both the author and Merchant Navy Decoded.

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MySeaTime

A Layman’s Guide to Laytime, Charter party Agreement and Voyage Charter

The word “Charterer” is probably as old as the word “Ship” itself.

Do you keep hearing this word so regularly?

Well, who doesn’t?

From seafarer’s point of view, it is so much important to understand these terms.

From commercial point of view, it is the moral responsibility of the seafarers to ensure that the ship owner profits from the ship operation.

And for this reason, we must understand when and where our loyalties lies.

But sometimes it becomes difficult to get a hang of all of it.

Not anymore.

In this blog, we will discuss about the terms charterer and charter party agreement.

Concept of Charter party agreement

It is all business.

And like in all kind of business, there are at least two parties involved, one of which provide a service or product to the other for a price.

With respect to carrying the cargo onboard the ships, these two parties are,

1) Ship owner who has the ship and provide the space on the ship to carry the cargo.

2) Shipper who has the cargo and wants a ship to transport the cargo

Then where does the term charterer fits into this?

Charterer is the party that has chartered (think of simple word “hired”) the ship.

If the shipper has chartered the entire ship then shipper will also be the charterer.

In most of the cases, charterer is a kind of middle man between shipper(s) and shipowners

This is particularly the case if there are more than one shipper.

For example, if the vessel is to load 50000 tons of cargo, there could be 10 shipper, say each of them with 5000 tons of cargo.

Alone none of the shippers would want to hire the entire vessel of 50000 tons capacity for their 5000 tons of cargo.

So they contact a charterer for transporting their cargo.

The charterer’s job is to find a vessel for the cargoes they have from different shippers and maximazing the space on ship they plan to hire.

shippers and charterer

Charterers may not be the only person involved in filling the gap between shipowner and shipper.

Sometime there are some other companies or persons who help shipper, charterer and shipowner to connect with each other for a fees.

They are called “Brokers”.

So the shipper’s broker is the person or company that help shipper find a charterer for a fees called brokerage.

And charterer’s broker is the person that help charterer find a ship to hire.

The charterer may even have brokers for different purpose. For example charterer may have a broker to find a cargo for the ship they want to hire and they may have another broker to find a ship for the cargo they have in hand.

Broker or no broker, the charterer and shipowner would agree on the terms and conditions which would form “ Charter party agreement “.

Charter party agreement is a detailed document which, apart from various clauses, has informations such as

  • When and where the vessel is required to be
  • the freight agreed
  • If the broker was used, who need to pay the brokerage fee and how much

Even though shipowners is primarily dealing with the charterer, it does not mean that the shipowner would have no relation with the shipper.

Shipper and shipowner are connected by the “carriage of cargo at sea act”, also called COGSA .

And one of the main point of it is that shipowner is required to issue bill of lading to the shipper for the cargo loaded onboard.

And with that each of the shipper have entered into an agreement with the ship owner which is called “Contract of  carriage”.

While the “charter party agreement” is a formal agreement, the contract of carriage is governed by various laws and regulations such as Hague-Visby rule .

Charter party agreement supplement the contract of carriage.

Usually you would find a mention of the charter party agreement in the bill of lading. The wording in the bill of lading could be something like this.

This shipment is carried pursuant to charter party agreement between “ Charterer’s name ” and “ Carrier’s name ” and all the terms, clauses, conditions, liberties and exceptions whatsoever contained therein are incorporated into this bill of lading.

Bill_of_lading_chartering_terms

But do the shipowners and charterers do this exercise of negotiating the format of the charter party agreement each time they do the business together.

Absolutely not. Hell, it would take a lot of time.

Instead they use pre-defined forms. These forms are developed by Independent International stakeholders such as BIMCO and INTERTANKO and are widely used in the shipping business.

There are different forms for different trades.

For example there is form  SHELLVOY 6 for use in tanker trade and then there is form AMWELSH 93 for coal dry cargo chartering.

Also if a charterer and ship owner have done the business before, they use the same charter party agreement for the future shipments too.

For this reason, many a times even for a voyage in 2019, you may find the mention of charter party dated in 2016 or even before. In the bill of lading issued even in 2019 , it may read something like,

The shipment is carried pursuant to charter party agreement between “ Charterer’s name ” and “ Carrier’s name ” dated 01 January 2016…..

Now that we understand the concept of chartering, let us understand the different ways in which the ships can be chartered.

Voyage Charter, Time charter, Demise charter

There are different ways in which a charterer can charter (Hire) the vessel.

Charterer can charter the vessel for one voyage (Voyage charter), for a particular time period (time charter) or they can hire and run the vessel as if they are the owner of the vessel (Demise or bareboat charter).

In each type of charter, charterers and shipowners have different area of responsibilities.

responsibilities-under-different-charter-party

Each type of charter is a subject in itself. So in this blog we will explore the voyage charter.

Voyage Charter

It should be clear from the name.

Under the voyage charter, the ship is hired from the ship owner for one voyage.

One voyage could consists of multiple load ports and multiple discharge port.

The best analogy to the term voyage charter is that with hiring an Uber for a ride from one place to the other, sometimes with multiple stops in between.

So when we hire an Uber, we hire just the cab. The cab driver is still under the instructions of Uber.

Similarly, under the voyage charter, the charterer has hired the ship’s cargo space. But the Master and crew still remains under the disposal and instructions of ship owner and  ship managers.

When we hire a cab for a ride, we just pay the hire (pre-agreed or by the meter). We do not pay for or are not concerned about the fuel costs or the amount of fuel consumed.

Similarly, under the voyage charter, charterer is not concerned about the fuel consumption. The fuel costs are for the ship owners.

And when we hire an Uber, we do not pay for maintenance of the cab.

Similarly, under the voyage charter it is the ship owner who pays for the maintenance of the ship.

Whenever we have any doubt about anything under voyage charter, just think of this analogy of hiring the cab.

Most likely you will get the answer.

Laytime, Demurrage and despatch

Lord Diplock during one of the leading cases on Laytime described the voyage charter party comprising of four stages .

  • Stage 1 is the loading voyage: The voyage from wherever the ship is to the loading port specified in the voyage charter party
  • Stage 2 is the Loading operation: The loading of the cargo at the port of loading
  • Stage 3 is the carrying voyage: The voyage from load port to the discharge port specified in the voyage charter party.
  • Stage 4 is the discharging operation: The discharging of the cargo from the ship to the port of discharging as specified in the voyage charter party.

In the first and third stage, it is only the ship owner that need to perform. For example. ship owner is required to adjust the speed of the ship to arrive at the loading port within the agreed dates (Laycan).

stages-of-voyage-charter

And in the third stage, the ship owner is required to instruct the vessel to maintain the charter party speed.

However it is the second and fourth stage where most of the disputes take place.

Because in these two stages it is mutual reponsibility of the two parties to ensure that cargo loading and discharging is done without any delays.

In case of delays, each one can accuse the other for delays.

It is definately not commercially profiting for the shipowner if the voyage is extended beyond their expectations.

For example, what if the loading of the cargo took 15 days in comparison to just 2 days that shipowner had expected?

Or what if the ship could not berth at load port or discharge port for many days because of other ships ahead in line up?

Too many uncertainties.

But ship owner’s freight (and profits) cannot depend upon so many uncertainties.

So the shipowner and charterers agree on the factors like allowed number of days for loading and discharging.

In chartering terms this is called “Laydays” or “Laytime”.

The laydays is mentioned in the voyage charter party agreement between ship owner and charterer.

It could be mentioned as number of days and hours or as tons per hours or per day.

If the charterer uses more time for loading and discharging than the allowed laydays as per charter party agreement, then charterer is supposed to pay for extra time used.

The chartering term for this additional payment is “Demurrage”.

So we can say that if charterer uses more time for loading/discharging than laydays, they need to pay demurrage to the ship owner.

But if the charterer uses less time than laydays then ship owner need to pay the charterer for the time saved.

The chartering term for this is “despatch”.

Usually the agreed amount of despatch is about half of the agreed amount for demurrage.

Finally at the end of the voyage, a statement is made to shows the time saved and/or extra time taken at different ports.

Below is the simplified version of the laytime summary calculated at the end of the voyage.

Laytime Summary

This statement would also show the final amount due and to whom it is due. Means if the final amount is demurrage or despatch and how much.

Notice of readiness and statement of facts

For calculation of laytime, it is important to know when the laytime counting and calculation would start.

This information is also provided in the charter party agreement.

In most of the cases, the laytime would commence to start when the vessel has arrived at the port. In chartering term, this is called “ Arrived Ship “.

Legally, a ship is considered as an ‘Arrived Ship” only when

  • Ship has arrived at the port of loading or discharging (port voyage charter) or at the designated berth (Berth Voyage charter).
  • Ship is ready in all respects to commence loading (or discharging) or the cargo, and
  • Master has sent the notice of readiness to the all parties concerned

Arrived-Ship

The charter party agreement contains the information if the voyage charter is a port voyage charter or a berth voyage charter.

Irrespective if it is port or berth voyage charter, from the ship’s point of view it is important that the master of the vessel send the notice of readiness.

Notice of readiness need to  state that the vessel has arrived and she is ready in all respect to commence loading (or discharging ) of the cargo.

The laytime would start to commence at this time or sometimes few hours later if specifically mentioned in the charter party agreement.

Since one of the condition for the laytime to start is for the master to send the notice of readiness, it makes it so much of an important aspect.

Statement of Facts

The vessel and the master of the ship are the owner’s representative at the action site (loading port or discharging port).

Ship Owner would know only know the information that we provide them. They would use this information for calculation of any demurrage due to the charterers.

But for the correct demurrage calculation, the information we provide must be correct and we must not miss any important information such as any delays.

That make the statement of facts (commonly called SOF) an important document.

At the least, statement of facts must include

  • any delays from shore side or from ship’s side and reason of delay
  • any delays because of weather conditions
  • Timings for the movement of the ship (such as times for anchoring, anchor aweigh, pilot onboard, NOR Tendered etc)
  • Timings related to cargo operations (Commenced cargo operation and completed cargo operation

Statement_of_facts

Master’s actions during voyage charter

Master and ship staff may not see the actual charter party agreement between the charterer and the ship owner.

And it is for their own benefit too.

Because there would be so many things in that which we seafarers are not concerned about.

But when the  ship is fixed for the voyage charter, master will receive “Voyage instructions” from the charterer through the ship owner’s commercial team.

The voyage instructions contains the information from the charter party agreement that requires master’s attenstion and subsequent actions.

Master must not miss the points in the voyage orders that requires his actions.

One of the way to do it is to highlight the text of the voyage instructions that require his attention for easy follow up.

Voyage_instructions

Once Master reads the voyage instructions, he may come across insufficient information that need more information or clarification.

Like this one in one of the voyage orders.

insufficient_information_in_voyage_orders

Clarification must be sought from the ship operator for any of such information in the voyage orders.

After all it just takes a simple email to get everything in place.

clarifying_voyage_instructions

And once everything is clear and in place, it is just about following that.

There are may be only a handful of shipowners that do not rely on the charterer to find the cargo for their vessel.

Having the vessel on charter is so common.

And vessel can be chartered in different ways. Vessel can be on a voyage charter, time charter or demise/bareboat charter.

With respect to voyage charter, master and ship staff must understand few thing

First, when is the laycan for the vessel. This is period in which vessel must arrive at the load port.

If master thinks that vessel may not be able to make it to the loadport in laycan period, the commercial operator must be informed who can then try to extend the laycan.

Second, when the notice of readiness need to be tendered.

If the voyage charter is a port charter, NOR can only be tendered when vessel is at least within the port limits. Usually in this case NOR is tendered when pilot boards the vessel.

If the voyage charter is berth charter, the NOR can only be tendered when the vessel is alongside the designated berth.

