Chartering and Methods of Chartering

Front

What is the general purpose of chartering a ship?

Back

To operate the ship in a manner that meets investors' expectations for returns.

Front

What is a voyage charter?

Back

A charter where a ship is hired for a one-way voyage between specified ports with a specified cargo at a negotiated rate.

Front

What is a time charter?

Back

A charter where the ship is hired for a stated period or a specified round-trip voyage, with hire expressed per ton deadweight per month or a fixed amount per day.

Front

What is a bareboat charter?

Back

A charter where the owner delivers the ship to the charterer without crew or provisions, and the charterer is responsible for running the ship.

Front

What is a contract of affreightment?

Back

A charter used when a large amount of cargo is to be moved over time, at a fixed price per ton, without specifying a particular ship.

Front

What are laydays?

Back

The specified number of days for loading or discharging cargo.

Front

What is demurrage?

Back

A clause stating that if the charterer does not complete loading or discharging in the allowed laydays, they must pay for the delay.

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What is dispatch money?

Back

Money earned by the charterer if they load or discharge cargo in less time than the number of laydays allowed.

Front

What is charter party?

Back

It is the contract that outlines the agreement between the ship owner and the charterer regarding the hire of the vessel.

Front

What is the difference between voyage charter and time charter?

Back

Voyage charter is for a specific voyage with a specified cargo, while time charter is for a stated period or round-trip voyage.