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Charter Party

This document discusses various types of charter parties such as voyage charter parties, time charter parties, and demise charter parties. It explains the key differences between voyage and time charter parties. Specifically, it notes that under a voyage charter party, the owner bears costs of the voyage, while under a time charter party, the charterer pays a daily hire and covers costs like bunkers and port charges. The document also discusses clauses commonly found in charter parties and references rules and books related to charter parties.

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Chinnadurai Senguttuvan
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102 views

Charter Party

This document discusses various types of charter parties such as voyage charter parties, time charter parties, and demise charter parties. It explains the key differences between voyage and time charter parties. Specifically, it notes that under a voyage charter party, the owner bears costs of the voyage, while under a time charter party, the charterer pays a daily hire and covers costs like bunkers and port charges. The document also discusses clauses commonly found in charter parties and references rules and books related to charter parties.

Uploaded by

Chinnadurai Senguttuvan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Charter party

prepared by Maisha Ahmed


Legal Intern at MCLAW SERVICES
Definition of Charter
party
Types of Charter party
Clause of Voyage ,
Time and Demise
charter party
Differences between
Voyage and Time
Charter Party
Hague Visby Rule
Charter Party and UCP
Issue
References
.

Charter
contract er takes
control

Contract of
affreightment
Voyage
charter
party

Types of Time
Charter charter
Party party

Demise
charter
party
Voyage charter

 Under this method a ship is chartered for a


one-way voyage
 specific ports with a specified cargo
 a negotiated rate of freight.
the owner bears all the expenses of the voyage
(subject to agreement about costs of loading and
discharging)
Owner’s
Preamble Responsibility

Freight Deviation
Loading
Demurrage Discharge ports

Laytime
Time Charter

The charterer hires the


vessel for a particular
period of time.

 The shipowner
receives the freight on
per day basis which is
settled every month or
every quarter.
Clauses

Owners to Charterers Time of Bunkers


Preamble provide to provide Delivery

Clauses

Excluded Cancellati Loss of Arbitratio


Overtime
Ports on Vessel n
Time Charter Parties Voyage Charter Parties
.•Ship owner be required to cover •Shipowner is not only responsible
all costs connected with crewing, for the costs associated with
maintenance of the vessel and crewing, maintenance of the vessel
insurance, but vessel fuel and insurance, but also pays for all
consumption and port charges will the costs of the voyage, including
be remunerated by the charterer bunkers and port charges
•Signed for a limited period of time •Are signed to carry specific
without dictating a fixed route to amount of goods between pre-
the charterer determined route
•Charterers pay daily hire to the •Charterers are obliged to pay the
shipowners of the vessels freight to the shipowners.
Demise Charter Party

Has ownership along with the privileges


of executives and control
Has the right to engage in pay the Master
and group
Act as the representatives for the time of
contract
On equality with the owner of a ship
The Rules
Art 1(b) of The Rules also do not
the Rules will not apply apply to
mentions to way bills charter
that only the or other non- parties
negotiable themselves
contracts of
documents as unless
carriage specifically
they are not
covered by a incorporated
document of
bill of title. in clause
lading. paramount.
•CPBL’S issued subject to the term’s and
condition’s

•A CPBL is synonymous with the


commodity or bulk shipment cargoes
•The goods are loaded and discharged
according to the terms of the charter party.
•The Bank do not consider CPBL as having
the same level of security as usual bill of
lading
 UCP 600 sub-article 22 (a) (i) states that a CPBL
must appear to have been signed by:
 The master or a named agent for or on behalf of
the master, or.
 The owner or a named agent for or on behalf of
the owner, or,
 The charterer or a named agent for or on behalf
of the charterer.
BOOK
 Cufley C, Ocean Freights & Chartering (Fletcher & Son Ltd, Norwich 1982)
 Hill C, Maritime Law (5th edn, Great Britain 1998)

Article
 Menon A, 'Voyage Charter Vs Time Charter' <https://www.marineinsight.com/maritime-
law/voyage-charter-vs-time-charter/> accessed 27 October 2020
 Clark P, 'CANCELLATION CLAUSES IMPORTANT IN VOYAGE CHARTER PARTIES'
<https://www.joc.com/maritime-news/cancellation-clauses-important-voyage-charter-
parties_19900926.html> accessed 28 October 2020
 Mathews M, 'Lawyers In India - Advocates,Law Firms,Attorney Directory,Lawyer,Vakil'
(Legalserviceindia.com, 2020) <http://www.legalserviceindia.com/article/l412-Charter-
Party.htm> accessed 27 October 2020
 Jassal C, 'A Latman's Guide To Lay Time, Charter Party Agreement And Voyage Charter'
<https://www.myseatime.com/blog/detail/laytime-and-voyage-charter-party> accessed 27
October 2020
 Augustyn A and others, 'Charter Party' (Encyclopædia Britannica 2018)
https://www.britannica.com/topic/charter-party
Website

 http://generalcargoship.com/voyage-charter-party-
clauses.html
 http://shipinspection.eu/coa-contract-of-
affreightment/
 https://www.tradefinance.training/blog/articles/a-
guide-to-charter-party-bills-of-lading-and-a-ucp-issue/
 'COA (Contract Of Affreightment) - Cult Of Sea' (Cult
of Sea, 2018) <https://cultofsea.com/glossary-of-
marine-terms/coa-contract-affreightment/> accessed
28 October 2020

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