Wrong tendering of NOR can make the Notice of readiness null and void and shipowner may loose tons of money.

Lastly, the ship staff need to be make sure that a correct record of statement of facts is kept. This is the document that is used for laytime calculations .

If the charterer uses more time than agreed for loading or discharging the cargo, the ship owner is supposed to get a pre-agreed compensation called demurrage.

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Capt Rajeev Jassal

About Capt Rajeev Jassal

Capt. Rajeev Jassal has sailed for over 24 years mainly on crude oil, product and chemical tankers. He holds MBA in shipping & Logistics degree from London. He has done extensive research on quantitatively measuring Safety culture onboard and safety climate ashore which he believes is the most important element for safer shipping.

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70 comments.

Alok Singh

How i wish that our exam books were written so precisely yet so easy to understand .Thanx for all the pain you take .No amount of words would do justice to match the level of you efforts.

Rajeev Jassal

Thanks Alok...The readers liking it make all the hardwork worthwhile...

?????? ??????

its amazing how you describe anything sir

vk

what if the vessel is about to tender NOR and shipper cancels the order. what would be the penalty

avinash nambiar

Great article to understand the business with ease as an ASM candidate

sukhchain singh

Many thanks for writing such articles with such an ease of understanding sir...

Glad you liked it Sukhchain...

Marlon Cataquis

Another good read. Thank you for taking time to write articles. All Seafarers must understand the commercial aspects of ships. All the best and I cant wait to read the next one.

Glad you liked it Marlon...

Zibi Kossak

what if the ship could not berth at load port or discharge port for many days because of other ships ahead in line up?Too many uncertainties.But ship owner’s freight (and profits) cannot depend upon so many uncertainties.So the shipowner and charterers agree on the factors like allowed number of days for loading and discharging.In chartering terms this is called “Laydays” or “Laytime” ??? Laydays refer to the time when a ship must present itself to the charter.If the vessel arrives after the laydays ,than contract can be cancelled. -Laycan. Laytime is the amount of time allowed (in hours and days)in a voyage charter for the loading and unloading of cargo.

Thanks for your input Zibi...

Paul G

Laydays or "Laycan "I think is the correct term not Laytime. :)

MURUGADASAN M

Thanks for such simplified explanations. Sir could you please tell the few famous ship brokers names in india and worldwide.

Interocean is one of them...

Sajjad Modak

Thank Captain for simple & detailed explanation. Information is really worthy .

Glad you found it useful Sajjad...

Dharmdeepsinh

Thanks Capt. Rajeev for this good information in simple way.

Glad you liked it Dharmdeep...

ADELBERT PEREIRA

Very well written capt., pls continue the good work

Thanks Capt Pereira...

Tunde Omoju

This is a scholarly article Great job Captain!

Glad you liked it Tunde...

Capt. Edward Montgomery

Good job, Capt. Jassal! These mandatory intricacies of ship's business & chartering are excellently presented. Organized and laid out as you have, this blog subject does a great service to anyone who longs to learn more about it & be more familiar with the clauses, details & positions (which is probably everyone, right?) -- including this marine cargo surveyor!

Glad you liked it Capt Edward...

Rafik

Many thanks

Thanks Rafik...

sanjeevi

sir plz explain magnetic compass

I will do that in a different blog...

Raju Yadav

Once again thank you very much.

Thanks Raju...

Thirumalar Kannan

Informative Awaiting next one regarding time charterers

Will write on Time chartering too...

mastermohamad

many thanks for this jobs cap

AHMED MADY

How easy way for explain this matter ,really very good job captain I appreciate your good effort waiting more and more

Thanks Ahmed...

nithin

sir waiting for your blog on purging and gas freeing cargo tanks

ANUBHAV WADHWA

Very nicely explained and written good effort

FRANK LEYONCE

Very nice explanation capt,

Anurag

Generally the CP agreement is never sent to ship..and hence for tendering NOR what criteria(LOCATION) shall be followed as Master will not be aware if the C/P is voyage or Port C/P .These days Master tender NOR on arrival and then they keep re tendering every 24 hrs or at important events like POB, or All Fast.What is the logic behind following this and how we can ensure the NOR tendering doesn't becomes null and void. really APPRECIATE YOUR GREAT EFFORTS

Noha

if the vessel arrived at the agreed laycan and gave a valid NOR tendered and waited for almost 5 days before berthing, then while berthing the vessel had an accident and the owner requsted a new laycan, the question here is, does cancelling the old laycan result in canceling the demurrage fees caused by it?

Jeroen Leenderts

When a vessel suffers breakdown typically NOR becomes invalid as the vessel was not in all respects ready to load her cargo.

Job

U don't see such priceless articles often.. Good work cap. Let's make the world a better place to sail????????

A C

To the writer of this blog- what made you write this? IT IS FANTASTIC. Well done. Also your MBA, was it the distant learning one from Middlesex?

Rodrigo

On the Laytime Summary calculation, wouldn't it be correct to say that on the loading it was lost 0d-12h-24 min instead of 1d-00-24m?

Bibhu Rath

Captain sahab, if I ever get a chance, I'll surely shake hand and say thank you, for all your efforts in simplifying the topics

Capt Kostas

can you advise for the following : in case a vessel is on Voyage Charter, and during loading or discharging alongside berth, there is a rainy period, so the daytime for this period should be NOT TO COUNT, correct??? cause there is the terms "weather permitting".

Amar anand

Great article sir......waiting for more.....

Michael Rowland

Hi. How does the shipbroker locate a suitable ship to transport the cargo?

Giovanni

Good day! You have mentioned different stages of voyage charter. May I ask what are the different stages of Time Charter and Bareboat Charter? Thank you in advance.

Nice blog...pleasure to read

Justice Enwefa

I love your write up. Please, keep exposing our mind to the rudiments of shipping business.

Alex

Sir, in voyage charter party at what time and place charter party agreement will start? After ship arriving on laycan days or after giving notice of readiness? And notice readiness when we can give? Is there any specific time only we can give NOR?

hameed

I have a question, How to calculate the freight for a Multiport voyage. for example, there is a Cargo loaded from the country (C) and need to discharge its half portion in other countries multiple ports (A) & (B). For single port discharge, the cost is 8$ in port A and in Port B 11$, but the agent says he could fulfill this in 10$ for both ports. Now my question is how is he calculating the freight 10$ for Multiple port ?

Ashish Amar

Thank you sir for this great effort helping a lot for phase2 law preparation

Karla Sequeira Ortega

Hi Sir! I am so pleased to have found your blog, it is absolutely helpful. if it is not too much to ask, do you have a quote sample for time and voyage charter? and the stardard terms and conditions? sorry if I am asking too much. thank you

Nitin chavan

Excellent blog about chartering service. This blog cleared my doubt about chartering service for ship

deniz

could you please advise that how long a shipowner should wait cargo to load on board (if cargo not ready) and no any specific clause written on voyage cp

Capt MK Srivastava

Hi, Capt Jassal, I find every write up on any marine subject is excellent and easy to understand for students. I highly appreciate the contents of your blog. Regards Capt MK Srivastava , Ex-DPA, The SCI Ltd.

Basil T

Wonderfully explained

Riya Kaif

While the blockchains themselves are secure, the applications running on the blockchain may not be. These applications interact with the blockchain through smart contracts, but just like any other software, bugs in the code can lead to security vulnerabilities. For this, we need to involve the auditors who conduct security audits on the smart contract. Smart Contract Audit helps you find hidden exploits and eventually reduce the risk and provide you an extra layer of security. Bug-free code is nice to have in other types of software, in blockchain applications, it is essential.

Erwin de Zwarte

Dear Capt Rajeev Jassal, with interest i have seen your blog however the title struck me a bit - A Layman's Guide to Laytime - this sounds very familiar, if not accurate, with the dissertation i wrote for the ICS, Institute of Charterers Shipbrokers London, who hold copyright on this. Kindly amend the title of your blog to avoid confusion in the industry as to whom the readers take their information from. With best regards, Erwin de Zwarte, FICS

sumit kajla

sir will you pls write on paramount clause , new jasson clause , cesser clause and both to blame collision clause

Lubana Akter

Such a great explanation! Thank you so much!

Mark Concepcion

This article is a big help for those individuals that are trying to expound their knowledge in shipping. I much appreciated because at present i am taking my master's degree in ship management. Thank you...

RJ

Wow, so clearly written that I didn't have to read it twice to understand! Why don't our text books/ Oral notes be like this?! Thank you so much Capt. Jassal.

Raymond Kramer

It’s a great and useful piece of info. I’m happy that you just shared this useful info with us. Please stay informed like this. Thank you for sharing. Here’s another informative content on Common Law Separation Agreement , may find more details here.

reyhan

thanks alot of info keren bgt

VISHAL VICHARE

Sir u r the best , undoubtedly . The confidence which i gain every time when ever I read your blog is just unspeakable and it sharpens my knowledge every single time. A teacher like you is what this shipping industry needs and I am glad to find the perfect one . Every time when ever I am in doubt I refer to your blogs and it works miracle .....thanks a ton to you sir .....simply great.

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Voyage Charter : Definition & Full Guide

  • By MascotMaritime
  • April 22, 2022
  • 3 mins read

Voyage Charter

Table of Contents

What is a voyage charter.

Voyage charter definition : The voyage charter is a contract (voyage charter party) between the shipowner and the charterer wherein the shipowner agrees to transport a given quantity of a shipment, using a pre-nominated vessel for a single voyage from a nominated port (say X) to a nominated port (say Y), within a given time period.

Who is a voyage charterer? What is the freight & voyage charter party? 

The person who charters the vessel is called the voyage charterer , the payment is called freight & the contract is called the voyage charter party. The freight rate is calculated as $/tonne of shipment. 

What is the most significant part of a voyage charter party?

The most significant parts are the description of the voyage, size & capacity of the vessel, cargo, the allocation of duties and costs in connection with loading and discharging, the specification of the freight, and the payment of the freight, the laytime rules, the allocation of the liability for the cargo and the allocation of other costs and risks.

Depending on the circumstances, other questions and clauses can be very important in the negotiations between the owners and the charterers.

In this type of charter, the vessel must be in the position that the owner specified when the charter was concluded & the vessel must, without undue delay, be directed to the port of loading.

At the port of loading, the charterer must deliver the agreed cargo. 

The cargo must not be dangerous cargo unless otherwise agreed. The cargo must be brought alongside the ship at the loading port & must be collected from the ship side at the port of discharge.

Mainly with the bulk cargoes, the charterer often undertakes to pay to load and discharge & often clauses of f.i.o or f.o.b are met. Very often parties agree on f.i.o.s or f.i.o.s.t terms.

In voyage charter, the discharge port need not be nominated in the charter party & in such cases, the charterer must have the right later to direct the vessel within a certain range to a specific port of discharge.

In a voyage charter where the charterer carries out loading &(or) discharging, it is generally agreed that the charterer will have a certain period of time at his disposal for loading & discharging of the vessel & it is called laytime .

If the charterer fails to load and(or) discharge the cargo from the vessel within the laytime, then he has to pay compensation for the extra time used called demurrage . Once in demurrage always in demurrage.

In other cases, if the charterer loads &(or) discharges the cargo from the vessel more quickly than the agreed laytime time, then he is entitled to claim compensation (only if agreed earlier) called despatch money.

In voyage charter, unless lumpsum freight is paid, the owner may claim freight compensation if less cargo is delivered, or cargo is delivered in such a way that ship’s capacity cannot be utilized due to broken stowage . This freight compensation is called deadfreight .

Voyage charter party agreement example:

Click here to see the example of a voyage charter party (NORGRAIN 73).

What are the factors which influence the freight rate in a voyage charter market?

