Voyage Charter Terms https://danil-hristich.com/en/time-charter-and-voyage-charter-general-guide/

Main terms of a voyage charter:

• Ship’s name and description (IMO number, flag, class, year built, tonnage, etc.)
• Location of the vessel at the time of the charter
• Expected date of readiness to load
• Description and quantity of cargo
• Ports of loading and discharge
• Freight rate
• Laydays and cancelling date – the period for loading/discharge and the date after which the charterer can terminate the charter if the vessel does not arrive at the port
• Notice of Readiness – provisions for tendering a notice of the vessel’s readiness to load or discharge
• Rates of loading and discharge
• Demurrage and despatch
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  The shipowner holds responsibility for the actions of the master and crew. The shipowner may not only be the registered owner of the vessel but can also be a time charterer or bareboat charterer.

  In a voyage charter, the shipowner covers expenses such as bunker fuel, wages for the master and crew, port charges, and other vessel-related costs. These expenses are factored into the freight rate. The shipowner also bears the cost of any necessary repairs to the vessel.

  The main responsibility of the charterer in a voyage charter is to supply the cargo and pay the freight. The shipowner handles everything else.

  In a time charter, the vessel is chartered for a specified period rather than for transporting particular cargo from one location to another. The shipowner provides and pays for the master and crew, as well as the insurance for the vessel. As with a voyage charter, the shipowner is accountable for their actions.

  A time charterer has more responsibilities:

  • Instead of paying freight for the carriage, the charterer pays hire, which is a fixed fee for using the vessel. Typically, hire is paid monthly or semi-monthly.
  • The charterer is responsible for costs such as bunker fuel, port charges, loading and unloading fees, and agency services.
  • There is no laytime or demurrage in a time charter since the charterer uses the vessel at their discretion.

  Key Terms of Voyage Charter and Time Charter

  A charterparty includes two types of terms: implied and express. Implied terms automatically apply to all charterparties by fact or law, even if not explicitly mentioned. Express terms are the specific conditions stated in the charterparty.

  Implied Terms

  Five primary implied terms include:

  1. The shipowner must provide a seaworthy vessel at the beginning of the voyage.
  2. The vessel must proceed with reasonable dispatch.
  3. There must be no unjustifiable deviation.
  4. Dangerous goods must not be shipped without prior notice.
  5. Safe ports for loading and discharge must be nominated.

  This list is not exhaustive.