Session 3: Types of Charter Flashcards
What are the responsibilities of the shipper?
-Packaging
-secure the cargo
-Mark and label
-deliver
What is meant by charter?
A person or firm who enters into a contract with a ship owner for the transportation of cargo or passengers for a stipulated period of time
Give me 4 types of charter
- Voyage Charter: In a voyage charter, the ship is hired for a single voyage or journey from one port to another. The charterer typically pays a one-time fee for this service. A minimum weight to be loaded, otherwise ‘dead freight’ to be paid
(In simpler terms, if you rent the entire truck to move your belongings but end up filling only half of it, you still have to pay for the whole truck. In maritime terms, the unutilized space that you paid for is referred to as “dead freight.”)
- Time Charter: Hiring of a vessel for a specific period of time. Owner still manages the ship but the charterer selects the ports and direct where to go.
- Bareboat Charter: In a bareboat charter, the charterer gains almost complete control and possession of the vessel for a specific period. They are responsible for crewing, maintaining, and operating the ship as if they were the owner.
4.Demise charter: Similar to bareboat charter, only difference is that the owner supplies the master and crew in addition to hull maintenance
What is a charter Party?
A charter party is a legal contract or agreement in the maritime industry that outlines the terms, conditions, and details of the charter (rental or hire) of a ship or vessel, specifying the rights and responsibilities of both the shipowner and the charterer.
what’s a notice of readiness (NOR)
formal notification sent by the ship’s captain or master to the party chartering the vessel, indicating that the ship is ready to begin loading or unloading cargo at a specified port or location. It marks the starting point for calculating laytime and is an important document in maritime shipping
what are lay days?
are the agreed-upon number of days during which loading and unloading operations for cargo can take place without incurring additional charges or penalties in a maritime charter party agreement.
what is laytime?
is the specific period of time within the lay days during which loading and unloading operations for cargo can take place without incurring extra charges or penalties in a maritime charter party agreement. It is the actual time allowed for these cargo-handling activities.
what is demurrage?
fee or penalty charged in the shipping industry when cargo remains at a port or terminal beyond the agreed-upon time for loading or unloading. It compensates the shipowner for the extra time the vessel is delayed and occupies valuable port space.
what is despatch?
in the context of maritime shipping, is a reward or incentive offered by the shipowner to the charterer or cargo owner when cargo loading or unloading is completed more quickly than the agreed-upon laytime. It is essentially a payment for efficient and prompt cargo handling, designed to motivate quicker turnaround times at ports.
what is Bill of Lading (B/L)
crucial document in shipping that serves as a receipt for goods, evidence of a contract of carriage, and, in some cases, a document of title. It outlines the details of the cargo being shipped, the terms of transportation, and the responsibilities of the parties involved. The B/L is used to prove ownership of goods, facilitate trade, and ensure the smooth transfer of cargo from the shipper to the consignee.