In the voyage charter market, rates are influenced by cargo the charterer must deliver the agreed cargo size, commodity, port dues, and canal transit fees, as well as delivery and redelivery regions.

In general, a larger cargo size is quoted at a lower rate per tonne than a smaller cargo size. Routes with costly ports or canals generally command higher rates than routes with low port dues and no canals to transit.

Voyages with a load port within a region that includes ports where vessels usually discharge cargo or a discharge port within a region with ports where vessels load cargo also are generally quoted at lower rates because such voyages generally increase vessel utilization by reducing the unloaded portion (or ballast leg) that is included in the calculation of the return charter to a loading area.

What are the costs paid by the shipowner & charterer in a voyage charter?

In a voyage charter, the shipowner retains the operational control of the vessel and pays all the operating costs (crew, fuel, freshwater, lubes, port charges, extra insurances, taxes, etc.), with the possible exclusion of the loading/unloading expenses. 

The charterer’s costs are usually costs & charges relating to the cargo.

What are the types of voyage charter?

It can be of the following types:

  • Immediate  –  which is carried out within weeks of the contract agreement and the agreed freight rate is called the spot rate.
  • Forward –  which is scheduled & fulfilled at the agreed time in the future, for example in say three months.
  • Consecutive – which refers to several same consecutive voyages.

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The ins and outs of ship chartering

voyage charter responsibilities

Ship chartering is the hiring out the use of a ship by a vessel owner to another company, the charterer, for the transportation of goods. It may sound straightforward enough, but in practicality, it’s anything but simple. There are many different types of charter contracts, various cost components, and of course many different players involved. In this article, we’ll breakdown the ins and outs of chartering, covering how it works, who’s involved and how costs are divided.

  • The main players

The two main players in ship chartering are the ship owner and the charterer. There are others as well, the most important being the ship broker. There is also the shipping agent who takes care of the essential in-port details and the ship manager, who takes care of operating and crewing the vessel on behalf of the owner for a fee.

It should be noted that the term charter party refers to the contract itself, and not to the parties entering into the contract. The charter party defines the rate, duration, and terms agreed between the ship owner and the charterer.

The ship owner provides the means for transporting cargo from one port to another. The Charterer enters into a contract with the owner to hire the ship, or space in the ship, for transporting his cargo. In some cases a charterer may own the cargo and employ a ship broker to find a suitable vessel to deliver the cargo for a certain price, called the freight rate.

voyage charter responsibilities

The charterer may also not have his own cargo, but instead charters a vessel for a certain period of time and trades the ship to carry cargoes at a profit. He can also sub-hire the ship to other charterers in positive market conditions.

The ship broker is essentially a middleman who connects the principals in order to earn a brokerage fee. He can represent either the owner or the charterer in negotiations, and usually specialises in specific areas of cargo carrying. For example, a dry cargo broker focuses on the chartering of bulk carrier vessels. He can represent either an owner looking for a charterer, or a charterer seeking a suitable vessel for shipping his cargo.

Similarly, and as the name suggests, a tanker broker specialises in chartering tanker vessels and has a good understanding of the specific needs for transporting crude oil, gas, oil products, or chemicals.

Shipping Agents are designated to take responsibility for handling shipments and cargoes at the ports on behalf of the owners, fleet managers, and charterers. They handle the essential routine tasks, such as crew transfers, customs documentation, waste declarations and so on, working closely with port authorities. They can also provide detailed information on activities at the destination port, so that the shippers can be aware of situations while the goods are in transit.

  • Types of charters

The three most common types of charter contracts are the voyage charter, the time charter, and the demise (or bareboat) charter.

Voyage Charter

The basic hiring of a vessel and its crew for a voyage between the port of loading and the port of discharge is known as a voyage charter. In this type of contract, the ship owner is paid by the charterer either on a per-ton basis, or as a lump sum. Port costs, with the exception of stevedoring, fuel costs, and the crew costs are paid by the owner, and payment for the use of the vessel is known as freight.

Under the terms of a voyage charter, a specific time is agreed for the loading and unloading of the cargo. This is known as laytime, which, if exceeded, obliges the charterer to pay demurrage. Conversely, if laytime is saved, the owner may have to pay despatch to the charterer.

There is also a consecutive voyages clause. This is used when one voyage follows another immediately for an agreed number of voyages within a specific timeframe. The ship is thus going back and forth with an agreed cargo between agreed ports.

Time Charter

A time charter refers to the hiring of a vessel for a specific period of time. Here, the owner still manages the ship, but the charterer selects the ports, decides the routing, and has full operational control of the vessel for the duration of the contract. He pays the fuel costs, port charges, cargo handling costs, commissions, and a daily hire fee.

There is also a trip time charter covering a specific voyage route only for the transportation of a specific cargo. It can be said to be a combination of a voyage charter and a time charter. The responsibilities are similar to those with a time charter (the fixed costs being paid by the owner and the variable costs by the charterer), but as with a voyage charter, the period of the contract depends upon when the voyage is completed.

The Demise Charter

Under the terms of a demise charter, also known as a bareboat charter, the charterer has full control of the vessel. Apart from the capital cost of building the vessel, which is the owner’s responsibility, all other costs including fuel, crew, port charges and insurance, are paid by the charterer. The legal and financial responsibility for the vessel rests with the charterer.

Under the demise clause, the contract can be for long period charters lasting for many years. This is fairly common for tankers and bulk carriers. It can be a form of hire-purchase whereby the charterer eventually acquires ownership of the vessel.

In the leisure industry, the term used is Bareboat Yacht Charter and the Demise Charter term is not used. It is normally a short-term charter for a matter of weeks only. Here, the owner supplies the yacht fully fuelled and in seaworthy readiness. The charterer is expected to pay for the fuel consumed.

Contract of Affreightment

Finally, there is what is known as a contract of affreightment. This is not strictly a charter contract, but is somewhat similar to a voyage charter. Under this type of contract, the owner agrees to transport the goods for the charterer on a specified route and for a specific period of time. More than one ship can be used and, in contrast to a true charter, there is no laytime period and no demurrage is payable.

  • Who pays what?

voyage charter responsibilities

There are various cost components applicable to all charter contracts. These can be summarized as follows:

In all cases, the owner is responsible for the capital cost of building and equipping the ship. The operating costs (OPEX), i.e. operating and maintaining the ship and complying with all applicable rules and requirements, are also paid by the owner in voyage and time charters. In demise charters, however, the operating costs are paid by the charterer.

Periodic costs are those that are incurred at certain intervals of time. These include, for example, periodic technical inspections and surveys for class classification purposes. Here again, the owner is responsible with time and voyage charters, but not for demise charters. In demise charters, it is the charterer who pays such periodic costs.

Voyage costs cover the fuel, any right of passage dues, such as canal dues, towage and piloting costs, as well as port agency costs. With time and demise charters, the voyage costs are paid by the charterer. Only in voyage charters are these costs paid by the owner.

The same is true of cargo handling costs – the cost of loading and discharging the cargo. With time and demise charters this is the responsibility of the charterer, while the owner pays these costs only with voyage charters.

voyage charter responsibilities

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Marine Insight

Ship Chartering Process – The Ultimate guide

When a ship is taken on rent, it is known as ship chartering. Just as people take an apartment or a car for rent, some people may rent a ship based on their requirements. It could be to transport passengers or cargo.

Renting a ship is known as ship chartering and it begins with the shipowner and a second party entering into an agreement. In shipping parlance, this agreement is known as a charter party.

The party that rents out the ship is the shipowner and the second party who is taking the ship on rent is known as the charterer.

Who brings these two parties together?

Shipbrokers play an important role in bringing the right shipowner and charterer together and in finalizing the terms of the agreement between them.

Typically, someone who wants to take a ship on a lease would approach a shipbroker to find the right vessel that suits their purpose.

As we can see here, there are three parties in the process of ship chartering:

– the shipowner who owns the vessel being rented,

– the charterer who requires the ship on rent, and

– the shipbroker who has helped to bring them together.

Let us take a quick look at the roles of each of these parties.

Table of Contents

A shipowner may be an individual or an organization who owns merchant ships that are registered under their name with a ship registry. Merchant ships carry cargo or passengers for a charge.

Shipowners are usually members of the regional chamber of shipping or the International Chamber of Shipping (ICS). This global body is responsible for all regulatory and operational issues to do with shipping. Legal issues that crop up in the shipping business are also handled by the ICS.

Someone who wants to rent a ship, either to transport cargo or passengers, is called a charterer. The cargo may or may not belong to the charterer. The charterer may be transporting it on behalf of a different party.

Sometimes a charterer may take a vessel on lease and re-rent it to another party for the transport of cargo or passengers, for a profit.

The charterer plans the ship’s voyage and the arrangements for the handling of cargo during loading and unloading. As such, he is responsible for the safety of the ship, its crew, and the cargo.

The charter party is signed between the shipowner and the charterer.

Like all other brokers, shipbrokers also help to identify the right customer for a shipowner who wants to rent his ship or vice versa. For their services, they charge a fee or a commission to the shipowner. The commission may be a percentage of the total freight paid to the shipowner by the charterer.

Sometimes, a shipowner might appoint a full-time shipbroker for getting business. In the ship chartering business, it is common to find brokers who specialize in the chartering of certain types of vessels. It could be for the transportation of goods such as dry bulk, liquid bulk, etc.

A shipbroker is not liable for the ship, its operations, or the cargo that it carries. He is just the intermediary between the shipowner and the charterer.

ship broker

The Institute of Chartered Shipbrokers

The Institute of Chartered Shipbrokers (ICS) founded in 1911 is a professional body that is recognized worldwide among the shipping fraternity. It was brought under the British Royal Charter in 1920.

Based in London, the Institute of Chartered Shipbrokers is considered the representative body of the many shipbrokers and ship managers on a global level. Through its various courses, it certifies qualified and experienced individuals to become professional shipbrokers.

Ship Registry

The authority or body that registers a merchant ship is known as a ship registry. It may be a government ship registry or a registry owned by private organizations such as the Lloyds Registry, Bureau Veritas, Indian Register of Shipping (IRS), etc.

Every ship has to be registered whereby it gets its nationality and confirmation of ownership. Each registered ship comes under the jurisdiction of the law of the country where it is registered, known as the flag state. Some countries or organizations may register only the ships of that particular country. Such organizations are known as National Registries.

Organizations that are open to register both national, as well as ships of other countries, are called Open Registries.

ship registry

The 3 Main Types of Ship Charters

Voyage charter.

This is the most common type of ship charter. A voyage charter normally involves renting the vessel as well as its crew for a particular voyage between two or more ports. The rent will be based on the quantity or weight of the cargo that is carried on the voyage or it could be a fixed amount that is agreed upon between the parties.

Time Charter

When a ship is hired for a certain period, it is known as a time charter. As in the other types of charters, the vessel is rented along with the crew but for a stipulated period. The charter party will clearly state the terms and conditions of the voyage, the agreed period of hiring, the type of cargo to be carried, etc.

In a time charter, the charterer may pay a daily or a monthly rate based on the deadweight ton.

Bareboat Charter

In the bareboat charter, the vessel is operated and managed by the charterer’s crew and vessel management staff. The shipowner will only be looking after the ship’s technical management and matters relating to port operations.

Responsibility for the safety of the ship and all the financial settlements with outside parties will be with the charterer for the duration of the charter party. A bareboat charter is also known as a demise charter.

ship charter

Charterparty

The charter party is a contract between the shipowner and the charterer. It states the responsibilities of both these parties with regard to the ship charter.

The charter party must be detailed and cover all aspects of the charter, especially points like re-renting of the vessel by the charterer, the type of cargo to be loaded on the ship, and ports of call .

