CHARTERING

Types of Contract of Affreightment

The Voyage Charter

The voyage charter is a contract for the carriage of a stated quantity and type of cargo, by a named vessel between named ports against an agreed price, called freight. It is the most widespread form of chartering.

Several possibilities can occur:

a. The entire ship is chartered for the transport of a full cargo, and this:

for a well determined voyage;
for a voyage to go and return
for a series of specific voyages
for a round trip with different harbours and the right for the charterer to load and discharge.

b. Part of the ship is chartered for the transport of a certain shipment or part cargo.

If the ship is chartered entirely, the agreement will usually be noted by a charter party, although, under certain legislations, this agreement may also be materialized by other means, even by testimony.

Usually, under a voyage charter both the fixed costs and the variable costs are at the expense of the ship owner. In the contract of affreightment it is clearly stipulated who must pay the cargo handling cost. (See further Shipping Costs.)

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