Sea vessels chartering

Chartering a vessel - searching for the required tonnage (the entire vessel or a specific place on the vessel) for the carriage of cargo with the subsequent registration of contractual obligations. Chartering is an agreement for hiring of a vessel to perform a specific transportation (voyage) or just for a specified period of time.

Or in the opposite case, when the shipowner is looking for a cargo to conclude a contract for its transportation, it is also called chartering.

General information

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A person chartering a tonnage (ship) is called a charterer. A shipowner providing a vessel for sea transportation of goods is called a freighter. According to the drafted charter agreement, the freighter undertakes to transport the cargo from port A to port B and the charterer to pay a specified fee (freight) for this service.

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In fact, a shipping contract is an agreement. Under this agreement, one party (shipping company, ship owner, carrier, charterer) undertakes to transport from one port to another, and the other party (charterer, cargo owner) to commit its financial obligations.

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Chartering of a vessel is carried out by a qualified intermediary - a freight broker. Brokerage firms or individuals can act as intermediaries.

A freight broker is a highly qualified specialist who has extensive experience and certain knowledge. The broker must know everything about the conjuncture of the world freight market, be informed about the supply and demand for tonnage and various cargo flows.

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 A shipowner with a free tonnage searches for a cargo on the market with the help of a freight broker, most often it is container shipping.

Carriage contract

The conclusion of contracts for the carriage - is a certain process of negotiations between the ship owner and the charterer. In the modern world, freight transactions are concluded between parties that are thousands of kilometers apart, but thanks to modern means of communication, negotiations are fast.

The main types of charters:

  • Voyage charter

    the ship is chartered for a specific voyage

  • Time Charter

    charter contract for a specific time

  • Bareboat charter

    a type of contract for the charter of a ship for a time. In this case, the charterer deals with all organizational issues and payments. Thus, the charterer becomes the temporary owner of a vessel.

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