Charter party & types of charter party

A charter party is defined as a contract between a shipowner and charterers for the use of a ship or her cargo space.These are generally of three types.
  • Voyage charter party
It is a contract to carry a specified quantity of cargo (normally full cargo) by a named vessel between named ports at an agreed freight rate.The ship owner remains responsible for the operations of the ship and the cost involved.
  • Time charter party
It is a contract for the hire of a named vessel for a specified period of time.The charterer pays for the commercial expenses of the ship i.e bunkers, cargo handling, port dues and pilotage The owner pays for the runnning expenses of the ship i.e manning, repairs, stores, provisions, hull and machinery insurance etc.
  • Bare-boat charter party
It is a leasing arrangement between the charterer and the actual owner in which the charterer operates the ship as if it is his own for an agreed period

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