In ship chartering, all the parties involved should be aware of the various details that go into the making of a successful charter party or fixture.

The shipowner, as well as the charterer, must be aware of the background of the other, their financial standing, and business reputation.

Just as the shipowner must know the type of cargo that is to be carried on the ship and its date of sailing etc. the charterer should be aware of the cargo-handling capacity of the vessel and its flag.

It would do the shipbroker good if he knew all these details before approaching a prospective client.

You might also like to read:

  • Who is a Shipping Agent?
  • Who is a Container Surveyor?
  • Who is a Marine Surveyor – Responsibilities, Qualifications, and Skills
  • Who is a Harbour Master (Port Master)?
  • NOTIFY PARTY in Shipping – Everything You Wanted To Know

voyage charter responsibilities

About Author

Hari Menon is a Freelance writer with close to 20 years of professional experience in Logistics, Warehousing, Supply chain, and Contracts administration. An avid fitness freak, and bibliophile, he loves travelling too.

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Voyage Charter

A Voyage Charter is a contractual agreement between a shipowner and a charterer to transport goods on a specific voyage.

A Voyage Charter is a maritime contract between a shipowner (or charterer) and a cargo owner, specifying the terms and conditions for hiring a vessel for a particular voyage. A voyage charter agreement outlines details such as freight rates, cargo quantities, loading and discharge ports, laytime, and demurrage, providing a framework for transporting goods by sea.

A voyage charter agreement defines the responsibilities and obligations of both parties involved, including the shipowner's commitment to transport the specified cargo and the charterer's agreement to pay the agreed-upon freight rates.

Key elements of a Voyage Charter include:

  • Freight Rates: The amount agreed upon for the transportation of the cargo, usually calculated based on the quantity of cargo or the space occupied on the vessel.
  • Loading and Discharge Ports: The ports where the cargo will be loaded onto the vessel and subsequently discharged.
  • Laytime: The agreed period during which the charterer is allowed to load and unload the cargo without incurring additional charges.
  • Demurrage: Charges applicable if the loading or unloading takes longer than the agreed laytime.

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Charter Parties: The Complete Guide – Types & Agreements

August 21, 2023

Looking for a comprehensive guide to charter parties? Our page covers all types and agreements, distinguishing us from the competition.

Charter Parties The Complete Guide

Charter parties , the legal contracts for chartering vessels, are the backbone of international shipping. They define the rights and obligations of shipowners and charterers, ensuring smooth operations on voyages. Whether it’s a time charter or a voyage charter, these agreements play a crucial role in facilitating global trade for carriers.

voyage charter responsibilities

A charter party is not just any document; it serves a specific purpose in the context of chartering. Its clauses, articles, and provisions outline the terms that govern the relationship between parties involved in maritime commerce, typically in a contract. Shipowners carefully craft these agreements, known as charterparties, to protect their interests while meeting the needs of charterers who engage their services as carriers.

Understanding charter parties is essential for anyone venturing into international shipping. From specifying the duration of the charter period to determining responsibilities during loading and unloading, every detail matters in chartering. So let’s dive into this intricate world of maritime contracts and explore how they shape our interconnected global economy, specifically in relation to carrier and specific cargo.

Types of Charter Parties

Time charters.

A ship chartering, or time charter, involves leasing a vessel from a ship owner for a specific period. This type of charter party allows the charterer, or carrier, to have exclusive use and control over the vessel during the agreed-upon timeframe. It provides flexibility as the charterer can determine the ports of call and cargo carried.

Voyage charters

Voyage charters in ship chartering involve hiring a vessel for a single journey. Unlike time charters, which focus on an extended period, voyage charters are specific to one trip. The charterer pays the ship owner for transporting goods from one port to another without long-term possession or control over the carrier.

Bareboat charters

Bareboat charters involve ship chartering by leasing a vessel without crew or provisions. In this type of arrangement, the charterer assumes complete responsibility for operating and maintaining the ship during the agreed charter party duration. The shipowner transfers possession and control to the charterer, who becomes the carrier responsible for all aspects of navigation, crewing, and provisioning.

These main types of charter parties, including time charters, voyage charters, and bareboat charters, offer different options depending on the specific needs and requirements of the charterparty, carrier, ship owner, or shipowner. Time charters provide flexibility and extended use, voyage charters focus on individual trips, while bareboat charters grant full control to the lessee. By understanding these various types, individuals and businesses can choose which option best suits their particular circumstances.

Charter Party Agreements

Charter party agreements, also known as charterparty agreements, are legally binding documents that are negotiated between shipowners and charterers. These agreements specify important terms such as freight rates, laytime, demurrage, and more. Here’s a brief overview of charterparty agreements and how they form an essential part of container shipping.

  • Charter party agreements, also known as charterparty agreements, are contracts that outline the terms and conditions of the chartering arrangement for container ships. They are typically negotiated between the shipowner, who owns the vessel, and the charterer, who will be using the container ship for a specific period or voyage.
  • Charter party agreements include various provisions that define important aspects for ship owners. This includes details about freight rates (the cost of hiring the vessel), laytime (the allowed time for loading and unloading cargo), demurrage (additional fees if there is a delay in cargo operations), and other relevant terms.
  • Legally binding documents: Once both ship owners agree to the terms outlined in a charter party agreement, it becomes a legally binding document. This means that both ship owners are obligated to fulfill their respective responsibilities as stated in the agreement.

Charter party agreements play a crucial role in the shipping industry by providing clarity and protection for all parties involved. They ensure that both shipowners and charterers understand their rights and obligations throughout the duration of the charter. Whether it’s a slot charter (a partial space booking) or a demise charter (complete transfer of vessel control), these agreements establish clear guidelines for smooth operations.

The Importance of Charter Parties in International Trade

Charter parties play a vital role in facilitating global trade, ensuring the efficient transportation of goods by sea. These agreements establish clear responsibilities and liabilities for both shipowners and charterers, promoting smooth operations and minimizing disputes. Let’s explore why charter parties are crucial in international trade.

  • Facilitate global trade by providing vessel availability : Charter parties enable shipowners to make their vessels available for hire, allowing them to meet the demand for transporting goods across borders. This availability ensures that businesses can access reliable shipping services to move their products worldwide.
  • Ensure efficient transportation of goods by sea: By defining the terms and conditions of carriage, charter parties help streamline the logistics process for ship owners. They specify loading and unloading procedures, delivery timelines, and any additional requirements for cargo handling. This clarity promotes efficiency and helps avoid delays or misunderstandings during transit, benefiting both shipowners and the overall shipping industry.
  • Establish clear responsibilities and liabilities: Charter parties outline the obligations of both shipowners and charterers, ensuring accountability throughout the voyage. They determine who is responsible for vessel maintenance, crew expenses, insurance coverage, and compliance with maritime regulations. Clearly defined responsibilities minimize uncertainties and protect all parties involved.

Charter Parties and Bills of Lading

A bill of lading issued under charter party terms serves as a crucial document for shipowners in the shipping industry. It provides evidence of cargo receipt and condition, making it essential for transferability and financing.

  • Under voyage charters or bareboat charters, a bill of lading is often issued to acknowledge the receipt of specific cargo by the shipowner or charterer.
  • This document is essential for shipowners and charterers in the shipping industry as it serves as proof that the cargo has been loaded onto the ship and is in good condition. It is particularly important for both bareboat charter and voyage charter party agreements during the specified charter period.
  • Charter parties facilitate the agreement between the shipowner (or bareboat charterer) and the charterer, outlining their respective rights and responsibilities.
  • The bill of lading acts as a contract between the carrier (shipowner) and the shipper (charterer), ensuring that both parties fulfill their obligations.
  • For freight forwarders, having a bill of lading issued under charter party terms allows them to confidently arrange transportation for their clients’ cargo with the ship owner’s assurance.
  • The bill of lading also enables financing options for shippers who may need to use it as collateral or provide proof of ownership for obtaining loans during a bareboat charter, slot charter, or voyage charter party within the charter period.
  • In addition to its importance in commercial transactions, bills of lading issued under charter parties serve as critical documents for ship owners’ insurance claims related to damaged or lost cargo.

Charter parties and bills of lading are integral components within the shipping industry. They ensure smooth operations, protect stakeholders’ interests, and provide necessary documentation for various purposes.

Ship Speed and Fuel Consumption in Time Charter

Ship speed plays a crucial role in determining fuel consumption within time charter agreements. The rate at which a vessel travels directly impacts the amount of fuel it consumes during its journey. Here are some key points to consider:

  • Slow steaming: Slowing down the ship’s speed can significantly reduce fuel costs. By adopting this practice, charter parties can achieve substantial savings. However, it is important to note that slow steaming also extends the duration of the voyage.
  • Cost versus time: When deciding on ship speed, charter parties must strike a balance between cost reduction and voyage duration. While slower speeds may result in lower fuel consumption, they can lead to longer transit times, affecting overall efficiency and profitability.
  • Fuel efficiency considerations: In time charter agreements, fuel efficiency is a critical factor that influences financial outcomes. Parties involved must carefully evaluate the impact of ship speed on fuel consumption to ensure optimal profitability.

By considering these factors, charter parties can make informed decisions regarding ship speed and its effect on fuel consumption within time charter agreements. Achieving the right balance between cost reduction and voyage duration is essential for maximizing profitability while maintaining operational efficiency.

voyage charter responsibilities

Understanding Laytime and Total Laytime

Laytime, a crucial aspect of charter parties for ship owners, refers to the time allowed for loading/unloading cargo. It determines the financial implications for both ship owners and other parties involved. Exceeding the laytime incurs demurrage charges, resulting in additional costs for ship owners.

Key points to understand about laytime and total laytime:

  • Laytime : Laytime is the agreed-upon period during which the charterer has the right to load or unload cargo. It is typically expressed in days, hours, or even minutes. The clock starts ticking once the vessel arrives at the designated port or berth.
  • Demurrage : When laytime is exceeded due to delays caused by either party, demurrage charges come into play. Demurrage refers to the money the charterer paid to compensate for the extra time taken beyond the agreed-upon laytime. This ensures that shipowners are compensated for any lost time and potential revenue.
  • Financial Implications : Understanding laytime is essential because it directly impacts both parties’ financial interests. For shipowners, shorter laytimes result in quicker turnaround times and increased efficiency. On the other hand, charterers aim to maximize their use of laytime while avoiding demurrage costs.

By comprehending these concepts related to laytime and total laytime, ship owners and other parties involved in charter parties can effectively manage their operations while minimizing potential financial risks.

Remember: Promptly completing loading or unloading operations within the agreed-upon timeframe helps avoid unnecessary expenses and contributes to smoother logistics processes for all stakeholders involved in the ship charter, slot charter, voyage charter party, and charter party chain.

Safe Port Requirements in Voyage and Time Charters

Voyage charters require the charterer to transport cargo from one port to another by ship. In these agreements, it is crucial for the charterer to ensure that the chosen ports for cargo operations meet certain safety requirements. Similarly, time charters impose an obligation on the charterer to nominate safe ports throughout the duration of the agreement.

The selection of a safe port is crucial for ships due to the potential risks involved. Safety concerns encompass navigational hazards, ship security measures, and infrastructure conditions. By considering these factors, charter parties can mitigate dangers and ensure smooth ship operations.

Here are some key points regarding safe port requirements for ships in both voyage and time charters.

  • Charterers must carefully evaluate the safety aspects of each port before initiating cargo operations on their ship.
  • When entering a voyage charter party, it is essential to consider navigational hazards such as shallow waters, narrow channels, or unpredictable weather conditions that may be encountered during the ship’s journey.
  • Security measures at ports are crucial in safeguarding cargo, whether on a ship or on land, from theft or any other criminal activities.
  • The responsibility to nominate safe ship ports lies with the charterer throughout the duration of the contract.
  • It is essential for charterers to stay updated on any changes in safety conditions at nominated ports to ensure their ships’ safety.
  • Regular communication between all parties involved in the ship ensures that any safety concerns related to the ship are promptly addressed.

