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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 leisure.[1]
Charter party is a contract of carriage of cargo in the case of employment of a (charter boat). It means that the charter party will clearly and unambiguously set out the rights and responsibilities of the ship owner and the charterers and any subsequent dispute between them will be settled in the court of law or any agreed forum with reference to the agreed terms and conditions as embodied in the charter party. The name "charterparty" is an anglicisation of the Frenchcharte partie, or "split paper", i.e. a document written in duplicate so that each party retains half.[2][3]
There are three main types of charterparty: time, voyage and demise and another.
In a demise (or bareboat) charter, the charterer takes responsibility for the crewing and maintenance of the ship during the time of the charter. He assumes the legal responsibilities of the owner, and is known as a disponent owner.[citation needed]
In a time charter, the vessel is hired for a specific amount of time. The shipowner manages the vessel but the charterer gives orders for the employment of the vessel, and may sub-charter the vessel on a time charter or voyage charter basis.
In a voyage charter, the charterer hires the vessel for a single voyage, but the shipowner provides the master, crew, bunkering and supplies.[4]
A demise charter operates as a long lease of the vessel, with the charterer completely in charge. In time and voyage charters, the shipowner still runs the ship, but when in port the charterer becomes responsible for loading and unloading the ship within the agreed period of laytime. If the charterer exceeds the allowed laytime, demurrage[5] becomes payable.[6]
In a voyage charter, the route is pre-arranged and the charterer has little scope to interfere with the programme. By contrast, the time charter is almost a halfway-house between a demise charter and a voyage charter, in that the charterer decides on the voyages and the ports, and instructs the shipowner's crew to comply. This can lead to issues of indemnity: whereas the shipowner in a voyage charter takes responsibility for the ship, in a time charter the shipowner may need to be indemnified against losses or liabilities proximately caused by the charterer.
Legal aspects of charterpartiesEdit
Whereas a charterparty is the contract between a shipowner and a charterer, a contract of carriage lies between the shipper and the carrier. A carrier will issue a shipper with a bill of lading, a receipt for cargo shipped which also serves as evidence of the contract of carriage. (In a demise charter, the charterer is the carrier; in a time or voyage charter the shipowner is the carrier).
When a bill of lading is issued to a charterer by the shipowner, the question arises as to which is the dominant document.[8][9] If a shipper returns a bill of lading to a carrier (perhaps as a pledge), the carrier will hold it only as a token of the pledge.
In both USA and the UK, the COGSA legislation provide a statement of the minimum duties that a carrier owes to the cargo-owner. If the charterer has shipped cargo, charterparty document may incorporate the COGSA or the Harter Act, since the charter is also a cargo-owner. Such an incorporation is valid and enforceable even without the issuance of a bill of lading. In the reverse case, if a carrier issues a third-party shipper with a bill of lading that incorporates charterparty terms, the shipper/cargo-owner would not be liable for fees such as demurrage, which are payable only by a charter.
Lawsuits brought for the breach of an obligation under a charterparty fall within admiralty jurisdiction. If a breach of charter terms creates a maritime lien, the suit may be in rem (i.e. against the vessel itself).[citation needed]
In pleasure boating, the most frequent charter arrangement is bareboat yacht charter. A voyage or time charter is used only for larger yachts and is uncommon. Yacht charter flotillas are mostly made up of boats belonging to individuals or companies who only use their boats on a part-time basis or as an investment. A recent innovation in recreational boating is "time-share chartering" whereby several charterers are assigned a certain number of days per month or season in a manner which resembles real-estate time-share.
Typical clausesEdit
A charterparty may contain these clauses.
Bunker clauseEdit
A bunker clause stipulates that the charterer shall accept and pay for all fuel oil in the vessel's bunkers at port of delivery and conversely, (owners) shall pay for all fuel oil in the vessel's bunkers at port of re-delivery at current price at the respective ports. It is customary to agree upon a certain minimum and maximum quantity in bunkers on re-delivery of the vessel. Since the OW Bunker test case, ship operators need to take care to ensure that bunker supply terms are suitable.
Ship clauseEdit
Under this clause, the owner of the ship writes clearly that the ship would be seaworthy at the start of the voyage in every respect, in other words, the ship would be appropriate to travel to the country for which it is taken.
Ice clauseEdit
An ice clause is inserted in a bill of lading or a charterparty when a vessel is bound for a port or ports which may be closed to shipping by ice when the vessel arrives or after the vessel's arrival.
Lighterage clauseEdit
A lighterage clause is inserted into charter-parties which show as port of discharge any safe port in a certain range, e.g. Havre/Hamburg range.
Negligence clauseEdit
A negligence clause tends to exclude shipowner's or carrier's liability for loss or damage resulting from an act, default or neglect of the master, mariner, pilot or the servants of the carrier in the navigation of manoeuvring of a ship, not resulting, however, from want of due diligence by the owners of the ship or any of them or by the ship's husband or manager.
Ready berth clauseEdit
A ready berth clause is inserted in a charterparty, i.e. a stipulation to the effect that laydays will begin to count as soon as the vessel has arrived at the port of loading or discharge "whether in berth or not". It protects shipowner's interests against delays which arise from ships having to wait for a berth.
charterparty, charter, party, redirects, here, other, uses, charter, party, disambiguation, this, article, multiple, issues, please, help, improve, discuss, these, issues, talk, page, learn, when, remove, these, template, messages, this, article, needs, additi. Charter party redirects here For other uses see Charter Party disambiguation This article has multiple issues Please help improve it or discuss these issues on the talk page Learn how and when to remove these template messages This article needs additional citations for verification Please help improve this article by adding citations to reliable sources Unsourced material may be challenged and removed Find sources Charterparty news newspapers books scholar JSTOR January 2018 Learn how and when to remove this template message This article relies largely or entirely on a single source Relevant discussion may be found on the talk page Please help improve this article by introducing citations to additional sources Find sources Charterparty news newspapers books scholar JSTOR January 2018 Learn how and when to remove this template message 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 leisure 1 Charter party is a contract of carriage of cargo in the case of employment of a charter boat It means that the charter party will clearly and unambiguously set out the rights and responsibilities of the ship owner and the charterers and any subsequent dispute between them will be settled in the court of law or any agreed forum with reference to the agreed terms and conditions as embodied in the charter party The name charterparty is an anglicisation of the French charte partie or split paper i e a document written in duplicate so that each party retains half 2 3 Contents 1 Types of charterparty 2 Legal aspects of charterparties 3 Typical clauses 3 1 Bunker clause 3 2 Ship clause 3 3 Ice clause 3 4 Lighterage clause 3 5 Negligence clause 3 6 Ready berth clause 4 See also 5 References 6 External linksTypes of charterparty EditMain article Chartering shipping There are three main types of charterparty time voyage and demise and another In a demise or bareboat charter the charterer takes responsibility for the crewing and maintenance of the ship during the time of the charter He assumes the legal responsibilities of the owner and is known as a disponent owner citation needed In a time charter the vessel is hired for a specific amount of time The shipowner manages the vessel but the charterer gives orders for the employment of the vessel and may sub charter the vessel on a time charter or voyage charter basis In a voyage charter the charterer hires the vessel for a single voyage but the shipowner provides the master crew bunkering and supplies 4 A demise charter operates as a long lease of the vessel with the charterer completely in charge In time and voyage charters the shipowner still runs the ship but when in port the charterer becomes responsible for loading and unloading the ship within the agreed period of laytime If the charterer exceeds the allowed laytime demurrage 5 becomes payable 6 In a voyage charter the route is pre arranged and the charterer has little scope to interfere with the programme By contrast the time charter is almost a halfway house between a demise charter and a voyage charter in that the charterer decides on the voyages and the ports and instructs the shipowner s crew to comply This can lead to issues of indemnity whereas the shipowner in a voyage charter takes responsibility for the ship in a time charter the shipowner may need to be indemnified against losses or liabilities