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CHARTERING
Types of Contract of Affreightment
The Time Charter
The time charter is a contract for the hire of a named vessel for a specified period of time, during which time he may use the vessel as he wishes (exceptions considered of course).
The time during which the ship is chartered differs from contract to contract and can amount to several months or years, i.e. the period time charter; or only amount to the time that is necessary to undertake one complete voyage, i.e. the trip time charter.
Under the period time charter, the charterer can make as many trips during that period with the ship as he possibly can. Under the trip time charter, only a single trip can be made just as under a voyage charter but at time charter conditions.
Under a time charter the ship owner is only responsible for the nautical and technical operation of the ship whereas the charterer (in fact the time charterer) is responsible for the commercial operation of the ship. It follows that under a time charter, the fixed costs of the ship are for the account of the owner and the variable costs are for the account of the time charterer. (See also Classification of Operating Costs.)
With a traditional time charter the time charterer will hire the ship equipped and manned.