Key Takeaways on Charter Parties

Charter parties are critical legal instruments in the maritime industry. They establish rights, obligations, and liabilities between parties involved in international shipping. Here are some key aspects to consider:

  • Lesson: Charter parties serve as a vital framework that ensures smooth operations within the maritime sector.
  • Aspects: These agreements cover various aspects, including vessel specifications, cargo details, and the duration of the charter.
  • News: Staying informed about recent developments and changes in charter party regulations is crucial for all parties involved.
  • Details: The terms and conditions outlined in charter parties provide specific details regarding payment terms, insurance requirements, and dispute resolution mechanisms.
  • Act: Charter parties act as binding contracts that protect the interests of both shipowners and charterers.
  • Fortior: By clearly defining responsibilities and obligations, these agreements fortify relationships between shipowners, charterers, and other stakeholders.

Charter parties play an instrumental role in facilitating international trade by ensuring the efficient transportation of goods across borders. As these agreements govern vital aspects of maritime operations, it is essential for all parties to familiarize themselves with their provisions. Understanding the intricacies of charter parties can help mitigate potential disputes while fostering mutually beneficial relationships within the global shipping community.

Real-world Challenges with Charter Party Disputes

Legal professionals play a crucial role in resolving charter party disputes, which can be complex and challenging. These disputes often arise from breaches of the terms outlined in the charter party agreement. Arbitration is frequently employed as an alternative to court proceedings to settle such disagreements.

The involvement of legal professionals is essential due to the intricate nature of charter party disputes . Breaches of contract terms can lead to various issues, including financial costs, risks, and responsibilities for both parties involved. Here are some examples that highlight the complexities faced in this industry:

  • Maintenance Responsibility: Disagreements may arise.
  • Demise Charter Issues: A demise charter involves transferring full control and possession of a vessel to another party. However, conflicts may occur regarding the condition or performance of the vessel during this arrangement.
  • Country-Specific Practices: Different countries have their own regulations and practices concerning charter parties, leading to potential clashes between international parties.

Arbitration is commonly utilized to settle these disputes outside of traditional court processes. This alternative dispute resolution practice offers several advantages:

  • Confidentiality: Arbitration provides a more private setting compared to court hearings.
  • Expertise: Parties involved can select arbitrators with specialized maritime law knowledge or specific aspects of their cases.
  • Flexibility: The arbitration process allows for tailor-made procedures that suit the unique circumstances of each dispute.

At ANHISA, we have established ourselves as trusted lawyers and counsels for shipowners and charterers involved in charter party disputes. Our extensive experience in practical cases has allowed us to successfully advise and resolve complex situations, such as indemnification requests by shipowners due to early termination breaches.

We understand the importance of finding amicable solutions that benefit all parties involved. However, when negotiations fail, our team at ANHISA is well-equipped to guide shipowners through the arbitration process, ensuring their claims are properly represented.

Our expertise goes beyond shipping knowledge; we possess the technical know-how and strategic insights required to meet our clients’ expectations. With a strong foundation in shipping practice and a track record of working with international and local clients, we are committed to providing efficient, reliable, and personalized service for all your charter party disputes.

If you require assistance in resolving any charter party dispute, do not hesitate to reach out to us for a consultation. We are here to help.

Contact us via:

Q1: How can ANHISA assist with charter party disputes?

At ANHISA, we offer comprehensive legal counsel and guidance throughout the process of resolving charter party disputes. From negotiation strategies to arbitration representation, we ensure that our clients’ interests are protected.

Q2: What sets ANHISA apart from other law firms?

ANHISA’s unique advantage lies in our deep-rooted expertise in shipping practice combined with years of experience working with international and local clients. Our team possesses the technical knowledge and insights necessary to navigate complex charter party disputes effectively.

Q3: Can ANHISA help with both voyage and time charter disputes?

Yes, our expertise covers both voyage and time charter disputes. Regardless of the type of charter party involved, we have the knowledge and experience to provide tailored solutions for our clients.

Q4: How long does resolving a charter party dispute typically take?

The duration of resolving a charter party dispute can vary depending on the case’s complexity and the parties’ willingness to reach a settlement. At ANHISA, we strive to expedite the process while ensuring thorough representation for our clients.

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A shipowners duty to provide a seaworthy ship under the charterparty

Saif Almobideen

It is worth noting initially that the Shipowners Duties are the Charterers’ Rights, the various duties of the Shipowners can be summarised as follows:

  • To provide a seaworthy ship which complies with the charterparty description;
  • To properly and carefully load, handle, stow, carry, keep, care for, discharge and deliver the cargo;
  • To comply with charterers’ legitimate employment instructions;
  • To prosecute voyages with reasonable dispatch

THE DUTY TO PROVIDE A SEAWORTHY SHIP:

Most of contracts of carriage “particularly charterparties” provide expressly that the ship should be seaworthy. For instance,  clause 1 of ASBATANKVOY provides that “…and being seaworthy and having all pipes, pumps and heater coils in good working order, and being in every respect fitted for the voyage…”

Notwithstanding that, other clauses in the charterparties may not mention the seaworthiness expressly but nevertheless, have the same effect. For example; clause 2.1 of BPTIME states that; “Upon delivery the vessel shall be tight, staunch and strong and in every way fit for service…”

Even if there is no express seaworthiness clause, the duty to provide a seaworthy ship is, nevertheless, implied at law.

It was provided in Kopitoff v Wilson, [ (1876)  1 QBD 602 ], that “The shipowner is, by nature of the contract, impliedly and necessarily held to warrant that the ship is good, and is in a condition to perform the voyage then about to be undertaken, or, in ordinary language, is seaworthy, that is, fit to meet and undergo the perils of the sea and other incidental risks to which she must necessarily be exposed in the course of the voyage.”

Moreover, the same was enacted at the UAE Maritime Law , Article 227 under Section 2 of Chartering the Vessel for a Voyage, which provides: “The disponent owner must put the vessel in question at the disposal of the charterer at the time and place agreed in a seaworthy condition and properly equipped in such a manner as to carry out the voyage or voyages specified in the charter-party and likewise he must keep the vessel in such condition throughout the voyage or voyages the subject of the charterparty”. In addition Article 245 Section 3 “Time Charter” and Article 253 section 4 “Bareboat Charter” of the said law, provided the same wordings of the aforesaid article.

However, the same duty to provide a seaworthy vessel was lessened for the carrier, to only provide a seaworthy vessel before and at the commencement of each voyage, as per Article 272 (1) of the said law which provides that: “1. The carrier must before setting sail and upon the commencement of a voyage use the necessary care to put the vessel in a seaworthy condition and to fit it out, man it and provision it properly. He must prepare the holds and cold rooms and other parts of the vessel to receive, carry and preserve the goods”.

What is seaworthiness?

It was stated by Channell J in McFadden v Blue Star Line, [(1905) 1 KB 697], that: “A vessel must have that degree of fitness which an ordinary careful and prudent owner would require his vessel to have at the commencement of her voyage having regard to all the probable circumstances of it…Would a prudent owner have required that it (i.e. the defect) should be made good before sending his ship to sea, had he known of it? If he would, the ship was not seaworthy…”

Accordingly, the essential standard of seaworthiness depends not only upon physical fit, but also to the nature and age of the ship, the type of the carried cargo, the manner of voyage envisaged, and all other relative conditions.

It is worth noting that the following examples would amount to unseaworthiness breach of duty;

  •  An incompetent crew
  • A crew which is insufficiently instructed or insufficient in numbers
  • Out of date charts
  • Insufficient bunkers for the voyage (depends on the type of charterparty).
  • Stowage which affects the safety of the ship.
  • Deficient systems ashore or on board.
  • The absence of documents required by law (including local law) for the satisfactory prosecution of the contemplated voyage e.g.  a deratting certificate.
  • SMS or ISPS certificates are likely to be treated in the same way; however, documents which are not required by law (e.g. ITF Blue Cards) may not render the ship unseaworthy [The Derby (1985) 2 Ll. Rep 325].

What is Uncargoworthiness?

Cargoworthiness is categorised under the seaworthiness requirements, the vessel must be in every way reasonably fit to receive and carry the contemplated cargo in order to be considered as a seaworthy vessel. It was stated as well in “The Good Friend” [ (1984) 2 Ll. Rep 586] that the ship would be considered as uncargoworthy due to the presence on board of other cargoes which may affect the potential cargo.

The same was stipulated impliedly under Article 234 of the UAE Maritime Law, which provides that; “It shall not be permissible for the disponent owner to load upon the vessel or upon the part thereof which is chartered goods which are not the charterer’s without the charterer’s consent, otherwise the freight for the goods loaded without consent shall belong to the charterer who shall also have the right to claim compensation for damages if appropriate”.

Doctrine of Stages

It is crucial to tackle the issue of Doctrine of Stages, since the voyage might be performed in stages; therefore, the shipowner’s duty is to ensure that the ship is seaworthy for/ and in each stage prior the commencement of that stage.

For instance, a ship should be considered seaworthy with regards to stage 2 of a voyage, even if she does not have enough bunkers when leaving stage 1 to complete stage 2, provided that the carrier is able to obtain further bunkers at the end of stage 1.

Unseaworthiness gives rise to civil liability only if it actually causes loss or damage, and / or addressed in the charterparty, pursuant to Article 228 of the UAE Maritime Law. Bearing in mind that if loss or damage has been caused partly by unseaworthiness and partly by some other factors for which the carrier has a defence under the contract of carriage, or the applicable regime, then the carrier is not entitled to rely on that defence unless he can prove precisely the extent of the damage/loss has been caused solely by the exempted event.[ Smith Hogg v Black Sea (1940) AC 99].

Article 228 of the UAE Maritime Law provides expressly that: “The lessor shall be liable for any damages arising to the goods received by the master on board the vessel within the provisions of the charter-party, unless it is established that the lessor fulfilled his duties referred to in the preceding and the damage did not arise from his default.” Accordingly, the aforesaid article affirms the principal that a shipowner shall not be liable to any loss or damages arise to the cargo, if so proved that he exercised his duty of providing a seaworthy ship.

When is seaworthiness relevant?

Seaworthiness timing issue is significantly relevant in the absence of express terms to the contrary, which becomes as an implied duty. Under the common law, the carrier is under a duty to provide a seaworthy ship at the commencement of the cargo loading in order to consider his vessel as a cargoworthy vessel satisfies the purpose of the charterparty, and at the commencement of the voyage to be considered as a seaworthy.

However, where there are some express terms to the contrary, the carrier’s duty will depend upon the construction of the particular term. Such duty might commence at the date of the charter, as provided for example in line 5 of NYPE, or the date of delivery into the charter (e.g. clause 2.1 of BPTIME) or, additionally, throughout the charter (e.g. clause 1 of BPVOY 4).

On the other hand, under the perspective of the UAE Maritime Law, Articles 227, 245 and 253 require the shipowner to provide a seaworthy vessel at the agreed time and location in the charterparty and shall continue throughout the voyage(s). However, with regard to the carrier, the same has a duty to provide a seaworthy vessel before and at the commencement of the voyage, pursuant to Article 272 of the aforesaid law.

How does the duty considered to be broken?

The duty to provide a seaworthy ship will be considered as breached/broken in various situations depending upon the applicable regime.

Firstly; in the absence of (a) The Hague or Hague-Visby Rules; or (b) express terms to the contrary in the charterparty; the carrier’s duty is to provide a seaworthy vessel in fact. Therefore, if the vessel is not seaworthy in fact then the  carrier shall be liable if the unseaworthiness caused loss or damage to the cargo, even if the defect was latent and not discoverable by due diligence.

