Charter of charter party and regulations should be clear

The charter party is an important document in which the carrier undertakes to transport the cargo from one port to the consignee at another port, while the charterer undertakes to pay the freight.

What is a charter party?

The voyage charter party is a document in which the shipowner or carrier undertakes to transport goods from one port to the consignee at another port. And the charterer pledged to pay the freight as agreed by both parties.

The charter party is signed when the charterer has a large volume of cargo to be transported such as open oil, coal, ore, grain, cement, fertilizer, iron, steel, etc.

Hợp đồng thuê tàu chuyến

Ship chartering contracts are usually made according to the available forms of some maritime organizations such as Gencon, Centracon, Baltime, ...

Chartering is often complicated. Therefore, charterers usually go through brokers (which are forwarder companies - agents of shipping lines) to entrust chartering.

The main content of the charter party

1. The parties of the contract

Shipping line: the shipping line with the shipowner may be the same, or if the shipping line does not have a ship, they hire the shipowner to ship for 10 years, 20 years, etc.).
Charterer: charterers. Charterers can be either exporters or importers.
Broker: freight broker.

2. Regulations on the time the ship arrives at the port to load goods

Can specify an exact date or specified in a fixed period of time, or the following. However, charterers will always want the ship to arrive on the exact date, while shipping lines will want the ship's arrival time to load cargo more flexibly.

Hợp đồng thuê tàu chuyến

In some cases, the tenant needs to send goods urgently / very quickly and the ship is ready, both parties can negotiate special arrangements such as:

Prompt: the ship will arrive at the loading port within a few days after signing the contract.
Promptismo: the ship will arrive at the port of loading the day of signing the contract.
Spot prompt: the ship will arrive at the port of loading a few hours after signing the contract.

According to some laws, if the ship arrives before the prescribed loading time, the charterer does not necessarily deliver the goods. If the tenant starts making deliveries at an early arrival. Then the shipping time will start to count. If the ship arrives but has not had any goods to deliver, the number of days the ship will have to wait will be counted as the loading time.

To protect his rights. Some shippers will agree on the cancellation date if the ship does not arrive at the agreed-upon day. Because the owner must bear the cost of storage at the port. In fact, shippers really need ships, so they will flexibly negotiate case by case.

3. Regulations on loading port/unloading port

Depending on the purpose of minimizing risks, type of vessel (vessel's load), loading/unloading practices of shipping lines, topography, channels, and facilities of the port system of exporting/importing countries. The two sides will agree that the loading/unloading port is a port to define a cluster which may be one of the ports belonging to the specified port cluster.

Hợp đồng thuê tàu chuyến

If specified as a single port, the two parties shall write: loading port (loading port name) and discharging port (name of loading port).
If specified as a port of loading/unloading port, the two parties shall write a range of loading port and range of discharging port (name of the port of discharge).

Failure to specify the name of the loading/unloading port, but only the port/port cluster name, will cause risks for both parties because of additional charges (inland transport costs for goods owners or freight costs). load in river channels for shipping lines) due to the exact location of the loading and unloading port.

4. Provisions on goods

When chartering a ship transporting a certain volume of goods. The two parties must clearly specify the goods names, types of packages and characteristics of the goods. The charterer carrying two types of cargo on the same train should take note of or avoid any dispute in the future.

Regarding the number of goods, it is possible to rent cargo by weight or by volume, depending on the characteristics of the item. Usually, it is very rare to specify the quantity of freight. The charterer is responsible for fully stating the entire quantity of goods notified. If the delivery and loading on the ship are less than the specified number, the carrier will collect dead freight. In contrast, the carrier does not receive the full number of rules, the charterer has the right to claim the costs related to the ship's abandonment.

5. Provisions on postage charges and payment

Currently, there are 2 ways to calculate charges as follows:

How much is charged (in case the cargoes are not full of ships): the number of bases for freight calculation may be the number at the port of departure or the number at the port of destination. However, the application of quantity at the port of destination will incur additional costs of weighing / counting the contract, so the contract will usually state: “The number of bases for calculation of freight is the number at the port of departure. The charterer must pay an additional 2% of the total freight as compensation for the shipping company, not re-balancing the cargo. ”
In case of a full lumpsum subscription: the charge is calculated once for the whole ship, as long as the number is within the allowable shipping capacity of the ship.

Hợp đồng thuê tàu chuyến

There are 2 ways to pay freight/time of payment:

Prepay = pay at loading port = Freight Prepaid. Usually applied in the case of a charterer. Shipping lines want to minimize the risk should ask the seller to pay the rent before shipping the goods. The seller must complete the payment of freight, the new shipping company will ship the goods and issue the original bill of lading.
Postpaid = pay at unloading port = Freight Collect. Usually applied in the case of a charterer. The shipping company is still in control of the goods, so the charterer may owe freight until the goods arrive at the destination. The buyer must complete the freight payment, the shipping company will release the goods.

Above are useful sharing about charter boat charter that LEC Group shares to readers. If you are looking for a business that provides a full range of professional and reputable logistics services. Please pick up the phone and contact us form today!

Source: simex.edu.vn/hop-dong-thue-tau-chuyen-voyage-charter-party.html

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