CHARTER PARTIES

WHAT IS A CHARTER PARTY?

Charter party is a contract whereby a ship owner
agrees to place a ship, or part of it, at the
disposal of a merchant or other person
(charterer), for carriage of goods from one port to
another port.
On being paid freight or
Specified period
Terms, conditions and exceptions set out in
charter parties

 Contract between the owner

of a vessel and the charterer,
that is the one that takes
over the vessel for a certain
amount of time or voyage

TYPES OF CHARTER PARTIES

DEMISE OR
BAREBOAT
CHARTER PARTY
NON-DEMISE
CHARTER PARTIES
TIME

CHARTER
VOYAGE CHARTER

DEMISE AND NON-DEMISE

CHARTER PARTIES
Demise or bareboat

Non-demise

VOYAGE AND TIME CHARTER

PARTIES
Voyage charter parties

The voyage charter party is a contract where the

Owner (who equips the ship) pledges to set the
ship fully equipped and in a navigable state at the
disposal of the Charterer for a certain trip or trips
against the freight the Charterer pledges to pay.
In the contract:1.
2.
3.
4.
5.

name of the Owner,

name of the Charterer,
addresses of both,
name of the ship,
its nationality,

tonnage and other specifications necessary for

appointing it,
7. sort of cargo,
8. amount and specifications thereof,
9. place of charge ,
10. time agreed upon,
11. freight and method of its calculation , and
12. data of the trips agreed upon.
6.

TYPES OF NON-DEMISE VOYAGE

CHARTERS

Gross terms form of charter

The

most common form of charter used by tramps

Shipowners pay all expenses incurred in loading,
discharging, port charges & voyage cost

FIO charter
Free

in & Out i.e. charter pays for loading/

discharging of cargo. Other expenses by shipowner

Lump sum charter

Charterer

pays lump sum for the use of the ship &

owner guarantees certain amount of space &
maximum weight permissible
Important when charterer wants to load a mix cargo

CONT.

Liner terms
An

inclusive freight rate that covers loading &

discharging costs, stowage and requires agreement on
appointment of stevedores
Evident in short sea area of tramp shipping

Berth terms
Shipowner

agrees to his vessel loading or discharging

operation subject to the custom of the port where
cargo handling is taking place or he may agree that
the vessel will load or discharge as fast as possible

Time charter

BALTIC & INTERNATIONAL

MARITIME COUNCIL
BIMCO approved or recommended about sixty
charter parties for certain specified trades.
BIMCO is the authority on chartering and
related documents on the chartering.

Sample of document:
https://www.bimco.org/~/media/Documents/Doc
ument_Samples/Waybills_and_Cargo_Receipts/S
ample_Copy_GENWAYBILL.ashx


1.

2.

3.

4.

BIMCO activities:Membership in 123 countries & experience in

technical, legal, commercial and documentary
expertise.
A member owed money : owner having problems
getting payment for freight or demurrage or agent
having difficulties
Matters relating to security: piracy, armed robbery,
stowaways, drug smuggling, terrorism, fraud and
extortion
A close watch is focused on the security of ships &
BIMCO received a report of incident from members
or other sources

5.
6.
7.

Continuous dialogue is maintained on enforcing

safety at sea.
Shipping information through website
A wide range of publications are available.

VOYAGE ESTIMATES
The aim is to provide the shipowner (or
charterer) with an estimate of the probable
financial return that can be expected from a
prospective voyage.
Owner will be able to compare several possible
alternatives and decide upon the most profitable
and suitable venture.
Estimator should be as accurate as is reasonably
possible.

SALE & PURCHASE OF SHIPS

A specialized activity undertaken by a sale &
purchase broker
Ships may be sold for scrap or operational
purposes
Details of a possible ship sale:

Classification

society
Dwt, dimensions & draught, year of build, place,
shipbuilder, cubic capacities, deck arrangements,
water ballast capacities, no of holds & hatches,
machinery details & builders, hp, sp & consumption,
bunker capacity, special & classification survey
position

CONT.
Purpose-built tonnage detail of special facilities
i.e. refrigeration plant, tanker capacity, container
capacity, passenger accommodation, derricks, car
decks etc.
Light displacement including propeller details &
if spare tail shaft on board
Ship price and position for inspection and
delivery
A Memorandum of Agreement will be prepared
for normal sale & purchase. In sale for scap a
simpler procedure using Bill of Sale will be
prepared.

THANK
YOU
& GOOD
LUCK