feedback
Enter marine-related query and AI bot will look for best match in our DB.
 

A service contract under which a ship owner agrees to transport a specified quantity of fuel products or specialty products, at a specified rate per ton, between designated loading and discharge ports. This type contract differs from a spot or consecutive voyage charter in that no particular vessel is specified.



Related Terms

SPOT VOYAGE

A charter for a particular vessel to move a single cargo between specified loading port(s) and discharge port(s) in the immediate future. Contract rate (spot rate) covers total operating expenses, i.e., bunkers, port charges, canal tolls, crew's wages and food, insurance and repairs. Cargo owner absorbs, in addition, any expenses specifically levied against the cargo.

VOYAGE CHARTERER

The charterer has the services of the vessel for a specified voyage or voyages, and cargo which he must normally load and discharge at his expense within a specified time (see Laytime) in return for freight calculated on an agreed rate per ton of cargo or as a lump sum. The owner pays expenses such as fuel, port charges, and running costs of the vessel.

SPOT RATE

A charter contract rate for a particular vessel to move a single cargo between specified loading and discharge ports in the immediate future.

VESSEL LOAD FREE OUT

(VLFO) - The loading and discharge terms for the cargo to be shipped, as agreed to in the charterer party. The vessel (carrier) pays for the loading of the cargo on board the ship and the receiver pays for the discharge of the cargo from the ship to the pier.

TIME CHARTERER

The charterer has the use of the ship for a specific trip or a period of time during which he may employ her for his own account. He may direct her within the trading limits agreed in the charter-party and, in normal circumstances, the Master must obey these orders. While the time charterer has the commercial control, the owner retains responsibility for the vessel and the Master and crew remain in his employment. The hire, usually calculated per day or per deadweight metric or long ton, is paid in advance at regular, agreed intervals, normally semi-monthly or monthly. Normally, the charterer pays for the fuel on board at the time he accepts delivery and for fuel supplied while the vessel is on hire. When he hands the vessel back to the owner, the owner pays for what remains on board. The prices applicable on delivery and redelivery are the agreed bunker prices in the charter. The owner pays for the running costs of the vessel. If the ship breaks down or, as a result of the shipowner's fault, the charterer does not have the use of the vessel, the vessel goes 'off-hire' for that period subject to any terms in the charter-party. Time charterers may be owners who want to temporarily augment their own fleet; charterers who have a variety of commitments to meet; charterers who believe long-term chartering will hedge the market; operators who see a profit by taking voyage contracts from charterers and time chartering vessels themselves to cover those contracts. Where a time charterer issues and signs his own bill of lading, he may be held to be a 'carrier' for the purposes of the Carriage of Goods by Sea Act 1971.

BAREBOAT CHARTER PARTY

A charter party under which the owner provides the vessel only or bare, and the charterer provides the crew, stores, cargoes, etc. Usually these charters are entered into for a longer period of time. Bareboat Charters can also be known as charter-parties by demise. The registered owner passes over to the demise charterer the complete control and management of the ship. The demise charterer becomes, for all effective purposes, the owner during the duration of the contract. The Master and crew are his servants and may be appointed by him. The demise charterer is a 'carrier' for the purposes of the Carriage of Goods by Sea Act 1971. This form of charter party often involves new buildings and may be used as part of an arrangement to finance a ship. The owner puts up the money for the purchase of the ship and the demise charterer operates her as the disponent owner.

BERTH C/P

Term used in a voyage charter party, e.g. vessel shall proceed to Berth 2 at Falmouth.

VLFO

(Vessel Load Free Out) - the loading and discharge terms for the cargo to be shipped, as agreed to in the charterer party. The vessel (carrier) pays for the loading of the cargo on board the ship and the receiver pays for the discharge of the cargo from the ship to the pier.

PORTLOG

A statement concerning a vessel documenting the actual arrival and departure time used tugs, draft, dead- weight, quantity of discharged and loaded goods/containers and any other important particulars. It is like a statement of fact but usually used when the cargo is booked on liner terms where the owner has control over the loading and discharge and there is no Laytime involved. It is usually not signed.

SPACE CHARTERER

A charterer that contracts for a section or space within a ship for the carriage of merchandise. This can be one or part of a hold, or a few holds, but not the entire cargo carrying space within a ship. This space charter can be for one voyage or a period of time over several voyages depending on the terms of the governing charter party.

Related questions

MarineProHelp 2018 - 2020

First time here? Check out the FAQ!

If you've arrived to new location and wonder how to dress comfortably according to weather, check Comfiesto

×