In some cases a charterer may own cargo and employs a ship-broker to find a ship to deliver the cargo for a certain freight rate. Freight rates may be on a per-ton basis over a certain route (e.g. for round logs between Sabah and China) or alternatively may be expressed in terms of a total sum - normally in U.S. dollars - per day for the agreed duration of the charter.
A charterer may also be a party without their own cargoes who takes a vessel on charter for a specified period from the owner and then trades the ship to carry cargoes at a profit to the hire rate, or even makes a profit in a rising market by re-letting the ship out to other charterers.
Depending on the type of ship and the type of charter, normally a standard contract form called a charter party is used to record the exact rate, duration and terms agreed between the shipowner and the charterer.
Voyage charter
Is the charter or hiring of a vessel and crew for a voyage between a loading port and a discharging port. The charterer pays the vessel owner on a per-ton or lump-sum basis. The vessel owner pays the port costs (excluding stevedoring), fuel costs and crew costs.
Time charter
Is hiring of a vessel for a specific amount of time; the owner still manages the vessel, but the charterer selects the ports and direct the vessel where to go. The charterer pays for all fuel the vessel consumes, port charges and a daily "hire" to the owner of the vessel.
Bareboat charter
Is an arrangement for the hiring of a vessel, whereby no administration or technical maintenance are included as part of the agreement. The charterer pays for all operating expenses, including fuel, crew, port expenses and hull insurance. Usually, the charter period (normally years) ends with the charterer obtaining title (ownership) in the hull. Effectively, the owners are financing the purchase of the vessel.
Asean Network is providing the link of choice to those who are in need of chartering services upon request.
