Define: Charter Party

A charter party is a legal contract between a shipowner and a charterer, outlining the terms and conditions for the hire or lease of a vessel for a specific period or voyage.

There are various types of charter parties, including time charters, voyage charters, and bareboat charters. Each type has its own specific terms and conditions.

Key provisions in a charter party include the description of the vessel, duration of the charter, freight rates, laytime and demurrage provisions, cargo handling responsibilities, and liability clauses.

Laytime refers to the agreed period of time during which the charterer has the right to load or discharge cargo. It is an important aspect of a charter party as it determines the time allowed for cargo operations.

Demurrage is a charge imposed on the charterer for exceeding the agreed laytime. It compensates the shipowner for the delay caused by the charterer’s failure to complete cargo operations within the specified time.

Yes, a charter party can be terminated before its agreed duration, but it usually requires the consent of both parties or may be subject to specific termination clauses mentioned in the contract.

Yes, charter parties are often subject to international laws and regulations, such as the United Nations Convention on Contracts for the International Sale of Goods (CISG) and the International Maritime Organization (IMO) regulations.

Yes, a charter party can be amended or modified, but any changes should be agreed upon by both parties and documented in writing to avoid any disputes or misunderstandings.

If you have a dispute related to a charter party, it is advisable to seek legal advice from a maritime lawyer who specialises in charter party disputes. They can guide you through the resolution process, which may involve negotiation, mediation, or arbitration.