Marine Link
Saturday, November 17, 2018

Maritime Contracts

Contracts between vessel owners and charterers concerning the water transportation of goods are technically known in admiralty law as "contracts of affreightment". The charterer agrees to pay a freight charge for cargo space. The voyage, amount of cargo space, and time of delivery will all be covered by the contract. One common type of contract is the “voyage” charter. This type of charter usually concerns the hire of a vessel ‘s entire cargo space for one or more specific voyages.

If the charterer does not require the use of an entire ship, the agreement will specify what portion of the cargo is used and is referred to as a "space" charter. With these types of charter, the master (or agent) will give the shipper a bill of lading, to document the title to the goods and serve as receipt. The bill of lading is not in itself a charter or contract; the voyage charter is considered to be the governing carriage contract.

Another very common arrangement is known as a "time" charter. A time charter is similar to a voyage charter in that the charterer may direct the movements and cargoes carried during an agreed period of time and under certain limitations. Under a time charter, the shipowner is usually responsible for employing the master and crew for the specified duration.

Alternatively, the charterer may contract use of an entire ship, taking possession and control of the entire vessel for an agreed-upon period of time. This kind of contract is referred to as "a demise of the ship" or "bareboat charter" and effectively transfers ship-owner status for a very specific time. The contractor will be responsible for crew and personnel, repairs and supplies, and other duties of a ship-owner. This contract is much less common than contracts of affreightment.

Tags: Maritime Contracts

Image: BIMCO

Dispute Resolution Clauses - BIMCO

A new edition of BIMCO’s Dispute Resolution Clause has been published. New wording…

Drilling Control Centre: Image courtesy of Kongsberg

China, Korea, Yards Place Kongsberg Maritime Contracts

CIMC Yantai Raffles in China and STX Offshore & Shipbuilding in Korea have selected…

Thomas H. Belknap, Blank Rome LLP

“Maritime … Or Not?”

Here is a multiple choice question:  which of the following contracts is considered…

Nelson Designated MarAd Deputy Administrator

President George W. Bush appointed Julie A. Nelson as the Deputy Administrator of…

Nelson Named MARAD Chief Counsel

U.S. Transportation Secretary Norman Y. Mineta announced the appointment of Julie…

Related Articles

Ship Repair

All ships need maintenance and repairs. Many repair and maintanance operations can be performed at sea or by the crew in port. Complicated or large-scale repairs might require the ship to be removed from commercial operation. Classification…

Pipelines

Modern pipelines are installed with and other control devices (pumps and valves) to efficiently move liquids, gases, slurries (solid particulates in liquid suspension) and even solids. Pipelines usually consist of welded sections of metal pipe…

Offshore Oil

"Offshore" refers to the discovery and development of oil and gas resources which lie underwater. Usually the term refers to ocean-based oil extraction , though the term can also apply to drilling in lakes and inland seas. The remote locations…

Naval Architecture

Naval architecture is the field of engineering which deals with the design, construction and repair of ships, boats, and other marine vehicles. Ship and vessel design relies on many of the same technologies and engineering expertise found on shore…
Maritime Reporter Magazine Cover Nov 2018 - Workboat Edition

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

Subscribe
Maritime Reporter E-News subscription

Maritime Reporter E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

Subscribe for Maritime Reporter E-News