proximately caused by the charterer Legal aspects of charterparties EditWhereas a charterparty is the contract between a shipowner and a charterer a contract of carriage lies between the shipper and the carrier A carrier will issue a shipper with a bill of lading a receipt for cargo shipped which also serves as evidence of the contract of carriage In a demise charter the charterer is the carrier in a time or voyage charter the shipowner is the carrier The US Carriage of Goods by Sea Act COGSA and the UK Carriage of Goods by Sea Act 1971 which ratifies and incorporates the Hague Visby Rules do NOT apply to charterparties but do apply to bills of lading and similar documents such as ships delivery orders or sea waybills 7 When a bill of lading is issued to a charterer by the shipowner the question arises as to which is the dominant document 8 9 If a shipper returns a bill of lading to a carrier perhaps as a pledge the carrier will hold it only as a token of the pledge In both USA and the UK the COGSA legislation provide a statement of the minimum duties that a carrier owes to the cargo owner If the charterer has shipped cargo charterparty document may incorporate the COGSA or the Harter Act since the charter is also a cargo owner Such an incorporation is valid and enforceable even without the issuance of a bill of lading In the reverse case if a carrier issues a third party shipper with a bill of lading that incorporates charterparty terms the shipper cargo owner would not be liable for fees such as demurrage which are payable only by a charter Lawsuits brought for the breach of an obligation under a charterparty fall within admiralty jurisdiction If a breach of charter terms creates a maritime lien the suit may be in rem i e against the vessel itself citation needed In pleasure boating the most frequent charter arrangement is bareboat yacht charter A voyage or time charter is used only for larger yachts and is uncommon Yacht charter flotillas are mostly made up of boats belonging to individuals or companies who only use their boats on a part time basis or as an investment A recent innovation in recreational boating is time share chartering whereby several charterers are assigned a certain number of days per month or season in a manner which resembles real estate time share Typical clauses EditA charterparty may contain these clauses Bunker clause Edit A bunker clause stipulates that the charterer shall accept and pay for all fuel oil in the vessel s bunkers at port of delivery and conversely owners shall pay for all fuel oil in the vessel s bunkers at port of re delivery at current price at the respective ports It is customary to agree upon a certain minimum and maximum quantity in bunkers on re delivery of the vessel Since the OW Bunker test case ship operators need to take care to ensure that bunker supply terms are suitable Ship clause Edit Under this clause the owner of the ship writes clearly that the ship would be seaworthy at the start of the voyage in every respect in other words the ship would be appropriate to travel to the country for which it is taken Ice clause Edit An ice clause is inserted in a bill of lading or a charterparty when a vessel is bound for a port or ports which may be closed to shipping by ice when the vessel arrives or after the vessel s arrival Lighterage clause Edit A lighterage clause is inserted into charter parties which show as port of discharge any safe port in a certain range e g Havre Hamburg range Negligence clause Edit A negligence clause tends to exclude shipowner s or carrier s liability for loss or damage resulting from an act default or neglect of the master mariner pilot or the servants of the carrier in the navigation of manoeuvring of a ship not resulting however from want of due diligence by the owners of the ship or any of them or by the ship s husband or manager Ready berth clause Edit A ready berth clause is inserted in a charterparty i e a stipulation to the effect that laydays will begin to count as soon as the vessel has arrived at the port of loading or discharge whether in berth or not It protects shipowner s interests against delays which arise from ships having to wait for a berth See also EditAir charterReferences Edit CHARTER PARTY Definition amp Legal Meaning Black s Law Dictionary 2nd ed Retrieved March 10 2023 Chisholm Hugh ed 1911 Charter party Encyclopaedia Britannica Vol 5 11th ed Cambridge University Press p 953 The Latin term charta partita is a back formation and not a true etymological source Maritimeknowhow website voyage charter Archived July 14 2011 at the Wayback Machine Demurrage is a form of liquidated damages a penalty for exceeding laytime The Suisse Atlantique case Carriage of Goods by Sea Act 1992 The Draupner 1910 AC 450 HL The Henryk Sif 1982 1 LL R 456External links Edit Retrieved from https en wikipedia org w index php title Charterparty amp oldid 1150986223, wikipedia, wiki, book, books, library,
