A contract of affreightment is not strictly a charter contract, but is somewhat similar to a voyage charter. Under a contract of affreightment the shipowner undertakes to carry a number of cargoes within a specified period of time on a specified route. Agreed frequency of cargoes may require more than one ship.
What is a voyage charter contract?
Voyage charters are contracts for the use of the ship and her crew to carry an agreed cargo on an agreed voyage regardless of time in exchange for the payment of freight and other remuneration such as demurrage. Under a time charter, the charterer is obliged to pay hire continuously for the use of the ship.
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.
Who are the main contracting parties in a contract of affreightment?
Essentially, such a contract is an agreement between two parties, the carrier and the shipper. The carrier undertakes to carry the goods to a specified destination, and the shipper to pay the freight.
What is the contract of affreightment explain the contract of affreightment in relation to the concept of charter party and the bill of lading?
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 …
How does contract of affreightment work?
Contract of Affreightment is an agreement between a charterer and a shipowner, where the shipowner agrees to transport specific number of goods for the charterer at a specified period. Under this agreement, the charterer is obligated to pay the freight whether the goods are ready for shipment or not.
What are the characteristics of voyage charter?
CHARACTERISTICS OF VOYAGE CHARTERING
- Specific vessel, specific cargo, specific port and specific route.
- Rights, duties and responsibilities of ship-owners and charterers are determined by the charter party.
What is contract of affreightment COA?
The main purpose of a contract of affreightment (COA) is to oblige a carrier to lift a fixed or determinable quantity of cargo of a specified type over a given period of time. Freight is payable on the quantity of cargo transported and the carrier bears the risk of delay en route.
What is meant by contract of affreightment?
Who owns the ship at the end of a demise charter?
charterer In a bare-boat or demise charter, on the other hand, the owner gives possession of the ship to the charterer and the charterer hires its own master and crew. The bare-boat charterer is sometimes called a “disponent owner”.
What does COA mean in logistics?
The main purpose of a contract of affreightment (COA) is to oblige a carrier to lift a fixed or determinable quantity of cargo of a specified type over a given period of time.
When should the freight payable to owner?
“Freight” is often payable under charter party terms partially in advance, e.g. on loading, or on the issue of bills of lading. It may depend in amount on the intaken weight of cargo, or (less commonly) on the outturn weight, the cargo volume, cargo value, or on some other stipulated basis.
What is a contract of affreightment?
A contract of affreightment is an agreement between an owner and a charterer for the carriage of a certain amount and type of goods between agreed ports over a given period of time. It is not limited to a particular ship, but operates as a series of voyage charter parties.
When chartering a ship for a time or voyage charter?
When chartering a ship for a time or voyage charter, ensure that it is protected throughout the contract period. The charterer charters the ship from the shipowner by having an agreement in the form of a Contract of Affreightment. Such an agreement brings certain obligations which need to be aware of.
Can a ship owner charter a ship?
Furthermore, shipowner or ship operator charter in ships if his own fleet is engaged in more profitable employment elsewhere. Contracts of Affreightment (COA) is common with owners of small coasters employed in short voyages, as it saves having to charter a ship for each movement.
What is a standard charterparty form?
Standard charterparty forms are designed to be used in conjunction with voyage charter forms for each voyage which is undertaken under the Contracts of Affreightment (COA).
