Marine Link
Monday, March 18, 2024

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

Copyright: byemo/AdobeStock

Five Common Mistakes in Maritime Contracts

“An ounce of prevention is worth a pound of cure.” – Henry de Bracton, DeLegibus…

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

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…

Ship Simulators

A ship simulator is an advanced training device; an electronic or mechanical system used to expose vessel operators and crew members to typical shipboard conditions and systems. Simulation training is not a substitute for the experience of training on an actual vessel…

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…

Salvage

Marine salvage is the process of rescuing a ship, its cargo, or other property from peril. Salvage encompasses rescue towing, putting out fires, patching or repairing a ship, refloating a sunken or grounded vessel, moving a disabled vessel in order to clear navigation channels…

Subscribe for
Maritime Reporter E-News

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