What is meant by contract of affreightment?
A contract of affreightment is a contract between a ship-owner and a charterer, in which the ship-owner agrees to carry goods for the charterer in the ship, or to give the charterer the use of the whole or part of the ship’s cargo-carrying space for the carriage of goods on a specified voyage or voyages or for a …
What are the forms of contract of affreightment?
There are mainly two forms of a contract of affreightment used in the business: bill of lading and charter party.
Which term defines the delivery of a vessel to a charterer?
Chartering is an activity within the shipping industry whereby a shipowner hires out the use of their vessel to a charterer. The three main types of charter are: demise charter, voyage charter, and time charter.
When a vessel is under a time charter and the bill of lading is signed for the master by the time charterer who is the carrier?
Under most charterparties, the charterer will have the express right to present bills of lading to the master for signature. Bills of lading issued and signed by the master (as agent of the shipowner) in this way will likely mean that the owner is deemed to be the carrier under the contract of carriage.
What is the difference between charter party and contract of affreightment?
While it is possible to have a charter party of less than the entire ship, as a general rule a charter party deals with the full reach of a ship while a contract of affreightment deals with carriage of goods forming only part of the cargo and coming under a bill of lading.
What are conditions of carriage?
The Conditions of Carriage identify the interests of the customer, and are drafted to protect the carrier. The conditions also define clear areas of responsibility for both parties, and cover all modes of transport, including road, rail, air and sea. They can be varied to suit both parties’ needs.
What does a charterer do?
Charterers essentially take overall responsibility for the operation of the vessel and expenses for the duration including appointing the ship’s crew and also the management, operation and navigation of the vessel..
Are shipper and charterer the same?
Charterer is the party that has chartered (think of simple word “hired”) the ship. If the shipper has chartered the entire ship then shipper will also be the charterer. This is particularly the case if there are more than one shippers.
What is charter bill of lading?
Charter party bill of lading is another type of bill of lading used under sea mode of transport. If one shipper or a group of shippers arrange to charter their goods to final destination, a vessel is chartered. This chartered vessel is meant to move the goods exclusively for such shipper or shippers.
Does bill of lading need to be signed?
A bill of lading is a legal document issued by a carrier to a shipper that details the type, quantity, and destination of the goods being carried. This document must accompany the shipped goods and must be signed by an authorized representative from the carrier, shipper, and receiver.
What is charter party agreement?
A charterparty (sometimes charter-party) is a maritime contract between a shipowner and a “charterer” for the hire of either a ship for the carriage of passengers or cargo, or a yacht for pleasure purposes. Charter party is a contract of carriage of goods in the case of employment of a tramp (charter boat).
What are the two 2 different types of charter party briefly discuss each and distinguish both?
The main types of charter parties are Bareboat Charter Party (sometimes called a Demise Charter). Time Charter Party and Voyage Charter Party. If your vessel is chartered it is of the utmost importance that you read the charter party carefully, especially the added clauses, until it is thoroughly understood.