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Diff Between Shipper and Charterer
Diff Between Shipper and Charterer
transportation of goods. Here's a detailed explanation of the differences between the two:
### Shipper
**Definition:**
- A shipper is the person or company that sends goods from one place to another. The shipper is
responsible for initiating the shipment and providing the necessary documentation for the transport
of goods.
1. **Ownership of Cargo:**
- The shipper owns the goods being transported or is responsible for them on behalf of the owner.
2. **Documentation:**
- The shipper provides all necessary shipping documents, including the bill of lading, invoices,
packing lists, and any other required certificates or permits.
- Ensuring that the cargo is properly packaged and labeled according to the regulations and
requirements of the shipping company and destination country.
4. **Payment:**
- The shipper is typically responsible for paying the freight charges, unless the shipping terms
specify otherwise (e.g., FOB, CIF).
5. **Coordination:**
- Coordinating with freight forwarders, customs brokers, and carriers to ensure the smooth
transport of goods.
### Charterer
**Definition:**
- A charterer is a person or company that hires a vessel or a part of its space from a shipowner for
the purpose of transporting goods. The charterer can be the shipper themselves or another party
acting on behalf of the shipper.
**Types of Charterers:**
1. **Voyage Charterer:**
- Hires the vessel for a single voyage between specific ports, paying a rate per ton of cargo or a
lump sum.
2. **Time Charterer:**
- Hires the vessel for a specific period, paying a daily or monthly rate. The charterer directs the
vessel’s voyages within the agreed period.
3. **Bareboat Charterer:**
- Leases the vessel without crew, assuming full responsibility for its operation and maintenance for
a specified period.
- Negotiating and entering into a charter party agreement with the shipowner for the use of the
vessel.
2. **Freight Payment:**
- Paying the shipowner for the use of the vessel as per the terms of the charter party agreement.
3. **Operational Control:**
- Depending on the type of charter, the charterer may have control over the vessel’s routing,
scheduling, and port calls.
4. **Liabilities:**
- Assuming certain liabilities for the cargo and the vessel as specified in the charter party
agreement. This includes responsibilities like port fees, fuel costs, and, in some cases, crew wages.
1. **Role:**
- **Shipper:** Initiates the shipment and owns or is responsible for the cargo.
- **Charterer:** Hires the vessel or part of its space for transporting the cargo.
2. **Primary Responsibility:**
- **Shipper:** Ensures that the goods are prepared, documented, and ready for transport.
- **Charterer:** Ensures the transportation means (vessel) is available and manages the logistics of
the voyage.
3. **Interaction with Vessel:**
- **Shipper:** Typically does not directly interact with the vessel operations unless acting as the
charterer.
- **Charterer:** Directly interacts with the shipowner and may have control over the vessel's
operations depending on the type of charter.
4. **Financial Obligation:**
- **Shipper:** Pays for the freight charges for shipping the goods.
- **Charterer:** Pays for the hire of the vessel and associated operational costs as per the charter
party agreement.
### Conclusion
In summary, the shipper is the entity responsible for sending the cargo, while the charterer is the
entity that arranges for the vessel to transport the cargo. Their roles and responsibilities differ
significantly, with the shipper focusing on the cargo itself and the charterer on the logistics and
operation of the vessel.