What is charter party and its types?

Charter party, contract by which the owner of a ship lets it to others for use in transporting a cargo. The shipowner continues to control the navigation and management of the vessel, but its carrying capacity is engaged by the charterer. Related Topics: Chartering.

What is charter party explain the main clauses of a charter party?

A charterparty (sometimes charter-party) is a maritime contract between a shipowner and a “charterer” for the hire of either a ship for the carriage of passengers or cargo, or a yacht for pleasure purposes. Charter party is a contract of carriage of goods in the case of employment of a tramp (charter boat).

How are voyage and Time Charter parties concluded?

Voyage and Time Charter Parties are, as a rule, concluded on the basis of standard contract forms, and such documentation therefore plays a role of considerable importance in present chartering practice. In 19 th century, shipowners and charterers first concerned themselves with the drafting of standard charter party forms.

What are the terms of a charter party contract?

The terms of the contract will depend on the shipowner, charterer and the market. The parties of charter party can also form there own terms of contract which would remain free from any other legal interference. in reality the parties of the contract follows those standards of contracts which are generally applicable.

How is laytime calculated in a charter party agreement?

The chartering term for this is “despatch”. Usually the agreed amount of despatch is about half of the agreed amount for demurrage. Finally at the end of the voyage, a statement is made to shows the time saved and/or extra time taken at different ports. Below is the simplified version of the laytime summary calculated at the end of the voyage.

Where did the Charter Party form come from?

Standard charter party forms were originally drafted and employed by individual contracting parties, but joint action was later undertaken by groups of shipowners and charterers. Three organisations have played a significant role in the development of internationally utilized standard forms namely: