CHARTER PARTIES

Introduction

The charter party is the written agreement between the Ship Owner and the charterer and is in fact the enactment (or charter) of their negotiations that contains the agreed terms and conditions. It is signed by both parties and as such, forms a very important chartering document, which is not only of great utility to the parties concerned but also to the officers on board and to the port agents and hopefully, as little as possible to the lawyers.

The charter party can adopt any form and can be drawn up by anybody (individual, company, etc.); however it is preferable to use standard charter parties. Such charter parties can be established in function for a specific use (for well defined cargoes and specific routes) or adopt a more general character. Some charter parties are specific for a time charter or a bareboat charter, whereas others are restricted to the transport of dry cargoes or are adapted to the requirements of tanker transport.

In a previous paragraph we already wrote that there are three important chartering modes, viz.: the voyage charter, the time charter and the bareboat charter. The voyage charter can be further subdivided in function for the specific goods which are transported (e.g. coals, ore, grain, etc.). Although each charter party has its own wording, terms and conditions, they all have nevertheless a number of elements in common. Those elements will be discussed in the relevant charter parties in detail.

See also: Packard, W., Sea-trading, Vol. 3, Trading, London, Fairplay Publications, 1986, 49 and following.

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