Importance Of Charter Party Agreement

As part of the travel charter, the vessel is leased by the shipowner for a voyage. Similarly, according to the travel charter, he is the shipowner who paid for the maintenance of the vessel. Charterers and shipowners have different responsibilities in each type of charter. There are four main methods for chartering a tramp boat – charter, on-time charter, cash charter and “flat-rate contract.” Travel chartering is the most common. Under this method, a vessel is chartered for a one-shot voyage between specified ports with a cargo determined at a negotiated freight rate. On a timely charter, the charterer leases the vessel for a specified period of time, for a specified round trip or occasionally for a one-way trip indicated, the rental rate being expressed in the form of such a quantity per tonne of net weight per month. While on a travel charter, the owner bears all the costs of the trip (subject to the agreement on loading and unloading costs), the charterer currently bears the costs of the bunkers and shops consumed. Now that we understand the concept of chartering, we should understand the different types of charters. The shipment is transported in accordance with the charter party agreement between “charterer`s name” and “airline name” of January 1, 2016….. The charterer may even have brokers for other purposes. For example, charterers may have a real estate agent to find a cargo for the ship they want to rent, and they may have another broker to find a ship for the cargo they have on hand.

Similarly, the charterer leased the cargo hold of the vessel as part of the charter. But the master and crew remain under the tutelage of ship owners and managers. For example, shipowners and charterers agree on factors such as the permitted number of loading and unloading days. There are three main types of charter party: time, travel and sinking and another: The task of the charterer is to find a boat for the cargoes they have from different shippers and maximize the space on the boat they want to rent. An ice clause is inserted into a bill of lading or charter party when a vessel is transported to a port that may be closed for ice shipping upon the vessel`s arrival or after the vessel arrives.

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