Types of charters
Different types of charters are available for different purposes. They are as follows
This is an agreement to carry a specified cargo from nominated load port/s to one or more nominated disports. Laydays, demurrage rate are fixed under the voyage charter. Compensation of voyage charter is freight. Freight in tanker voyage charter is normally paid upon completion discharge.
COA ( Contract of Affreightment) CVS (Consecutive voyages) are nothing but a series of voyage charters for a specified period/ No. of voyages are quantity to be carried.
This is an agreement to lease the service of a named tanker for a definite period of time. The owner makes available the crew and supplies and covers insurance on the hull and machinery. The charterer bears the cost of fuel, port charges and other incidentals like agency fees etc. The rate or charter hire is fixed either on lumpsum or DWT per month basis or on a lump some basis . The charterer is free to use the tanker to the limit of her capacity over any routes and for any product ,both not specifically barred in the contract. Time charter hire is always paid in advance.
An agreement by the charterer to take over a named tanker without crew or stores and operate the ship as if owned, at a fixed price per DWT for the period specified. On expiry, the tanker is returned to owner in the condition prevailing at the time of hiring except for normal wear and tear.
International code for security of ships and of port facilities (ISPS) has stringent provisions. Some other important International regulations are Carriage of Goods by Sea Act (COGSA) Marine Pollution Prevention regulation (MARPOL), Safety of Life at Sea (SOLAS) International Safety Management (ISM)