A voyage charter is a contract between a ship owner and someone who wants to use the ship to transport cargo to a particular port. The ship and crew are provided by the owner, and the charterer pays for the ship’s use during the voyage. This is distinct from a time charter, where the ship is rented for a specific duration, or a bareboat charter, where the charterer assumes possession and control of the vessel.
A voyage charter is a type of agreement in the shipping industry where a shipowner provides a ship and crew to a charterer for the transportation of cargo to a specific port. The charterer can either lease the entire vessel or just a portion of it through a “space charter.” This is different from a time charter, which is for a set period of time rather than a specific task or voyage. For instance, if a company needs to move a large quantity of goods from one port to another, they may enter into a voyage charter with a shipowner. The shipowner will supply the vessel and crew, and the charterer will pay for the use of the vessel for the designated voyage. Another example is a slot charter, where the charterer leases one or more slots on a container vessel, with each slot accommodating a 20-foot container. This allows the charterer to lease as many slots as needed for their cargo. Overall, a voyage charter is a contractual agreement that enables efficient and cost-effective transportation of goods by sea between a shipowner and a charterer.
A voyage charter is a legal agreement between a shipowner and a charterer, where the shipowner agrees to transport goods or passengers from one port to another for a specified fee.
Key terms in a voyage charter include the description of the vessel, the duration of the charter, the ports of loading and discharge, the freight rate, laytime, demurrage, and any additional clauses or conditions agreed upon by the parties.
Laytime refers to the agreed period of time during which the charterer has the right to load or discharge cargo without incurring additional costs. It is usually expressed in days or hours.
Demurrage is the compensation paid by the charterer to the shipowner for any delay in loading or unloading beyond the agreed laytime. It is calculated based on a daily rate and aims to compensate the shipowner for the loss of time and potential earnings.
Yes, the shipowner has the right to refuse loading cargo if the charterer fails to pay the agreed freight rate. However, this right may be subject to any specific provisions or remedies outlined in the charter agreement.
Cancellation of a voyage charter after it has been signed is generally not allowed unless both parties agree to the cancellation or if there are specific provisions in the charter agreement allowing for cancellation under certain circumstances.
If the vessel encounters unforeseen circumstances, such as mechanical breakdown or adverse weather conditions, that prevent it from completing the voyage, the charterer may be entitled to compensation or a refund of any prepaid freight. This will depend on the specific provisions outlined in the charter agreement.
In some cases, the shipowner may have the right to substitute the vessel specified in the charter agreement, provided that the substitute vessel meets the agreed specifications and is suitable for the intended voyage. However, this right may be subject to any specific provisions or restrictions outlined in the charter agreement.
If the charterer fails to provide the cargo for loading within the agreed laytime, they may be liable to pay demurrage to the shipowner for the delay. The specific demurrage rate and any additional provisions regarding cargo availability should be outlined in the charter agreement.
In most cases, the charterer has the right to sub-charter the vessel to another party, subject to obtaining the shipowner’s consent. The terms and conditions of the sub-charter should be agreed upon by all parties involved and may be subject to any specific provisions outlined in the original voyage charter.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 16th April 2024.
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