Secondly; When The Hague or Hague-Visby Rules are applicable, then the severe duty aforementioned shall be replaced by a mere duty to exercise due diligence to ensure that the vessel is seaworthy before and at the commencement of the voyage, by a virtue of Article III and IV rule 1 of the Hague/ Hague Visby Rules..

Thirdly; Under the UAE Law, the shipowner’s duty is to provide a seaworthy vessel at the agreed time and location stated in the charterparty and shall continue throughout the voyage(s), and the carrier’s duty is to provide a seaworthy vessel before and at the commencement of the voyage, failure to do so by any of the concerned parties, this will establish a liability for any damages arising to the goods, unless it is established that the concerned parties satisfied the duties referred to in UAE Maritime Law and the damage did not arise from such default, as established in Article 248 of the UAE Maritime Law, which provides “1.The disponent owner shall be responsible for damage to the goods if such damage arises out of his default in carrying out his obligations”.

THE ONUS OF PROOF

In conclusion, the onus of proof with regards to loss of damage to a cargo caused by unseaworthiness is regulated by the applicable law, for instance under the common law, if the cargo claimant alleges that the loss or damage has been caused by unseaworthiness, then he has the onus of proof to establish the followings:

(i) That the vessel was unseaworthy at the beginning of the voyage; and that (ii) The loss or damage has been caused by such unseaworthiness.

Accordingly, if he proves (i) and (ii) then there is a assumption that the carrier has not exercised due diligence to make the ship seaworthy and therefore, the onus is then on him  to prove that he has in fact exercised due diligence.[ Minister of Food v Reardon Line (1951) 2 Ll. Rep 265] However, if he fails to prove the same, then the carrier will not be entitled to rely upon the exceptions given in Article IV, rule 2 of the Hague/Hague Visby Rules.

On the other hand, if the carrier succeeds in doing so, then he can rely upon the exceptions in Article IV Rule 2 to defend his liability.[ “Eurasian Dream” (2002) 1 Lloyds Rep. 719] With regards to the UAE law, the onus of proof is on the carrier (lessor), since the liability to any loss or damages arise to the cargo, is a presumed one, unless the carrier proves the contrary and his satisfaction to the obligations stipulated in the articles of the Maritime Law.

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Voyage charter and time charter

Time charter and voyage charter: general guide

This is an introductory article on time charters and voyage charters.

There are three main types of charters in shipping:

Voyage charter

  • Time charter.
  • Bareboat charter (demise charter).

Charters are often compared to taxis because it is the most straightforward analogy to understand.

Let’s begin with an example:

Sergey orders an Uber to get to work. Sergei pays the price based on distance and traffic jams. He does not pay for gas and does not pay the driver’s wage. If the car waits longer than 3 minutes for Sergey, he pays for the wait time. If the driver breaks the traffic rules, Sergey will not be held responsible (but his boss can reprimand him for being late).

Let’s consider this example in the context of a voyage charter:

Poseidon chartered a vessel to carry 15,000 tons of wheat from Varna to Barcelona. The freight rate is $30 per tonne. The loading and unloading rate is 5,000 tons per working day. The demurrage rate is $2,000 per day.

Now let’s break down the example into components:

  • Port of loading and discharge. A charterparty may indicate more than one port.
  • The charge for the carriage is the freight. Freight is often calculated per tonne of cargo, although it can also be fixed.
  • Time for loading and discharge – laytime. Usually stated as a loading/unloading rate per day.
  • Wait time – demurrage.

The shipowner is responsible for the actions of the master and crew. The shipowner may not only be the registered owner of the vessel but also, for example, the time charterer or bareboat charterer.

In a voyage charter, the shipowner pays for bunker, master and crew wages, port charges, and other expenses related to the vessel. These costs are included in the freight rate. The shipowner also bears the cost of repairs to the vessel.

The primary responsibility of the charterer under a voyage charter is to provide the cargo and pay the freight. The shipowner takes care of everything else.

Time charter

A time charter is a car hire with a driver. Back to Sergey:

Sergey went on a business trip to London for a fortnight. He has no time to explore the city, so he has rented a car with a driver. Sergey pays by the day, regardless of the frequency and length of his trips. He also pays for petrol and paid parking. Sergey does not pay the driver’s wage and does not pay traffic fines.

In a time charter, the vessel is not chartered to carry specific cargo from point “A” to point “B”. It’s chartered for a specific period of time. The shipowner provides and pays for the master and crew, as well as the insurance costs for the vessel. As with a voyage charter, the shipowner is responsible for their actions.

A time charterer has more responsibility:

  • Instead of the freight for the carriage, the charterer pays hire, a fixed fee for the use of the vessel. As a rule, hire is paid monthly or semi-monthly.
  • The charterer pays for bunker, port charges, loading and unloading costs, agency services, etc.

There is no laytime and demurrage in a time charter, as the charterer uses the vessel at his own discretion.

Main terms of a voyage charter and a time charter

There are two types of terms in a charterparty: implied and express. Implied terms automatically apply to all charterparties as a matter of fact or law, even if they are not mentioned in the charter. The express terms are the terms of the charterparty.

Implied terms

There are five main implied terms:

  • The shipowner shall provide a seaworthy vessel at the commencement of the voyage.
  • The vessel shall proceed with reasonable despatch.
  • There should be no unjustifiable deviation.
  • Not to ship dangerous goods without notice.
  • To nominate safe ports of loading and discharge.

This list is not exhaustive.

Time charter terms

Main terms of a time charter:

  • Period of hire
  • Trading limits – the geographical limitations in which the charterer is allowed to use the vessel.
  • Provisions for the place and manner of delivery of the vessel to the charterer and redelivery to the shipowner
  • Laydays/Cancelling – charterer’s ability to terminate the charter if the vessel is not delivered by the agreed date
  • Hire rate and payment procedure
  • Off-hire – cases where the charterer does not pay the hire because the vessel cannot be used (e.g. due to a breakdown)
  • Quantity and payment of bunker fuel
  • Cargo allowed for carriage
  • Excluded cargo – cargo that the shipowner prohibits carrying on the vessel
  • Speed and bunker consumption
  • Provisions on the allocation of liability between the charterer and shipowner

Bareboat charter

This article does not cover bareboat (demise) charters, but getting back to Sergey, a bareboat charter is a hire car without a driver. You can read more about bareboat charters here .

Danil Hristich

English solicitor. I help to win courts and arbitrations in London. I specialise in Gafta and FOSFA arbitrations and maritime law (shipping). Also interested in English cryptocurrency disputes.

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Ship Chartering

voyage charter responsibilities

Ship chartering is a widespread practice globally, but it can be challenging for those outside the shipping industry to comprehend. This page aims to provide a straightforward, easy-to-understand overview of the ship chartering process, without the use of technical jargon.

Ship chartering is the practice of renting or leasing a ship for the purpose of transporting goods or passengers from one location to another. It plays a significant role in the global shipping industry and international trade, as it allows businesses to move large quantities of cargo across the world in an efficient and cost-effective manner. In ship chartering, a shipowner leases their ship to a charterer, who then uses the ship to transport cargo or passengers under the terms and conditions specified in a legal contract called a charter party agreement. There are different types of ship chartering arrangements, including bareboat charter, time charter, and voyage charter, each with its own set of terms and responsibilities for the shipowner and charterer.

What is Ship Chartering?

Ship chartering is the process of renting or leasing a ship for the transportation of goods or passengers. It is an essential part of the global shipping industry and plays a crucial role in international trade, as it allows companies to transport large quantities of cargo across the world efficiently and cost-effectively.

Ship chartering involves renting a ship to transport cargo from one place to another, much like a company would hire a truck for road transport. A charter party is signed between the charterer and the shipowner, outlining the terms and conditions of the agreement. This document contains all the relevant details of the charter, including the freight, loading rates, discharging rates, lay time, etc.

Shipbrokers are often involved in the ship chartering process. Shipbrokers act as intermediaries between those seeking to charter a ship and shipowners, helping to locate the appropriate ship to meet the charterer’s needs. Additionally, Shipbrokers can work with ship owners, identifying suitable charterers for their ships. It is important to understand that ship chartering is not solely used for transporting cargo, but also for human transportation. For instance, cruise lines often charter ships from ship owners for extended periods. Additionally, charterers may also hire ships such as tugs and workboats that aid in cargo transport.

Parties involved in Ship Chartering

As previously stated, three parties are typically involved in the ship chartering process: the charterer, ship owner, and shipbroker. Here is a breakdown of each party’s role in the process:

  • Charterer: The charterer is the party that requires a ship to transport cargo or passengers. They are responsible for negotiating the terms of the charter party with the shipowner and for paying the agreed-upon charter hire.
  • Shipowner: The ship owner is the party that owns the ship that is being chartered. They are responsible for providing a seaworthy ship that meets the requirements of the charter party. The shipowner receives the charter hire from the charterer.
  • Shipbroker: The shipbroker acts as an intermediary between the charterer and the shipowner. They assist the charterer in finding the most suitable ship for their needs and negotiate the terms of the charter party on behalf of the charterer. Alternatively, they may assist ship owners in finding suitable charterers for their ships.

1- Charterer

A ship charterer is an individual or company that enters into a contract with a shipowner to rent or lease a ship for the purpose of transporting goods or passengers. The charterer is responsible for specifying and arranging the transportation of cargo or passengers, while the shipowner provides the ship and, depending on the type of charter, may also provide the crew and cover operational expenses.

The person or organization responsible for hiring the ship in order to transport people or cargo is known as the charterer. They could either be the owner of the cargo or transporting it on behalf of other parties. In some cases, the charterer may re-lease the ship to another party to make a profit.

The charterer has the responsibility of planning the voyage of the ship, ensuring the safety of all aboard the ship, and making provisions for loading and unloading cargo. The charter party will provide a detailed list of the charterer’s responsibilities.

In terms of costs, the main expense incurred by the charterer is the Freight payment in Voyage Charter and Hire payment in Time Charter made to the ship owner. Additionally, in Voyage Charter, the charterer is also responsible for cargo handling costs when the ship is fixed on FIOST (Free In and Out Stowed and Trimmed) basis.

Ship charterers come from various industries, including trading companies, manufacturers, and cargo owners who require transportation services for their goods. They play a crucial role in international trade, as they help facilitate the movement of goods around the world in a cost-effective and efficient manner. In order to be successful, ship charterers need to have a strong understanding of the shipping market, ship types, cargo requirements, and the various factors that can impact charter rates, such as market conditions, ship size, and shipping routes.

What are the responsibilities of a Ship Charterer? 

There are various responsibilities and roles that a ship charterer might have, depending on the type of charter agreement:

  • Voyage Charter: In a voyage charter, the ship charterer contracts the ship for a specific voyage or set of voyages. The shipowner provides the ship, crew, and covers operational expenses, while the charterer pays a freight rate based on the volume or weight of cargo transported. Voyage charters are the most common type of chartering agreement in the shipping industry.
  • Time Charter: In a time charter, the ship charterer rents the ship for a specific period, with the shipowner providing the ship, crew, and covering operational expenses such as fuel and port charges. The charterer is responsible for directing the ship’s movements and covering the costs of cargo loading and unloading. Time charters are usually short to medium-term agreements.
  • Bareboat Charter: In a bareboat or demise charter, the ship charterer assumes full responsibility for the ship’s operation, including hiring the crew, obtaining insurance, and providing necessary supplies. The charterer also bears the costs of fuel, port charges, and other operational expenses. This type of charter is typically used for long-term arrangements.

