Maritime charter
Contract by which a shipowner makes a ship available to a charterer for the transport of goods.
Maritime chartering (Chartering)
Chartering is a contract by which a shipowner (charter) makes a ship or part of its capacity available to a charterer for the transport of goods, in exchange for a price called freight.
Charter types
- Voyage Charter: the ship is chartered for a specific voyage. The shipowner is responsible for the operation of the vessel. Used for bulk transport (grains, ores, oil).
- Time Charter: the vessel is made available for a specific period. The charterer pays daily rent and fuel costs. The shipowner provides the crew.
- Bareboat Charter: the charterer takes the vessel without crew and assumes full responsibility for its operation.
Charter party
The charter contract is called charterparty. The most commonly used standard forms are the Gencon (trip), the NYPE (time) and the Barecon (bare hull).
Distinction from transport under bill of lading
Chartering is a contract between shipper and shipowner for a complete vessel or a large part of its capacity. Liner shipping is a regular service where each shipper reserves space for its containers.
Importance in commodity trading
Chartering is the dominant mode of transport for the trade of dry bulk (grains, coal, ores), liquid bulk (oil, chemicals) and oversized goods (project cargo).