Charter Party

I- THE CHARTER PARTY


A charter party is a document of contract by which a ship-owner agrees to lease, and the charterer agrees to hire, a vessel or all the cargo space, or a part of it, on termsand conditions forth in the charter party. If permitted to do so by the terms of charter party, the may enter into subcontracts with other shippers.

The main types of charter parties are BareboatCharter Party (sometimes called a Demise Charter). Time Charter Party and Voyage Charter Party.

If your vessel is chartered it is of the utmost importance that you read the charter party carefully,especially the added clauses, until it is thoroughly understood. It is advisable to have the officers read it as a matter of information and instruction and it will do no harm to discuss it withthem, especially with the chief officer.


The important clauses should be check-marked for quick reference. If any refer to dates of the notification of ETA to consignee or charterer's agent, make anote of the day the message is to be sent and be sure to send it.





II- TYPES OF CHARTER PARTIES




A. BAREBOAT CHARTER PARTY



By this type of charter, the ship-owner leases hisentire vessel and the charterer has the responsibility of operating it as though it were his own vessel. As the implies, the bare vessel is chartered. The ship-owner has, for the period covered by thecharter party, lost control of his vessel. The charterer pays all expenses: fuel, stores, provisions, harbor dues, pilotage, etc. and employs and pays the crew. There may, however, be a clause in thecharter party that the master and the chief engineer must be approved by the ship-owner. The charterer is responsible for the upkeep, preservation and safety of the vessel. Before delivery to thecharterer the vessel is surveyed by representatives of both parties and the same is done on redelivery. The charter party will stipulate that the must be redelivered in the same good order and condition...