What is a Ships Charterparty agreement?

- The Contract
between one party who has control of a ship and another
party who wishes to make use of the ship is known as a
Charterparty.

TYPES OF CHARTERPARTIES:

Time Charter

In a Time Charter the Owner hires out the ship to the

Charterer for a set period of time, usually with restrictions on
trading limits and cargoes – so that the Owner’s interest is
protected.

Time Charters can be for short (e.g. single voyages) or for

long periods of time. Normally the Owner is paid a rate of
hire per day whilst the vessel is on charter. i.e. The Owner
agrees to provide the vessel to the Charterer for his
commercial use for an agreed period of time.

Time and vessel performance are key under time charters. It

is critical for the ship to meet the C/P warranties with regard
to speed and performance and to also avoid as far as possible
any off-hire periods.

A Time Charter Party typically has the following key

characteristics:
  The shipowner is responsible for providing a seaworthy
ship with valid classification, manned appropriately with
a master and a full complement of crew, so that the ship
can safely complete its period of hire;
 The charterer is responsible for loading, stowing, and
discharging cargo safely;
 The charterer is responsible for giving the master
effective orders and instructions with regard to when
and where the cargo should be shipped;
 The charterer is responsible for providing fuel for the
vessel.

Details of the responsibilities of the Owner and Charterer

under a T/C are as provided below:

Owner

 Crew
 Stores & Provisions
 Maintenance
 Communications pertaining to the ship
 Husbandry Expenses

Charterer

 Fuel
 Port & Canal Dues
 Pilotage
 Towage/Linesmen
 Agency Fees (except husbandry)
  Communications pertaining to the voyage and cargo
 Berth Dues
 Wharfage
 Stevedoring
 War Risk Insurance
 Freight Tax

Voyage Charter

In a voyage charter the ship is hired to carry a particular

cargo (or a variety of cargoes) between specified places,
usually either at a freight rate per MT of cargo carried or for a
lump sum freight payable to the Owner. i.e. The Owner
agrees to provide the full cargo carrying capacity of his vessel
to the Charterer for a specific voyage(s).

The commercial operator/manager will operate the vessel on

a voyage charter and relay specific instructions from the
Charterer to the Master. These instructions must be followed
exactly, unless there is any safety or operational restrictions,
in which case the commercial operator and/or DPA should be
consulted immediately.

Voyage Charter Parties generally contain the following key

agreements:
 The type of cargo to be carried is agreed in advance
 The ports to be visited are agreed in advance
 It is the responsibility of the shipowner, not the
charterer, to give instructions to the master
  If liner terms (e.g., an inclusive freight rate) have been
agreed, it is the shipowner who takes responsibility for
the loading, stowage and discharge of cargo
 In certain voyage charter parties, it is the charterer who
takes responsibility for the loading, stowage and
discharge of cargo

Responsibilities of the Owner and Charterer under a V/C are

generally as provided below:

Owner

1. Ship
2. Crew
3. Stores & Provision
4. Maintenance
5. Communications
6. Insurances
7. Fuel
8. Port & Canal Dues
9. Agency Fees
10. Towage/Linesmen
11. Pilotage
12. Berth Dues (may vary as per C/P terms)
13. Wharfage (may vary as per C/P terms)
14. Stevedoring (may vary as per C/P terms)
15. Freight Tax (may vary as per C/P terms)
16. War risk insurance (may vary as per C/P terms)

Charterer

1. Cargo
2. Berth Dues (may vary as per C/P terms)
3. Wharfage (may vary as per C/P terms)
4. Stevedores (may vary as per C/P terms)
5. Cargo Dues/Freight Tax (may vary as per C/P terms)
6. War risk insurance (may vary as per C/P terms)