Charter Agreement

In the maritime context, a Charter Agreement refers to a legal contract between the owner of a vessel and a charterer who rents use of the vessel or a part of its cargo space. The agreement outlines the specific terms and conditions under which the vessel's services are offered. These terms may include the type of cargo to be carried, the route to be taken, the ports involved, and the duration of the charter. There are different types of charter agreements. A voyage charter is the hiring of a vessel and crew for a voyage between a load port and a discharge port. The owner of the vessel earns freight. A time charter is the hiring of a vessel for a specific period of time; the owner still manages the vessel but the charterer selects the ports. A bareboat charter or demise charter is an arrangement for the chartering or hiring of a ship, whereby no crew or provisions are included as part of the agreement; instead, the people who rent the vessel from the owner are responsible for taking care of such things.