What is a charter agreement?
Charter Agreement means a lease or agreement to hire a vessel or other means of conveyance to transport goods or passengers to one or more designated locations.
What is Charter Party agreement & shipping order?
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. The voyage charter is the most common.
What does a charterer do?
Charterers essentially take overall responsibility for the operation of the vessel and expenses for the duration including appointing the ship’s crew and also the management, operation and navigation of the vessel..
Who pays for the fuel in a time charter party agreement?
Charterers shall provide and pay for all fuel AND ALL COSTS RELATED TO THEIR CHOSEN MANAGER’S RUNNING OF THE VESSEL (except fuel used for domestic services), towage and pilotage and shall pay agency fees, port charges, commissions, expenses of loading and unloading cargoes, canal dues and all charges other than those …
What is the contract between the owner of the vessel and the charterer for the use of the vessel?
A contract of affreightment is a contract between a ship-owner and a charterer, in which the ship-owner agrees to carry goods for the charterer in the ship, or to give the charterer the use of the whole or part of the ship’s cargo-carrying space for the carriage of goods on a specified voyage or voyages or for a …
Why is chartering a ship important?
Ship Chartering is an important process as it ensures that the organisation’s cargoes get delivered safely in the most cost-effective manner.
Who bears port cost in time charter?
A voyage charter refers to hiring a ship and crew for a voyage between a load port and a discharge port. The charterer pays the shipowner on a per-ton (weight) or lump-sum (single large payment) basis, while the shipowner pays the port costs (excluding stevedoring), fuel costs and crew costs.
Is a time charter a lease?
Time charter, bareboat charters and other arrangements that are widely used in the shipping industry will typically fall under the definition of a lease. Unlike the current practice, any lease arrangement with a term of more than 12 months will have to be recognized on the balance sheet in the manner explained below.
Which is the best definition of a time charter?
Time Charter means the Original Time Charter as novated by the Time Charter Novation Agreement and as further amended and supplemented pursuant to Addendum No. 2 dated April 2003 and including any extensions and replacement thereof pursuant to the terms thereof and including any other time charter (s) approved by the Lessor pursuant to clause 25.6;
Do you need an agent for a time charter?
Usually, the agents are there to help ship staff but if the vessel is on time charter, we need to be more cautious while handling with an agent. In a time charter, the loyalty of the agents lie with the charterer and not with the ship staff or shipowners.
How does fuel work on a time charter?
Under a time charter, the fuel costs are covered and paid by the charterer. The fuel supply is arranged by the charterer. When the ship is delivered to the charter, charterer/shipowner may carry out fuel oil survey to get the actual fuel oil onboard at the time of delivery of the vessel to the charterer.
Do you have to pay for bunkers on a time charter?
In this case, charterer needs to pay the shipowner for 150MT of HO and 50MT of DO. It would be another way around if the bunkers at the time of redelivery are more than the bunker that was handed over to the charterers at the time of vessel delivery.