2- Ship Owner

A shipowner is an individual or a company that owns one or more ships, which are used to transport goods or passengers across various routes in the maritime industry. Shipowners can be independent operators who own and manage their own ships or larger shipping companies with a fleet of ships serving various markets and cargo types.

The primary role of a shipowner is to provide shipping services to charterers who require transportation of goods or passengers. Shipowners maintain and operate their ships in compliance with international regulations, safety standards, and environmental requirements. They are also responsible for hiring and managing the crew, maintaining the ship’s seaworthiness, and ensuring it meets all legal and technical requirements.

The ship owner is the person or organization who owns the ship and earns money by leasing it out to charterers. The ship owner may own a single ship or a fleet of several ships of different types and sizes. The ship owner is responsible for the maintenance of the ship on a day-to-day basis, ensuring that it complies with safety and seaworthiness standards, among other requirements. The ship owner also organize and cover the costs of inspections and ship registration fees.

The ship owner bears the initial cost of purchasing or constructing the ship, which is usually significant. Therefore, finding charterers regularly is crucial. They are also responsible for the crew’s payment, and with Voyage Charters, they bear all other expenses of the voyage.

Shipowners play a crucial role in international trade and the global shipping industry, as they provide the ships and services necessary for transporting goods and passengers across the world. To be successful, shipowners need to be knowledgeable about the shipping market, ship types, maintenance and operational costs, regulations, and safety standards.

What are the responsibilities of a Ship Owner? 

Depending on the type of charter agreement, shipowners may have different levels of involvement and responsibilities in the chartering process:

  • Voyage Charter: In a voyage charter, the shipowner provides the ship, crew, and covers operational expenses for a specific voyage or set of voyages. The charterer pays a freight rate based on the volume or weight of cargo transported. In this arrangement, the shipowner is responsible for the overall operation and performance of the ship, following the charterer’s instructions on the route and cargo loading and unloading.
  • Time Charter: In a time charter, the shipowner provides the ship, crew, and covers operational expenses, such as fuel and port charges, for a specific period. The charterer is responsible for directing the ship’s movements and covering the costs of cargo loading and unloading. In this type of charter, the shipowner is more involved in the ship’s operation, ensuring that the crew follows the charterer’s instructions and manages the ship’s performance.
  • Bareboat Charter: In a bareboat or demise charter, the shipowner rents the ship without any crew, provisions, or insurance. The charterer takes full responsibility for the ship’s operation, including hiring the crew, obtaining insurance, and providing necessary supplies. The shipowner’s primary responsibility in this arrangement is to provide a seaworthy ship that meets the requirements of the charterer.

3- Shipbroker

A shipbroker is a professional intermediary who specializes in facilitating transactions between shipowners and charterers in the maritime industry. Shipbrokers act as agents, connecting parties interested in chartering ships for the transportation of goods or passengers with shipowners who have ships available for hire. Their primary goal is to negotiate and secure the best possible terms for both parties, ensuring a successful and profitable agreement.

The role of the shipbroker in ship chartering is to act as an intermediary between the charterer and the ship owner, helping to find the best deal for their Principle. Shipbrokers have extensive knowledge of the shipping industry and can help to negotiate the terms of the charter party.

The shipbroker is usually paid a commission by the charterer or ship owner, or sometimes a combination of both. Shipbrokers can also provide valuable market intelligence and advice on the current state of the shipping industry, helping their clients make informed decisions.

Shipbrokers typically possess in-depth knowledge of the shipping market, ship types, freight rates, and market trends. They use their expertise to help clients make informed decisions and provide valuable advice on chartering strategies, shipping routes, and other crucial factors that impact the chartering process. Shipbrokers can be specialized in different segments of the shipping industry, such as dry bulk, tankers, containers, or passenger ships.

Shipbrokers play a vital role in the shipping industry, as their expertise and connections help facilitate transactions and ensure the efficient movement of goods and passengers across the world. They are crucial to the success of both shipowners and charterers, providing valuable market insights and supporting smooth chartering processes.

What are the responsibilities of a Shipbroker? 

The key roles and responsibilities of a shipbroker include:

  • Chartering Negotiations: Shipbrokers act as intermediaries between the charterer and the shipowner, negotiating the terms and conditions of the charter on behalf of their clients. They strive to secure the most favorable rates and conditions for both parties.
  • Chartering Contract Preparation: Once an agreement is reached, shipbrokers help draft the charter party agreement, a legal contract outlining the terms and conditions of the charter. They ensure that all necessary clauses and provisions are included to protect the interests of both the shipowner and the charterer.
  • Market Analysis: Shipbrokers constantly monitor market conditions, freight rates, and trends to provide clients with accurate and up-to-date information. This helps clients make informed decisions and identify opportunities in the market.
  • Ship and Cargo Matching: Shipbrokers analyze the requirements of charterers and identify suitable ships from their network of shipowners. They ensure that the ships meet the charterers’ specifications in terms of size, type, and cargo capacity.
  • Post-Fixture Services: Shipbrokers may also provide post-fixture services, such as monitoring the performance of the ship during the charter, ensuring timely payments, and assisting with any disputes or issues that may arise between the parties.

Types of Ship Chartering

There are three main types of ship charters: voyage charter, time charter, and bareboat charter:

1- Voyage Charter

In a voyage charter, the charterer contracts the ship for a specific voyage or set of voyages. The shipowner provides the ship, crew, and covers operational expenses, while the charterer pays a freight rate based on the volume or weight of cargo transported. Voyage charters are the most common type of chartering agreement in the shipping industry.

A voyage charter is the most commonly used chartering type. It involves the chartering of a ship for a specific voyage between two or more ports. The charterer hires the ship for the voyage, and the ship owner takes back control of the ship after the voyage is complete. The charter party specifies the laytime, which is the time allotted for loading and unloading the ship. If the laytime is exceeded, penalties are applied by the ship owner (Demurrage), and if the time taken is less than stipulated, the charterer may receive a partial refund (Despatch).

Payment for a voyage charter is generally charged on a per-ton basis, but for some cargo types, the charterer may pay a Lump Sum Freight. A voyage charter can be a one-off contract or part of several consecutive voyages.

Contract of Affreightment (COA): What is Contract of Affreightment (COA)?

A Contract of Affreightment (COA) is a legal agreement between a shipper and a carrier, where the carrier agrees to transport a specified quantity of goods over a certain period of time or across multiple voyages. The contract outlines the terms and conditions under which the carrier will provide transportation services for the shipper’s goods, including the freight charges, payment terms, cargo description, delivery dates, and any other relevant details. This type of contract is commonly used in the shipping industry for bulk cargo or larger shipments that require multiple voyages to transport.

2- Time Charter

In a time charter, the charterer rents the ship for a specific period. The shipowner provides the ship, its crew, and covers operational expenses, such as fuel and port charges. The charterer is responsible for directing the ship’s movements and covering the costs of cargo loading and unloading. Time charters are usually short to medium-term agreements.

A time charter allows the charterer to use the ship for an agreed period of time, where they have complete control over the ship’s routes, destinations, and more. The charterer is responsible for most of the costs incurred by the ship during the agreed time, including fuel costs (bunkers), cargo handling costs, port charges, and more. The time charter ends when the specified time runs out, regardless of the ship’s location. This type of charter is commonly used for ships that support a specific civil construction or offshore project, such as tug boats, anchor handling tugs, crew boats, and supply ships.

3- Bareboat Charter

In Bareboat Charter, the charterer leases the ship without any crew, provisions, or insurance. The charterer takes full responsibility for the ship’s operation, including hiring the crew, obtaining insurance, and providing necessary supplies. Bareboat charters are typically used for long-term arrangements.

Bareboat charter is a type of ship chartering where the charterer leases the ship for a long period, usually for many years, and assumes full responsibility for the ship’s operation and maintenance, both legally and financially. The charterer pays for all the costs associated with the ship during the charter time, including crewing, fuel, and insurance. This arrangement is particularly attractive to ship owners who want to avoid the day-to-day running of the ship. Under a bareboat charter, the charterer may have the option to eventually gain ownership of the ship through a hire-purchase agreement.

What are the advantages of Bareboat Charter?

A bareboat charter offers the advantage of greater freedom and control for the charterer, as they have the ability to determine the itinerary and choose their own crew. Additionally, agreeing to a long-term charter can lower the overall cost and there may be an option for the charterer to eventually take ownership of the ship through a hire-purchase agreement.

Is Ship Chartering insured?

When taking out a charter agreement, it is important to note that the charterer assumes various responsibilities, one of which is the requirement for insurance coverage. This insurance should provide liability coverage for cargo damage, ship damage, environmental damage, and marine salvage. It is essential for the charterer to carefully review the contract and understand their obligations regarding insurance.

Ship chartering typically involves various types of insurance to protect the interests of both the shipowner and the charterer. Insurance is essential in the shipping industry to mitigate potential risks and financial losses that may arise due to accidents, cargo damage, or other unforeseen events. Some common types of insurance involved in ship chartering include:

  • Freight, Demurrage, and Defense (FD&D) Insurance: FD&D insurance covers legal costs and expenses arising from disputes related to charter party agreements, such as claims for unpaid freight or demurrage. This insurance is often provided by the same P&I Clubs that offer P&I insurance.
  • Cargo Insurance: Cargo insurance protects the charterer or cargo owner against loss or damage to the cargo during transportation. This insurance is typically taken out by the charterer or the cargo owner, as they have an insurable interest in the cargo being transported.
  • Hull and Machinery Insurance: This insurance covers the physical damage to the ship itself, including its hull, machinery, and equipment. It is usually taken out by the shipowner to protect their investment in the ship.
  • Protection and Indemnity (P&I) Insurance: This type of insurance covers the shipowner’s third-party liabilities, such as crew injuries, damage to third-party property, or pollution caused by the ship. P&I insurance is typically provided by specialized clubs known as P&I Clubs, which are mutual insurance associations made up of shipowners.
  • War Risk Insurance (WRI): This insurance covers losses resulting from war-related perils, such as terrorism, piracy, or acts of war. It can be taken out by both the shipowner and the charterer to protect their respective interests.

Insurance Responsibilities in Ship Chartering

In a ship chartering arrangement, the specific insurance requirements may vary depending on the type of charter:

  • Voyage Charter: In a voyage charter, the shipowner generally provides hull and machinery and P&I insurance, while the charterer or cargo owner is responsible for cargo insurance.
  • Time Charter: In a time charter, the shipowner typically provides hull and machinery and P&I insurance, while the charterer may be responsible for cargo insurance and other specific insurance depending on the charter party agreement.
  • Bareboat Charter: In a bareboat or demise charter, the charterer assumes full responsibility for the ship’s operation and is usually required to obtain hull and machinery, P&I, and other necessary insurance coverage.

The exact insurance requirements and responsibilities for ship chartering should be clearly outlined in the charter party agreement to ensure that all parties are adequately protected and understand their obligations.

What is Charter Party Agreement?

A charter party agreement is a legal contract between the shipowner and the charterer that outlines the terms and conditions of the charter. It specifies the details of the ship, cargo, route, duration, payment terms, and other essential information. It is crucial for both parties to thoroughly review and understand the charter party agreement to ensure a smooth and successful ship chartering process.

Factors to Consider in Ship Chartering:

a) Type of Cargo – Different types of cargo require different types of ships. For example, dry bulk cargo (such as coal or grains) requires specialized dry bulk carriers, while liquid cargo (such as oil or chemicals) requires specialized tankers.

b) Ship Size and Specifications – The size and specifications of the ship should match the requirements of the cargo being transported. Ship size is usually measured in deadweight tonnage (DWT) or gross tonnage (GT).

c) Route and Distance – The intended shipping route and distance will impact the cost of the charter, as fuel consumption and port charges vary depending on the route.

d) Duration – The duration of the charter agreement will affect the charter rate. Longer charter agreements may lead to lower daily rates, while shorter agreements may have higher daily rates.

e) Market Conditions – The supply and demand for ships in the market will influence the charter rates. Higher demand for ships will result in higher charter rates, while lower demand will lead to lower rates.

