CONTRACTS

QUIZ 1

1. Identify all types of chartering

1. Bareboat Charter (or Demise Charter)
 The charterer takes over full control of the vessel, including crewing, maintenance, and
operational responsibilities. Essentially, the charterer becomes the vessel's temporary owner.
2. Time Charter
 The vessel is chartered to the charterer for a specific period. The shipowner provides the ship
and its crew, but the charterer decides on the voyages and pays for fuel and port charges.
3. Voyage Charter
 The shipowner is contracted to transport specific goods between designated ports. Payment is
usually based on the amount of cargo or the space the cargo occupies.
4. Trip Time Charter
 This is a mix of time and voyage charter where the shipowner agrees to a voyage for a set period,
which might involve multiple trips or round voyages.
5. Contract of Affreightment (COA)
 A longer-term agreement where the shipowner commits to transport multiple cargoes over a
period, without specifying a particular vessel for each shipment.
6. Spot Charter
 A one-time charter for a specific voyage based on the current market rates.
7. Floating Storage Charter
 The vessel is chartered primarily for its storage capabilities. It often remains anchored and is used
for storing commodities, like oil.
8. Towage Contract
 A specific type of charter where a vessel, typically a tugboat, is chartered to tow another vessel
or object, like an oil rig.
9. Bareboat Charter with Option to Purchase
 Similar to a bareboat charter, but the charterer has the option to buy the vessel at the end of the
charter period.
These types cater to various needs in the maritime industry, depending on the cargo, duration, risk distribution,
and operational responsibilities the involved parties wish to assume.

2. What is chartering agreement?

A chartering agreement, commonly referred to as a charter party, is a contract between the owner of a vessel and
the charterer. In this agreement, the charterer hires either the whole ship (or a part of it) for a specific voyage or a
set period of time. The contract specifies details like the type and quantity of cargo, the destination, freight rates,
and other terms and conditions. There are different types of chartering agreements, such as voyage, time, and
bareboat charters, each serving different needs and purposes in maritime trade.

Submitted by: Danielle Ansheryl J. Pagsanghan

 CONTRACTS
QUIZ 1

3. What are the different type of ship owners?

Different types of shipowners can be identified based on the structure, scale, involvement, and model of
ownership:
1. Individual or Private Shipowners: These are individuals or families who own and possibly operate their
ships. They may own single or multiple vessels.
2. Corporate Shipowners: Large corporations or conglomerates that have a fleet of vessels. They could be
dedicated shipping companies or corporations with diverse business interests, including shipping.
3. Publicly Listed Shipowners: These are shipping companies that are publicly traded on stock exchanges.
They are accountable to shareholders and have regular reporting requirements.
4. State-Owned or National Shipowners: Governments or state entities might own and operate ships,
especially in countries where shipping is a strategic industry.
5. Joint Venture Shipowners: Two or more parties, which could be individuals or corporations, come
together to jointly own and possibly operate vessels.
6. Shipping Pools: Multiple shipowners combine (or 'pool') their vessels together to operate in a specific
market under shared terms, typically to gain economies of scale and market influence. They share
revenues, costs, or profits according to agreed terms.
7. Bareboat Charterers: They don't own the ship but have control over it through a lease arrangement called
a bareboat charter. In this arrangement, the charterer is responsible for the ship's operations, including
manning and maintenance, as if they were the owner. At the end of the charter period, control is typically
returned to the actual owner.
8. Financial Institutions or Leasing Companies: In some models, financial institutions or leasing companies
own the ship and lease them to operators. These entities become shipowners primarily as an investment,
not as their core business.
Each type of shipowner has its own set of objectives, responsibilities, and challenges, and their ownership model
might be chosen based on factors like capital requirements, risk tolerance, market conditions, and strategic
objectives.

Submitted by: Danielle Ansheryl J. Pagsanghan