CHARTERING

Types of Contract of Affreightment

Lump Sum Charter

With a lump sum charter, the ship is let against a fixed sum (lump sum). The loaded quantities are not taken into account but only the space of the ship that is made available to the charterer.

As mentioned before, there are three main ways of chartering:

the voyage charter;
the time charter; and
the bareboat charter or demise charter.

Usually, those contracts of affreightment which are fixed by means of a charter party, relate to a named ship, so that the ship owner is obliged to make that ship available to the charterer and no other one. In other paragraphs we will see that each type of contract of affreightment has its own specific characteristics. So, under the voyage charter, the laydays the demurrage, and the lay/can are of the utmost importance; under the time charter, the parameters of the ship, in terms of speed and fuel consumption are very important.

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