In conclusion, ship chartering is a vital aspect of the global shipping industry, enabling the efficient transportation of goods across the world. Understanding the different types of chartering agreements and the factors that influence them is crucial for businesses looking to charter ships for their cargo transportation needs.

Ship Chartering Process

The ship chartering process involves a series of steps that connect shipowners and charterers to facilitate the transportation of goods or passengers across the world. This process is essential to the global shipping industry and international trade. The following is an overview of the key steps in the ship chartering process:

  • Identifying Requirements: The charterer begins by determining their specific shipping needs, such as the type and volume of cargo, preferred ship size and specifications, loading and discharging ports, and the desired schedule for transportation.
  • Engaging a Shipbroker: The charterer may engage a shipbroker, a professional intermediary with expertise in the shipping market and connections with shipowners. The shipbroker helps the charterer navigate the chartering process and negotiate favorable terms with shipowners.
  • Market Analysis and Ship Search : The shipbroker or charterer conducts market research and analysis to gather information on freight rates, ship availability, and market trends. They then search for suitable ships that match the charterer’s requirements, contacting shipowners with ships available for charter.
  • Chartering Negotiations: Once a suitable ship is identified, the shipbroker or charterer negotiates the terms and conditions of the charter with the shipowner. This may include the freight rate, laytime (time allowed for loading and unloading cargo), demurrage (penalties for exceeding laytime), payment terms, and other relevant clauses.
  • Charter Party Agreement: After reaching an agreement on the charter terms, the shipbroker or charterer drafts a charter party agreement, which is a legal contract outlining the rights and obligations of both parties. This document includes details about the ship, cargo, route, duration, and other essential terms. Both parties review, negotiate, and ultimately sign the agreement.
  • Pre-Voyage Preparations: Before the voyage begins, both parties must prepare for the transportation of the cargo. The shipowner ensures the ship is seaworthy, complies with all regulations, and is ready to receive cargo. The charterer arranges for the cargo to be transported to the loading port, and any necessary permits or documentation are obtained.
  • Loading and Transportation: The ship arrives at the loading port, and the cargo is loaded onto the ship according to the terms outlined in the charter party agreement. Once the cargo is safely loaded, the ship departs for its destination.
  • Discharging and Payment: Upon arrival at the discharging port, the cargo is unloaded, and any inspections or documentation required by local authorities are completed. The charterer pays the freight charges and any other fees specified in the charter party agreement to the shipowner.
  • Post-Fixture Services: After the voyage is completed, the shipbroker or charterer may provide post-fixture services, such as monitoring the ship’s performance, ensuring timely payments, and resolving any disputes that may arise between the parties.

The ship chartering process is a complex and essential part of the global shipping industry, requiring cooperation and coordination between charterers, shipowners, and shipbrokers to ensure the efficient and cost-effective transportation of goods and passengers.

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Charter of the United Nations

Chapter xvii — transitional security arrangements.

“ Pending the coming into force of such special agreements referred to in Article 43 as in the opinion of the Security Council enable it to begin the exercise of its responsibilities under article 42, the parties to the Four-Nation Declaration, signed at Moscow, October 30, 1943, and France, shall, in accordance with the provisions of paragraph 5 of that Declaration, consult with one another and as occasion requires with other Members of the United Nations with a view to such joint action on behalf of the Organization as may be necessary for the purpose of maintaining international peace and security. ”

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IMAGES

  1. A Layman's Guide to Laytime, Charter party Agreement and Voyage Charter

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  2. Marine News & Log: A Guide to Laytime, Charter party Agreement and

    voyage charter responsibilities

  3. VOYAGE CHARTER AGREEMENTS

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  4. Voyage Charter F

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  5. PPT

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  6. A Ship on Time Charter : Here is All a Seafarer need to know

    voyage charter responsibilities

VIDEO

  1. Bulk Charter Parties Part 1

  2. Owner vs Charter Flights- Private Jet Flight Attendant

COMMENTS

  1. Voyage Charter vs Time Charter

    A voyage charter is a type of charter in which a vessel is leased out for a particular voyage. The charter agreement lists the ports of call, destination, and restrictions on cargo, if any. Most voyage charters are undertaken by charterers who have cargo that needs to be shipped. For this, they contact ship owners through brokers and arrange a ...

  2. Time Charter vs. Voyage Charter: All You Need To Know

    A voyage charter focuses on the transportation of a specific cargo on a single voyage between designated ports.. The most common way to pay for this type of charter is on a per-ton basis. As the name implies, this sees the charterer paying a set price for every ton of cargo they transport and is preferred when the amount of cargo they're transporting is significantly less than the vessel's ...

  3. Voyage Charter Vs Time Charter

    A voyage charter is when the charterer leases a vessel for a specific voyage, such as Dubai to Singapore, while a time charter is a type of lease that allows the charterer use of the vessel for a specific period of time. As you might imagine, there are many differences between these two types of charters, and both vessel chartering options have ...

  4. Voyage Charter Vs Time Charter

    1- Responsibilities: Voyage Charter: Both technical and commercial management handled by the shipowner. Shipowner is not only responsible for the costs associated with crewing, maintenance of the ship and insurance, but also Shipowner pays for all the costs of the voyage, including bunker (fuel) and port costs ...

  5. Ship Chartering

    Responsibilities: Charterers take full responsibility for vessel operations, crewing, and maintenance. 6:- Voyage Charter vs Time Charter. A charter is a contract between two or more parties, known as charter parties, outlining the terms for leasing a vessel under specific conditions. There are primarily two types of charters: Voyage charter

  6. A Layman's Guide to Laytime, Charter party Agreement and Voyage Charter

    In each type of charter, charterers and shipowners have different area of responsibilities. Each type of charter is a subject in itself. So in this blog we will explore the voyage charter. ... Under the voyage charter, the ship is hired from the ship owner for one voyage. One voyage could consists of multiple load ports and multiple discharge port.

  7. Voyage Charter : Definition & Full Guide

    What is a voyage charter? Voyage charter definition : The voyage charter is a contract (voyage charter party) between the shipowner and the charterer wherein the shipowner agrees to transport a given quantity of a shipment, using a pre-nominated vessel for a single voyage from a nominated port (say X) to a nominated port (say Y), within a given time period.

  8. LR OneOcean

    It can be said to be a combination of a voyage charter and a time charter. The responsibilities are similar to those with a time charter (the fixed costs being paid by the owner and the variable costs by the charterer), but as with a voyage charter, the period of the contract depends upon when the voyage is completed. The Demise Charter

  9. Ship Chartering Process

    Voyage Charter. This is the most common type of ship charter. A voyage charter normally involves renting the vessel as well as its crew for a particular voyage between two or more ports. The rent will be based on the quantity or weight of the cargo that is carried on the voyage or it could be a fixed amount that is agreed upon between the parties.

  10. Maritime Glossary by Portcast: Voyage Charter

    A voyage charter agreement defines the responsibilities and obligations of both parties involved, including the shipowner's commitment to transport the specified cargo and the charterer's agreement to pay the agreed-upon freight rates. Key elements of a Voyage Charter include:

  11. Charter Parties: The Complete Guide

    Charter parties, the legal contracts for chartering vessels, are the backbone of international shipping. They define the rights and obligations of shipowners and charterers, ensuring smooth operations on voyages. Whether it's a time charter or a voyage charter, these agreements play a crucial role in facilitating global trade for carriers.

  12. Main Features of Voyage Charterparty

    The main features of a voyage charterparty include: Parties Involved: The agreement will clearly specify the shipowner and the charterer. Description of Vessel: Details of the vessel such as its name, flag, deadweight, tonnage, and other relevant particulars. Cargo: A clear description of the cargo, including type, quantity, quality, and the ...

  13. Pros and Cons of Voyage Charter

    The preference for voyage charters by charterers is largely driven by the cost predictability, reduced operational responsibilities, and suitability for specific or occasional shipping needs. However, the choice between voyage and time charters ultimately depends on the specific requirements, financial considerations, and risk appetite of the ...

  14. Duties & Responsibilities of Shipowners Under Charterparty

    In addition Article 245 Section 3 "Time Charter" and Article 253 section 4 "Bareboat Charter" of the said law, provided the same wordings of the aforesaid article. However, the same duty to provide a seaworthy vessel was lessened for the carrier, to only provide a seaworthy vessel before and at the commencement of each voyage, as per ...

  15. Time charter and voyage charter: general guide

    In a voyage charter, the shipowner pays for bunker, master and crew wages, port charges, and other expenses related to the vessel. These costs are included in the freight rate. The shipowner also bears the cost of repairs to the vessel. The primary responsibility of the charterer under a voyage charter is to provide the cargo and pay the freight.

  16. PDF A Review of Shipowner's & Charterer's Obligations in

    Key words: Chartering, shipowner's obligations, charterer's obligations, voyage charter, time charter, bareboat charter. 1. Introduction A charterparty is a written charter agreement or, in other words, the contract of carriage whereby a shipowner or a disponent owner of a vessel agrees to place his ship, or part of it, at the disposal of a

  17. Charterer's Obligations Under The Voyage Charter

    Charterer's Obligations Under the Voyage Charter - Free download as PDF File (.pdf), Text File (.txt) or read online for free. There are 3 main duties which charterers ought to perform under a voyage charter: 1. To nominate port of loading and discharging; 2. To provide the goods for loading and 3. To load and later to discharge the goods at the discharging port.

  18. Voyage charter

    Voyage charter - responsibility for loading and discharge. Friday, 4th December 2015. Cargo of rice carried on the "SEA MIROR" from Karachi, Pakistan to Abidjan, Ivory Coast. Continental was the carrier under the bills of lading. The bills of lading contained/evidenced contracts of carriage incorporating the Hague Rules and terms of the ...

  19. 4th Grade

    From start to finish, this year is about integrating the pre K/K years to 3rd Grade. The kids have been part of a school environment to understand the concept of school, responsibilities, consequences and learning. This year is really cooperative--that means growth personally, socially, and academically.

  20. Ship Chartering

    1- Voyage Charter. In a voyage charter, the charterer contracts the ship for a specific voyage or set of voyages. The shipowner provides the ship, crew, and covers operational expenses, while the charterer pays a freight rate based on the volume or weight of cargo transported. Voyage charters are the most common type of chartering agreement in ...

  21. Chapter XVII: Article 106

    Charter of the United Nations Chapter XVII — Transitional Security Arrangements Article 106 " Pending the coming into force of such special agreements referred to in Article 43 as in the opinion of the Security Council enable it to begin the exercise of its responsibilities under article 42, the parties to the Four-Nation Declaration, signed at Moscow, October 30, 1943, and France, shall ...

  22. What is a Charter School?

    Charter schools are free public schools that are relieved from many of the rules and regulations governing traditional district schools. This freedom allows charters to map their own path to innovation and it is hoped, educational quality. In return for this operational freedom, charter schools enter into performance agreements with an ...

  23. Administrator's Message

    Administrator's Message. noun , often attributive com·mu·ni·ty [kuh-myoo-ni-tee] a feeling of fellowship with others, as a result of sharing common attitudes, interests, and goals. Community is a noun that is commonly used in describing Moscow Charter School. As Idaho's first charter school, we have found a way to evolve our school ...

  24. Tech Talent Charter to disband after nearly 10 years of operation

    Comment from TTC supporters and signatories. The Tech Talent Charter has amassed a great deal of support and signatories over the years. This is what some of those who have been involved in the ...