CHARTERING

Parties involved

INTRODUCTION

The freight calculation depends on a lot of factors, especially under the voyage charter where not only the nature of the cargo plays a role, but also the voyage, the season, the port facilities and if the loading and/or discharging costs of the cargo are for the account of the ship or for the charterer's account.

There is also a considerable difference between "freight" and "hire" and for the latter, also between "bareboat charter" (or demise charter) and the ordinary "time charter".

To make this distinction clear, the costs in the shipping operations are classified in fixed costs or running costs, and variable costs. These costs will be discussed exhaustively later. (See also: Harbour Disbursements.)

Summarized we can state that the costs in shipping operations are composed of the following sections:

RUNNING COSTS

Running costs investment
- capital
- interests
- depreciations
Operating costs
- manning costs
- stores costs
- repairs and maintenance costs
- insurance
- administration

VARIABLE COSTS

Vessel's voyage costs
- fuel costs
Port voyage costs
- ports and light dues
- tugs and pilotage costs
- canal dues
- agency fees
- costs linked to the arrival and the sailing of the ship.
Cargo handling costs
- cargo handling costs
- cost for stowing of cargo
- claims

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