Charterparty

Charterparty meaning

Charterparty is a commercial agreement that plays a crucial role in the shipping industry. It outlines the terms and conditions of the contract between the shipowner and the charterer. The agreement essentially defines the details of the voyage, including the cargo to be transported, duration of the trip, and agreed freight rate. Charterparty agreements come in various forms and can include a range of factors such as the type of ship, the measurement of the cargo, and any loading or discharging requirements. These agreements must be clearly worded, legally binding, and equitable for both parties involved and they help to outline the rights and obligations of all parties involved and ensure the safe and timely delivery of cargoes.

Charterparties

Overall, Charterparties are an essential tool in the shipping industry, helping to ensure that goods are transported efficiently and that ships operate profitably. In such agreements, the owner of a particular vessel charters its use to another party, typically for the carriage of goods or passengers. These contracts are typically detailed, specifying everything from pickup and delivery locations to rates, responsibilities, and delivery methods. They can be either time charter or voyage charter. In time charters, the charterer leases the vessel for a specific period, whereas, in voyage charters, the hire is paid based on the distance and time it takes the vessel to transport goods between the discharge and loading ports.

charterparty contract

A charterparty contract is a contract for the hire of a ship. The charterparty contract is formed when the carrier has hired the ship from someone else, then the carrier also become the charterer. The position could also arise where the charterer is also the shipper, where the seller is making the deliveries. When the bill of lading is issued and signed and stamped on behalf of the carrier, what is important on whose behalf this has been issued? With charterparties there is a time charter or voyage charters. Under a time charter or voyage charter the crew master etc will stay on board and the ship still in the physical possession of the ship owner.

A charter by demise

This is a hiring of the ship with the charters crew on board. This will make a big difference because the master who signs the bill of lading, it will have to be determined who is signing on behalf of the charter or the ship owner. The charter becomes the legal carrier and when the bill of lading is used it is referred to as the bill of laden contract because the carrier has the physical possession of the goods.

Under a contract for the charter of a ship there are obligations on the charter, there is normally a clause that the ship owner has to get the ship to a certain port at a particular time.  There are also a number of clauses, to pay for fuel and a clause that disputes must go to arbitration. Another commonly found clause is for demurrage; this is the rate of pay each day you go over when you are docked in the port loading the goods. Can charterparty clauses become incorporated into the bill of lading? In the Skips case the court said you must look for clauses, which are relevant to the carrying of the cargo.  In this case there was an arbitration incorporation clause but it was not in the bill of lading. The court held the arbitration clause was not incorporated into the bill of lading through the general clause.

Law Books

Law Tutor is a former university law lecturer and barrister. This book is a part of our subject series. This is for anyone studying International Trade Law at the undergraduate or graduate levels. This book's first five chapters include the essential information you need to pass the course. You may find prior assessments with comprehensive written responses to essays and problem problems in the next six chapters. Any student studying international trade law should read this.