Chartering a Ship
When it comes to engaging the services of a vessel, there is not much of a choice but to charter it and pay the shipowner (or operator) for use of the vessel for a voyage or for a period of time. This period can be for a particular voyage or for several voyages. In this article, we will be looking at chartering a ship for a voyage or for a period of time.
When chartering a ship, the charterer should be aware of the terms and conditions of the charter party. This will include the charter party, voyage charter party and any other documents that may apply to the contract.
The charter party should specify the duration of the charter, the vessel to be provided and its features (including, depending on the vessel, the cargo to be carried, the number of crew and the type of voyage to be undertaken). It should also include provisions on payment, insurance (including third party liability cover and P&I cover), and the conditions governing the voyage and any disputes that may arise.
In addition, the charter party should also include general terms and conditions, covering a wide range of activities such as loading and discharging of the cargo, any special instructions, the health and safety of the crew, the provision of safe and secure seamanship, the provision of a quality marine service and any other requirements that may be necessary.
Most charter parties are “in house” agreements. This means that the vessel is not hired for a single voyage, but for an extended period of time. During this period, the charterer is given the exclusive use of the vessel, and is responsible for the day to day operation of the same. Normally, the charterers are also responsible for crew wages, insurances, maintenance and repairs, loading and discharging of cargo and for any other costs that may be related to the operation of the vessel.
The term of the charter should be clearly specified in the charter party. Depending on the requirements of the charterers, it can vary from weeks to months or even years. Usually the charterers will have the obligation to maintain the vessel in a seaworthy condition and pay the government or other dues related to the vessel’s voyage. Generally, the charterers will also have an obligation to return the vessel at the end of the charter.
In addition, the charterer may also have to obtain specific permits and licenses prior to the commencement of the charter. These will include an authorization to operate the vessel and a permit for it to enter port or other areas. The charterer should also be aware of any appropriate environmental regulations.
Chartering a ship can be a daunting task, but with a bit of research and due diligence it can be a profitable and successful venture. Before entering into the charter party, it is essential to make sure that everything is clearly understood and accounted for, and that any risks have been thoroughly assessed.
